THREE KINDS OF MONEY

WHO IS THE MOST PRODUCTIVE?

THE DARK AGES BEGIN

100 YEARS OF PAPER

MONEY COLLAPSE

DEBT EXPLOSION

THE DESTRUCTION OF PAPER MONEY

Ounces of gold bought for $ 1,000

Investment Year Ounces Gold

Price

%

change

$1,000 1911 50 $ 20 -99%

$1,000 1971 28 $ 35 -98%

$1,000 1999 4 $ 250 -86%

$1,000 2002 3 $ 300 -83%

$1,000 2011 0.5

$1,850 -

Target

The Dow is down 86%

against Gold in 11 years

DOW JONES vs GOLD

DESTRUCTION OF THE DOLLAR

GOVERNMENT DEBT WILL NEVER BE REPAID

BENEFITS SUPERVISOR

SLEEPING by LUCIAN FREUD

EU’s MILK COW SLEEPING

DEBTS THAT WILL NEVER

BE REPAID • Government, state, city, municipality debts

• Central bank debts

• Housing loans, personal loans, car loans

• Credit cards, student loans

• Commercial mortgages

• Toxic bank debt

• Derivatives

LOSE - LOSE

• Deflation or Inflation – Austerity or QE

• Deflation – collapse of the financial system

• No bank will survive with deflation

• Money printing – QE

• Currency weakens

• Creates hyperinflation

HYPERINFLATION

KICKING THE CAN

CONSEQUENCES • Government deficits explode

• Unemployment surges

• Major dollar fall – also other currencies

• Interest rates surge

• Most assets financed by credit bubble fall

• Exchange controls

• Financial system will fail

• Social structures break down

• Wars

A STEALTH MARKET

THE MINISCULE GOLD MARKET

TOO LATE TO JUMP ON THE

GOLDWAGON?

GOLD TARGETS

WEIMAR GOLD

From DM 100 to DM 100 trillion

THE FINAL COLLAPSE

“THERE IS NO MEANS OF AVOIDING THE

FINAL COLLAPSE OF A BOOM BROUGHT

ABOUT BY CREDIT EXPANSION. THE

ALTERNATIVE IS ONLY WHETHER THE CRISIS

SHOULD COME SOONER AS A RESULT OF A

VOLUNTARY ABANDONMENT OF FURTHER

CREDIT EXPANSION, OR LATER AS A FINAL

OR TOTAL CATASTROPHE OF THE CURRENCY

SYSTEM INVOLVED”

Ludwig von Mises