Dying Empires …

Posted by Larry Edelson - Commodities, Stocks, Technical Analysis

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larryIf 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.

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 Edelson, one of the world’s foremost experts on gold and precious metals, is the editor of Real Wealth Report, Power Portfolio and Gold and Silver 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.

The investment strategy and opinions expressed in this article are those of the author and do not necessarily reflect those of any other editor at Weiss Research or the company as a whole.