Market Will Fall By 50-75% As Petrodollar & Energy Sector Break Down

Investors will get wiped out as the stock and real estate markets fall by 50-75%.  Unfortunately, most investors, even the precious metals investors, do not understand the dire predicament that the U.S. and world faces as the energy sector continues to disintegrate.

I discussed this in detail with Dave at the X22 Report.  We started the interview by chatting about the highly inflated U.S. Retirement Market and how more funds are being paid out to retirees than is coming in.  This is the beginning of the last stages of the Biggest Ponzi Scheme in history.

While the Alternative Media focuses on the horrible situation in the State Pension Funds, it’s also very bad in the private sector retirement market as well as the Federal Pension Funds.  While the State Pension Fund Plans have $4 trillion in assets and $1.9 trillion in liabilities, the Federal Pension Funds only have $1.6 trillion in assets versus $1.9 trillion in liabilities (source: Investment Company Institute).  See chart below video.

And… we have to remember, the “supposed assets” on these funds’ balance sheets are considerably inflated.  So, when they POP, the U.S. Retirement and Pension Fund Market will implode.

Furthermore, I discuss how Americans who are putting their funds into retirement assets aren’t really building wealth.  Rather, the money that Americans are investing into the U.S. Retirement Black Hole every month is being used to pay off retirees today.  Thus, the money that goes in, is immediately redirected into paying those who retired.

If we look at the chart below, the bar that says the DC Plans represents mostly 401k’s.  The current value of the DC Retirement Plans is $7.3 trillion.  However, the value of that retirement market is based on a highly inflated Stock, Bond and Real Estate Market.  Moreover, the last figures the ICI – Investment Company Institute put out, shows that $29 billion more was paid out to those in 401k’s in 2014 then came in.  I will be interesting to see what that figure is in 2015, when the data is released.

Unfortunately, Americans have no idea that the money they invested into their retirement account wasn’t put into some large gold vault, so when they retire, they can start collected their gold coins.  OH NO… rather, all they have been doing is paying off Americans who retired before them.

Lastly, most of the Alternative Media focuses on issues that aren’t as important as ENERGY.  For example, many Alternative Media sites focus on Conspiracies about the Elite controlling the world.  Yes, it’s true….. the Elite control the world, and have been doing so for thousands of years and will continue to do so.

However, when the Ancient Roman Empire collapsed, so did Elite’s wealth and control.   The main city of Ancient Rome saw its population fall from 1 million down to 10-20,0000 people.  So, along with the collapse of Ancient Rome, the value of Real Estate, Businesses and Wealth evaporated.

So, if we use logic, then it is more important to understand what is happening with ENERGY and less with the ELITE.  The Elite are going to be decimated by the upcoming collapse… and this collapse will happen due to the Falling EROI – Energy Returned On Investment and the disintegration of the U.S. and Global Oil Industry.

Don’t be fooled by analysts who are forecasting that NEW TECHNOLOGIES are going to save us.  This is pure BOLLOCKS.  Folks… we have run out the clock.  Now, it’s time to prepare and protect one’s wealth.

You can check out more of: Dave’s Interviews at the X22 Report.

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27 Comments on "Market Will Fall By 50-75% As Petrodollar & Energy Sector Break Down"

  1. Steve,

    Great interview. I think you are right on the mark for all paper assets and real estate to lose 50-75% of their current dollar value in the next five years. This is going to cause massive debt defaults. When this happens what will be the state of the energy sector? Will the lights start going off? Will the trucks stop moving? Will the central banks start with the helicopter money?

    Lately, on this site, there has been an incredible amount of enthusiasm for cryptocurrencies. If the lights start going out how will anyone ever use them?

    Guess I am just an old dog not up to the new tricks, always been a hard asset kind of guy – 50+ years in real estate. If you don’t hold it or can’t kick it, you don’t own it.

    • If “the lights go out” it won’t matter, there will be no food.
      Everyone talks about the delivery trucks not running when in fact it won’t matter because there will be nothing to deliver.
      Cryptos and PM’s are not protection against the worse case, they are only useful protection against a financial meltdown followed by a historic reset.

      Those living totally off grid and manually raising garden are only ones who will survive worse case.

      • PMs are better protection than cryptos. If and when the lights go out,cryptos go out too. PMs will still be there if if history is any guide ,can be used for money.For people that say one cannot eat PMs, one cannot eat cryptos or fiat.

        • I agree to a point, but “when the lights go out” there is no more gas, no more diesel fuel, no more mass food production, no more deliveries.
          No more municipal water supply!

          PM’s might buy a bit of stockpiled food for a while, but to sustain there must be production.
          If you were on a life boat next to a sinking ship would you trade your seat for PM’s?

  2. 50% discount for stocks and real estate would not be too serious as they incresed several fold during the last 3 decades. People should buy just one bitcoin as it is going to one million minimum, so everything will be solved.

    • “People should buy just one bitcoin as it is going to one million minimum, so everything will be solved.”

      Speculation.

    • RD,

      I admire your enthusiasm but, in my experience, if it sounds too good to be true it usually is. My fear is that cryptos will go the way of the market. When the market crashes the flight will be to hard assets and out of everything else. I see cryptos as working well within the current system at this time to avoid taxes, borders, central banks and their governments but they are fraught with too many pitfalls. Governments will not let them go unhindered for very long when fiats start teettering.

      Best of luck

      • In fact I was just ironic, it has been a great speculation to say the least but after a 30 fold rise, I am still surprised that people continue to forecast another 30 fold rise, which by the way is possible but we have to deal with odds with this damned capitalist system.
        It is pure speculation at this point that hard assets will be sought in the next round of systemic debt/credit contraction/risk aversion.
        As I said before there is imo a quite high probability when die hard gold fans will go full crypto (when bitcoin and ethereum will double from current levels in about 30/45 days) like SRS Rocco, jim willie, and many others. I have been following Jim Willie and he is quite close to throw the towel regarding PMs and he is also studying cryptos.

  3. This will sound like that of a broken record BUT haven’t we heard “in the next year” or “just three years from now” or expect something to give in five years” on an on going basis ? To be honest I can remember back in 2013 thinking , another two years !!? …and then getting to 2016 and realizing that 2017 would be some kind of target , but then …maybe in 2018. Jeeze …I’m beginning to sound like ol Joe!

    • If you had invested in stocks in 2009 you would make mauch more profit than investing in PMs. Smart money has been persistemtly long stocks since 2009.

    • It will continue until it doesn’t. If you are trying to time it, you will be disappointed. Remember the Dutch tulip mania of 1637, stock market crash of 1929, high tech crash of 2000, etc.

  4. People have to start proof reading their reports so they at least have a command of the English language on the way down.

    • Len,

      Well put. Yes, the English languish and grammar are certainly more important than the message. Thanks for the excellent advice.

      steve

  5. What are you going to sell you’re Bitcoin for? A million paper dollars? I would sure give you my 50,000 oz of junk silver. It hasn’t gained anything lately, it just seems that their isn’t as much as their was from year to year……perhaps I don’t want that Bitcoin, mmmmmmmmm

  6. I’m going to ride the crypto currency boom for about 2 years and then sell my Bitcoin to buy rural land where I can grow food and ride out the decline of western civilization in comfort. Without spending any of my silver stash. How’s that for a plan?

    • DisappearingCulture | August 15, 2017 at 10:16 am | Reply

      Sounds like a good plan…hope the cryptos do well for you.

      • All those stories of total collapse are risible. In such case gold would be worth nothing as you cannot eat gold and the preppers would be killed by bands of zombies.

    • How long would you last on your rural land with the rule of law in place and a prosperous society to keep the zombies at bay? Try being a rural homesteader in a place like Syria and you wouldn’t last a week. And post collapse USA will be no different. good luck defending a rural farm or garden from a hoard of zombies. its like defending a castle with no walls or moat around it.

  7. Steve: You were giving credit to Tom Cloud’s silver forecast when in fact it was fear of
    a Korean war that made silver rise a buck. Today silver is down 1%+ because fears have somewhat abated.Where is Cloud’s forecast now? When are you going to understand that ALL OF CLOUD’S predictions these past 8 years were hype and dead wrong. He has the gall to say silver is up 8% in 2017 when in fact it is still down 63%. Cloud is a commissioned silver seller. Stay with what you do best with your charts and such. They make for colorful reading.

    • DisappearingCulture | August 15, 2017 at 10:22 am | Reply

      Joe,
      I just checked this. Silver closed at $16 on 1/2/17 and closed at $17.12 yesterday 8/14/17. How is that down 63%? It isn’t; you are either terrible at basic math, or a liar.

      And you haven’t been following Tom Cloud for 8 years. On that count you are a liar.

  8. Virginia. In eastern Oregon | August 15, 2017 at 12:18 pm | Reply

    RD, I,too am a Jim Willie fan. Wow, going crypto? I really think, China, with their super computers and commodity holdings, will be the ones who will determine the form of future currency.

    Want to know how to make G*d laugh?
    Tell Him your plans 😀.

  9. Last comment not trying to spam. When the crash occurs, I wonder if those trying to sell cryptos will be able to cash out? With increasing government oversight of bitcoin, I wonder if it will even be possible to even cash out? How much will the value of it drop if many try to cash out at once? I have heard that the fees skyrocket when the system is under stress.

  10. Virginia. In eastern Oregon | August 15, 2017 at 2:40 pm | Reply

    If the ignorant buy Bitcoin, and the stubborn buy PMs, if you bought AMZN in 2009, go to the head of the class. I asked G*d for patience and He said “Let me help you buy this shiny gold baubel over here.”.

  11. Michael in Connecticut | August 15, 2017 at 6:19 pm | Reply

    I used to have enthusiasm for bitcoin as a disruptive mechanism to undermine central banks. Now, I see bitcoin and other altcoins transforming into another cash cow for governments to tax as the cryptos become integrated with the crumbling monetary system.

  12. Petro-Dollars will not crash the market itself. Even currency unpeg will not crash the market. One of the analysts has discussed in great detail that dollar crash will only occur if the large swaths of money with SWFs Sovereign Wealth Funds is diverted away from the dollar. The oil price should remain low for the next few years so that these SWFs bleed out of money. There is too much confusion about dollar crash and too much innuendo. I suggest everyone who is interested in this topic to read 2-3 times the piece “Riyal Dollar Trilemma”.

    https://www.perchingtree.com/riyal-dollar-peg-trilemma-will-saudi-abandon-peg-dollar-crash/

    • SWFs do have more power over the US Dollar than anything else. There is a lot of mambo jumbo out there on US dollar crash with peg/unpeg. perching tree clarifies this issue and I hope that steve does a more detailed post about this topic. Lots of interest but limited literature around this subject.

  13. saudi arabia is in lot of trouble. they will pivot towards china and invite the wrath of the powerful USA. to peg or not to peg is not an easy question.

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