The World’s Mainstream Assets Inflated Higher To New Record Levels While Gold & Silver Are Extremely Undervalued

It’s truly amazing what a few extra zeros can do for one’s financial wealth.  Today, we have a new past-time of adding zeros to make us feel rich.  And, why not?  We work hard, and we deserve it.  So, if the value of someone’s house goes up 45-50% in a few months or year, then by all means… bring out the glasses and champagne.  This is a time for celebration.

While the Fed continues to fool many into believing that it’s “PRINTING MONEY,” in reality, it’s forcing Americans to service debt which they have no idea they are doing.  Why?  When an American deposits cash into a bank account, the bank buys Treasuries with these funds to provide some small interest rate to the depositor.  Then the bank takes these Treasuries, from depositor funds, and does a QE, and parks the Treasuries on the Fed’s Balance sheet.  For this cozy arrangement, the Fed provides the bank with 5 basis points a year of interest.

So, by the Fed doing QE, it secretly forces Americans to service the Public Debt via this QE Arrangement.  Thus, many Americans who have deposits in a bank do not realize that their funds are now held in a Treasury on the Fed’s Balance Sheet.  

Furthermore, the notion that the increase in the M2 Money Supply has come from Fed Money printing is also false.  We must remember, that more than 50% of the physical currency in circulation, “DOLLAR BILLS,” are in foreign hands.  Thus, a great deal of the M2 U.S. Money Supply that IS NOT PHYSICAL BILLS, is also overseas.  A large percentage of the increase in the M2 Money supply came from BORROWED Foreign U.S. Dollars.  The Federal Reserve does not account for the M2 Money Supply Overseas.  So, when it comes into the U.S. Market, then it shows up in the M2 Money Supply data.

Next… while the M2 Money Supply has increased by $4.9 trillion, the Fed’s balance sheet is up by $4 trillion over the same period.  So, that is why the M2 Money Velocity has gone into the TOILET.  The Fed is destroying both Money Velocity and the U.S. Economy with its QE policy.  But, that is the cost of doing business by keeping the LIGHTS ON A BIT LONGER.

With the World’s Governments adding a massive amount of DEBT, hand-over-fist, while the Central Banks do QE to Infinity, miraculously, the value of Mainstream Assets are rising towards the moon.  In my last update of the World’s Asset Universe, total global values were $469 trillion at the end of 2017.

Global Real Estate was valued at $281 trillion, followed by Securitized Debt (Treasuries-Bonds @ $105 trillion, Equities ($83 trillion), and all gold and silver investment at $3.1 trillion.  So, what are the values of these assets today?

According to SIFMA – Capital Markets Fact Book 2021, Securitized Debt has increased to $124 trillion and global equities are now worth $106 trillion.  I could not find an updated figure for Global Real Estate, so I applied a 15% growth factor for the past three years to equal $325 trillion.

While the Global Real Estate (estimated), Securitized Debt, and Equities total value has surged $86 trillion in a mere three years, total world gold and silver investment only increased $1.4 trillion.  Again… it’s amazing how a few extra zeros can make us feel RICHER.

Unfortunately, for most Americans and citizens of the world counting on the value of these assets to provide them with a RICH & FAMOUS RETIREMENT… the majority of Real Estate, Bonds, and Stocks are ENERGY IOUs.  These assets only retain their value of the ENERGY TOOTH FAIRY continues to put barrels of oil under our pillows at night.  However, when Global Oil Production finally hits the ENERGY CLIFF, then the 99% are going to wish they had invested some of their wealth like the 1% in physical gold and silver.

Wise Investors are going to transition some of their assets AWAY from STOCKS-BONDS-REAL ESTATE and into GOLD & SILVER before the PHAT ENERGY lady signs.

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7 Comments on "The World’s Mainstream Assets Inflated Higher To New Record Levels While Gold & Silver Are Extremely Undervalued"

  1. Wow. All i can say is things are about to get a whole lot worse that most people cant imagine. Excellent reporting. Brace for impact everyone cause its already here.
    Thanks Steve

    • abe,

      Unfortunately, for the 99%, they believe these INFLATED ASSET VALUES are going to stay this high forever. Regrettably, Forever won’t last that long when we hit the ENERGY CLIFF. Gold and Silver will be some of the best STORES OF VALUE (ENERGY VALUE) at a time when most other assets will be declining in value.


      • DisappearingCulture | August 5, 2021 at 7:59 am |

        “Unfortunately, for the 99%, they believe these INFLATED ASSET VALUES are going to stay this high forever…”

        That 99% [or at least 75%] don’t even believe or understand the stock markets and/or cryptos can have a significant correction. The March 2020 downturn was a covid anomaly; that will never happen again.

  2. Texas Road Runner | August 2, 2021 at 11:06 pm |

    Steve thanks for the update on what the Unconstitutional Banksters are doing! According to the numbers provided in your article- Global Real Estate is up +16% / Securitized Debt is up + 18% / Stocks are up + 28% / Gold & Silver are up + 45%.
    Gold and Silver are assets that have no liability or counter party risk for those who bought, hold, and own them, whereas all the others are debt based assets. History teaches that when all this debt implodes, the world will go through a long depression, the likes that we have never seen before. Better to own REAL ASSETS than to have your life savings tied up in the Huge Global World Debt Pyramid.

    • Texas Road Runner,

      I totally agree with you that Gold & Silver (physical metal in one’s hands) have NO COUNTERPARTY RISK. Not only that… they are also wonderful STORES OF TRADEABLE ENERGY VALUE, which they have been for thousands of years. So, when the world starts to get in trouble with ENERGY as we head over the ENERGY CLIFF, most STOCKS-BONDS-REAL ESTATE values will plummet because they are ENERGY IOUs.

      Who knows how high the price or value of the metals will reach when the world wakes up that 99% are invested in the wrong STORES OF VALUE.


  3. I guess we’re kind of waiting for interest rates to go up and unleash the final holocaust for the bond market and thus the system in general. I read that the interest rates are now at the lowest levels in recorded economic history. Basically at the end of a 300 year bull market in treasuries. However those rates could be forced up if the Fed thinks it needs to fight inflation (okay that might not happen) or if foreigners decide they don’t want to hold as many dollars and those trillions come home to roost.

    • TaxDonkey,

      We may have to wait a bit of a while for Interest Rates to go UP. Why? The Bond Market is now in the beginning stage of MAJOR BULL MARKET. I don’t believe it will be a LONG ONE, but with all the leverage in the stock markets, when they start to head SOUTH, where do you think that CASH is going to go? We may actually see the LONG BOND RATES go to ZERO. So, we will not likely see HIGHER INTEREST RATES until the World Economy begins to go over the ENERGY CLIFF.


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