His name was Nikolai Kondratieff.
He wrote a 23-page tract called “The Long Waves in Economic Life.”
It contained an idea so incendiary, he was sent to the gulag … before being shot by firing squad in September of 1938.
Why was Stalin so furious?
Because Nikolai predicted communism would fail and be replaced by capitalism.
Kondratieff proved that economies act just like waves in the physical world, with phases, amplitudes and frequencies.
What’s more, economic waves come in cycles that make changes in the economy quite easy to predict.
As easy as the phases of the moon … the rise and fall of tides … and the changing of the seasons.
“The Long Wave” — or “K-Wave” as it was later named in Kondratieff’s honor — shows the cycles as changing “seasons” of private and public influence in an economy.
In the private phase, free enterprise leads to increasing growth and prosperity.
The “Roaring Twenties” for example.
Eventually, the wave crests and collapses … manifested by a stock market crash, a housing bust or a run on banks.
Think of the 1930s and the Great Depression.
As the wave enters the public phase … the government intervenes by printing more money, manipulating interest rates and increasing government jobs, welfare and handouts.
In other words, SOCIALISM gains the upper hand.
For a while, everything seems to work out fine. But even governments must obey the laws of economics.
And the most basic law is this:
You can’t keep spending money you don’t have!
This is how Kondratieff predicted that communism in the Soviet Union would be replaced by capitalism 61 years before it happened!
The K-Wave has a frequency of 47 to 64 years. And if you look back through time, you’ll see how it predicted every major economic rise and fall in history.
|Source: Weiss Ratings|
At the “summer crests” you can see the dawn of the industrial revolution … the golden age of railroads and steel … the onset of electrical and chemical engineering … the age of the automobile and oil …
… and most recently, the Information Age, which peaked with the rise of internet stocks in 2000.
But you can also see “winter troughs.”
The Panic of 1819 … the Long Depression of 1873 … the Great Depression that began in 1929 … and the stock market crash of 1973, when the market lost 46% of its value and ushered in an era of “stagflation.”
Of course, you could write this off as the hare-brained theory of one mad Russian scientist. But Kondratieff was not alone.
Other economists have confirmed this “seasonal” cycle in the economy. Like Dr. Raymond H. Wheeler (1892-1961), who gave a brilliant summary of the 20th century.
And guess what?
The K-Wave has been proven correct yet again as the COVID-19 pandemic sent most economies of the world into a new depression that will include seismic shifts in the fabric of society.
Happily, we’ll then see a move away from socialism and back to democracy, innovation and the next “golden age” …
Because humanity has enormous potential!
If we redirect that potential into the sixth K-Wave, the current pessimism will fade and a new phase of prosperity will evolve.
The last 250 years has shown that a market-based economy is the most efficient, providing a lead role in promoting human rights, freedom, science and technology … as well as the highest standard of living.
In the meantime, you can experience your own personal “golden age” …
Because our cycles research is telling us gold could shoot up to $5,000 an ounce as the K-Wave bottoms.
And owning shares in mining companies is a great way to leverage the rising price of gold.
In fact, the last time gold surged, select mining stocks generated returns of up to 3,000% … enough to turn $10,000 into $300,000!
All the best,