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THE COMING BREAKDOWN OF U.S. & GLOBAL MARKETS EXPLAINED… What Most Analysts Miss

by Steve St. Angelo, SRS Rocco:

The U.S. and world are heading toward an accelerated breakdown of their economic and financial markets.  Unfortunately, the overwhelming majority of analysts fail to understand the root cause of this impending calamity.  This is also true for the majority of precious metals analysts.

The reason for this upcoming systemic collapse of the U.S. and Global markets is quite simple when you understand the information and are able to CONNECT THE DOTS.  While it has taken me years of research to be able to finally put it all together, new information really put it all into perspective.

Yes… a HUGE LIGHT BULB went off, but unfortunately the realization is much worse than anything I imagined before.  I briefly discussed this in my last article, The Coming Global Silver Production Collapse & Skyrocketing Silver Value.

The information discussed in this article makes it abundantly clear that the precious metals will be the GO TO ASSETS in the future.  The standard financial practice of investing most of one’s assets in stocks, bonds and real estate will no longer be true.  What little investment strategies are left in the future will turn to PROTECTING WEALTH, rather than building wealth.  The days of acquiring wealth are coming to and end… and fast.

So, now I will try to lay out all the details in a way that will make this easy to understand.  However, I have a word of warning.  Those who are able to connect the dots… it’s like taking the RED PILL, you can’t unlearn what you now realize.

The Collapsing EROI Is Destroying Everything In Its Path & Quickly

Americans used to enjoy a much better standard of living when it only took one person in the family to provide the income.  This was during the late 1940’s, 1950’s and early 1960’s.  However, the situation started to change in the 1970’s.

Not only do both spouses have to earn a living to make it today, health care and college education are becoming unaffordable.  I remember back in the 1980’s that most health plans had full coverage with little or no premium.  Basically, your health care was free, and all you had to do was pay a small deductible when you went to the doctor.  Now, more and more Americans can only afford catastrophic coverage, for an expensive monthly premium with a high deductible.

Many believe this is all due to the corrupt insurance, healthcare and pharmaceutical companies.  While they are partly the blame, the majority of the reason is due to the rapidly falling EROI.  Furthermore, the falling EROI is making higher degrees of education less affordable to the public.

Before I get into the details here, let me explain the EROI.  The EROI stands for Energy Returned On InvestedBasically, its how much profitable energy you get in return from what amount of energy was invested (burned).  The EROI has been a guiding principle for humans going back thousands of years when we were hunter gatherers.

Here are some simple EROI for human food production:

Hunter Gatherer = 10/1

Simple Human Farming = 5/1

Human & Animal Farming = 1-2/1

High Tech Modern Food System = 1/10

Data from Thomas Lough/ Energy Efficiencies (EROI) of food procurement strategies/ (page 4)

A typical hunter gatherer only burned 1 calorie of energy to acquire 10 calories of food.  You will notice that a hunter gatherer was 100 times more efficient in food production (gathering) thanour modern high-tech food system that devours 10 calories of energy to provide 1 calorie of food on the dinner plate.

Our modern food system can waste so much energy growing, harvesting, processing and delivering food because of the high EROI of oil we have enjoyed in the past.  Unfortunately, the rapidly falling EROI of U.S. and Global oil will cause serious trouble for food production going forward.

Why the Falling EROI is Causing Havoc To Our Modern Way Of Life

In a recent three-part article by Louis Arnoux, Some Reflections On The Twilight Of The Oil Age, the following chart was posted about the importance of a high EROI for our modern society:

Different-EROI-FIgures

I am going to simply the chart above.

EROI 3/1 = Transportation System: Roads, Bridges & Trucks only.

EROI 10/1 = Transportation System, Agriculture, minimal Health Care & Education.

EROI 20/1 = Transportation System, Agriculture, Basic Living, Health Care & Education along with basic consumer goods

EROI 30/1 = Transportation System, Agriculture, Prosperous Living, Heath Care & Education with advanced consumer goods.

The important thing to understand from these EROI guidelines, is that a minimum value for a modern society is 20/1.  For citizens of an advanced society to enjoy a prosperous living, the EROI of energy needs to be closer to the 30/1 ratio.

Well, if we look at the chart below, the U.S. oil and gas industry EROI fell below 30/1 46 years ago (after 1970):

U.S.-Public-Debt-vs-U.S.-OIl-Gas-EROI

You will notice two important trends in the chart above.  When the U.S. EROI was higher than 30/1 prior to 1970, U.S. public debt did not increase all the much.  However, this changed after 1970 as the EROI continued to decline, public debt increased in an exponential fashion.

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39 comments to THE COMING BREAKDOWN OF U.S. & GLOBAL MARKETS EXPLAINED… What Most Analysts Miss

  • Eric

    The EROI for mike to read this article is 0:1

  • Johan

    Where is nuclear energy on EROI?

      • glitter 1

        Nuclear Power is a political issue here in the US and Canada,however in China,Russia et al it’s full speed ahead.Here in the US,utilities are closing down NPP left and right due to the Profit Motive.It’s all short sightedness.Every state where the Electric Industry has been deregulated,utilities that own/run NPP are shutting them down.Wind and Solar can add supplemental power,but can not support Base Load requirements.Nuclear Power currently accounts for 20% of power generation in the US,with ~ 105 operating plants.

  • Millicent

    Ho-lee chit Sgt. Carter… There is something that Eric does not know and would like to hear from SRS RoCooCoo! SRS is equally clueless but he is still touted here as being a guru.

    The blind leading the blind while they ask for advice.

    • Eric

      I really am so shocked the good looking men aren’t knocking on your door with candy and roses.

    • fonestar

      People who listened to these morons in 2010/2011 are still down 50%. Sure, it’s easy for someone the size of Eric Sprott or Jim Sinclair to say “it’s only fiat” but the rest of us mere mortals are left paying rent and buying food with fiat. And that’s a bitter pill to swallow.

      Conversely, those who listened to Max Keiser and many others who divested into Bitcoin in this same time frame are up thousands of percent in fiat.

      But don’t let MATH, LOGIC or COMMON SENSE get in the way of these “metals only” fucktard cultists. Because it’s not them who has to suffer their own shitty advice and timing, it’s YOU!

  • Randy0302

    Actually this is prescient! Maybe the world cant survive well but you can plan around this individually.
    Joel Salitin of Polyface farms stated the most energy efficient farming is backyard farming.
    Solar may not be a global solution but individually it could be a life saver.

    Should discuss energy from the Keshe foundation as well. This situation could force release of technology black shelved as well.

  • Tony Australia

    Im afraid the EROI made sense to me as an analyst and highlights the desperation Nixon and his COHORTS encountered before coming up with the PetrolDollar to increase the EROI.

    Frankly as the FAKE CLIMATE CHANGE AGENDA is not accepted by the public that know , to do so is accepting much lower living standards, the Oligarch Shadow Govt has gone for next and ONLY OPTION, that is to kill off all the free eating Bottom Feeders with War and Pestilence and LOTS OF IT!

    So get ready for THE US SOUP KITCHENS on New Yorks Fifth Avenue.

    I can’t wait to see that one!

    It was times like this in Paris The French Revolution had the citizens holding open court on the bloodsuckers at the top like The Rockerfellers and Rothschilds and similar families living like kings whilst the poor were in squalor.

    Times don’t change,,,The same problems exist and so its time all those secret inventions held back from the public are released to increase THE EROI .

  • Moishe

    I am no fan of bitcoin, It appears one coin is a better choice than bitcoin, It appears to be 100% outside the greedy jew banker’s control. Research Pat Shannon who I heard on RBN’s Al Whitney show. Silver is best but not always practical in a digital age.

    https://www.onecoin.eu/en/

  • fonestar

    There’s a reason that you won’t hear sgtreport.com talk about various ELECTRONIC PAYMENT SYSTEMS. And the reason is *self-inflicted brain damage* repeating bullshit about “sound money” over and over. According to the MORONS here at SGT, the modern Internet serves no purpose and if buyers and sellers want instant payment it must be some major “conspiracy”.

    Leave these fucking jokers alone. Their brains are a pile of shit. Practically everything they have said has turned out to be wrong. If you listened to them in 2010/2011 you suffered staggering losses. Go investigate crypto and you will find young, fresh, brilliant minds who are not in denial about what year it is.

  • fonestar

    Still waiting for SGT to do a “Micro Doc” on why gold, silver (and cheques + paper money) fell out of favour with the public in the first place?

    fonestar will give you a hint here.. it wasn’t some conspiracy by The Pilgrims Society. The market realized the superior product in a digital era and chose the superior product. If you have $1,000 cash and somebody bonks you on the head in an alley and steals it you basically have no recourse. If someone hacks your credit card or bank account, you call your bank and they will make you whole again. If you want to buy something in another city or country, you can do it almost instantly and with few fees. Not so if you want to ship the seller a bag of copper, silver or gold coins.

    So if you want to believe SGT/ZH types you need to un-learn what you thought you knew about capitalism. The market always chooses the slower, less secure, inferior product and clocks tick counter-clockwise.

    • Eric

      Because the dollar was still backed by Gold and accepted as the premier world currency.

      I just picked up 45 grams of Gold in Switzerland instantaneously.

      The problem isn’t speed. The problem is digital blips aren’t worth anything.

      The solution is Gold, not a faster payment system.

      • fonestar

        Yeah and you did so using a modern electronic payment system. 99.9% chance it was a banker-controlled network.

        Sean, why not just admit that your faithful followers really are just a bunch of fucking retards who don’t know what year it is?

      • mike

        The dollat is still backed by gold today…and Silver and platinum and real estate and cars, boats, toilet paper, clothes , power and everything under the sun..The dollar is backed by everything it can purchase. Not to mention if the underlying asset the dollar was created on goes south then so do those dollars adding more value as in deflation to the money. The “debt” based is actually asset based on everything you use it to purchase. That is why it is so amazing to me idiots defend the dollar tooth and nail by attacking the only honest money created by the mind of man to this date in history, BTC. The final solution to the dollar bankster strangle hold on civilization. BTC is the only money in the world ever in the history of human civilization to circumvent banks, gubberments, middlemen and the dreaded rouge CIA. It is mined by the individual and is also the only money that is truly limited in supply and the only money that is truly divisible. BTC is money NOTHING Else.
        You support the dollar everyday by purchasing anything at all instead of attempting to slay the Banksters that are hiding under your bed?
        This guy Rocco has been 100% about everything. For years every week he has the most amazing charts the world has ever seen lol.

        • Eric

          Then why are they still doing quantitative easing? Why is M2 money supply growing by at least 6% while the Gold supply grows by only 1%? Why has there not been a true audit of Gold Reserves in the US since the 1950’s? Why is the rest of the world bypassing trade in the US dollar? How come the trade deficit is nearly 800 billion dollars and the fiscal deficit 500 billion dollars?

          Why is BTC not accepted at the corner drug store? grocery store? gas station? Why were the first 6 million bitcoins created out of thin air poof! Why can’t I hold bitcoin in my hand or place it in my pocket and walk away? Why does BTC have such volatile swings in price? Why are there so many other crypto-CURRENCIES to rival bitcoin? Why can’t mike proofread his own comments before posting them to make sure his sentence structure makes sense?

      • mike

        Eric your digital blips were worth 45 grams of gold to someone, you just proved it and keep proving it every time you make your purchases lol.
        I think you fully understand every time your using the dollar digital blips your supporting what you pretend to be against. It makes sense why you attack BTC and attempt to subvert it by ignorant comments like the CIA controls it lol what a tard, the CIA isnt that bright. Keep up the attacks on the BTC, it wont work. There are millions that use it every day and growing. It is international in scope. The Banksters and minions like yourself will lose control, only a matter of time now. The seed has taken root and is growing everyday. You are intellectually 100% Dishonest and a moron.
        Unless you’re a Bankster spammer then your just a moron. So you must be a paid troll for the banksters. If you really wanted to have honest money and win against the Jewish bankers that are controlling world you would not buy things with digital dollars lol. Jewish banksters that control the world but can barley keep the a very tiny place called Israel? First if you want a conspiracy you need to pick a larger country and people like the Russians or Chinese..The Australians have a pretty big land mass as well.

        • fonestar

          There’s been a lot of days and weeks that have passed since the US left gold since 1971. And there’s technically no more reason for the system to collapse in August 10, 2016 than there was on June 7, 1972 or April 4, 1988 or September 12, 2001.

          But don’t ask Sean to ever ask his guests for clarification on their *too-many-to-count* failed predictions of imminent collapse. Clearly the sheep have justified and normalized their nations being trillions of dollars in debt. So why not quadrillions or septillions now? I do think this thing will crash and crash hard, but the guests here don’t have access to any crystal ball that I do not as well.

          • Eric

            And interest rates soared to 23%. Then fell to zero. Followed by negative interest rates.

            MX Gold is breaking out to new highs. Maybe you should buy some.

          • mike

            As long as the money is debt based more debt is what gives the money value. Debt meaning the underlying asset. If the underlying asset goes to nothing then so do all those dollars aka debt destruction. It is perfect in it’s construct. It is essentially backed by everything in our country including PMs. It is the perfect control vehicle and will be with us forever unless people are able to wipe away the fog and see the only true destroyer BTC. BTC may not be the crytpo that ultimately prevails yet to be determined by the market but it will be a decentralized crypto money for sure.
            The dollar can not collapse as long as there is civilization. Civilization would be impossible to destroy. At this point in history most people actually prefer civilization to the alternative. Gold is an asset like everything else the dollar is based on. The idea behind the petro dollar is hilarious and I believe if you look through srs Ro Coo Coos work you will see him saying essentially the dollar will die if oil goes below $50 or 60. Cant remember hard to keep up with the death of the dollar, may have been another bird brained nutter Guru. I used to read all of Rocos work until I realized he is just wrong and his numbers do not add up (Well they do add up but his premise is wrong and so are the numbers he works with so his conclusion will always be wrong).

            • Eric

              “…more debt is what gives the money value.”

              The absurdity of mike’s big brain.

              • mike

                Is debt not a refection of the Market acceptance of the dollar? Why would people take on debt? To pay for things or make investments to make more money? You really do not understand the dollar is created backed by an asset do you? Whether that is a new car, house, businesses, or bonds. Debt is bullish for the dollar. The more debt the more in use the dollar is in reality. The more you use the dollar and their network of taxation fees and control the more value it has. The Banksters want you thinking only gold is money even though it does not spend. They want you spending that money on anything at all including PMs. They most certainly dont want you saving it. So if they can dishoard your dirty dollars by getting you to think only gold is money and you putting most of your savings into it then they win. How can you understand that?
                BTC is the only true money period. Your ignorance is amazing and you fell for the bankksters game.
                You are the sucker and defend the dollar for the world to see right here on this site..WOw!

                • Eric

                  “Is debt not a refection of the Market acceptance of the dollar? Why would people take on debt?”

                  The price of debt or the price of money (interest rates) is too low. That’s why more people have taken on more debt. The government has encouraged bad behavior.

                  More of something does not increase the value of it. It decreases it. That’s why all fiat currencies are essentially worthless. They are increasing the supply at a rapid rate by control of a digital printing press.

                • mike

                  Interest rates are meaningless, why are you even bringing that up?..Has the world crumbled and burned or thrived? Do you see people starving in the streets or do you see the poor with health care and food to stuff their mouths? Do these people even have to work?..Absolutely not thanks to debt and the amazing dollar. I would be willing to be you could even have intrabank negative interest rates at the same time giving people interest on their deposits as a fiscal stimulus. None of it matters with a debt based currency being backed by essentially everything. That is why the dollar is so perfect. Simple fiscal understandings do not apply to the dollar. With debt anything is possible. The dollar is in a sense magic! That being said there are people on the top making out and its not fair on that we can agree.
                  If you did have an honest money something like BTC or Bill Still “Valueless” currency then your gubberment and banks could only spend what they take in and not create new money based on assets.
                  Bill Stills Valueless currency is a great idea but would never work since you have Gubberment in control. BTC is the only real alternative.
                  Your the one arguing for “honest money” but with the wrong vehicle gold. Gold has never worked and was tried insanely for 5k years in one form or another because nothing else was better until now. Gold has too many logistical,divisibility and supply problems to ever be actual functioning money again if you really took 5 minutes to think about it. BTC is the perfect money right now. It is still in its infancy but money from the day it was created. Money that proportionally has been money longer than anything on this earth. Gold was around for countless billions of years and not money until 5k years ago? So gold money for .00000000000000000000000000001% of all time in existence, BTC Money for 100% of all time in existence. BTC can not be created at will like a quota for Gold or easily mined with diesel and chemicals. BTC stands alone and is value unto itself. It is limited in supply unlike all former money and is truly rare. Not spread across the universe like a metal. BTC is not a representation of money like gold or the color gold but actual money today, right this minute. Only BTC s Money and Only BTC is the stake in the heart of the Bankster gubberment squid.

        • Eric

          I’m not against digital blips. But they aren’t a store of value.

          The CIA brainwashed you good.

          • mike

            NO the CIA brainwashed you good against the true destroyer BTC. Misinformation and youtube links to compromised individuals. Has gubberment done anything right in the history of gubberments? I can answer that for you, no. I guess you could argue the internet since it was the US gubberment that created it to connect different computer systems saving money and not requiring a monopoly for gubberment computer systems..
            But the gubberment in its short slightness finance and created the internet, the very thing that will destroy it. So the correct answer is no the gubberment has never done one thing correctly or been a benefit to anyone unless by accident other than those in gubberment. You want me to believe the CIA, the people who by sheer luck have not destroyed our country yet by financing the enemy everywhere in the world has people smart enough to create BTC? Only lackeys work for the gubberment, everyone knows that. Then the CIA releases BTC into the public for the individual to mine? Millions of people accept it as money bypassing their own controls? Man your hopelessly lost.

  • glitter 1

    This article leads me to recollect that The Rockefellers and others began to divest from fossil fuels back in 2014:

    https://www.google.com/?gws_rd=ssl#q=rockefellers+divesting+from+big+oil

    The Elites/Masters Of The Universe are aware of what is happening and are positioning themselves accordingly.They know what’s coming.

    > Population reduction by >90%
    > Georgia Guidestones – maintain global population to under 500 million.
    > Agenda 21/2030
    > Geoengineering,GMOs,Vaccines
    > The Patriot Act
    > The NDAA
    > Hundreds of under ground Bunkers in the US,Europe,Russia,China etc
    > Doomsday seed vault in the Arctic:
    https://www.google.com/?gws_rd=ssl#q=rockefellers+divesting+from+big+oil

    Yes, many Dots to connect,which becomes easier/more obvious as time passes. Even Helen Keller could see what’s building.

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