How Will The ‘GREAT DEFLATION’ Impact Gold & The Dollar?

The coming GREAT DEFLATION will impact the value of Gold and the Dollar much differently than what most analysts are forecasting.  Unfortunately, most analysts do not understand the true underlying value of gold or the U.S. Dollar, because they base their forecasts on information that is inaccurate, flawed or imprecise.

This is due to two faulty theories:

  1. monetary science
  2. supply-demand market forces

While some aspects of monetary science and supply and demand forces do impact the prices of goods and services (on a short-term basis), the most important factor, ENERGY, is totally overlooked.  You will never hear Peter Schiff include energy when he talks about the Federal Reserve, Commercial Banks, money printing or debt.  Schiff, like most analysts, is stuck on studying superficial monetary data that does not get to the ROOT OF THE PROBLEM.

Furthermore, the majority of folks who believe in the Austrian School of economics, also fail to incorporate ENERGY into their analysis.  For some strange reason, most analysts believe the world is run by the ENERGY TOOTH FAIRY (term by Louis Arnoux).  Without cheap and abundant energy, monetary science and supply-demand forces are worthless.

That being said, as the debate on whether the world will experience, inflation, hyperinflation or deflation will continue to go on and on, I guarantee we are going to experience the MOTHER of all DEFLATIONS.  Again, this will be due to the disintegrating energy sector and its inability to provide sufficent profitable net energy to the market.

The falling net energy and declining EROI – Energy Returned On Investment, are totally gutting the entire market.  This can be seen quite clearly as the U.S. added $4 of debt for each $1 of GDP growth in 2016.  According to the Zerohedge article, It Took $4 In New Debt To Create $1 In GDP:

As a reminder, according to the latest BEA revision, nominal 2016 GDP was $18.86 trillion, an increase of $632 billion from 2015; the question is how much credit had to be created to generate this growth. Well, according to the Z.1, total credit rose to a new record high $66.1 trillion. This was an increase of $2.511 trillion in the past year. It means that in 2016, it “cost” $4 in new debt to generate just $1 in new economic growth!

As we can see, adding $4 of debt to create $1 of artificially inflated GDP is not a long-term sustainable business model.  I get a laugh hearing “Conspiracy Theorists” explain how the ELITE have been planning this take-over all along and have the markets totally under control.  While conspiracies do indeed take place, the ELITE have been SHOOTING FROM THE HIP and WINGING IT just to keep the entire market from imploding.

For those who believe that the elite want to crush the market to buy assets for pennies on the Dollar, I am here to tell you…  it CHAIN’T gonna happen.  When the Ancient Roman Metropolis collapsed from a population of one million people down to 12,000, I can assure you, the majority of the ELITE were wiped out…. KAPUT.

Real Estate values and revenue streams in Ancient Rome evaporated into thin air.  There was no “RECOVERY” or “PLAN B.”  Death had come to the once great Roman Empire… for good.

Regardless, the coming GREAT DEFLATION will destroy the value of most assets shown in the chart below:

Of the $369 trillion in global asset values (2015), gold and silver accounted for $3.1 trillion or 0.8%.  That’s correct, not even 1% of total global assets.  Savills Research, who put together the data shown in the chart above, recently published figures on Global Real Estate Investment:

Now, this chart does not represent total Real Estate values, but rather shows how much money is being invested in the Global Real Estate Market (minus China).  Interestingly, global real estate investment has never regained its previous peak set back in 2008.  Furthermore, the data shows that global real estate investment has rolled over and declined since the first quarter of 2016.  This is not a good sign.

This means, deflationary forces may already be taking place in the global real estate market.

How The ‘GREAT DEFLATION’ Will Impact Gold & The Dollar

To understand how the coming GREAT DEFLATION will impact gold and the U.S. Dollar, we must throw out the window all preconceived notions about economics and money.  Any individual who continues to believe in the standard orthodox economic theory, you might as well also accept that the EARTH IS FLAT and GROWTH on a finite planet is possible.

Unfortunately, the U.S. educational system and alternative media continue to misinform the public about the role of MONEY.  So, the blind continue to lead the blind as Rome burns… so to speak.

The GREAT DEFLATION is coming due to the disintegration of the U.S. and global oil industry.  As I mentioned in a precious article, the top three U.S. oil companies slashed their Q1 2017 capital expenditures (CAPEX) by 40%, versus the same period last year.  Furthermore, the world only found 2.4 billion barrels of new oil in 2016 while it consumed 25 billion barrels:

I hate to be a broken record, but precious metals investors better WAKE UP.  How many new barrels of oil do you think the global oil industry will find in 2017 as they continue to slash their CAPEX spending even greater than last year??

Regardless, the Fed and Central Banks are propping up the market with more money printing and asset purchases than ever.  This will not solve our financial and economic problems, however it is a last ditch effort to postpone the inevitable.

To truly understand what will happen with the value of Gold and the U.S. Dollar, we have to grasp the data shown in the chart below:

To produce an ounce of gold in 2016 (top two gold miners – Barrick & Newmont), it took $1,113.  Thus, the top two gold miner’s total production cost was 89% of the gold market price ($1,251).  This is why gold stores wealth.  Stored wealth has always been “STORED ECONOMIC ENERGY.”  Gold has been the King Monetary Metal because of its rarity in the earth’s crust and its ability not to corrode or tarnish like many other metals.

On the other hand, the U.S. Treasury Department of Engraving and Printing produced a new $100 bill for a mere 13.4 cents.  Thus, the U.S. Treasury’s $100 bill cost of production was 0.13% of its face value, versus 89% for an ounce of gold.

The production cost figures for the U.S. Federal Reserve Notes came from the U.S. Treasury Department of Engraving and Printing, shown in the table below:

It cost the U.S. Treasury $134.14 per thousand of $100 bill’s printed.  While the U.S. Treasury spent more money to produce the lower denomination bills versus their total face value, 71% of the $213 billion of Federal Reserves Notes printed in 2016 were $100 bills.

If we are able to understand the information presented above and are able to do some “CRITICAL THINKING”, then it is easy to understand that the U.S. Dollar will suffer signficantlyu during the GREAT DEFLATION….. not gold.

We also must remember, a “NOTE”, as in the “Federal Reserve Note”, means an “OBLIGATION” or “DEBT.”  Money is not supposed to be an obligation or debt.  Money is supposed to be a store of value and medium of exchange.

Thus, when the GREAT DEFLATION arrives, the value of the U.S. Dollar has a much farther way to fall versus gold.  Why?  Because the value of most things, always reverts back to their COST OF PRODUCTION.  The innate value of a $100 bill is a mere 13.4 cents…. so, its value still has room to fall 99%+.

Again… the innate value of most things are based upon their cost of production, not supply and demand.  What’s the use of being in the business of producing goods at a loss????

Here is one last example.  In 2016, total global gold mine supply was worth $103.6 billion.  This figure was based on the of 3,222 metric tons of gold mine supply (GFMS 2017 World Gold Survey), multiplied by the average spot price of $1,251.  The estimated cost to produce this gold was $92.2 billion:

Here we can see that the gold market price, was based on its cost of production.  On the other hand, the U.S. Treasury was able to print $151.7 billion in $100 bills for the total cost of $235 million ($0.235 billion).  Which means, the U.S. Treasury’s production cost was only 0.13% for the $151.7 billion of new currency (fake money) it issued last year.

People need to realize the U.S. Dollar’s value is backed by U.S. debt, which is being propped up by burning energy.  Thus, ENERGY = MONEY.  The huge increase in U.S. and Global Debt means the quality of energy that runs everything is rapidly declining.  Which means, the more debt that is added, the lower interest rates have to go.  It is a one way street.

Analysts who think interest rates need to normalize to a much higher level, have no idea about ENERGY…. ZIP, NADDA, ZILCH.  They look at the markets as if the ENERGY TOOTH FAIRIES run everything.  There are only a small handful of analysts who understand the energy dynamics.  The rest are the blind leading the blind.

The coming GREAT DEFLATION will destroy the value of most STOCKS, BONDS, REAL ESTATE and PAPER CURRENCIES.  The reason Real Estate prices will plummet below their cost of production is due to their 20-30 year financing and their inability to function during the disintegrating energy environment.  The same will be for automobiles and many other assets and items.

Investors need to understand how ENERGY and the FALLING EROI- Energy Returned On Investment, will impact the value of most assets going forward.  Most assets will collapse in value, while a few will hold or gain in value.  Gold and silver will be two of the few that will hold or gain in value during the GREAT DEFLATION.

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60 Comments on "How Will The ‘GREAT DEFLATION’ Impact Gold & The Dollar?"

  1. In the liberal interpretation of the words of Darth Vader :
    I find your lack of faith in fiat disturbing.
    Your technological accuracy and mathematical precision and precise factual display is insignificant to the power of the force of ignorance and arrogant hubris.

    • R. Frank,

      I couldn’t have said it better myself. So, true. However, a “DEBT” can be serviced for quite a while if the DEBTOR has enough surplus funds to pay the INTEREST ON THE DEBT. While the OWNER OF THE DEBT would like his or hers initial investment paid back, they are willing to extend the financing of the DEBT if they continue to receive enough INTEREST.


      With the collapsing NET ENERGY in OIL, the INTEREST RATE must fall. Yes, it is falling because of the declining NET ENERGY. Any MORON, NITWIT or GADFLY who suggests that interest rates will normalize higher, have their brain stuck on STUPID.

      So, the GRAND CHARADE of Financial Musical Chairs will continue a bit longer until the PHAT ENERGY LADY SINGS.



      • Actually, there is a historical example that is close, though not exact, to the net available energy situation. The connection is the “lack of future” that is pertinent to both.

        In the early 90s in the former USSR there was such a situation. Everything was available at least via imports, but most of the population could not afford it. The credit was available, though at astronomical rates, but most did not use it, most did not even have a bank account. People and companies preferred future-independent valuables, such as cash (imported dollars). The prevailing mind set, regardless of means, was “there is no tomorrow”. Poor, well-off, overnight rich — there was no tomorrow really for all. And so the interest on debt had little meaning, as there was little demand for it: interest rates were irrelevant, as debt is irrelevant in a situation of “there is no tomorrow”. It was not valuable unless one could hold it in hands. Gold was relevant — there was a lot of physical demand for scrap even though there was no official gold price. Instant cash for yellow, no paperwork, no questions asked — that was the simplicity of the business model. Perhaps that is another useful connection: when there is no tomorrow, complexity is irrelevant too — simplicity is preferred. Debt, especially today, is the opposite of simplicity — it cannot survive the collapse.

        • the roman empire collapsed in part because its functions and governess were TOO complicated. It should have been split into the nation states earlier and put under more local government. However, the ruling elite resisted such efforts and made collapse inevitable.

      • Well the debt cannot be repaid irrespective of energy, so the principle of the debt will ultimately be defaulted open (Cyprus, anyone). This is the equivalent of VERY negative interest rates, like -100%.

  2. So the perfect investment in many ways would be not only PM bullion but even more PM bullion purchased with cheap bank debt ??? as if the fiat becomes next to worthless you still will have the PM bullion or property rented out etc or farm land with stock food etc

  3. Musical chairs will continue a bit longer, can you get a bit more precise? If I were to predict $100 silver I would guarantee that as a fact for $1,000,000 guaranteed………..unless I had to place it in a timeframe.

  4. Currency is debt that’s also a lean on energy. Therefore energy must burned to give the debt/currency value. If surplus energy is dissipating then the currency will vanish with it which will destroy the debt. pm’s aren’t a lean energy they’re a store of energy

  5. joe lindell | May 18, 2017 at 8:28 pm |

    Your facts are spot on Steve but what’s the time frame. From history this could take quite
    a few years. My second question: Since 99% of the USA citizens don’t own PMs, what happens
    then? As you stated, you are singing the same song and as you read this, so am I. Joe

    • DisappearingCulture | May 19, 2017 at 9:19 am |

      “My second question: Since 99% of the USA citizens don’t own PMs, what happens then?”
      Well a much higher percentage of people own silver and gold; just few in pure or coin form.
      If you are asking what happens when there is a big selloff [crash] in the stock market? Or big drop in real estate valuations, that sort of thing?
      Well those who have liquidity [like cash or a friend willing to lend], your dollars after living expenses start looking for things to buy that are a better investment or store of value.
      If TPTB can’t cap gold, silver, platinum, etc. and they go up currency will pour into them even if the stock markets are high…and that will trigger stock market selloffs.

      • Silvrwllwn | May 19, 2017 at 10:25 pm |

        DC , maybe they can barter their big screen tv’s , cell phones , and lap tops for food, providing that they can wean themselves from the government teat.

  6. Barry Doanldson | May 18, 2017 at 8:35 pm |

    Following is an article by Capitalist Exploits. I don`t agree with it, entirely, however, it is topical.

  7. D K Lindgrin | May 18, 2017 at 8:48 pm |

    Thanks for the information. The mind wants desperately the ability to paint a picture of the future. We gather and grasp at information, assess,… hold and reject. Our individual beliefs, our ingrained and programmed way of thinking is naturally inclined to find repulsive any signs of cognitive dissonance. You have inferred with the use of “CAPS” that perhaps you would like people to apply critical thinking skills more often, or occasionally. Today a person, I think, is completely surrounded by deceptions. So despite my ego, I refuse to profess an immunity. If for example, ” the education system and the alternative media continue to misinform the public about the roll of real money” what else, pray tell, could they possibly be “misinforming” the “public” about. Mr. St. Angelo I cant imagine you are endorsing the main stream media by omission. I have been, and continue appreciating your focus on EROI……


    • Silvrwllwn | May 19, 2017 at 10:30 pm |

      In Washington DC there seems to be allot of users , liars , and cowards . God forbid you mix them all together ! You have nothing but a BAD brew !

  8. John Patterson | May 18, 2017 at 9:18 pm |

    Great article. Your analysis only includes currency printed and circulated. The bulk of currency growth though comes from checkbook money created thru loans (alleged) and credit cards which create currency out of nothing; and use of electronic deposit and dispersal via debit cards. If access to this value were added to annual growth of so called money cost to produce ratio would be significantly higher. Enjoy your posts very much.

    • John Patterson,

      You are correct. I didn’t want to list all the M3 money supply as it could complicate things further, but you are right.

      The U.S. Dollar is in serious trouble and the only way for the Federal Reserve and U.S. Treasury to maintain its value… is with a lot of HOT AIR & MainStream Media Confidence.


  9. Vancouver Guy | May 18, 2017 at 9:41 pm |

    This is why I find cryptocurrencies to be such a sham. For starters, there’s an infinite number of them, just like establishment fiat. Secondly, their supply is infinite, either by production or fractionation, which is essentially just manipulation, like we already see with fiat. Thirdly, the value collapses the moment there are more sellers than buyers, so basically, just like with fiat, or tulip bulbs, cryptocurrency marketing is a trick of perception, a speculative Ponzi, designed to rope an ever-increasing pool of suckers.

    I suspect that the final rush to precious metals will come immediately after the cryptocurrency herd reaches a tipping point and begins its rush out the barn door, and the shift will occur practically overnight.

    Meanwhile, real estate here on the Left Coast continues to bubble upward, thanks to cheap debt, corruption and speculation…

    • Typical comment from somebody who understands nothing about how crypto actually works.

      In fact, the majority of blockchain technology projects are not currencies. Of course some are, and want to be adopted on a large scale – but many are not.
      The supply is NOT infinite. Bitcoin is a deflationary currency with a publicly known supply that will never exceed 21 million bitcoins. Just because it is divisible down to a billionth of a bitcoin does not mean its supply is infinite. This is a misunderstanding of math versus currency. Just because there are an infinite number of values does not mean an infinite supply. There are an infinite number of values between 0 and 1 as well. I can have a single $100 bill, or 5 x $20 bills, or 100 x $1 bills – it is all still equal to $100 total.
      Other crypto currencies have different mathematical algorithms to be inflationary in a controlled way (so as not to be potentially hoarded) like PIVX. There will be a 2.63 million coin inflation per year. Being publicly known, and not controlled by the whim of central bankers/planners it gives certainty to the market and encourages usage as a currency (similar to the annual gold or silver mining supply).
      Your third objection is also false. If there are more sellers than buyers the price decreases, yes. It only collapses if there are no buyers (and therefore nobody giving it value). It is called a free market for a reason. So if a borderless, open source, fast, secure, trustless digital monetary computer networked system is now your definition of a Ponzi scheme – you have officially just redefined the word to mean whatever you want.

      • Communication hubs will fail without growth.

        Read “Trade off” and “Tipping point” both by David Korowicz.

    • Silvrwllwn | May 19, 2017 at 10:38 pm |

      Vancouver Guy , Be careful , they laughed at T.A Edison for trying to convince there to be public lighting. Practically ran him out of where he was trying to prove it’s good for all at the time.
      Crypto currency might be a bridge without debt supporting it to get many through difficult times should the dollar breathe it’s last breath. It certainly is innovation.

  10. One more great article Steve, thanks

  11. IF a country becomes unsustainable financially it will sell it’s Gold. This is the case for Venezuela as in the 1st quarter of 2016. IF the Great deflation begins then there is going to be many countries selling their gold driving the price DOWN! with fewer and fewer buyers. BUT with silver; technology, communication (1/4 ounce for a cellphone), medical, military defense (cruise missile 400 ounces); SILVER MUST be increasingly consumed. For me, I place silver above Gold for the next 5 to 10 years.

    • They would sell there paper reserves

      • for the reasons steve highlights gold is worth more then paper treasuries but treasuries retail at or near face value. HOW CAN THAT BE?

  12. kaputt is written with 2 ts 😉 (at least in german)

  13. Without cheap and abundant energy, monetary science and supply-demand forces are worthless.
    Definition of non sequitur
    1: an inference (see inference 2) that does not follow from the premises (see 1premise 1); specifically : a fallacy resulting from a simple conversion of a universal affirmative (see 1affirmative 3) proposition or from the transposition of a condition and its consequent (see 1consequent 1)
    : a statement (such as a response) that does not follow logically from or is not clearly related to anything previously said We were talking about the new restaurant when she threw in some non sequitur about her dog.

  14. Steve, would you please explain what your definition of “deflation” is? Are you referring to money deflation (quantitiy of central-bank-currency shrinking) or price deflation (prices falling) ore something else?

    • guest,

      The problem today in trying to define DEFLATION, is that the economic text books are all wrong. They defined deflation based upon the falling money supply. We must remember, the exploding STOCK, BOND & REAL ESTATE prices have occurred due to a MASSIVE increase in Central Bank monetary liquidity and asset purchases.

      So, it is hard to define INFLATION or DEFLATION by using the money supply. The best way to understand what is happening, is to focus on the ENERGY, especially oil.

      That being said, when I talk about DEFLATION, I mean the coming destruction of most asset values due to the collapse in the U.S. and Global Oil Industry. This includes most STOCKS, BONDS, REAL ESTATE and PAPER CURRENCIES. They are all heading down the toilet.

      Thus, two of the best assets to own during this PHASE SHIFT will be PHYSICAL GOLD & SILVER. Their value is not based upon burning energy in the future, rather their value is LOCKED IN, in each coin.


      • Counterfiat | May 19, 2017 at 8:59 pm |

        might be useful to clarify definitions. Expanding on KILLING THE HOST: HOW FINANCIAL PARASITES AND DEBT DESTROY THE GLOBAL ECONOMY, Prof. Hudson’s new book covers contemporary terms that are misleading or poorly understood as well as many important concepts that have been abandoned – many on purpose – from the long history of political economy.

        although for myself I’d like to get
        ‘Killing the Host: How Financial Parasites and Debt Bondage Destroy the Global Economy’

      • So they will lose real value (e.g. in comparison to a leaf of bread) because of lack of cheap energy to support their value in one way or another – regardless of how you would measure it in worthless currency. Think I got your point.

        Thank you so much for sharing your insight!

  15. so then besides gold and silver and maybe farmland, what other assets should one hold?

    • Stock up some food, three months pp at least, water and waterfilters. Don’t go full retard. No one knows the future. Good qualty handtools, basic household stuff, chainsaw maybe. Look at some prep lists and take your pick. But don’t forget to have some fun.

    • “so then besides gold and silver and maybe farmland, what other assets should one hold?”

      depends. do you intend to work to support yourself, or do you intend to skim rent from others to support yourself?

  16. Great article Steve. I think you are on to something with the notion that gold is a store of economic energy. Moreover as oil becomes scarce it will become more difficult to mine more gold and silver irrespective of their value. This will fuel deflation as limited precious metals are used for safe haven investments and exchange. Such a scenario would lead to a spiral downward and a much lower standard of living. It impossible to predict the timing but anything less than modest exposure to PMs is both irresponsible and foolish.

  17. Tore Johansson | May 19, 2017 at 8:45 am |

    Still there is an huge issue to explain how less oil at The same time means lower oilprice.
    This will shortcircuit moust economs brains:-)

    • Can’t get oil if you don’t have it because it takes oil to run the pumps, the trucks , the refiners, etc.

      If oil can not be drilled refined and delivered profitably from an EROI standpoint, the economy shuts down. Pure demand destruction ensues. Thus no demand for oil. The price drops.

      The clincher by this theory is the paradox that demand for oil is destroyed faster than declining ability to profitably extract it from the ground

  18. Tom Mysiewicz | May 19, 2017 at 11:21 am |

    A question on the $100-bill cost estimate? Was the total amount actual bills? Because less than 1% of money is actual currency. The rest is electronic digits costing far less than a paper bill or coin–virtually nothing.

  19. Rather Not Say | May 19, 2017 at 5:02 pm |

    I work as a contractor for ConocoPhillips in the Land Department, and I can tell you that COPC is selling everything. They are selling liabilities and raising cash. They will be a shell of a company in a year or two. People will be laid off. Some are waiting right now for their pink slips. It’s not pretty. They see the writing on the wall.

    • Rather Not Say,

      Very interesting insight. So, things are really getting back at ConocoPhillips… I kind of figured as much. However, they are the smartest of the TOP 3 U.S. Oil companies (ExxonMobil & Chevron) as they cut their dividend payout while the other two have actually increased. Borrowing money to pay dividends is not a way to stay in business. Sure, ExxonMobil and Chevron can sell assets and etc to continue this insanity for a while, but not for long.

      If you have any additional insight that you would like to share with me (it won’t go anywhere else), please feel free to contact me via my contact page.

      best regards,


      • “Borrowing money to pay dividends is not a way to stay in business.”

        it is, however, another way to liquidate. copc is doing it one way, exxon and chevron another way.

  20. You’ll be long gone dead and buried before anything like this takes place in100years or so. Fear porn.

  21. Sean Griffiths | May 19, 2017 at 5:29 pm |

    Steve. Love your work anfd have followed every article for a number of years. There is a minimum production cost for a house….the materials, labour, land, services connections and I dare not forget energy! 🙂 Historically, when housing prices collapse we have seen them initially drop below that fixed production cost….I expect gold and silver might do the same.

    • Sean Griffiths,

      There is an IMPORTANT difference between what will happen to REAL ESTATE and GOLD-SILVER during the GREAT DEFLATION. We must remember, most REAL ESTATE is financed via long-term mortgages. Thus, this enables families to buy more house than they really can afford. By paying the home over a 20-30 year period, it changes the ASSET VALUATION during a collapsing energy environment. Basically, Long-term financed home mortgages will implode at a greater speed than if most Real Estate was paid by Cash. Comprende?

      Furthermore, most suburban real estate will become increasing worthless and useless as the oil quality and supply diminishes. Which means, most Real Estate will be SUNK CAPITAL never to be accessed. Or worse, a very NON-LIQUID asset that no one really wants.

      On the other hand, GOLD & SILVER will not suffer from the same problems as NON-LIQUID DEAD-END REAL ESTATE. Gold and Silver are highly transportable and VERY LIQUID (easy to buy and sell). This is why Gold and Silver will protect wealth while most other asset values will implode.


  22. That global asset chart is great, just imagine what happens when all that money attempts to leave Real Estate, Bonds and Stocks and attempts to go into the 3.1 Trillion Gold and Silver section (physical? or Paper?), I actually expect a lot to also go into the Cryptocurrency ecosystem given there simply won’t be the Gold and especially Silver available to physically get so people will throw into the Cryptocurrency asset class as well

  23. It’s looking more and more like the earth really is flat, and we’ve been living under a 500 year lie. Of course, hardly anyone will actually take the FE theory seriously enough to really investigate it. Start on Youtube if you do. LOL. I’ve been trying to debunk it for over two years. Can’t. OK. Bring on the hubris and heckles. Sticks and stones, you know…

    • D K Lindgrin | May 19, 2017 at 9:56 pm |

      Mr St. Angelo’s reference to the “moronic flat earth theory” as emphasis augmenting the folly of giving any confidence to the current financial paradigm is: either 1: completely innocent or 2: bait for an assessment.
      Spiritual warfare…. with a kicker, the Truth has already won. Each of us, thru true Love and freedom, get the option of choosing a Father. Father of Truth vs father of lies.
      Mr. St. Angelo is right about the so called “elite” not wanting to crush the markets to obtain more assets. They print the fiat currency by the b train load, enslaving all with deception and debt.
      “He is coming in the clouds and every eye shall see Him” that’s only possible on a flat plane. Good on ya bro! 🙂


  24. Northwest Resident | May 19, 2017 at 6:32 pm |

    There is a lot more intrinsic value in gold and silver than JUST the energy stored in them. Human nature since earliest recorded history is strongly inclined to covet and seek out “shiny baubles”. Gems, sea shells, ivory, gold, silver — anything that shines or looks pretty has always been considered valuable by humans. The shiny gold and silver metals will ALWAYS be valuable, count on it, even more so when the only use for fiat in the rapidly approaching future is fire starter and TP.

  25. Öh, as they say in Swedish, you did it again

    I wrote some stuff on the internet;
    If anybody facies cybernetics, I think I stumbled
    on som´n – or just enjoy!! You find me under my real name
    Jesper Andersson
    for the lazy;———4———–

  26. “People need to realize the U.S. Dollar’s value is backed by U.S. debt”

    No, it is not. The U.S. legal tender dollar’s value is backed by U.S. productive output and all the goods and services that it can buy. The dollar’s ‘value’ is a product of its use and acceptance as a medium of exchange. There are only $1.5-Trillion U.S. legal tender dollars in circulation around the globe. Everything else erroneously referred to as ‘dollars’ is either bankster generated debt-based private credit or asset values, denominated in dollars. 97% of all commerce, international and domestic, is conducted in bankster generated debt-based private credit denominated in U.S. dollars, not the actual currency. When the system finally breaks, it will be the bankster generated debt-based private credit that will collapse taking all asset values and Wall Street with it, leaving what little commerce left standing to the legal tender dollar which will remain.

    • Dwain Dibley,

      I don’t know where you received your education on U.S. LEGAL TENDER LAWS, but your definition is grossly inaccurate. If you would like to know the real definition of U.S. Legal Tender… here it is:

      United States coins and currency (including Federal reserve notes and circulating notes of Federal reserve banks and national banks) are legal tender for all debts, public charges, taxes and dues. Foreign gold or silver coins are not legal tender for debts.

      Please focus on the following phrase, “Legal tender for ALL DEBTS, PUBLIC CHARGES, TAXES and DUES.”

      So, all those Federal Reserve NOTES are backed by the Full Faith & Credit of the U.S. Govt and that $20 trillion in public debt…. LOL.


      • Well, nothing makes your point better than starting it off with an insult. I like it.

        You’re ad-libbing your brain washed bias into your ass-backwards interpretation. Try this:

        “Legal tender for ALL DEBTS, PUBLIC CHARGES, TAXES and DUES.”

        The legal tender BACKs the $20 trillion in public debt and the legal tender can PAY the $20 trillion public debt.

        The U.S. legal tender FRN is the official U.S. Currency, it is what the U.S.G. owes in final payment of its debts and it is what the banks legally owe to their deposit account holders, upon their demand.

        The legal tender in use today is provided as a duty an obligation of the U.S.G., born from the outlawing and confiscation of gold as money back in 1933. People with and without bank accounts, turned in their gold property and received the legal tender as replacement property. The legal tender system today is an extension of that time. That time has obscured the legal tender’s gold origins, existing as the people’s property first, makes it no less our property in the present, and the banking system’s legal obligation to provide either upon demand or over time, the fruits of our labor as represented by those deposit accounts, our legal tender property, our money.

        • Dwain,

          Your reply does not change the fact that FEDERAL RESERVE NOTES are backed by $20 trillion in U.S. Debt. This is much different than your original comment: The U.S. legal tender dollar’s value is backed by U.S. productive output and all the goods and services that it can buy.

          Whether FEDERAL RESERVE NOTES can pay off this $20 trillion in debt is another thing entirely.

          By the way, I did not start off my previous comment with an insult. Rather, I was being truthful and honest. So, if that was an insult, TIMES HAVE CHANGED…..


  27. Bruce Wilds | May 21, 2017 at 4:32 am |

    The ECB and other central banks often claim deflation drives or allows their QE policy to remain and is central to their ability to stimulate. The moment inflation begins to take root or becomes apparent much of their flexibility in policy is lost. The 2% inflation target central banks have deemed optimum is not valid.

    In the past, I have put forth the idea that inflation could rule the day even if central banks are unable to keep the wheels on the bus and the economy collapses. This powerful force also known as stagflation can devastate those improperly invested. The article below explores the basis of this theory.

  28. People not looking from broader viewpoint. When we search for for other habitable planet in space, first thing we look for will be water and if any living species of life(genetic code). We are killing these species on earth, thats multi billion dollar loss if any plant or animal species go extinct. It took 3 billion years for all species on earth to evolve, we make them extinct in about 300 years span using fossil fuel.
    Gold, silver, and platinum and came from supernova blast from universe. They are abudant in space but not life (genetic code). Soil bacteria and earthworm is more valuable than gold, silver or any metal. They should be used as a currency. Efforts should be placed in conserving endangered species. Once they are gone, its permanant loss of (genetic code).
    Remaining energy (fossil fuel) should be diverted to build forest, rebuild soil, lakes, save birds, seeds and fishes.
    7 and half billion people dependent on products from nature, have free ride on titanic (modern economy).
    No government in world talks about population control. All people care about having babies, going to league school ( which teaches economic propaganda).
    Conserving nature and saving specied would be best investment.
    Think earth as a home and we are citizens of earth, not specific country.

  29. “To produce an ounce of gold in 2016 (top two gold miners – Barrick & Newmont), it took $1,113. Thus, the top two gold miner’s total production cost was 89% of the gold market price ($1,251). This is why gold stores wealth.”

    would you say the same thing about iron or lead? or about moving a pile of rocks from one location to another? expending wealth and energy to obtain a piece of metal does not mean anything is stored in the metal, it just means you have the metal. gold stores nothing.

    • gman,

      You stated the following, “would you say the same thing about iron or lead? or about moving a pile of rocks from one location to another? expending wealth and energy to obtain a piece of metal does not mean anything is stored in the metal, it just means you have the metal. gold stores nothing.”

      Seems as if you know better than 2,000+ years worth of gold and silver as money and a store of value.

      As I have mentioned several times now… you may continue being a GADFLY here for purely ENTERTAINMENT value or worse.. a NAG…. LOL.

      That being said… please continue to make absolutely worthless comments as it motivates responses and helps generate traffic.


      • “Seems as if you know better than 2,000+ years worth of gold and silver as money and a store of value.”

        gold and silver are money, money is a medium of exchange of value, the medium itself stores no value. the readers may judge for themselves, or perhaps learn the hard way, the truth of this.

        “That being said… please continue to make absolutely worthless comments as it motivates responses and helps generate traffic.”

        will do. and don’t forget to tell all your country friends what I said about their rural areas being mostly economic banana republics, so you can all laugh together at how stupid I am.

        • gman,

          Yes, for some odd reason, the understanding of ECONOMIC ENERGY as a store of value in GOLD & SILVER goes in one of your ears and out the other. But, I won’t hold it against you. A lot of people make the same mistake.

          As for rural economic banana republics… as you describe them, I live in one. I can certainly say that I would rather be here than a big city. But let’s wait around a while and see how things play out.


          • “the understanding of ECONOMIC ENERGY as a store of value in GOLD & SILVER …”

            … is a mistake. it conflates the medium of trade with the value traded.

            “A lot of people make the same mistake.”

            actually, no, it seems the vast majority think as you – “I’ll have the gold, so I’ll (have the economic energy to) be able to buy what I need.” and, no, that’s not what will happen ….

            “I can certainly say that I would rather be here than a big city.”

            and you’re not alone in thinking that way. and that’s fine, just so long as you have a firm grasp of the exact nature and capabilities and limitations of the countryside you’re in. so tell your friends what I said, and you can all laugh and drink toasts to each other at how stupid I am, but later when they’re alone maybe some of them will think about it and realize a few things.

  30. I would like to know what you think happens to your thesis if solar becomes much more efficient as it most certainly will and/or we have things like the container sized fusion reactors that can power an entire city that are about to actually come out on the market soon? We seem to be right on the verge of cheap, clean energy for all – sure it won’t be cheap to build at first but that will create jobs and prosperity for a while I think and then we will have an infrastructure of nearly free, abundant energy on top of an astounding amount of technological changes that are set to absolutely shock and amaze the world in the next 5-20 years. Still think we have deflation then???

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