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TRANSCRIPT
THREE KINDS OF MONEY
WHO IS THE MOST PRODUCTIVE?
THE DARK AGES BEGIN
100 YEARS OF PAPER
MONEY COLLAPSE
DEBT EXPLOSION
THE DESTRUCTION OF PAPER MONEY
Ounces of gold bought for $ 1,000
Investment Year Ounces Gold
Price
%
change
$1,000 1911 50 $ 20 -99%
$1,000 1971 28 $ 35 -98%
$1,000 1999 4 $ 250 -86%
$1,000 2002 3 $ 300 -83%
$1,000 2011 0.5
$1,850 -
Target
The Dow is down 86%
against Gold in 11 years
DOW JONES vs GOLD
DESTRUCTION OF THE DOLLAR
GOVERNMENT DEBT WILL NEVER BE REPAID
BENEFITS SUPERVISOR
SLEEPING by LUCIAN FREUD
EU’s MILK COW SLEEPING
DEBTS THAT WILL NEVER
BE REPAID • Government, state, city, municipality debts
• Central bank debts
• Housing loans, personal loans, car loans
• Credit cards, student loans
• Commercial mortgages
• Toxic bank debt
• Derivatives
LOSE - LOSE
• Deflation or Inflation – Austerity or QE
• Deflation – collapse of the financial system
• No bank will survive with deflation
• Money printing – QE
• Currency weakens
• Creates hyperinflation
HYPERINFLATION
KICKING THE CAN
CONSEQUENCES • Government deficits explode
• Unemployment surges
• Major dollar fall – also other currencies
• Interest rates surge
• Most assets financed by credit bubble fall
• Exchange controls
• Financial system will fail
• Social structures break down
• Wars
A STEALTH MARKET
THE MINISCULE GOLD MARKET
TOO LATE TO JUMP ON THE
GOLDWAGON?
GOLD TARGETS
WEIMAR GOLD
From DM 100 to DM 100 trillion
THE FINAL COLLAPSE
“THERE IS NO MEANS OF AVOIDING THE
FINAL COLLAPSE OF A BOOM BROUGHT
ABOUT BY CREDIT EXPANSION. THE
ALTERNATIVE IS ONLY WHETHER THE CRISIS
SHOULD COME SOONER AS A RESULT OF A
VOLUNTARY ABANDONMENT OF FURTHER
CREDIT EXPANSION, OR LATER AS A FINAL
OR TOTAL CATASTROPHE OF THE CURRENCY
SYSTEM INVOLVED”
Ludwig von Mises