Silver and Gold Will Thrive Beyond Exponential Growth of Debt
Consider a few HYPOTHETICAL examples of what we accept as normal:
- GDP (gross domestic profit) grew by 2.1% this past year.
- The US National Debt augmenting by over 9% this past year.
- Sales during XYZ Corporation augmenting by 27% year-over-year.
- Spending on medication drugs augmenting by 22% this year.
- Population augmenting by 2.3% globally.
- Media spending to elect another presidential claimant augmenting 30% compared to 2012.
- Automobile miles driven globally augmenting by 10% this year.
The common thesis is that GDP, debt, sales, expenses, gasoline consumption, mercantile activity and most some-more augmenting exponentially. Our universe is formed on exponential mercantile growth, exponential increases in spending, exponential increases in population, exponential increases in a descent of wanton oil, and exponential increases in a use of healthy resources. This is not sustainable.
Consider a instance of exponential expansion in a US inhabitant debt for over 45 years. Like a male descending from a tip of a Empire State Building pronounced as he upheld a 45th floor, “so far, so good.” But massive, unpayable, wild debt, like a tumble from a 100+ story building, is really expected to finish in a crash.
Exponential increases eventually surpass a system’s ability to support a direct for resources and energy. To serve illustrate this point, cruise these impassioned examples:
- World race exceeds 7 billion people. Exponential expansion means that universe race will eventually surpass 50 billion or 100 billion people. Can a universe feed and support 50 or 100 billion people?
- Current US inhabitant debt exceeds $18 Trillion and is flourishing 9 to 10% per year. Exponential expansion indicates inhabitant debt will strech $100 Trillion and eventually $1,000 Trillion. Really?
- One penny deposited in a saving comment that warranted 6% seductiveness compounded annually would be worth, after 2,000 years of exponential growth, over $4 Trillion Trillion Trillion Trillion. Exponential expansion constructed a series of dollars with 48 zeros after 2,000 years. The calculation is scold and clearly shows there are boundary to exponential growth.
Exponential expansion can insist for a substantial time, though not forever. Eventually a complement resets, healthy resources are depleted, meridian transitions into a cold cycle, appetite reserve are depleted, drought reduces food production, fight devastates a race and economy, or whatever. Exponential expansion will stop when a complement runs out of resources and/or energy.
WHAT TO EXPECT
Systems will reset and change when exponential expansion during stream or reduced rates becomes impossible. The transition is expected to be difficult, dangerous, and a indirect mishap will not blur sensitively into a night.
Exponentially augmenting debt upheld by zero some-more than exponentially augmenting promises will finish in inhabitant and/or tellurian disaster.
When a reset comes, and it might be years away, would we rather reason resources that are formed on debt, trust in a presumably ruined counter-party, and denominated in a banking of an increasingly ruined supervision and executive bank . . . . or earthy china and gold?
Do we trust genuine china and gold, or unbacked paper resources formed on a promises of self-indulgent politicians and executive bankers?
These should be easy questions to answer when we comprehend that exponentially augmenting debt, expenses, and commodity prices all indicate to unavoidable and critical financial and amicable trauma.
However, china and gold, given they are genuine money, will boost in value as other debt-based paper resources pile-up and bake in a unavoidable reset.
Courtesy: Gary Christenson