Gold Vs Bitcoin & Death Of Money

2021 is likely to be a year of awakening. This is when the world will start to realize that the $280 trillion global debt has no value and will never be paid back.

But even worse than that, of the $280t a staggering $200t has been created in the last 20 years. 

Let’s say that it took 2,000 years to go from zero to $80t in 2000.  It doesn’t really matter where we start counting since most of the $80t debt was created after Nixon closed the gold window in 1971.

AS DEBT IMPLODES SO WILL ASSET PRICES

Looking at the other side of the balance sheet, there will be an even bigger shock for investors and property owners as debt implodes. Because asset valuations are a function of the debt. And if debt implodes, which is inevitable, so will asset prices.

This is why prices of stocks, bonds, and property will implode by more than 95% in real terms (gold) as I outlined in my article last week.

So it took just under 2000 years for global debt to grow from zero to around $5 trillion in 1971. Thereafter it took 29 years to the year 2000 to grow by $75t to $80t. That was the exponential phase.

And now we are in the explosive phase with debt growing by over $200t in 20 years.

Anyone who can’t see what is happening is either blind or hasn’t studied history.

+$5t   – 1,971 years  – Year 0 to 1971
+$75t  –    29 years  – Year 1971 to 2000
+$200t  –  20 years – Year 2000 – 2020

We saw exponential debt expansion from 1971 to 2000. Since then the growth has been explosive.

HYPERINFLATIONARY PHASE NEXT

The next phase will be hyperinflationary and that is likely to start in 2021. Just look at the graph and table from the Weimar Republic.

Gold was 170 marks in Jan 1919, 1,340 marks in Jan 1921, 3,976 Jan 1922, and 372,000  marks in Jan 1923.

By November 1923 gold was 87 trillion marks!

This is what happens after a debt explosion when money dies. We have had the debt explosion AND THE DEATH OF MONEY WILL NOW ACCELERATE.

Remember the dollar is down, 97% since 1971, (in real terms or gold), and down 85% since 2000.

So the hyperinflationary phase could start in 2021, 99 years after Weimar. Or will it be in 2022 on the 100 year anniversary?

A hyperinflation is a currency event. This means that it arises not as a result of rising prices but due to the collapsing currency. The dollar index is already down 12% since the March high. The combination of the Covid crisis, debt explosion, and money printing could easily start a dollar waterfall in 2021. This would mean that hyperinflation starts. And just look at history (which you can read in the table above) and you can see that once it starts it goes explosively fast.

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