Looking at the world around us, from foggy geopolitics to gyrating financial headlines, one can’t help but think, as the Jedi knights would say, that there seems to be “a disturbance in the force.”
Not a boring chart. It's interesting how much power we attribute to insolvent nations. If they can't really afford to control everyone and everything, and require those that they are trying to control to give them loans in order to continue controlling them, doesn't this break down the illusion somewhat? A total global monetary system collapse is indicative of more than just financial chaos. It is the great cleansing of iniquity and evil that this world needs in order to heal, become productive again, and for people to experience real life and freedom.
The 5-year window is significant beyond the return number because it spans the entire post-COVID monetary experiment. Zero rates followed by the fastest hiking cycle in forty years, all underwritten by unprecedented QE. The chart reads back the aggregate result of that sequence, and the grade is the worst sovereign bond performance in recorded history. Five years of the most interventionist central bank policy ever attempted produced the worst outcome for the one asset class central banks were supposed to protect.
The portfolio consequence is where this gets structural. The 60/40 allocation model that anchored institutional investing for four decades assumed bonds would hedge equity risk. When bonds deliver the worst 5-year returns in history, the "40" becomes a liability compounding the drawdown rather than cushioning it. The correlation flipped from negative to positive, which means the hedging architecture that an entire generation of wealth management was built on stopped functioning. Gold fills the hedge role that bonds just vacated.
Matthew — you are a brilliant and well‑intended soul working for the good of all and for truly healthy markets. I’m also a Gold‑Constant Measurement advocate, and I’d be grateful if you could assess this slide of mine. It’s very new, and although I’ve shared it widely, I haven’t yet received deep analysis.
I founded and patented Monetary Energy Physics — ME = L × V ÷ the price of 1 oz of GOLD — and this slide shows the core discovery: the massive correction many fear has already occurred once you measure the system through the Gold‑Constant denominator. In my view, Gold has effectively fallen from $5,600 to $4,200 and equities are at all‑time highs because US GDP and the Dollar are strengthening in Gold‑constant terms.
Here’s the math: GOLD has doubled in 3 years. That means the Dollar — and nearly all global currencies — have lost 40–50% of their purchasing power relative to GOLD. That same 50% debasement also cuts US Debt in half when measured through the Gold Constant: from ~$40T to ~$20T, and Debt‑to‑GDP falls from ~123% to ~63%.
Would you please review the slide and share your thoughts? I’ve been trying to get it to Bessent and Warsh but haven’t heard back yet.
A couple of Presidential‑level economists have looked at it, but I suspect the reason they haven’t responded is because this framework isn’t Legacy Bretton Woods econometrics — it’s a Gold‑Constant measurement system.
Thanks — John O’Neill Founder — O’Neill GOLD Monetary Energy
Not a boring chart. It's interesting how much power we attribute to insolvent nations. If they can't really afford to control everyone and everything, and require those that they are trying to control to give them loans in order to continue controlling them, doesn't this break down the illusion somewhat? A total global monetary system collapse is indicative of more than just financial chaos. It is the great cleansing of iniquity and evil that this world needs in order to heal, become productive again, and for people to experience real life and freedom.
The 5-year window is significant beyond the return number because it spans the entire post-COVID monetary experiment. Zero rates followed by the fastest hiking cycle in forty years, all underwritten by unprecedented QE. The chart reads back the aggregate result of that sequence, and the grade is the worst sovereign bond performance in recorded history. Five years of the most interventionist central bank policy ever attempted produced the worst outcome for the one asset class central banks were supposed to protect.
The portfolio consequence is where this gets structural. The 60/40 allocation model that anchored institutional investing for four decades assumed bonds would hedge equity risk. When bonds deliver the worst 5-year returns in history, the "40" becomes a liability compounding the drawdown rather than cushioning it. The correlation flipped from negative to positive, which means the hedging architecture that an entire generation of wealth management was built on stopped functioning. Gold fills the hedge role that bonds just vacated.
Matthew — you are a brilliant and well‑intended soul working for the good of all and for truly healthy markets. I’m also a Gold‑Constant Measurement advocate, and I’d be grateful if you could assess this slide of mine. It’s very new, and although I’ve shared it widely, I haven’t yet received deep analysis.
I founded and patented Monetary Energy Physics — ME = L × V ÷ the price of 1 oz of GOLD — and this slide shows the core discovery: the massive correction many fear has already occurred once you measure the system through the Gold‑Constant denominator. In my view, Gold has effectively fallen from $5,600 to $4,200 and equities are at all‑time highs because US GDP and the Dollar are strengthening in Gold‑constant terms.
Here’s the math: GOLD has doubled in 3 years. That means the Dollar — and nearly all global currencies — have lost 40–50% of their purchasing power relative to GOLD. That same 50% debasement also cuts US Debt in half when measured through the Gold Constant: from ~$40T to ~$20T, and Debt‑to‑GDP falls from ~123% to ~63%.
Would you please review the slide and share your thoughts? I’ve been trying to get it to Bessent and Warsh but haven’t heard back yet.
A couple of Presidential‑level economists have looked at it, but I suspect the reason they haven’t responded is because this framework isn’t Legacy Bretton Woods econometrics — it’s a Gold‑Constant measurement system.
Thanks — John O’Neill Founder — O’Neill GOLD Monetary Energy
https://oneill-gold-monetary-energy.super.site/
https://oneill-gold-monetary-energy.super.site/debt-collapse-slide
https://substack.com/@theverticaldispatch/note/c-264882927?r=1pgr4n&utm_medium=ios&utm_source=notes-share-action
Holy smokes, that's quite a chart!
Great article, well written and easy to understand =)
Thanks