What might the Dow/Gold Ratio be telling us?

This period we are going through now is known as a Kondratieff Winter, it started in 2000 and will last until around 2020. During this time, there is a period of destruction and depression culminating in war. Out of this destruction, a new period of prosperity and innovation follows. Kondratieff Wave theory details how capitalist economies experience a recurring cycle. It's a boom and bust of around 60 years that coincides with a peak in credit. The cycle consists of four distinct phases based on mood changes. The tone determines the actions of individuals involved in the economy. The cycle duration of the so-called K-Wave is also similar to the human lifespan. So, when each economic "winter" rolls around, the problem is cultural memory loss.


In Capitalism, Socialism and Democracy (1942), The Austrian American economist Joseph Schumpeter described “creative destruction”, or Schumpeter's gale, Joseph Schumpeter, adapted this theory from the work of Karl Marx and popularized it as a theory of economic innovation and the business cycle. At its most basic, “creative destruction” describes the way in which capitalist economic development arises out of the destruction of some prior economic order. In the earlier work of Marx, however, the idea of creative destruction or annihilation implies not only that capitalism destroys and reconfigures previous economic orders, but also that it must ceaselessly devalue existing wealth (whether through war, dereliction, or regular and periodic economic crises) in order to clear the ground for the creation of new wealth. 


If there is a depression coming, is it possible that we could have a repeat of the pattern from 1970 when the Dow/Gold ratio meant stocks were high compared to the price of gold? By 1980 stocks were low and gold was high. In 2000 stocks were high and gold low. Could it be by 2020 we have stocks low and gold high as compared by the Dow/Gold ratio? Something to think about.

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Is it possible to have the Dow Jones at 5000 by 2020? Maybe it is if we get another repeat of 2007. - Only worse because the Fed balance sheet is so much larger this time. I doubt it but it makes you wonder.