Seven Stages of Collapse
Published on August 22, 2011
Every Empire lives through seven economic stages, and then it falls. It is as predictable as the cycle of days of the week or that the moon follows the sun. Dmitry Orlov mapped the fall of the USSR and found that it applies to any and all.
The seven stages of collapse are:
Stage 1: The Empire has ‘good money’ (backed by gold and/or silver) and wealth.
Stage 2: Social programs develop.
Stage 3: Massive military build up and warfare becomes commonplace. (World War 1, Vietnam, Napoleonic etc.)
Stage 4: Expenses increase so taxes go up.
Stage 5: To pay for these expenses, the government begins to take the wealth of its people by stealth through either debasement of its currency and/or the creation of fiat currency. What it can’t raise by taxes, it borrows.
Stage 6: A loss of faith in government and currency occurs.
Stage 7: An end mass-movement out of the fiat currency into precious metals, causing end of paper currency and inflation.
It is probably fair to assume that we are in the latter parts of Stage 6. There is not much time left before we enter into Stage 7. For those who position themselves wisely in Gold and Silver, and know that the cycle of when to exit as importantly as how to enter, there is the possibility of surviving the impeding, financial, ‘perfect storm’. Some folk are even going to profit from this predictable series of events.
The following article was published in The Telegraph on Saturday 13th of August, 2011. It is what we have been describing to our customers and bloggers for a long time and it is well worth a thorough read together with the comments providing an educational discussion afterwards.
http://www.telegraph.co.uk/finance/comment/edmundconway/8699815/Abandoning-the-gold-standard-was-a-seminal-moment-and-one-were-now-all-paying-for.html
The 2008 crisis represented the first recognition that those increases in asset prices and economic growth were chimerical. The recent relapse represents a recognition that the losses have merely been transferred on to sovereigns' balance sheets. But what next?”
Our founding Partner, David Peers, attended the “Gold Rush GATA Conference” at the Savoy London last weekend. This fantasy of ‘apparent economic growth’ was raised there also. Here is what speaker John Bimelow had to say:
“The Wealth Effect is an economic term which refers to an increase in spending that accompanies an increase in perceived wealth. People tend to spend more when one of two things is true. Either when people are actually richer, or when people perceive themselves to be richer.
To explain, the assessed value of a family’s home increases so they perceive themselves to be wealthier. The banking system offers them extended credit facilities and they begin to spend. In reality, the family is no richer. They have not increased their estate by their efforts, their education, or by doing more work – it’s all down to perception. All that is happening is the family perceives wealth and spends capital like its real wealth when in fact it is debt.”
John Bimelow closed by saying that all bullion based investment vehicles must be 100% backed by the commodity (physical gold or silver) or you are only investing in contracts and that what is about to happen is a transfer of wealth. “If you’re not in gold and silver then you’re on the wrong side of the trade.”
We at Bleyer Bullion believe strongly in helping everyday people into the bullion market to position and protect themselves from the coming tumultuous financial storm. We have noticed over the past few weeks a rapidly growing number of enquiries from first time buyers, people who have never considered buying gold and silver before, but who are now beginning to enter the market. We are also seeing increased waiting lists for physical gold and silver delivery.
We are here to help you gain your confidence, help you think through your own research and provide a secure, safe and straightforward service to get physical Gold and Silver into your hands.
Call us on 01769 618618 for current prices and availability. Take control of your finances, get out of paper and enter the safe havens of Gold and Silver – the only real money out there.
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Disclaimer – I am a bullion dealer. I do this for a living. What is written here is for your education and should not be taken as ‘advice’. If you act then take some responsibility for your actions. All and everything that is written by David Peers and/or published by Bleyer LLP is subject to copyright.
