Adam believes that a black swan event is eminent and is calling it The Great Devaluation. Adam's thesis predicts the next market crash will cause catastrophic events to the economies of the world. In the last 30 years, the top 1% of wealthy individuals have gained $21 Trillion in wealth. During that same time, the bottom 50% of non-wealthy individuals have lost 900 Billion dollars. The Top 20 Richest People in the world are worth $1.3 Trillion dollars and the stock market is up over 400% in the last decade. With lower and lower interest rates and free money flowing to the very top, the market is on the precipice of great decline. This combined with the effective federal funds rate that has decreased year over year since 1980 and there is a wealth inequality like the world has never seen. The Etruscans believed that black swan events would happen ever 90 years. Being that 90 years is a supercycle and that nobody would be around that remember the last crisis. The last black swan event was the great depression of the late 1920s and early 1930s. The great depression was lead by the stock market collapse. The corollaries to the US economy now and the economy then are nearly the same. Interest rates in the 1930s averaged 0.63%, whereas interest rates are currently sitting at 0.63%. During the 1970s when the economy was booming with organic growth interest rates were close to 20%. Adam sees a return to this number once the markets crash. The United States Debt has doubled for every president since Jimmy Carter. The US Debt is spiraling out of control and the world is about to learn the lessons of thousands of years of finance. In that we cannot borrow our way into growth. The more we grow, the more we owe. Organic growth means higher interest rates (20%+) and that means a higher cost to serve the debt. If a black swam event occurs, the 2020s will be the largest transfer of wealth in human history. Gold will surge to unthinkable new highs. But how can we predict a black swan event? The problem begins with the human brain. Our brains are designed to recognize concrete things. We don’t understand exponential growth.
OGC Price at posting:
$2.50 Sentiment: Buy Disclosure: Held
