The Coming Breakdown Of U.S. & Global Markets Explained… What Most Analysts Miss

There are so many more things that could be added to that list, but you all get the point here. Things will start to fall apart more rapidly over the next few years.

Physical Precious Metals Will Offer Much Better OptionsIn The Future Than Most Assets Today

The reason physical gold and silver will offer much better options for the individual going forward is due to the STORE OF WEALTH characteristic of the precious metals. As I have stated in several articles and interviews, Stocks, Bonds & Real Estate are CLAIMS OF FUTURE ECONOMIC ACTIVITY. They are not stores of wealth like GOLD & SILVER.

While it’s true that Real Estate has been viewed as a store of wealth in the past, this was only due to the increasing cheap supply of energy, especially oil. A home, warehouse or commercial building only has value if it there is economic activity to support its use.

As the EROI continues to fall, along with oil production, economic activity will evaporate making it impossible for the owners to pay their mortgage or rent for these buildings. As economic plummets further, the whole system disintegrates. And along with it, the value of most real estate.

As the world begins to wake up the ramifications of the rapidly falling EROI, investors will move into gold and silver to protect wealth. Only 1% of the world’s investors own precious metals. This will be like musical chairs.However, there will only be 2 charts with 100 people.

Gold and silver will act as two of the very few LIQUID ASSETS in the future that can be used for trade or to purchase larger items such as businesses or real estate. Bonds will no longer work on a large-scale as they need a growing energy supply to function and to provide a yield.

Where do you think Bond yields came from?That’s correct… GROWING ENERGY SUPPLIES.With falling energy supplies, Bonds just don’t work all that well.

The Majority Of Analysis Will Become Totally Meaningless In The Future

We will continue to see analysts putting out forecasts based on information and data that is totally meaningless going forward.Unless an analyst understands the energy information presented in this article, all forecasts will be totally worthless.

For example, Kevin Weiner of Monetary Metals puts out analysis showing the supposed abundance or tightness of the gold and silver market due to the “Basis & Cobasis”, as well as other factors. He recently wrote an article stating that the price of silver was over-inflated by $3 due to the basis and relative abundance of the metal.

This actually maybe true (IN THE SHORT-TERM) as many investors wanting to pocket profits have sold back into the secondary market silver they purchased at much lower prices. Furthermore, economic activity is heading south, which means lower consumption of silver for industrial purposes. Lastly, India who was making record imports of silver last year, has seen a huge drop in the silver imports the first five months of 2016.

This could translate to more silver being abundant currently.HOWEVER, most humans do not live for weeks, months or a few years.We live on average for 7-8 decades. I have never stated that owning silver is for the SHORT TERM.

That being said, the rapidly failing EROI will turn the U.S. and World on its knees within the decade…. if we agree with the analysis by the Hill’s Group. Folks, the 2008 collapse of the U.S. Investment Banking and Housing Industry was eight years ago.While it seems like it was yesterday, eight years have come and gone in a blink of an eye.

The Fed and Central Banks have pushed in a massive amount of liquidity and along with zero interest rates have kept the falling EROI at bay. Unfortunately, the FORCES OF GRAVITY will finally overwhelm the system as Central Bankers can’t create cheap oil out of thin air.

I will be altering my analysis going forward as certain topics aren’t as important anymore. We need to look at how this ENERGY DYNAMIC is changing and how it is impacting the U.S. and Global Markets going forward.

Lastly, some readers will be highly skeptical of the information presented in this article. This is a good thing. However, those who believe their are alternatives such as Free Energy Technology, Solar, Wind or etc, will be our SILVER ENERGY BULLET… they won’t.I will discusses this in detail in future articles.

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