The market has no clue that it has severely undervalued the price of gold. While Central bank intervention has worked hard at capping the gold price, the “Great Gold Supply Disconnect” will most certainly remedy that situation. This gold supply disconnect took place after the gold price peaked in 2011.

That being said, the world is speeding recklessly towards an epic market catastrophe.No, this isn’t hype… I wish it was. But, unfortunately, the poor slobs who continue to believe their STOCK, BOND & REAL ESTATE portfolios will provide them with a healthy retirement in the future, have no idea that their true values evaporated many years ago. However, the market just hasn’t BAKED THEM INTO THE CAKE YET…. LOL.

Before we get to the Gold Supply Disconnect, let’s look at this wonderful chart that shows the carnage taking place in the commodity market. This is “Commodity Index” divided by the S&P 500 Index:

This chart shows that the commodity index is at the lowest ratio to the S&P 500 since 1971. Thus, the commodity prices have reached a 50 year low versus the S&P 500. Moreover, the commodity index is lowest ratio (below 1.0) when we compare it to the average median which is 4.1, shown as the red dotted line on the chart.Now, either commodity prices are too low, or the S&P 500 and its illegitimate older brother, the Dow Jones Index are severely over-inflated.

Of course, if an individual still had a semi-functioning brain-stem and wasn’t one of the millions of Americans now suffering from serious BRAIN DAMAGE, you would realize that the stock markets are in record bubble territory.

Now, another thing that it totally overlooked by most Americans and the Mainstream analyst community is how the falling oil price is gutting the U.S. and global oil industry.Today, we received news of a surprising large U.S. gasoline and distillate inventory build in the past five months. However, if we look at the total U.S. Oil/Product SPR inventory, it rose the most since August 2015.