By Jeff Thomas, feature writer for Strategic Wealth Preservation, Doug Casey’s International Man and 321gold.com
Just prior to the turn of the millennium, I began to advise investors that the future would hold an economic crisis of epic proportions.
At the time, I believed that it would begin between 2005 and 2010, with what I regarded to be a mini-event – the first stage of what would become the Greater Depression (a term coined by Doug Casey at that time, and one that I considered to be right on the money).
Although many people considered the 2008 crash to be a major setback, I anticipated that it would be merely the forerunner of the main event – the greatest crash in history.
Around 2010, we began a period that was described by Keynesian economists as a “recovery.” It appeared to be such, since the central banks bought heavily into the stock market, re-floating zombie companies. The Governments helped out by providing falsely low figures for both inflation and unemployment.
Keynesian economists then proclaimed a “boom” that was no boom at all.
A boom would be a period in which the average citizen prospered. This did not take place. Instead, in this, the first phase of the Greater Depression, the middle class was eroded – their wealth squandered on the false hope that putting their last dollars in the stock market would bring them great rewards.
Instead, what they got was the longest suckers’ rally in history.
Predicting the date of the main event – the big crash – would be the most elusive objective I’ve ever dealt with.
But around mid-2019, the warning signs began to pop up that 2020 was likely to be “the year.” The band-aids that were holding the house of cards together were beginning to fall away and I estimated that, sometime around June of 2020, the first of the economic dominoes would fall. I guessed that the first domino would be the stock market, but there were a number of other possibilities, as any one of a dozen triggers could bring about the main event.
Along the way, I frequently discussed with associates how the banksters, et al, would cover themselves when the time came. How could they possibly disguise the fact that their policies were directly responsible for the collapse?
They fooled me. I never saw the coronavirus scam coming.
The first European deaths that were attributed to the coronavirus occurred in January of 2020, but it wasn’t until February that I realized the connection. It then suddenly became obvious that the coronavirus would be used as the cover for the crash.
Countries in Europe would create a corona-scare – they would lock down economically “for the public safety.” The overdue economic collapse would ensue, with the cover story that it had been collateral damage of the virus.
As is well-known, the International Monetary Fund (IMF) consistently claimed, prior to 2020, that economic blue skies were ahead. This was a claim that they made, ever-more loudly, as the economic house of cards began to shudder.
Then, early in 2020, on-cue with the corona-scare, the IMF reversed this position, stating that that the global economy would suffer the greatest crisis since the Great Depression.
Recently, they expanded on that prediction, stating that the situation is now worse than previously reported – “unlike anything the world has seen before.”
And the IMF have given it a name: “The Great Lockdown.”
Of course, it wouldn’t do if the world were to now recover from what is, in the end, a common seasonal virus. What will be needed will be the continuation of the virus for a period of many months, or possibly years. This will be necessary in order to assure that “freedom of assembly” is disallowed – that citizens cannot come together to protest what governments and banks have done to them.
In addition, a second scam is needed – protests and riots across the map for a non-economic reason. The average person will be kept locked down, whilst rioters will be free to destroy property and to take over portions of city centres.
If indeed this is the scam I believe it to be, what we shall see will not be the re-taking of the “autonomous zones,” but a standing-down by the police and, as illogical as it may be, assistance by the cities. City garbage trucks will remove the zones’ refuse, city-owned portable toilets will be installed and maintained, food will be delivered, and other services needed to maintain the zones will be paid for from the government coffers.
These zones will become mini-welfare states, yet will be praised in the media for their “success,” even though they are in no way self-sustaining.
At such a time, a crashing economy will fail to be the primary focus. It will be seen as merely an unfortunate bi-product of events that are more “worthy” of media attention.
And that’s exactly the objective.
So, what is the average person to do in a time in which all logic is tossed out the window; when priorities are not merely faulty, but completely upside-down?
Well, I’ve always recommended that, in such times, the investor must, above all, have an insurance policy – a hedge against assets cratering and currencies losing value.
In such times, for over 5000 years, mankind has always returned to gold.
In the early 2000’s, when gold was under $300 per ounce, I suggested that investors “buy now,” as I believed that gold was headed north in the near future. I “recklessly” predicted $1500 gold within a decade, but that prediction actually proved to be low. (Gold topped $1900 in 2011.)
Around 2015, when gold dropped nearly as low as $1000 and noted deflationists were predicting $750 gold and lower, I suggested that investors “buy now,” as they would not be likely to see such low prices again.
Gold didn’t begin to climb in earnest for another three years, and many wondered if gold had had its day and would never again rise above $1400. Yet, up it rose.
Then, in early 2020, in keeping with my belief that, by mid-year, we might see the beginnings of the economic crisis, I began to predict the “last chance for bargains.”
Typically, those who stay out of gold, but hope to jump in at the last minute, fail to understand that, once a crisis is underway, the spot price of gold and the actual price increasingly widen. Holders become more and more reluctant to sell, and the premium above spot can rise quickly – to $50, to $100, to $200 and beyond.
And this is the point at which the IMF’s new term, “The Great Lockdown” will take on a new meaning.
Yes, gold will still be out there, but you’ll be locked out from buying it, as the premiums will become staggering.
Once again, I find myself saying, “buy now!” Those who do, will purchase an insurance policy against the worst economic event of our lifetime.
Indeed, it’s quite likely that this will be the last opportunity to make that possible.
International Man and Strategic Wealth Preservation
This article was originally posted in the Strategic Wealth Preservation Blog and copied here with the permission of the author.