2015 is a Shemitah year leading many analysts to claim the remainder of the year could hold great volatility in the political and economic arenas. Shemitah predictions entail major implications for the future Bitcoin price, with some claiming $2 million Bitcoin due to the dislocations.
In a recent video, “SHEMITAH EXPOSED: Financial Crisis Planned For September 2015” (see video below), Dollar Vigilante Editor-in-Chief Jeff Berwick predicts major dislocations as early as this fall. These, according to the founder of Canadian financial website Stockhouse, could have major implications for the Bitcoin price.
The video has more than 300,000 views on YouTube, one of his most popular video to date. Author of the Austrian Economics newsletter providing insight into the global economic crisis and expatriation, Berwick recommended in 2011 to look into bitcoin as a means of diversifying an investment portfolio.
“I predicted at that time that we had five and no more than ten years until a complete collapse of the financial and monetary systems,” Berwick tells CCN.
“We began talking about bitcoin at $3 in 2011 and still to this day, 99% of financial newsletters don’t even mention it or if they do it is to be negative about it,” Berwick says. “We’ve always been ahead of the curve and I think our prediction for some market or political calamity this fall will again show we are ahead of the curve and unafraid to say it.” Berwick is confident because of his research into the Shemitah Calendar, something many online personalities, from various niches, cite as a historically accurate indicator of major change.
“Off the top of my head, the most noticeable Shemitah year took place in 1973,” Berwick says. “In March 1973, the G–10 approved an arrangement wherein six members of the European Community tied their currencies together and jointly floated against the US dollar.” The changes laid the groundwork for coming economic crises, according to Berwick.
“The decision effectively signaled the abandonment of the Bretton Woods fixed exchange rate system in favor of the current system of floating exchange rates. It also delinked gold completely from backing the US dollar,” Berwick says. He thinks there is a pattern to be studied.
The evidence I’ve uncovered seems to point to major market crises on many of the past Shemitahs for the last century. And most interestingly, the two biggest market crashes in history on the exact date of the last day of the Shemitah in 2001 and 2008.
According to Berwick, the Shemitah cycle has been vaguely known by many on Wall Street as the “seven-year cycle.” Berwick believes he recently uncovered exact Shemitah dates which uncover something more about the theory.
“It’s more than just a cycle,” he says.
In some Shemitah circles, every 49 years (7X7) the biggest dislocations come due, similar to Kondratiev economic cycle of 53-54 year cycles. These, also known as supercycles, great surges, long waves or the long economic cycle, are essentially a cycle-like pattern in the modern world economy. Statistical evidence from academia on the phenomenon is scant.
“1917 was a Shemitah year and also the year that the US entered World War I, ending with the destruction of numerous empires,” Berwick says. “1938 was a Shemitah year and also the first year that Germany began foreign aggression and seized Austria and Czechoslovakia and that World War ended almost on the exact final day of the Shemitah in 1945.” Due to Shemitah fallout, Christian radio host Jim Paris has predicted $2 million Bitcoin.
“Those people have one-upped me on my largest prediction. I said that it was totally possible for bitcoin to be worth $1 million, in today’s dollars, within this decade if everything that I suspect to happen happens,” Berwick says.
“Of course, there are plenty of caveats on that, and I am not suggesting it will happen, only that it is possible,” adds Berwick.
Of course if Bitcoin goes to a level worth $1 million in today’s dollars we’ll be living in a completely different world than we live in today.
Even if Bitcoin remained outside of the dominant financial system, would it be affected by Shemitah? What’s most important for Berwick is what happened during the Cyprus and Greek financial crises.
“In both cases a country in the Eurozone was essentially bankrupt, the banks closed, and there was a lot of fear,” Berwick says. “This should have spiked gold and silver higher but in both cases gold and silver either stayed flat (Cyprus) or went down (Greece).” Bitcoin reacted differently.
“During the Cyprus crisis, Bitcoin rose from $35 to $150. And during the Greece crisis, still ongoing, it rose from $220 to over $300,” Berwick notes. “This shows me that Bitcoin is an excellent speculative store of value outside of even gold and silver and cannot be manipulated so easily.”
Numerous countries worldwide currently endure economic and political stability. China – the second largest stock market in the world – experienced mini-crashes to the downside, Greece was unable to pay lenders, Puerto Rico has postured towards the same, and shelves are empty in the grocery stores of Venezuela. Berwick sees this as symptomatic of the changes his recent Shemitah video highlights.
“I can barely keep track of all the black swans that pop up in the sky everyday now,” Berwick says. “There are so many the sky has gone pitch black. This smells, looks and feels just like 2007… and everyday more-so.”
Featured image from Shutterstock.