If you are Leveraged, get Unleveraged or Lose it all
I have been predicting an instant replay of both 2008 and 1929 for months. It is clearly here.
This is the monster crash I was calling for all of last year. I want to be 100% up front, if you are holding any leveraged position in anything, get out of it or you are going to lose everything. We are in a giant liquidity event. It is going to get far worse.
Get liquid and stay liquid.
Very few people understand what is actually happening because it is so far outside their frame of reference. As to a market crash 90% of investment advisors have never seen a real crash. Boy are they in for a surprise. But it goes far deeper than that. Because of seventy years of stupidity on the part of the US and then Nato, the economic center of gravity of the world is going to shift 5,000 miles to the east.
The long planned war on Russia has exposed all the flaws in the Western debt based economic system. The US holds somewhere between $150 trillion and over $200 trillion in unfunded Federal debt. Frankly no one really knows just how much. But anyone who can add, subtract and do any thinking for themselves soon realizes that an economy of $21 trillion can never pay those debts. The choice is to default or to go into hyperinflation or both.
While the US still considers itself an Empire and THE exceptional nation, actually it is an Empire that just jumped off a cliff. Normally it takes many years for an Empire to conclude but the US and Nato by attacking Russia have accelerated our demise. Eventually historians will accept that the sanctions on Russia were the dumbest geopolitical move in recorded history. Hundreds of millions of people will face either starvation or freezing this coming winter because the US, Nato and the EU have skipped over the simplest argument against sanctions that anyone can understand.
The world, I mean the whole fucking world, depends on resources from Russia. The current world economy cannot and will not continue to function without those resources. If Putin cut off natural gas to Germany tomorrow, the doors would close on the EU in six months. It may happen in any case.
Do I really need to mention that the US is paying a price for the sanctions? The 3rd world faces massive starvation. The EU is literally shutting down. Actually just about everyone in the world is suffering due to the sanctions except one country.
That would be Russia.
Their Ruble went from 75 prior to the war to 160 when the sanctions were announced to 55 today. Don’t for even a minute think they got hurt. If there were a single politician in the West with functioning brain cells, they would be begging the US to rethink the sanctions. The sanctions don’t work any better than the masks for Covid or the suicide shots called “vaccines.” Alas, western politicians are all sociopaths who lied their way into office.
While Zelensky comes out of his self-induced cocaine bubble he is going to realize he has destroyed both his military and his country. The Ukraine has had its balls cut off and has been portioned into three pieces. The East belongs to Russia just as it always has. The Center can host the few surviving Nazis in a demilitarized zone free of any offensive potential. The West will once again belong to Poland. They have already moved in at the invitation of the Ukraine government. Once they think about it, they will sink roots and settle down on a permanent basis.
If that jackass Zelensky had ever read a current history book, he would have realized the very last thing any country should do is to believe the lies of the US government. Nato was quite willing to keep egging Zelensky and the Nazis on but the war has proven the US and Nato are a paper tiger. Nato was quite willing to fight Russia to the last drop of Ukrainian blood.
We had the majority of Nato, all of the Western MSM, the Pope, even Switzerland buying into what was obviously total bullshit right from the start. Putin demanded safe borders. So the entire western world lined up behind a senile pervert accepting bribes from both the Chinese and Ukraine at the same time who craps his pants when he meets the Pope and doesn’t believe in secure borders. How hard was it to decide just who was going to win any battle between those two? Biden doesn’t remember what he had for breakfast and Putin doesn’t care.
One day very soon Zelensky will beg for peace or his generals will remove him one way or another. He lost this war the day he began it by starting a shelling attack on Donbas February 16th.
The West has controlled the world pretty much for the last five hundred years. That’s over and few realize it. I came across this piece and at least one group gets it.
Few people understand that in a crash real assets still exist. Actually nothing changes except who owns them. Paper assets such as Bitcon and the 10,000 variations of Cliptocurrencies are going to Bitcon heaven. They have already destroyed $2 trillion in paper assets and are working on the last $980 billion. Wait until the CFTC realizes Tether is 100% fraud. The market will evaporate.
The Dow Jones peaked in early September of 1929. It began a crash in late October that didn’t end until the low in July of 1932. But a real market crash is the opportunity of a lifetime for those who actually understand history. From July of 1932 until June of 1933 the Dow increased by 163%.
We are in a crash. It could well go down 89% as it did from 1929 to 1933 but there will be a rebound for the record books. I called the bottom for gold in 2001 and the bottom for silver in December of 2001 and the top in silver to the day in April of 2011. I can do it again.
In a crash everything goes down; bonds, stocks, resources, Bitcon and every other financial tool. But when this crash hits bottom resource stocks are going to be what you want to own. I will be writing about a number of them between now and Oct/Nov when I see a low coming.
I wrote about an interesting speculation in South Africa that controls the Durban Deep Gold Mine last November. When it was in full production over twenty years ago they produced a JORC resource showing 12.8 million ounces of gold. That’s historic now but the company that controls the mine; West Wits Mining (ASX-WWI, WMWWF-OTCBB) uses a figure of 4.28 million ounces of gold. When I first wrote about them last year Canadians and Americans were pretty much locked out of the market due to an inability to buy Aussie stocks but now there is a US listing.
The mine is fully permitted. West Wits can start producing ore within six weeks of final financing. Current plans call for a twenty-seven year mine life guessing $1,138 Aussie to produce 70,000 ounces a year. Plans are in progress to increase production up to 200,000 TPM that would allow 180,000 to 200,000 ounces a year production.
We are in a mixed up world and people are finding plans have to change on a daily basis for everything due to the Sanctions stupidity, and the cost of energy and food but as far as I can see, WWI has the cheapest ounces of gold with near-term gold production in the world.
West Wits is an advertiser. They came to me. I have participated in their latest private placement so naturally I am biased. Do your own due diligence.
West Wits Mining Limited