Americans are totally unprepared for the coming collapse in the U.S. Financial Ponzi Scheme and Economy. While the highly-leveraged debt-based U.S. financial system and economy were going to implode on their own in due time, the global contagion has sped up the process considerably.
Unfortunately, there is no way that the U.S. economy will ever return back to the level it was at the end of 2019. Furthermore, I believe that the United States reached the ultimate peak of unconventional shale oil production. This is terrible news for the U.S. government policy of “U.S. Energy Independence.” With the oil price trading at $20, and soon to reach the single digits, shale oil companies are being destroyed DAY IN & DAY OUT.
With the destruction of the U.S. Shale Industry now taking place right in front of our eyes, the “LAST HOPE” for continuing business as usual, the Collapse of the U.S. Financial Ponzi Scheme has begun. I discussed the details in my newest video, U.S. Ponzi Scheme Collapse Lead To Exploding Gold & Silver Prices:
In the new video update, I provide colorful charts, including information you can’t find anywhere else on the internet. One of these charts shows how the massive increase in total U.S. debt was the primary factor in driving U.S. GDP to a record of $21.7 trillion in 2019. Early on, the increase in the United States energy consumption paralleled the rise in the country’s GDP and total debt levels. However, this all changed after 1970; when U.S. conventional oil production peaked, followed by Nixon dropping the Gold-Dollar peg.
The U.S. Financial Ponzi Scheme and Economy have been propped up by growing or stable energy consumption. Now that U.S. oil demand has fallen off a cliff, it is destroying financial assets left and right. Thus, the Fed is currently buying everything but stocks… which it may shortly. With the majority of U.S. Household Assets invested in Financial Assets, the global contagion is now detonating the TICKING TIMEBOMB. It’s only a matter of time before a large percentage of U.S. Household Asset values evaporate.
I then compare U.S. Household Asset values to total Global Gold and Silver Investment. To see this comparison, you have to watch the video above.
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Steve,
Excellent analysis indeed. I would add that a lot of people who think there jewelry, baseball cards, and other collectibles are worth big money will soon find out how little value they are in the next 1-3 years.
Thanks as always for your efforts.
In a crisis, that which a thief (in haste) might steal, is that which has the most barter or resale value for currency.
Jewelry (although gemstone resale value will decrease), cash, gold, silver, quality firearms, and few other things.
Not oversized homes, golf clubs, expensive furniture or clothes, shoes, or big screen TVs, or overpriced status vehicles.
I’m thinking that it might not be a good idea to barter with gold and silver. They would attract murderers and robbery. A better way to barter is likely ammunitions.
If one barters with ammunition…someone. might rob you with it.
Stash flashlights & batteries or something harmless!
We would be much less likely robbed when another gay knows that we have firearms.
Doomsayers do not understand that if society collapses PMs will also be worthless. If you are dying of hunger or are frequently robbed, you do not need gold. PMs afficionados can benefit on condition that the crisis is not very acute and the government can maintain stability and security. After the fall of the Roman empire social structures dissipated and PMs owners were simply killed. That is why we can find their riches buried underground.
*
The American society still functions at this moment. However, I wouldn’t mention my PM with anyone who is not a close family member due to potential physical risk.
Yes if it gets that bad. But PM’s would be the last asset class to be without value [other than hidden food]
Let’s call this for what it is. The last “gasps”. I wish it wasn’t so, but I fear it is.
There will not be another.
This Sunday evening, oil has fallen to 1999 levels. Below $16. Motor oil per gallon costs more at Walmart. The price will probably rebound some this week due to something Trump says, but the damage is going to be exponential now with no return.
Unbearable. Almost like waiting for an army to start advancing towards my position, being outnumbered 20-1.
Triple AAA+ Video Steve. I really enjoyed it. And I can see the effort put into it. Thank you ?
I think we are in the center of the cyclone and the money printing is going to continue. If this is the case we could still see a #DOWJ at 40,000. Here in Australia the MSM constantly refer to a “V” shaped recovery and normality continuing where it left off some weeks ago. There is also an ongoing debate on how all the debt currently being accumulated by governments will be paid back.
IMO, they are all up themselves spreading delusional information based on their misunderstanding of exponential growth in Stocks and tangible resources in a finite world. If you are not a wanker, it is not rocket science!
The debt will never be paid back.
BTW the “Perth Mint” Australia appears to be out of “Bullion” in Gold and Silver. If anyone one from the “Perth Mint” reads this forum, maybe they can give us some info on their position regarding future supply.
Curiously you also haven’t been able to buy 1kg silver bars from the UK royal mint for over a month now (this is the only physical commodity I’ve been tracking not sure about the others…). Thanks for your continued data insight Steve.
When the market crashed in March, the price of Gold fell as it was sold off to finance liquidity
for the market. Well surely when all these large loans, which are on the oil companies books
need re-financing, then i can see gold being sold off again in order to raise the necessary
cashflow ????. THEN it will be time to buy gold. But – what do i know.
Many thanks to Steve for the video. Very informative, as usual.
Add to all these, the unresolved COVID-19 trouble affecting silver mining operations, hence the supply. Actually, there are many uncertainties:
1. It is not clear whether the closed Mexican and Peruvian mines will resume full operation at the times stated by their respective governments. It is possible that shutdown periods could be extended. Mexico and Peru are the top two producers of silver.
2. It is also possible that silver mines and/or associated facilities in other countries may be shut down or slow activity as well. Perhaps this is already taking place ? Mines are closed circuit spaces with limited capacity for effective ventilation. They are cold, damp and devoid of sunlight. Ideal for virus persistence and spread.
3. Any number as to how many miners working in silver mines have died or become incapacitated due to COVID-19 ? Any official information ? These are skilled and hard to replace personnel. Premature opening of mines could well lead to further losses.
4. Mint shutdowns do not make the supply situation better.
5. It is totally unknown when an effective therapy against the virus will be discovered. Even then, there will need to be testing and mass production phases.
No doubt, a persistent and marked reduction in silver mining output will augment the expected upside move.
“5. It is totally unknown when an effective therapy against the virus will be discovered. Even then, there will need to be testing and mass production phases.”
Isn’t Hydroxychloroquine an effective therapy / or cure???
Excerpt from the latest clinical verdict:
“At this point in time, there is no clear indication that chloroquine or hydroxychloroquine have a favorable effect on the outcomes of COVID-19. A large, double-blind, randomized clinical trial, DISCOVERY (ClinicalTrials.gov identifier: NCT04315948), comparing remdesivir, lopinavir–ritonavir, interferon β1-A, and chloroquine with standard of care in over 3000 patients, is under way and the first results should be reported soon.”
This notion seems to be the consensus among medical professionals. There are isolated case reports of success with hydroxychloroquine, but in nearly all of them, the drug was started very early in the course of the disease.
Also, hydroxychloroquine has been found to be useless for prevention.
Hence, it cannot be considered a definite cure. Let’s hope it proves to be useful in large-scale clinical trials, which represent the gold standard of medical evidence.
Gregg, my read on chloroquine is that
a. many experts feel the evidence for it is mostly anecdotal and they would prefer that large scale clinical trials be completed.
b. the media is biased against it because Trump has high hopes for it.
c. it seems to work better for early intervention, not so much someone in the ICU
“b. the media is biased against it because Trump has high hopes for it.”
I agree to that 100%. And I hope to see many of the media traitors in prison one of these days!
Vitamin C, exercise? …coronavirus killed off most of the miners overs 80.
Just for interest, it’s 6:30 Monday morning and crude oil has hit the $13 Handle! ?
10:45 AM Central: OIL: $10.38
I’m filling up my tank and going for long, long joy rides. Just doing my part to restore demand.
UPDATE: 12:15 PM Central Time: OIL: $4.70 per barrel. I can now afford that Cadillac Escalade.
Thanks Steve for your brilliant analysis yet again. Top notch, I have a FOMO at the moment with miners but I keep thinking they will get hit hard again on the next leg down so it’s better to stay out of the game for now. I’d be interested to hear other peoples take on this. Crude just hit $13 a barrel……
@Tim – I would stay away from all paper assets. Because they will all be settled in US dollars.
Steve, you’re one of the few who predicted single-digit crude oil. It’s as good as here (already!). Precious metals will fall into your line of thinking as well. Stocks, bonds and even cash have become liabilities.
Thanks for your hard work.
HOLY SHIT! $10 and collapsing!
Single digits and then to zero.
If this doesn’t end the world I don’t know what does.
I think you need to change the collapse forecast to imminent.
Bill & Brant,
Yeah, the May Futures price has indeed fallen to the $10 range, but it will be rolling over to the June Futures contract which is currently trading at $22, down $3. I see the June Futures price to fall even further this month, possibly to the $10-$15 range.
steve
Your analysis is fantastic Steve, do you think miners will be a good buy when the market tanks and better to stay out for now.
Tim Jones,
The stock market could head higher due to Fed Liquidity. However, when the EARNINGS are released, they are going to be horrible. So, the fundamentals will KICK IN, which will pull down the stock market again.
And, if we look at GLOBAL OIL DEMAND, that is also a very negative BASIS for falling GDP and STOCK MARKETS.
steve
Thanks for getting back Steve, so when will the earnings be released ? I’m glad I’m out of all markets right now, even though I’ve missed out in the last three weeks !
Steve, is there anyway you could dig up those old charts from the hills group? It looks like were correct
So there we have it only a day or two before I stated that oil was headed for ZERO and what do you know… the Canadian oil sludge is there and in fact briefly went negative. Albertans will pay someone to haul it away.
I knew it was coming and it’s still hard to believe. Too bad for the government because the lockdown means more people might just wake up to the fact that they are thoroughly F*%#ed!
No sports and watering holes for distraction.
Oh dear.
Hi Steve – I love your work, but you continue to really sabotage your credibility. I commented recently on the same issue, and I thank you for correcting it then, even if you did not post my comment. Same goes here:
At about the 20 1/2 minute mark on the YouTube video, you state that the value of silver investment stocks ($42 billion) is “100 TIMES SMALLER” than the value of gold investment stocks ($4.2 trillion). Hopefully I do not need to explain again that you cannot have anything more than one time smaller, or 1X smaller, or 100% smaller than (whatever referent), because subtracting the entirety, or 100%, reduces the referent to ZERO. Please use a mathematically literate explanation, instead of that totally illogical and meaningless crap. You can’t make anything more than 1X smaller than it is.
What you can (and should)say is that the value of silver investment stocks is just 1/100, or just 1% of the value of gold investment stocks.
Just THINK about the meaning of what you are saying. I’d be very curious to learn where or how or from whom you picked up this (^%$^%%) – I don’t even know what to call it – but it is WRONG. Unfortunately, you are not the only person to do this.
I couldn’t tell you how many (hundreds) of times I have offered such feedback or corrections, and rarely do I even receive an acknowledgement. In one case with a scientific (medical) publication, I sent them notices about their mathematical illiteracy in three articles within one year – and I copied every email address I could find, in addition to mailing physical copies to the editors and publisher – and they actually wrote back and thanked me, and made the corrections to their electronic files.
I don’t want to be a pain in the ass, but this is something that you should learn very quickly. I commend you on your analysis !
Regards
Dave,
Thanks for the clarification.
steve
Steve, I have become a member, does that mean I basically just support your site because I don’t have any login details…
My friends still believe in the 401k for their retirement and I am telling them to look elswhere, and get out. Do you think some 401ks will survive?
I never tell my friends what investment decisions they should make. I find that such advice is often negatively received. I do point out the good returns some investments like gold have been delivering for decades. If they don’t research the annualized gold returns on their own then I can’t help them. People have to take an interest in protecting their wealth. They have to understand the economic backdrop to puzzle out the story. Otherwise they’ll lack the conviction to buy, hold, and prepare. I am a longtime contributor to SRSrocco Report and have sent articles from the site to some of my friends. I contribute because I want a record of the energy story, and hopefully other people will come to the realization that a paradigm change is occurring. Hopefully, people will invest in the resources to become more self-reliant while there is still time. Evangelizing PMs and self-reliance is a lonely business. That guy holding a sign stating “The End is near” doesn’t get invited to corporate BBQs. Not to mention evangelizing PMs and preparedness might make you a target in the not too distant future.
Anyone catch the news on Bloomberg last night of the LBMA trying to settle bullion contracts outside London? Their reasoning (read excuse) was the pandemic is causing logistical & transportation issues at London vaults. Anyone got additional insight or perspective into what’s happening at the LBMA?
And a few earlier articles with interviews on the same topic:
https://investmentresearchdynamics.com/a-run-on-comex-lbma-gold-bars-is-inevitable/
May WTI Contract Crashes To $1; Alaska, Bakken, & Edmonton All Pricing Negative. That didn’t take long to escalate. https://www.zerohedge.com/markets/historic-oil-crash-sends-canadian-oil-prices-negative
May WTI futures actually hit 1 cent…down 99%
And now -$39.95 per barrel = -316%. You can have greater than 100% if you go negative!
Russia handled a financial crisis by everyone showing up to work ( except for the unemployed )regardless if your employer paid you. In exchange for working food rations were given in the form of coupons and people were able to stay in their residences. The unemployed had the same deal.
4-20-2020 = the day the music stopped.
Energy is paramount for physical systems and living organisms. E=M(C*C). Lowest price in Alberta for gas today = $0.35/litre or $0.70 for 2 litres. At Walmart, 2 litres of coke goes for $1.97. The coke would have about 800 kCalories of energy. The gas about 16 million kCalories (if my back of napkin calculations are correct). Which should cost more? Our society is completely f***ed-up!
The stock markets seems to go up on bad economic news as they know the FED will try to support them. The markets at this time are totally disconnected from the real economy.
Its all financial engineering this day and age. There is no real growth anymore.
While there are fewer and fewer engineers, there are abundant and good financial engineers in US.
If you can only buy one of gold or silver at the moment which would you recommend? Which do you think will have the bigger boom? I understand gold is king, however silver is way cheaper at the moment and somewhat easier to get. Love the videos and thanks for sharing your knowledge. ???