Gold versus Bitcoin & Death of Money, by Egon von Greyerz

If you’re looking at alternatives for present state-backed mediums of exchange, cryptocurrencies are sexier but gold has quite a track record. From Egon von Greyerz at goldswitzerland.com:

2021 is likely to be a year of awakening. This is when the world will start to realise that the $280 trillion global debt has no value and will never be paid back.

But even worse than that, of the $280t a staggering $200t has been created in the last 20 years.

Let’s say that it took 2,000 years to go from zero to $80t in 2000. It doesn’t really matter where we start counting since most of the $80t debt was created after Nixon closed the gold window in 1971.

AS DEBT IMPLODES SO WILL ASSET PRICES

Looking at the other side of the balance sheet, there will be an even bigger shock for investors and property owners as debt implodes. Because asset valuations are a function of the debt. And if debt implodes, which is inevitable, so will asset prices.

This is why prices of stocks, bonds and property will implode by more than 95% in real terms (gold) as I outlined in my article last week.

So it took just under 2000 years for global debt to grow from zero to around $5 trillion in 1971. Thereafter it took 29 years to year 2000 to grow by $75t to $80t. That was the exponential phase.

And now we are in the explosive phase with debt growing by over $200t in 20 years.

Anyone who can’t see what is happening is either blind or hasn’t studied history.

+$5t   – 1,971 years  – Year 0 to 1971
+$75t  –    29 years  – Year 1971 to 2000
+$200t  –  20 years – Year 2000 – 2020

We saw exponential debt expansion 1971 to 2000. Since then the growth has been explosive.

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