Electronic Coin Clipping?

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HelicopterBenIn my last post, I reposted Alan Greenspan’s now famous 1969 piece, in which he clearly lays out for all to see, the tactics that the International Bankers have used to wrest control of this planet for their own ends.

The methods and tactics used over two centuries to move the people of the world into a giant supra-national state, owned by this banking Cabal, for the benefit of the bankers have been stealthy, and protracted. Each world citizen, will be essentially a slave, and those that can’t or won’t work will be used to wrack up debt, which the rest of society will be obliged to pay for, in ever higher taxation. The increasingly controlled health systems will be controlled by Mega Pharmaceutical, and Bio-Technical Corporations. Taking care of your own health via use of natural remedies, and food supplements to prevent ailments, will be increasingly not only frowned upon but illegal. (CODEX ALIMENTARIUS – 2001 in Europe, began this process)

As to claims regarding silver supply/demand fundamentals, worldwide demand has been at best steady, and supply has been robust, though longer term, demand is set to rise, as more and more electronic devices will use increasing amounts – Think: Munitions, Aircraft, Cars/Electric Vehicles, Solar Panels, Wind Turbines, Medicine, and Personal care products for silver’s Anti-viral/fungal/bactericidal properties, as well as Wearable Devices, and Silver Nano-fibres in clothing, Catalysts in chemical processes, and in plastics and paints – And the list goes on.

Whilst the high price in 2011 did indeed encourage higher production, as has been stated, some specialist pure silver mines and mostly silver mines (i.e. silver is the predominant ore in the body) with lead, zinc, plus other trace metals ( Gold, Uranium, etc et-al) increased production. BUT, If 70% of production is secondary (as a result of demand for industrial metals) and industrial metals demand is in a collapse, then this will therefore affect supply, and will over the next 2-3 years lead to a serious supply shortage especially IF the silver stackers continue their stacking, and the Apples and Googles of this world continue their technical developments, which should underpin price above the $12.50/oz level and more likely circa $13.50(ish) because production costs for all but the cheapest miners are in the $15-18 range.

Price has levelled out over the last six months after falling briefly to the $13.60 area (under £10) and leaving aside the price fix the other day, that took the silver fix price 84 cents lower than the spot price, leaving many commentators aghast, as it began rising to the current $14.20-$14.50 range, and is set to rise modestly until circa 2018/19 (IMHO), when I believe it WILL then begin to rise exponentially, as the supply glut diminishes, and the demand rises, working its way through the market. But also because of policies discussed below.

In the 1970s, the same thing happened over a shorter time frame… What was driving the markets then? DEMOGRAPHICS – just as today. The only thing then was most retirees only lived on average circa 3-5 years post-retirement. Those who worked in nice well-paid office jobs might have lived 20 years post-retirement, but your average factory worker didn’t. Those retirees, were born during the Edwardian period, i.e. 1901, to 1910.

These days, WE baby-boomers will last 30+years post-retirement (money & health care costs willing) That means any retirement monies, will need to fight inflation for at least that length of time.

Think back 30years, and try to remember what prices were like then… In Britain, an average week’s wage for a low level worker was about £60. ($150ish at exchange rates then) Today, even with average wages falling, the low wage workers are earning circa £300-£400 per week for a full week’s work of circa 35-40 hours. ($650ish)

So in 30 or so years, time your money will need to have 5-6x its current value to maintain purchasing power parity assuming similar inflation rates – Like YEAH, that’s gonna happen with $4trillion printed in the U.S. alone.. With negative interest rates in Japan introduced this week, and several Euro-land Central Banks doing the same over the last year, how long will your cash-pile last? It’s like Electronic Coin-clipping, which ultimately led to the decline and fall of the Roman Empire, as the Roman Guard, were paid in debased coinage as silver was removed little by little, making the coins less valuable over time.

And today, I heard of the final insanity. Central Bankers in Switzerland, are now considering the ultimate ignominy of paying everyone in the economy a monthly sum of money, as a supposed antidote to deflation. The Swiss are discussing paying $2,500 to every adult, and $750 to every child direct into their bank account. Keynes thought this might be the ultimate solution to the problem, of deflation. In fact, Ben Bernanke who reputedly said that in the final analysis…

…the U.S. government has a technology, called a printing press (or, today, its electronic equivalent), that allows it to produce as many U.S. dollars as it wishes at essentially no cost. By increasing the number of U.S. dollars in circulation, or even by credibly threatening to do so, the U.S. government can also reduce the value of a dollar in terms of goods and services, which is equivalent to raising the prices in dollars of those goods and services. We conclude that, under a paper-money system, a determined government can always generate higher spending and hence positive inflation…

and that is how he got his nickname – “Helicopter Ben” for his allusion to dropping money from helicopters. This madness will not end well.

As Prime Minister and subsequently – Lady – Thatcher so eloquently put it – “Eventually, you run out of other people’s money”, but the plan as mad as it sounds, echoes what Mike Maloney has said in several videos available on You-tube, when he said that the Central Banks, would do a “Helicopter drop” to attempt to kick-start the economy, when all it does is create ever bigger debt loads, which have to keep growing – until they don’t – and then the sky falls in. You can read a piece that explains it in more detail HERE.

So the answer is easy… Keep Stacking