THE SEVEN STAGES OF COLLAPSE
August 15, 2011
Every Empire lives through seven economic stages, and then it falls. It is as predictable as the cycle of days of the week or that the moon follows the sun. Dmitry Orlov mapped the fall of the USSR and found that it applies to any and all.
The seven stages of collapse are:
Stage 1: The Empire has ‘good money’ (backed by gold and/or silver) and wealth.
Stage 2: Social programs develop.
Stage 3: Massive military build up and warfare becomes commonplace. (World War 1, Vietnam, Napoleonic etc.)
Stage 4: Expenses increase so taxes go up.
Stage 5: To pay for these expenses, the government begins to take the wealth of its people by stealth through either debasement of its currency and/or the creation of fiat currency. What it can’t raise by taxes, it borrows.
Stage 6: A loss of faith in government and currency occurs.
Stage 7: An end mass-movement out of the fiat currency into precious metals, causing end of paper currency and inflation.
It is probably fair to assume that we are in the latter parts of Stage 6. There is not much time left before we enter into Stage 7. For those who position themselves wisely in Gold and Silver, and know that the cycle of when to exit as importantly as how to enter, there is the possibility of surviving the impeding, financial, ‘perfect storm’. Some folk are even going to profit from this predictable series of events.