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Captainandy

08/06/21 5:09 PM

#86 RE: Wooden Indian #85

#BKRRF:.Gold&Silver.Are.Extremely.Undervalued...:-) $0.67


https://www.silverdoctors.com/silver/silver-news/the-worlds-mainstream-assets-inflated-higher-to-new-record-levels-while-gold-silver-are-extremely-undervalued/



The World’s Mainstream Assets Inflated Higher To New Record Levels While Gold & Silver Are Extremely Undervalued


It’s truly amazing what a few extra zeros can do for one’s financial wealth…

by Steve St Angelo of SRSrocco Report

It’s truly amazing what a few extra zeros can do for one’s financial wealth. Today, we have a new past-time of adding zeros to make us feel rich. And, why not? We work hard, and we deserve it. So, if the value of someone’s house goes up 45-50% in a few months or year, then by all means… bring out the glasses and champagne. This is a time for celebration.

While the Fed continues to fool many into believing that it’s “PRINTING MONEY,” in reality, it’s forcing Americans to service debt which they have no idea they are doing. Why? When an American deposits cash into a bank account, the bank buys Treasuries with these funds to provide some small interest rate to the depositor. Then the bank takes these Treasuries, from depositor funds, and does a QE, and parks the Treasuries on the Fed’s Balance sheet. For this cozy arrangement, the Fed provides the bank with 5 basis points a year of interest.

So, by the Fed doing QE, it secretly forces Americans to service the Public Debt via this QE Arrangement. Thus, many Americans who have deposits in a bank do not realize that their funds are now held in a Treasury on the Fed’s Balance Sheet.



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Furthermore, the notion that the increase in the M2 Money Supply has come from Fed Money printing is also false. We must remember, that more than 50% of the physical currency in circulation, “DOLLAR BILLS,” are in foreign hands. Thus, a great deal of the M2 U.S. Money Supply that IS NOT PHYSICAL BILLS, is also overseas. A large percentage of the increase in the M2 Money supply came from BORROWED Foreign U.S. Dollars. The Federal Reserve does not account for the M2 Money Supply Overseas. So, when it comes into the U.S. Market, then it shows up in the M2 Money Supply data.

Next… while the M2 Money Supply has increased by $4.9 trillion, the Fed’s balance sheet is up by $4 trillion over the same period. So, that is why the M2 Money Velocity has gone into the TOILET. The Fed is destroying both Money Velocity and the U.S. Economy with its QE policy. But, that is the cost of doing business by keeping the LIGHTS ON A BIT LONGER.




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With the World’s Governments adding a massive amount of DEBT, hand-over-fist, while the Central Banks do QE to Infinity, miraculously, the value of Mainstream Assets are rising towards the moon. In my last update of the World’s Asset Universe, total global values were $469 trillion at the end of 2017.



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Global Real Estate was valued at $281 trillion, followed by Securitized Debt (Treasuries-Bonds @ $105 trillion, Equities ($83 trillion), and all gold and silver investment at $3.1 trillion. So, what are the values of these assets today?

According to SIFMA – Capital Markets Fact Book 2021, Securitized Debt has increased to $124 trillion and global equities are now worth $106 trillion. I could not find an updated figure for Global Real Estate, so I applied a 15% growth factor for the past three years to equal $325 trillion.



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While the Global Real Estate (estimated), Securitized Debt, and Equities total value has surged $86 trillion in a mere three years, total world gold and silver investment only increased $1.4 trillion. Again… it’s amazing how a few extra zeros can make us feel RICHER.

Unfortunately, for most Americans and citizens of the world counting on the value of these assets to provide them with a RICH & FAMOUS RETIREMENT… the majority of Real Estate, Bonds, and Stocks are ENERGY IOUs. These assets only retain their value of the ENERGY TOOTH FAIRY continues to put barrels of oil under our pillows at night. However, when Global Oil Production finally hits the ENERGY CLIFF, then the 99% are going to wish they had invested some of their wealth like the 1% in physical gold and silver.

Wise Investors are going to transition some of their assets AWAY from STOCKS-BONDS-REAL ESTATE and into GOLD & SILVER before the PHAT ENERGY lady signs.

DISCLAIMER: SRSrocco Report provides intelligent, well-researched information to those with interest in the economy and investing. Neither SRSrocco Report nor any of its owners, officers, directors, employees, subsidiaries, affiliates, licensors, service and content providers, producers or agents provide financial advisement services. Neither do we work miracles. We provide our content and opinions to readers only so that they may make informed investment decisions. Under no circumstances should you interpret opinions which SRSrocco Report or Steve St. Angelo offers on this or any other website as financial advice.

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