Silver as a Strategic Metal and Why Prices Will Soar…(Well Done Article..)

Sunday, January 21, 2018
By Paul Martin

By: Jim Willie CB
January 20, 2018

The arguments in favor of silver as an investment asset are growing rapidly. In the opinion of the Jackass, silver is the most under-valued hard asset in existence, with the highest potential for price appreciation on the globe. To begin with, central banks own no silver, but do own huge tracts of gold. Industry has huge demand for silver, but a trifling amount for gold demand. The investment demand is another key factor in favor of silver, but also for gold. Ever since the tech telecom bust in 2000, the precious metals growth curve has been evident. Ever since the subprime bond disaster in 2007, followed by the Lehman strangulation in 2008, the precious metals growth curve has continued. It is suppressed like holding back a team of six stagecoach Clydesdale horses by simple leather straps held by mere men with computers on their backs. Ever since the QE inflation policy of monetizing the USGovt debt, the monetary role of Gold & Silver has never been more acute in modern history. But silver offers much more.


Since 2012 with the African style monetary policy, also shared at times by South American nations, the US Federal Reserve has been forced to succumb to hyper monetary inflation of the unsterilized variety. It is the most dangerous form of monetary policy to adopt, a sign of utter desperation. With the desperation has come astonishing price capping of the precious metals market, while at the same time reliance upon isolated wars to steal central bank gold at vaults of defenseless nations. The effect upon economies, hardly ever spoken of by the devoted lapdog financial press, replete with their drone message of a fake sluggish recovery, is for profound capital destruction after seven full years of liquidity spew. The economic stimulus will find even more monetary abuse from greater deficit spending, thus more motive to own precious metals. To be sure, the QE bond purchase initiative is kept within the financial sector for service to the banker masters who have captured the USGovt. This is self-dealing on its face. However, hyper monetary inflation always causes capital ruin in an assured sequence, which cannot be averted, even by Fascist Business Model dictums and propaganda.

The response to monetary abuse has always been a return to honest money and viable sound monetary systems. This time will be no different, in its return to Gold & Silver as foundation, except that the movement will come from the East, led by a global insurrection. The West can join the strong sturdy secure movement, or be left behind. Even England recognizes the shift in global winds, eager to build the RMB Trading Hub in London. The Chinese are leading the global reform movement, and are likely to encourage the growth of the German RMB Hub in Frankfurt. The Germans have significantly more trade with Russia & China than the fascist core in London Centre, offering excellent leading edge product lines and world class engineering which the British cannot ever match.


If QE were indeed stimulus, then the USEconomy would have responded after a couple years of the wretched cursed policy at work. It serves Wall Street and the banking sector, and nothing else. The capital ruin and damage are evident in the constant negative GDP (with proper inflation adjustment), the high jobless rate, and the hopelessly rigged financial markets. The USFed has no business propping up the stock market or the corporate bond market, nor the crude oil market. But they have seen fit to consider stocks and crude oil as critical assets, and thus in need of support (to be read as price rigs). The effect of seven years of QE has been a bloated balance sheet at the USFed with $4.5 trillion in toxic assets. The leading toxic asset is the pristine AAA subprime USTreasury Bond. In the last week, China has just downgraded the USGovt debt to a B type grade, which means non-investment grade. In order to keep it all in check, all under control, the USFed must resort to coordinated efforts. They use QE to purchase bonds that are being dumped for foreign creditors. They also use Interest Rate Swap contracts to fabricate fake bond demand, with the levers held at the Exchange Stabilization Fund operated by the dutiful corrupted USDept Treasury. The ESFund is multi-$trillion machinery.

If the entire QE process were stimulus, then the resulting Money Velocity would not be in such dire condition. It was in decline until the Lehman subprime events in 2008, and it continues in decline since QE was put into force in 2012. Perhaps it creates stimulus to the bond market, but nothing but a gigantic wet blanket on Main Street and the tangible USEconomy.

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