Posted Aug 5, 2014 by Martin Armstrong
QUESTION: Hi Martin,
As an avid reader of your blog I have the following question:
I follow the rationale for the coming capital concentration (and bubbles) in US stocks and then gold into 2016/7. Once the bubble for gold bursts where do you see the capital flowing? Is that when you foresee an even greater credit deflation meltdown than what occurred in Autumn 2008?
ANSWER: We are most likely going to see a financial crisis that engulf the pensions and the sovereign debt crisis. The preliminary target seems to be really off in 2025. However, 2020 will be the first big crack.
We seem to be headed for the electronic currency as the first fix. But we will see this migrate to the replacement of the reserve currency, which I believe will be a basket of the major currencies administered by some agency, I sure hope will not be the IMF. However, I would bet against my luck on that one.
Gold may not reach its final peak until 2025. This will be a reflection not so much for gold as an investment, but as simply a reflection of the entire financial system.