Dying Empires

Dr. Martin Weiss

If you’re like most investors, you believe the worst of the 2008 debt crisis — and the Great Recession that followed — are over.

You believe America is now solidly on the road to economic recovery, her greatest struggles behind her.

But if you’ve been following my work, you know it’s nothing but a mirage; bought and paid for by the very people who triggered these great calamities.

The reality is, America’s fate has already been sealed; sacrificed on the altar of power and greed by those who swore an oath to defend her — with the blood of every man, woman and child they swore to defend.

The fact is that America is on the decline, destined to go the way of the many great empires that came before us. Like Rome. Byzantium. France. Spain. And Great Britain.

No, the U.S. won’t disappear. But we will slip to number two, and ultimately to number three in the world, behind China and Southeast Asia.

And the thing is, America’s demise will NOT be triggered by hyperinflation … or a bond market collapse … or a stock market crash … or any single catastrophic event, as some may have you believe.

In fact, even though the equity market correction I have been expecting is now here, long-term, the U.S. stock markets remain poised for very substantial gains.

And yes, even if the U.S. economy just muddles through. Why?

It’s simple:

A. Europe is in worse shape than the United Sates. So is Japan. And …

B. Our own government in Washington is the most indebted of them all, lighting a fuse under savvy investors who are already starting to pull their money out of the sovereign U.S. bond market and putting it right into stocks.

If you understand those two forces, you will not only be able to protect your wealth in the months and years ahead, you’ll also be able to profit, very well indeed.

Yes, I know, it makes no sense. If America is on the decline, how can stocks go higher?

We’ve seen the forces I speak of above before. It’s what I call the other side of the Great Depression that no one seems to ever want to talk about.

It’s when 17 countries in Europe failed and Great Britain was quickly losing its superpower status, yet between 1932 and 1937, the Dow Jones Industrials exploded 387% higher, even as the U.S. economy sunk further into a depression.

So once the current correction in U.S. equities plays out, get ready to load up on stocks.

And not only because the parallels to the above will soon be in play …

But also because most companies in America are in better financial shape that our own government. And, importantly, stocks are considered largely non-confiscatable.

That’s important, because on its way down, Washington will seek to nationalize part or all of your retirement assets, confiscate gold, and certainly tax you more and more.

Yet, they will never subpoena Apple for a list of its shareholders. They will never confiscate your shares in a publicly traded company.

Also keep in mind that history tells us that when governments and empires start to decline, they regularly unravel with terrifying speed.

17 years for the British Empire …

11 years for the Ottomans …

8 years for France …

2 years for the Soviet Union …

In every case … the people ignored the writing on the wall, thinking it couldn’t happen to them.

In every case … the government feigned ignorance, swearing on a stack of Bibles that the worst was over.

In every case … the majority failed to prepare for what was coming.

One need only look to Europe for the tragic results, where rioting, civil unrest, and depression-like conditions are now a way of life.

Jobs are being hemorrhaged. Personal income is falling. Social services are deteriorating. Home values are plunging. Crime is soaring.

It’s virtually impossible to put into words the nightmare of poverty, hunger, and homelessness jobless workers throughout Europe are feeling. While ironically, hundreds of thousands of others seek refuge in Europe’s dying empire.

All this as the European aristocracy preserves their own wealth by looting the economy, while slashing wages and social services for the working class at the same time. Imposing life-suffocating austerity measures on virtually every country and people but themselves.

It’s easy to see these as isolated events. It’s easy to bury your head in the sand and ignore, because it’s happening “somewhere else” …

It’s easy to forget if you listen to all the government-rigged economic numbers …

Yet millions of real people, and real families, in Europe and Japan are suffering very real consequences; quickly finding themselves living in total desperation — with little hope of having a “normal” life.

The average duration of unemployment in America has soared to 28.4 weeks.
The average duration of unemployment in America has soared to 28.4 weeks.

It’s even easier to think we’re immune; that it can’t happen in America.

Yet the frightening reality is that …

  • Some 94 million working age Americans are not in the labor force …
  • The average duration of unemployment has soared since January 2009 – from 19.8 weeks to 28.4 weeks …
  • 39% of those lucky enough to have a job earn less than $20,000 a year …
  • 46.7 million Americans – or 15% of the U.S. population – are now living in poverty, according to the U.S. Census Bureau …
  • 45.9 million Americans are now on food stamps …
  • The rate of homeownership has declined eight years in a row.

This is the new reality.

But there is a silver lining in this grim cloud of reality; important lessons to be learned by studying the history of failing empires.

First, understand the lessons of history and you will not only be better prepared to protect your wealth, but stand to grow it substantially as well. Just like many of the titans of the Great Depression, who saw the capital fleeing the bond markets of other countries around the world and who knew that there was no other place for that capital to go than into the deepest most liquid markets on the planet — U.S. stocks.

Second, open your mind to new possibilities, new ways to protect and grow your wealth. For as the above illustrations of what happened to U.S. stock markets between 1932 and 1937 clearly shows — is that during times of sovereign crisis …

Which is what is brewing now in Europe, Japan and the United States …

Everything you thought you knew about investing can be turned inside out and upside down.

Third, the tangible asset sector, commodities, natural resources, precious metals — will be amongst the biggest winners.

We’re not there quite yet, as most commodities have not yet bottomed. So build your stash of ammo for commodities …

Because when they do bottom, fortunes bigger than you can imagine can be had by you and I — lay people who will embrace what’s happening, and protect and grow our finances as sovereign empires start dying.

Best wishes,

Larry

Larry Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report and Supercycle Trader. Larry has called the ups and downs in the gold market time and again. As a result, he is often called upon by the media for his investing views. Larry has been featured on Bloomberg, Reuters and CNBC as well as The New York Times and New York Sun.

Comments 32

Jimmiedoo September 30, 2015

What happened to U.S. stock markets between 1929 and 1932.When will this similar event occur, soon?...

Larry October 1, 2015

Not for some time. There is no 1929 style crash in the cards, not for at least a few years. -- Larry

Herluf Johansen September 30, 2015

Larry !! I have 100K in cash in the bank - what would you do in today's market ? I would hate to lose it in the stock market and hate to see my bank statements every month giving a few bucks in interest. Tks. yr good advise H.Johansen

Larry October 1, 2015

Sorry Herluf, I cannot give personal advice. My best recommendation is to look at my Real Wealth Report, which is up nearly 18% year-to-date. -- Larry

we're September 30, 2015

do you mean 3,100 dow, or do you mean 31,000 dow? why is it going down?

Heidi September 30, 2015

He means DOW to 31,000 because what is happening now ( if the DOW falls to 14,000 ) it's a FALSE breakdown - these are Armstrong words .

Larry October 1, 2015

31,000 we're, but not for a few years. The correction you are seeing now, is just that, a temporary pullback, the market taking a breather. -- Larry

BDF September 30, 2015

martin armstrong say the market will crash this year. i wonder if this is it?

Heidi September 30, 2015

BDF We are all very bad in reading or understanding when it comes to Armstrong . He never said " a market crash for the DOW " but yes some lower numbers are still expected for the DOW . It's a false breakdown but it could take a year to go back where it was .

hiede September 30, 2015

this could be a good time to buy. shouldn't we buy when stocks are on sale?

mephisto September 30, 2015

the top is in for the year, but how about the bottom?

mammy September 30, 2015

so close i can taste it.

$1000 gold September 30, 2015

i'm the king of this site. don't use just love all the fake conversations i have with myself using fake people names

were September 30, 2015

the bottom is in for the year!

Heidi September 30, 2015

were You mean the bottom for the DOW ? That is new to me .

were September 30, 2015

This is the real "were". I haven't posted here in weeks. I DO NOT think the bottom is in. There is an idiot on this site if you haven't noticed that is messing with people.

Marky September 30, 2015

The bottom could be in, Armstrong's 2015.75 turn date is tomorrow - Oct 1st. Deflationary on the bond side, but stock market goes on steroids - shift in capital flow from public to private.

Larry October 1, 2015

Thanks were. I agree, the bottom is not in yet. And thanks for pointing out someone is messing with the site. -- Larry

Joe September 30, 2015

That’s important, because on its way down, Washington will seek to nationalize part or all of your retirement assets, confiscate gold, and certainly tax you more and more. Third, the tangible asset sector, commodities, natural resources, precious metals — will be amongst the biggest winners. We’re not there quite yet, as most commodities have not yet bottomed. So build your stash of ammo for commodities … If the government will confiscate gold then why buy it?

Larry October 1, 2015

You're right Joe, that's how I see it too. As to gold, I don't believe the government will confiscate it. But you never know. -- Larry

Richard September 30, 2015

HOW MANY times has Larry yelled in this writings that Washington WILL NEVER CONFISCATE gold, and that the mere thought of it was ridiculous. ...that there wasn't enough gold in the world to interest the govt into confiscating it...that fear mongers throw threats of confiscation .... Hasn't Larry ADAMANTLY yelled this countless times, and now suddenly he flips position with no explanation???

Geoff September 30, 2015

Not surprised. He is a flipper with no credibility at all!

Larry October 1, 2015

I have not flipped. I do not believe government will confiscate gold. They do not want gold to be a part of any monetary system. Confiscating it would contradict that. I maintain my view and I own NO gold at this time, and I am awaiting a bottom to buy. -- Larry

putin September 30, 2015

much better website with the troll gone. how did you get him to leave?

Rick September 30, 2015

Larry's reference to the Great Depression and stock market behavior is the wrong model to use today. Geopolitics are much different today and back then they were on a sound money (gold standard). Extrapolating from then to now without taking that into consideration is a mistake. It's like using a manual for steam engine repair to fix a gas engine. Beware.

Larry October 1, 2015

Sorry Rick, I disagree with you. The gold standard merely restrained things. As such, this time around the crisis could be worse. Human behavior does not change, it's cyclical. The lack of a gold standard is a good thing, as it means the adjustment and crises periods can be resolved by the markets much more rapidly, clearing them out. A gold standard is like a fixed currency, or price fixing, which merely delays things. So, I'm afraid you are dead wrong. -- Larry

Jimmiedoo September 30, 2015

Rick....I totally agree with that statement!

Larry October 1, 2015

Understand how deflationary a gold standard is, and you will understand how different things are today. A gold standard does now and never did prevent crises. All it did was drag them out. -- Larry

Tim September 30, 2015

Larry, I respect your opinion, but I think your 31,000 prediction of stock market is crazy. All of the problems in this country are real, and they are a function of 60 years of a "debt" binge. Capital did flow to US 80 years ago, as you mentioned but not today. 80 years ago we were the leader. We were large manufacturers. Our Debt to GDP ratio was much more manageble. We did not have 130 Trillion in unfunded liabilities. Today, our country is falling apart. Our jobs are all gone. We dont make anything. Our stock market is not going to rise to 31,000 when 90 million people are out of work, our true unemployment is 12+%. Markets go up and markets go down. Stocks are expensive and stocks are cheap. In my opinion, the next 10+ years will be a period of stocks being "cheap". Overall PE ratios will fall to single digits, and that will mean a stock market much much lower than here. I agree with you that commodities will be great purchase some time over the coming years, but your 31,000 call on the Dow is just silly.

Larry October 1, 2015

Hmm Tim, that's what everyone said back on March 16, 2009, when I said the Dow had bottomed and was headed back to 12,000. When capital is in flight due to financial crises, p/e's and other such things mean nothing, Capital needs a place to go. It can't all go into gold and any one with a half a brain would not buy sovereign debt. We are at the beginning stage of a sovereign debt crisis, just like the period between 1932 and 1937 -- when the Dow soared 382% in the worsening depression. Only this time, it's not only Europe going bust, it's also Japan, and eventually, the U.S. -- Larry

brian October 1, 2015

I buy some silver every payday i sleep better owning silver. Hope it go's lower ill buy more...

Sly October 1, 2015

Larry - So about where & when will stocks bottom during this correction. Thx for your valuable insight.