Consider a few HYPOTHETICAL examples of what we accept as normal:
The common theme is that GDP, debt, sales, expenses, gasoline consumption, economic activity and much more increased exponentially. Our world is based on exponential economic growth, exponential increases in spending, exponential increases in population, exponential increases in the extraction of crude oil, and exponential increases in the use of natural resources. This is not sustainable.
Consider the example of exponential growth in the US national debt for over 45 years. Like the man falling from the top of the Empire State Building said as he passed the 45th floor, “so far, so good.” But massive, unpayable, uncontrollable debt, like a fall from a 100+ story building, is very likely to end in a crash.
Exponential increases eventually exceed the system’s ability to support the demand for resources and energy. To further illustrate this point, consider these extreme examples:
Exponential growth can persist for a considerable time, but not forever. Eventually the system resets, natural resources are depleted, climate transitions into a cold cycle, energy supplies are depleted, drought reduces food production, war devastates the population and economy, or whatever. Exponential growth will cease when the system runs out of resources and/or energy.
Systems will reset and change when exponential growth at current or reduced rates becomes impossible. The transition is likely to be difficult, dangerous, and the ensuing trauma will not fade quietly into the night.
Exponentially increasing debt supported by nothing more than exponentially increasing promises will end in national and/or global disaster.
When the reset comes, and it may be years away, would you rather hold assets that are based on debt, trust in a possibly insolvent counter-party, and denominated in the currency of an increasingly insolvent government and central bank . . . . or physical silver and gold?
Do you trust real silver and gold, or unbacked paper assets based on the promises of self-serving politicians and central bankers?
These should be easy questions to answer when you realize that exponentially increasing debt, expenses, and commodity prices all point to inevitable and serious financial and social trauma.
However, silver and gold, since they are real money, will increase in value as other debt-based paper assets crash and burn in the inevitable reset.
Courtesy: Gary Christenson
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