Once again, David, you have summed up the situation with precision. I cannot understand how intelligent people that I explain this to, cannot/will not see it.
inflation adjusted, silver should be $207 and not $38. nd this isn’t considering, the actual price s really the short price. A promise to get it for you at a price when in reality, pricing is se on naked (illegal) shorts. “Buying ilver” buys a promise and if the promise is not kept, they’ll refund your money (perfectly legal).
Dollar to silver ratio: $1556/oz
Silver to paper silver short contracts: 361:1
Every nce of silver has been promised to 361 people
My point was only, that we cannot 'Trust the System' or any part of it that "claims" to function on our behalf. Western "Democracies" are all Ponzi Schemes, designed to enrich the Corporate structure, and enslave everyone else. Even if the government and the Media refuse to admit "Inflation", anyone who is forced to exchange labour for 'Dollars', should immediately exchange those dollars for anything of "Real" value: be it toilet paper or whatever?
The true pacemakers of socialism were not the intellectuals or agitators who preached it but the Vanderbilts, Carnegies and Rockefellers —Schumpeter
"To the Rockefellers, socialism is not a system for redistributing wealth - especially not for redistributing their wealth -but a system to control people and competitors. Socialism puts power in the hands of the government. And since the Rockefellers control the government, government control means Rockefeller control." —Allen
Even if people are afraid to openly rebel against the System, they can still fight against this attempt at enslavement, by working on 'Personal Self Sufficiency'.
A Dollar in the bank, is not an insurance policy against anything!
Speaking of frauds and scams. There is a perfect example in our own sector:
Kitco Metals is preying on the naive or desperate gold sellers..... They are offering to buy Canadian Gold Maples at $150 US below spot price???????? That is a 5% loss to any seller dumb enough to accept.....For a minted coin of the highest purity available on the market?????????
I find it hard to try and explain this to people. Most cannot believe that this has happened or was even possible. The current generations never used gold for money. For them paper notes is money🙁. This great article will help a lot. Thanks mate !
Yep, that's the base-case. If you own unencumbered metals, you will be poor (don't show your stash to anyone), but when we come out on the other side, you'll get much quicker on your feet than the poor masses that didn't recognize the importance of foresight.
I’d note that a cumulative debasement (that isolates money creation’s effect) often explains more about long-term investment returns and asset bubbles than headline inflation, and can be less easily manipulated. If central banks keep monetizing debt, the true “tax” on savers is diffused through asset price appreciation and hidden shifts in wealth. We as a community need to build broader consensus around including these alternative indices in our regular economic toolkits.
Also one other question DAX, FTSE and Nikkei making new weekly all time highs despite long end bond yields blowing ever higher in EU, UK and Japan (and no one seriously questions that it a major industrialized economy is going to fail it will be Japan, UK, and or France before the US). So when does the house of cards actually come down? It reminds me of Y2K. I told my friends what the hell are you worried about. You’ll have a 12 hour head start if Japan shuts down at midnight Dec 31. Same thing. Until I see the Japanese or UK or EU stock and bond markets crash, we’ll know to just keep carrying on. The zombie might continue 50 to 100 years longer than anyone suspects. What do you say?
Great piece. The only part that I balk at completely accepting is the high level orchestration of the whole thing…the only reason why is why raise rates at all and not just keep money policy completely loose?
Inflation is defined as an increase in the money stock (system currency).
Goods price inflation follows, with a lag.
For decades, much of the currency creation has driven financial assets higher temporarily parking general price inflation in financial assets.
As interest rates run higher over time and currency devalues, much of the capital parked in financial assets will seek shelter in real assets showing, in a relatively short period, just how much currency inflation has taken place.
Housing is already over valued relative to incomes and should normalize to a long-term equilibrium and may stagnate or even drop in price while real goods accelerate higher in price.
Once again, David, you have summed up the situation with precision. I cannot understand how intelligent people that I explain this to, cannot/will not see it.
Very kind - thank you Andrew.
Denial is a very, very powerful thing.
They don't want to. They would rather shoot the messenger.
And it is our.."enemies"..that are calling the bluff.....= more war to hide the total incompentense...
Tables are turning....Soon it will be, the "newly rich" tourists of the south that have real wealth
and the west having the Lira, Euro, dollaro...
So..WHO...owns the Euro bonds/gilts/UST, that are about to get RE-rated...?
YOUR pensions consist of approx..60 % BONDS.....and NO gold
PM pricing is heaviy manipulated.
inflation adjusted, silver should be $207 and not $38. nd this isn’t considering, the actual price s really the short price. A promise to get it for you at a price when in reality, pricing is se on naked (illegal) shorts. “Buying ilver” buys a promise and if the promise is not kept, they’ll refund your money (perfectly legal).
Dollar to silver ratio: $1556/oz
Silver to paper silver short contracts: 361:1
Every nce of silver has been promised to 361 people
https://usdebtclock.org/
To put in more graphic terms: I just heard it quotes as "The US Debt increases by $1 BILLION per hour"? That means each citizen looses $3.00/hour?
OUCH!
Yeah, but that’s a different, though related, problem
My point was only, that we cannot 'Trust the System' or any part of it that "claims" to function on our behalf. Western "Democracies" are all Ponzi Schemes, designed to enrich the Corporate structure, and enslave everyone else. Even if the government and the Media refuse to admit "Inflation", anyone who is forced to exchange labour for 'Dollars', should immediately exchange those dollars for anything of "Real" value: be it toilet paper or whatever?
The true pacemakers of socialism were not the intellectuals or agitators who preached it but the Vanderbilts, Carnegies and Rockefellers —Schumpeter
"To the Rockefellers, socialism is not a system for redistributing wealth - especially not for redistributing their wealth -but a system to control people and competitors. Socialism puts power in the hands of the government. And since the Rockefellers control the government, government control means Rockefeller control." —Allen
Read this
https://daddydragon.co.uk/2020/05/24/the-fabian-society-the-masters-of-subversion-unmasked/
Even if people are afraid to openly rebel against the System, they can still fight against this attempt at enslavement, by working on 'Personal Self Sufficiency'.
A Dollar in the bank, is not an insurance policy against anything!
Very good summary of the big picture. Thank you for sharing this knowledge.
My pleasure Reidar.
Speaking of frauds and scams. There is a perfect example in our own sector:
Kitco Metals is preying on the naive or desperate gold sellers..... They are offering to buy Canadian Gold Maples at $150 US below spot price???????? That is a 5% loss to any seller dumb enough to accept.....For a minted coin of the highest purity available on the market?????????
.......Both Buyers and Sellers, need to "Beware"!
Priceless text in order to fully understand the current monetary situation
Thank you Pascal.
Next up, high inflation and poor liquidity.
Excellent summary and expose of the money Majick these Keynesian crooks have been getting away with …..so far…
Thanks PaulH.
Excellent post, David!
Thanks BobJ.
An excellent piece. Have the Chinese and the Russians put an end to this farce?
The stand for delivery has up-ended this club. If PM were allowed to run free, without being caged then prices could soar.
Standing for delivery is a global phenomenon.
"Austrian School economists have warned for more than a century that central planners at our central banks" >> It's about time, isn't it? 😇
I dug into the disconnect between cuts & market reality here (tl;dr: markets are calling the CB's bluff): https://no01.substack.com/p/fed-wants-to-cut-but-markets-revolt
I find it hard to try and explain this to people. Most cannot believe that this has happened or was even possible. The current generations never used gold for money. For them paper notes is money🙁. This great article will help a lot. Thanks mate !
(sorry David to post so much links, but not going to rewrite in comments what I can simply reference 😎)
When explaining things, I've written several things, but these are the most important I think if you want to explain things:
- difference between nominal and real returns (basically a summary of the above): https://no01.substack.com/p/all-that-glitters-isnt-returns
- pitfalls of paper gold aka etfs/stocks: https://no01.substack.com/p/the-dark-side-of-gold-etfs
- Possible scenarios how it ends: https://no01.substack.com/i/164624030/the-house-of-cards-five-ways-this-ends-badly
- and no, crypto won't save you: https://no01.substack.com/p/the-emperors-new-blockchain
- the financial system nearly crashed a month ago (but you won't read that in the newspapers): https://no01.substack.com/p/trump-blinked-golds-near-death-experience
In re; it ends poorly for you and I! No?matter the preparations the end case is poverty for us the masses- that is undesirable!
Yep, that's the base-case. If you own unencumbered metals, you will be poor (don't show your stash to anyone), but when we come out on the other side, you'll get much quicker on your feet than the poor masses that didn't recognize the importance of foresight.
I’d note that a cumulative debasement (that isolates money creation’s effect) often explains more about long-term investment returns and asset bubbles than headline inflation, and can be less easily manipulated. If central banks keep monetizing debt, the true “tax” on savers is diffused through asset price appreciation and hidden shifts in wealth. We as a community need to build broader consensus around including these alternative indices in our regular economic toolkits.
Bryan
How will you chaps recover any mining stock investment when you need to- assuming the fiat system has failed?
Also one other question DAX, FTSE and Nikkei making new weekly all time highs despite long end bond yields blowing ever higher in EU, UK and Japan (and no one seriously questions that it a major industrialized economy is going to fail it will be Japan, UK, and or France before the US). So when does the house of cards actually come down? It reminds me of Y2K. I told my friends what the hell are you worried about. You’ll have a 12 hour head start if Japan shuts down at midnight Dec 31. Same thing. Until I see the Japanese or UK or EU stock and bond markets crash, we’ll know to just keep carrying on. The zombie might continue 50 to 100 years longer than anyone suspects. What do you say?
Great piece. The only part that I balk at completely accepting is the high level orchestration of the whole thing…the only reason why is why raise rates at all and not just keep money policy completely loose?
"higher approaching inflation" . Won't the devaluation in houses price be deflationnary ?
Inflation is defined as an increase in the money stock (system currency).
Goods price inflation follows, with a lag.
For decades, much of the currency creation has driven financial assets higher temporarily parking general price inflation in financial assets.
As interest rates run higher over time and currency devalues, much of the capital parked in financial assets will seek shelter in real assets showing, in a relatively short period, just how much currency inflation has taken place.
Housing is already over valued relative to incomes and should normalize to a long-term equilibrium and may stagnate or even drop in price while real goods accelerate higher in price.