Loading ...Bob Moriarty: Flock of Black Swans Points to Imminent Stock Market Crash
TGR: You’ve commented recently that you’re expecting a stock market crash soon. Can you elaborate on that?
BM: We have two giant elephants in the room fighting it out. One is the inflation elephant and one is the deflation elephant. The deflation elephant is the $710 trillion worth of derivatives, which is $100,000 per man, woman and child on earth. Those derivatives have to blow up and crash. That’s going to be deflationary.
“WCB Resources Ltd. could have big potential.”
At the same time, we’ve got the world awash in debt, more debt than we’ve ever had in history, and it’s been inflationary in terms of energy and the stock market. When the stock and bond markets implode, as we know they’re going to, we’re going to see some really scary things. We’ll go to quantitative easing (QE) infinity, and we’re going to see the price of gold go through the roof. It’s going to go to the moon when everything else crashes.
TGR: How are you looking at the crash—short term, like before the end of this year? How imminent are we?
BM: Soon.
TGR: Are you in or out of the market?
BM: Oh, I’m in. Not in the general market, but I’m in resources. There’s a triangle of value created by a guy named John Exter: Exter’s Pyramid. It’s an inverted pyramid. At the top there are derivatives, and then there are miscellaneous assets going down: securitized debt and stocks, broad currency and physical notes. At the very bottom—the single most valuable asset at the end of time—is gold. When the derivatives, bonds, currencies and stock markets crash, the last man standing is going to be gold.
Exter’s Pyramid
TGR: So the last man standing is the actual commodity, not the stocks?
BM: Not necessarily. The stocks represent fractional ownership of a real commodity. There are some really wonderful companies out there with wonderful assets that are selling for peanuts.
TGR: In one of your recent articles, “Black Swans and Brown Snakes,” you were tracking the U.S. Dollar Index as it climbed 12 weeks in a row, and you discussed the influence of the yen, the euro, the British pound. Can you explain the U.S. Dollar Index and the impact it has on silver and gold?