Do You Know What The BIGGEST PROBLEM

Facing The World Today Is?

Global debt levels have reached an astronomical $199 trillion, representing $27,200 owed for every single human on the planet.

Here is the state of debt across 47 nations – 22 advanced and 25 developing:

AMERICA is BANKRUPT and on borrowed time.

You can see from the chart above that despite the hiccup in 2008-2009, the central planners are determined to continue inflating the GLOBAL PONZI DEBT SCHEME.

Where does this leave America and really the rest of the Western world whose data will mirror the US?

If the chart below looks INCREASINGLY EXPONENTIAL, that is not a coincidence.

China’s total debt has quadrupled from $7 trillion in 2007 to $28 trillion in the middle of last year…

… and Japan’s debt-to-gross domestic product (GDP) ratio reached an eye-popping 230% last year.

A “Saturated World”A “Saturated World”

The global economy is stalling, notwithstanding the massive monetary “stimulus” that has been thrown at it by the central banks.

As the old adage goes “you get what you pay for” and when the world is offering ‘money’ for free, one can only surmise its worth is also close to zero…

The War Against DeflationWhat might happen when the rate hike bombs: debt monetization. This is also known as ‘HELICOPTER MONEY’ or ‘PEOPLE’S QE.’

Growth of Central Bank Balance Sheets

This next chart is not a prediction, but is illustrative of the exponential nature of the next phase transition of Fed monetary policy.

Historically, actual “HYPERINFLATION”, meaning a currency officially plunging-to-zero, is “a confidence event.”

If this is the ‘recovery’ just what will the next recession look like?

Here is a chart that illustrates US economic activity on the production side.

Is This A Global Industrial Depression?

My Favorite Investments

The long-term chart for the CRB commodity index shows that it has dropped to its lowest levels for over 42 years!

CRUDE OIL

Crude oil prices suffer biggest 2-year bloodbath on record:

In terms of the Elliott waves, we are in the final wave 5 down and when it ends, we shall see a counter-trend rally of some size.

Hedge fund shorts near record highs may get hurt…

The following heat map shows that, in the last five years, the oil price historically popped in February after months of losses. What this means is that January might be a good time to buy:

Oil is now cheaper than coffee, milk, & water!

Saudi Arabia and Iran, with their large respective Sunni and Shiite majorities, are generally viewed as two major opposing forces in the Middle East.

GOLD

Gold and silver are safe havens within periods of economic uncertainty. As you know a global financial crash creates economic uncertainty. It is time to GET OUT OF PAPER AND INTO TANGIBLE ASSETS.

Although the year just started, gold is doing its part as a “SAFE HAVEN” asset while global stock markets sell off.

History Doesn’t Repeat Itself But It Does Rhyme

Gold Bullion “Extremely Rare”

In contrast to fiat currencies, gold supply has grown by only 1.6% per year. This clearly underscores its relative scarcity!

Is The Great(er) Depression Part 2 Underway?

A World On The Edge Of Total Collapse

I will close by reiterating that investors have to be extremely careful here. Protect yourself – PREPARE FOR THE WORST AND HOPE FOR THE BEST.

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