The financial media is in a state of euphoria. Champagne corks are popping on Wall Street as the Dow Jones Industrial Average sails past 49,000 for the first time in history.
Our 401(k) statement looks fantastic. The “wealth effect” is in full swing, encouraging us all to spend, spend, spend. But this is a dangerous illusion, a grand deception designed to mask a terrifying truth: we are not getting richer; the money in our pocket is becoming worth less. Much less!
This is the financial matrix, a carefully constructed reality designed by the central banking and political elite to keep us docile, compliant, and perpetually running on their fiat currency treadmill.
They want us to celebrate the meaningless numbers on a screen, to feel the temporary thrill of a rising 401(k), because as long as we are focused on the illusion, we won’t notice them systematically stealing our purchasing power through inflation.
They are magicians, and the stock market is their grand act of misdirection. While we watch the spectacle of nominal new highs, they are picking our pockets in slow motion. That’s why so few of us feel like their retirement savings are on track, despite the market’s being at all-time highs. Weird right?!
But what if there was a way to pull back the curtain? What if there was a single chart, a single ratio, so powerful and so honest that it could shatter the entire illusion in an instant?
There is. It is the Dow-to-Gold ratio, the ultimate truth-teller in a world of financial lies. It is the red pill. And right now, it is not just suggesting that something is wrong; it is screaming that a system-wide failure is on the near horizon, and possibly it is imminent.
The most important chart in the world is flashing a code-red warning, a signal that has preceded every major economic crisis of the last 100 years. It is screaming that the party is coming near an end. That the piper is pulling up to the house. And he will be demanding to be paid in gold.
While the media distracts us with nominal new highs, they ignore the most honest measure of value on the planet: gold. With gold closing above $4,490 an ounce, yesterday’s celebrated Dow 49,000+ is worth just 11 ounces of gold.
In September 1999, the Dow was worth over 43 ounces of gold. That is a staggering 74% decline in real terms over the last 26 years. Yet many believe in the rise as if it were the second coming, despite the plunge in its purchasing power. We have all been running on a treadmill, sweating and straining, only to find ourselves moving backward. That is the reality.
The Dow-to-Gold ratio, the ultimate truth teller, is screaming that the stock market is not in a bull market; it is in or near the final, manic phase of a historic bubble.
The chart is flashing a code-red warning, signaling that we are on a collision course for a crisis of the same magnitude as 1929, 1973, and 2008 unless our leaders dramatically change course; and there is no indication they will.
Let’s Dig Into The Following:
- The Dow-to-Gold ratio is a simple, yet profoundly powerful calculation: the value of the Dow Jones Industrial Average divided by the price of one ounce of gold. It tells you how many ounces of gold it takes to “buy the Dow.” Why this ratio cuts through the noise of inflation and currency debasement!
- There is a clear line in the sand that emerges at the 12:1 level. Whenever the Dow-to-Gold ratio has broken below this critical support line, a major economic crisis has followed. Why this is not a coincidence; it is a pattern, a historical echo that warns of impending doom for paper assets today!
- The fall in the ratio to 12:1 is just the beginning. The ultimate destination for the Dow-to-Gold ratio in a true monetary crisis is closer to 1:1 parity. Why the truth is that the forces of debt, deficit, and de-dollarization are too powerful to be stopped by conventional means!
- What does a 1:1 Dow-to-Gold ratio actually look and feel like? This is not a hypothetical question. We have seen this movie before, and it does not have a happy ending for those who are unprepared or “didn’t see this coming.” Why this is the world that the Dow-to-Gold ratio is telling us is coming for us. This is why we all must prepare now, while we still can!
- So why isn’t this front-page news? Why is the media celebrating the illusion of Dow 49,000 while ignoring the reality of the declining Dow-to-Gold ratio? The answer lies in a symbiotic relationship between Wall Street and Washington. Why the media does the heavy lifting for the government by hyping up the market and not gold!
- And the Dow-to-Gold ratio is the most important chart in the world right now because it is the ultimate truth teller. It is immune to the media’s hype and the government’s propaganda. What the truth teller is screaming at us right now!
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