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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.18-0.5%Oct 31 4:00 PM EDT

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Box-By-The-Riviera™
To: THE ANT who wrote (217346)10/23/2025 5:49:14 AM
From: THE ANT1 Recommendation  Read Replies (1) of 217485
 
The one chart that explains it all. Average debt to GDP over 100 years is about 140% as if it goes over this. It becomes unsustainable and eventually crashes as you can see a 1930. In 1930 we allowed debt to be liquidated by deflation and the price of everything crashed. We witnessed asset prices fall by 80%This time debt to GDP is even higher and debt can never be paid back rather than allow a 1929 recession we will print so much money that despite debt to GDP dropping back to 140% the prices of assets will not drop. Everyone will keep the nominal value of their asset. But when sold that asset will only buy 20% of the labor and raw materials that it bought before. This will mean greatly decreased wealth inequality just like happened in the great depression. The only difference is the nominal value of the asset will not fall and people will not lose their homes or other assets.

Debt created money looks like real money, but eventually has to be repaid or liquidated by deflation or inflation. All asset prices are directly related to debt to GDP. When debt GDP is high asset prices are high and assets can be sold to buy lots of labor, food and raw material. When debt to GDP falls asset values fall, and buy much less labor and raw materials that is why even printing boat loads of money, may prevent the nominal value of an asset from falling what it can buy goes down greatly. The cost of labor goes way up and the value of assets goes down and wealth. Inequality gets much smaller just like after the great depression.

This means the average worker will pay half as much for a house relative to his labor10 to 15 years down the road. If you are going to own a house, you actually want a mortgage on it as a mortgage owner will take much of the loss.and not you. do not pay off your mortgage.

It was touch and go as to if they were going to choose the deflationary or inflationary route. They have chosen inflation. This does not mean that they could not lose control and the economy go into deflation, but if that happened, they will print their way out, but just be a little late on the way there.

Again, the graph above is the one chart that best explains what has happened and what will happen. There is no chance of debt to GDP going up or remaining the same as the debt in existence can no longer be paid back.

As the total gold production is only 1.5% of above ground gold it cannot be inflated away, and that is why it is the ultimate measure of true inflation. The best investment now is probably a triple leverage gold fund as that way you will do more than keep the value of your dollar. The other option is the developing world as money printing in the US will increase the value of their currency and let their interest rates fall thus doing the reverse of what is happening in the USA
Gold is telling us they have chosen the inflationary route.
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