You Can’t Avoid The Final Collapse
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
The International Labour Organisation (ILO) reports that 1.6 billion jobs are at risk in the global economy. That is half of the global workforce of 3.3 billion. Particularly vulnerable are the 2 billion people in the informal economy. For most, this means no income, no food and no security. This is a human tragedy on a massive scale, and most people in the Western world are totally unaware.
Up for discussion: half of all UK employees are paid by the state; real US unemployment is 39%; there is no solution; central banks panicked in the fall of 2019; misplaced irrational exuberance; there is no avoiding the final collapse; the markets; gold at $20,000; and silver at $1,666.
Von Greyerz writes that the Dow:gold ratio topped in 1999 at 45 and is now 13.7. This ratio has been in an upward correction since 2011, but has resumed the downward trend. This is similar to the correction in the 1970s. What makes this so fascinating is the amplitude of the moves. From the Fed’s creation (1913) and the closing of the gold window (1971), the chart shows major swings, and tops and bottoms are more exaggerated than before 1913. This is caused by central banks’ interference, and their manipulation of markets. There are no real markets today; prices are set in a casino with no basis in reality. The credit expansion and fake money have led to fake prices in virtually all instruments.
According to the Dow:gold chart, the next target in the ratio is likely to be 0.5:1 or lower. In 1980 it was 1:1 (Dow 850 and gold $850). The trend line is now at 0.5, which means that the Dow is likely to fall by at least 96% versus gold in the next few years. Von Greyerz believes it could overshoot and go lower.
But even if the Dow only fell to 10,000, at a Dow:gold ratio of 0.5, that would mean a gold price of $20,000, which von Greyerz believes is possible, even without high inflation.
