The Greatest depression is coming, are you ready?

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ZNP

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Sep 14, 2020
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the "average" non believer has no grasp of this.:unsure::(:confused::coffee:
True, but Putin, Xi, Khameni, and Kim all grasp it. The reason gold is outpacing the Dow and just about every stock on the S&P 500 for the last fifty years is because investors also grasp it.

What people forget is that for the last 50 years over 500 companies have been delisted from the S&P 500. Gold has done better than all those companies. Plus, very few companies, only a relative handful, have been on the S&P 500 for all 50 years. So you can eliminate all the other companies as not being a valid comparison. When you understand that gold has destroyed every index there is.
 

shittim

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Dec 16, 2016
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That and people putting their treasure in that which is temporal, not eternal.:)(y):unsure::coffee:
 

ZNP

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Sep 14, 2020
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Here is the killer, retirement accounts are stupid investors. By this I mean you set up the percentages, how you want the money invested and they take it out of every paycheck without any thought or consideration. They tell you to balance between stocks and bonds. But unless this is a self directed IRA you can only invest in mutual funds.

Gold has outperformed all of them. It is safer than bonds and it has a better return than all these funds. Why? All those funds have a fee. Granted, the tax exempt status of the fund helps hide that, but when you do have to pay taxes that is the other problem. True, you will also have to pay taxes on gold when you spend that, but only if the US government is still operating.

So here are your options:

Everything is great when you retire -- gold gave you a better return, but it is only marginally better.

Everything is terrible when you retire -- gold gave you a much, much better return.

The apocalypse is here, everything has collapsed -- gold gave you a spectacularly better return as long as you actually bought physical gold and not paper gold.
 

ZNP

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Sep 14, 2020
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That and people putting their treasure in that which is temporal, not eternal.:)(y):unsure::coffee:
If the money is fully consecrated to the Lord, then you better be a good steward. Repeatedly in the New Testament the Lord advises us to give to the poor. If your money is in the bank during the apocalypse it all goes up in flames. If it is in physical silver, gold, and canned goods, then it goes to the poor.

Think of Ruth "gleaning in the field". How do you think people will survive who are Christians? They will be picking through abandoned homes.
 

shittim

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Dec 16, 2016
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We are no longer our own once we are His.
"Our" money is now His money to do for the Kingdom.
blessings
 

ZNP

Well-known member
Sep 14, 2020
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6 MINS AGO! Jim Rickards: "Central Banks Are About To COLLAPSE The Economy and Here's How."


He explains why government debt does not hurt the economy if the Debt to GDP ratio is less than 90%, but if it is greater than 90% the more money you borrow the faster you go bankrupt. The current Debt to GDP ratio for the US is 134%.

Think of Return on Investment. Government spending when the Debt to GDP ratio is low gives you a healthy ROI, but if the ratio is high it doesn't.

For example, a successful businessman where he is doing very well may spend money on a country club, it may seem like a large expense, but he can point to deals made at the club that fully paid for his membership and more. He got a good return on that investment. But if the economy is bad, people are in debt, they are not spending as freely it may be that you are now spending more for the membership than the return on that investment. So for someone who is in serious debt the membership is not helping, it is causing you to go bankrupt even faster.

Another analogy, there is a time to plant and a time to reap, we have summer and we have winter. During the summer that membership was great because it put you into contact with people who would cut deals. But in the winter it is a waste of money because no one is looking to plant.

There are two things that make the Debt to GDP ratio worse. First is borrowing money, that is having a budget that exceeds tax revenue. Last year our budget exceeded tax revenue by 3 trillion dollars. The second is if GDP shrinks.

DOGE is trying to cut the US budget, that is good, but remember every dollar that they cut the US budget will also cut the tax revenues and the GDP. The good news is that if you cut $1 you will lose less than $1 dollar in GDP. But you will also lose tax revenue.

Trump is trying to replace the lost tax revenue with Tariffs. However, one sure problem with Tariffs is that GDP will shrink. If GDP shrinks then tax revenue from GDP will also shrink. So at best this will be a zero sum game. So actually the goal of tariffs is not to directly replace tax revenue but rather to motivate foreign investment into the US. See the real problem is when you buy a foreign car, most of the tax revenue goes to foreign countries. But when you buy a car built in America all the tax revenue goes to the US. A trade deficit is like pulling the plug out in the bathtub. The water (money) from the country is draining out. Tariffs put the plug back into the bathtub keeping the water from draining out while at the same time increasing the flow of water (foreign investment) into the country.

Trump realizes that cutting the US budget by two or three trillion dollars will have a huge impact on GDP and layoffs. But if he can also stimulate 2 or 3 trillion in investment in the US manufacturing he can offset that so that GDP actually increases, tax revenue increases and government spending decreases.
 

studier

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Apr 18, 2024
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Living under human theories is exhausting. Thank God it doesn't last forever and Thank God He's limited our time of exposure to it.
 

ZNP

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This is like a mathematical formula, every country has to decide what tier 1 currency they are going to use for foreign trade. They have two choices, the US dollar and Gold.

1. It used to be that the US dollar paid interest (you buy the treasuries) and that interest was greater than the inflation. In this case it was pretty much a no brainer.

However, that was because the US dollar was seen as being apolitical. It didn't matter what the politics are, you could use the dollar without any impact. But, recently they have seen the US dollar has been weaponized. So then, if you are a country that thinks they too could be the victim of of this weaponization, then of course, gold is far better. But also, if you are trading with a country that thinks it might be a victim gold is far better, they will not be willing to trade in US dollars. These are basically the BRICS nations moving from the US dollar to Gold.

But there is another reason, and that is the $36 trillion in debt. Who can afford to loan that money to the US? At one point the UK was the biggest holder in our debt, then Japan became a major buyer and then China. But today China and Japan are selling US debt and the UK is no longer in a position to be a buyer. So then with the US losing their buyers, in fact the amount of countries still buying could be completely offset by those selling. This creates two worries for anyone buying US debt. First, the US could go bankrupt and your bonds will become worthless. There are many reasons to think this could be a concern and everyone knows it will be a game of musical chairs where many bond holders will no longer have a way to sell their bonds. But there is an even more pressing concern and that is that inflation will be greater than the interest paid. In the last year gold is up 50%. Think about that, this eliminates any reason why you would want to use the US dollar as a tier 1 asset. If my gold is appreciating faster against the US dollar than the interest rate the bonds are paying, why hold the bonds? In fact this is true of the last two years. You can be sure that Central banks and the leadership of the various countries are all keenly aware of this.

In fact, if you look at how gold has performed over the last 50 years compared to all the stocks on the stock market 50 years ago, gold has outperformed 99% of them. So gold is looking better over the short term and over the long term. If you hold physical gold you don't have to ever worry about it going bankrupt or being caught in a scandal. Ever since the US dollar came off the gold standard gold has essentially outperformed the dollar. Now obviously you can pick narrow time ranges where that is not true, but over the last year, the last two years or over the last fifty years it is true. This means it is the investment with the lowest risk and the greatest reward.

Which is why I have said this is like a mathematical formula. What central banks are concerned with is risk vs. reward. To have an investment with the lowest risk and also the greatest reward is prior to this unthinkable. It always seemed you needed to pick one or the other.

But here is the other point, as the world moves from the US dollar to gold the price of gold will rise and the value of the dollar will fall. If the entire world were to make gold the reserve currency it would increase in value by 40x. No one is suggesting that is about to happen, but what they are saying is that there is tremendous upward pressure on the price of gold. For it to double, triple or quadruple in price is being suggested. Think about this, another year with gold outperforming the US dollar and no one will be able to continue to afford the losses of holding treasuries.
 

ZNP

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Sep 14, 2020
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There are two major engines to the world's economy, the US economy and China's economy. So the issue is not simply the US economy, it is also the Chinese economy.


The Yangtze Shipping Industry Is Doomed, With Ships Piling up on the River, Empty and Waiting

In this story they point out how real estate prices have fallen, real estate construction have also fallen. Meanwhile the inventory of unsold homes is up. These are three different factors indicating the economy is struggling across the board.


China’s Unemployed College Graduates May Reach 30 Million, With Only a 30% Employment Rate
 

ZNP

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URGENT BROADCAST: MASSIVE MOVEMENT HAPPENING NOW

Open interest on gold, silver and platinum is exploding.
 

ZNP

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Sep 14, 2020
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You know very well

In the last 12 months The Dow Jones Industrial Average and the Nasdaq 100 are up about 5%, basically keeping pace with inflation while Gold is up 40%. This means that everyone is dumping the US dollar and moving to gold. The only reason the big indexes are not down is because of stupid money, 401k contributions every two weeks. You are being robbed blind. Like Paul said the day of the Lord comes as a thief in the night.

Why is it that we know this perfectly well? Because we ourselves have been robbed by them, just look at your own experience. Look at Social security, look at the waste and fraud of the US government, look at the mortgage meltdown of 2008. It was absolutely criminal and yet not a single person from the US went to jail.

1 Thessalonians 5:2 for you know very well that the day of the Lord will come like a thief in the night.
 

ZNP

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When you buy US treasuries the US government will identify the treasuries that belong to you. During the Ukraine war in 2022 the US government said that the treasuries that Russia had bought were now theirs. This is an incredible betrayal and loss of trust as a result. when you have a reserve currency like the fiat dollar of the US whose only backing is trust you can't undermine that trust. That is precisely what the US government did when they seized Russia's treasuries. As a result we just had 25 nations meet in Moscow because they are now going to switch to the BRICS currency as their reserve currency. At the moment close to half the world is supporting the US dollar while the other half is supporting BRICS. You might be tempted to say "well, let's just see how this plays out to see who wins" but that would be foolish because we know right now who will win. First, many of these nations if not all of them have treasuries. If they sell them and many are selling, then there are only two possible acceptable courses of action. One is that the US raises interest rates on the bonds in order to continue financing their debt. If they do that the interest payments on our debt increases which makes the US look insolvent and that much harder to sell our debt. Raising interest rates is the same as raising the white flag and declaring bankruptcy. The other option is that the Fed simply buys up all the treasuries by simply printing money. This will cause inflation on the US dollar. But that inflation will be concentrated on the countries still using the US dollar as a reserve currency. By selling their treasuries these BRICS nations make their gold backed currency stronger and the US dollar weaker. Either option will result in the US dollar losing its status as the reserve currency.

There is one unacceptable course of action that the US can take and that is to do a short squeeze on Gold and Silver, cause the price to double or triple, then swap their gold for US debt in a single trade so that they get the full benefit of this high price for silver and gold, while at the same time causing the market price for these commodities to crash. So they could trade $3 trillion worth of gold for $3 trillion of US debt, and then they could buy back the same amount of gold for $1 trillion. In order to do this they would have to have inside trading with the fed. This would be illegal in many ways and so would completely destroy any trust people would have in the US dollar and instead they would see the US government as a criminal enterprise much like malignant cancer. But they would also destroy the BRICS currency as it would experience incredible volatility making it very unstable. As a result the biggest losers would be the Fed and Multinational corporations. In all of human history we have never seen the elites take one for the team. On the contrary they would rather choose to make the common man take another one for the team.

Which of course leaves us with one option left. If they decide to take this option you will see wars and rumors of war proliferate. You will see threats of nuclear war. You will see them crash international trade with tariffs or some other scheme and you will see hundreds of millions of Chinese "disappear" as well as many Russians and others. I didn't actually include this option in the numbering system because technically this is the option they have been operating under in order to bring the Antichrist to power. I used to be surprised at how hard rich people cling to power. If you are rich why not simply enjoy your riches. But they know the minute they don't have power all their wealth can be pulled out from under them because that is what they did in order to get rich. But if you seek power, then what you really want is absolute power. That has been the goal for human empires since the days of Nimrod. They get rich by lying, stealing and killing and war is how empires get rich and powerful. Someone is going to have to pay and if the elites aren't going to volunteer then then will engineer a war in which common people pay. You will get a heads up that this war is about to start when you see them all buying up gold and fleeing the "ship".
 

ZNP

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In human history every time a country gets to 130% of debt to GDP there has been a monetary event or collapse in that country. Right now the US is at 125%. This is why it is absolutely critical that DOGE figure out how to cut our budget, but it is impossible for them to get us to a balanced budget since 80% is untouchable and last year our deficit was much greater than 20%. Also, our treasuries are not ten years, no one wants to buy ten years anymore so we have to roll over a larger and larger percent of our debt each year.

What Trump is doing with Tariffs will either increase tax revenue, or it will increase investment in the US thus increasing GDP or it will do both. Granted, whatever gain the US has will probably be balanced out by losses to other countries. But this should explain the situation he is in. If he can increase our GDP and decrease our Budget he might be able to keep us from getting to that 130% threshold.

If the rest of the world was doing great then I would certainly think he has a shot at doing that. But the rest of the world is doing horrible. Especially Iran with 45% of inflation and being humiliated by Israel defeating Hamas, Hezbollah and the Houthis. Even if their economy could survive their ego can't. So that is going to escalate into war. Likewise with China and Taiwan. A few years ago everything was golden for China, not anymore. Especially with the new reciprocal tariffs, they will be catastrophic to China's export economy. Likewise with Russia and Ukraine. The US is embroiled in a 3 front war. We have obligations to NATO, to Israel and to Taiwan.

What we are witnessing with the price of gold is all the nations sitting at this poker table are cashing in their chips (US treasuries) and fleeing to a safe haven (gold). If the US did not have any debt we could weather that, but if they dump US treasuries then the inflationary impact of our printing money increases. Think of our debt being similar to a casket being carried by pall bearers. If 100 countries are carrying the casket then it is manageable. If half the countries leave due to BRICS then the casket becomes twice as heavy (inflation doubles), If another 25 countries leave then the inflation rate for those who remain doubles again. They are given a choice, do you want to carry the casket with gold in it or the one with treasuries. Gold is up 50% in the last year because they all want to carry the one with gold.
 
Feb 15, 2025
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In human history every time a country gets to 130% of debt to GDP there has been a monetary event or collapse in that country. Right now the US is at 125%. This is why it is absolutely critical that DOGE figure out how to cut our budget, but it is impossible for them to get us to a balanced budget since 80% is untouchable and last year our deficit was much greater than 20%. Also, our treasuries are not ten years, no one wants to buy ten years anymore so we have to roll over a larger and larger percent of our debt each year.

What Trump is doing with Tariffs will either increase tax revenue, or it will increase investment in the US thus increasing GDP or it will do both. Granted, whatever gain the US has will probably be balanced out by losses to other countries. But this should explain the situation he is in. If he can increase our GDP and decrease our Budget he might be able to keep us from getting to that 130% threshold.

If the rest of the world was doing great then I would certainly think he has a shot at doing that. But the rest of the world is doing horrible. Especially Iran with 45% of inflation and being humiliated by Israel defeating Hamas, Hezbollah and the Houthis. Even if their economy could survive their ego can't. So that is going to escalate into war. Likewise with China and Taiwan. A few years ago everything was golden for China, not anymore. Especially with the new reciprocal tariffs, they will be catastrophic to China's export economy. Likewise with Russia and Ukraine. The US is embroiled in a 3 front war. We have obligations to NATO, to Israel and to Taiwan.

What we are witnessing with the price of gold is all the nations sitting at this poker table are cashing in their chips (US treasuries) and fleeing to a safe haven (gold). If the US did not have any debt we could weather that, but if they dump US treasuries then the inflationary impact of our printing money increases. Think of our debt being similar to a casket being carried by pall bearers. If 100 countries are carrying the casket then it is manageable. If half the countries leave due to BRICS then the casket becomes twice as heavy (inflation doubles), If another 25 countries leave then the inflation rate for those who remain doubles again. They are given a choice, do you want to carry the casket with gold in it or the one with treasuries. Gold is up 50% in the last year because they all want to carry the one with gold.
Sometimes you are spot on.