first world wealth 3

FIRST WORLD WEALTH 3

You need gold and silver. If you are too poor for gold, silver will do just fine. It is actually my contention that silver will do far better than gold. I've discussed it before but forgive me as I repeat myself ( because, new readers or old readers forgetting ). We have already hit both Peak Gold and Peak Silver Production. Silver supplies are dropping quicker because with China also in a economic downturn less copper and such is used, and a lot of silver comes as a byproduct of mining industrial ores.

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In theory that could turn around as the western central banks lose control of the derivatives manipulation of precious metal, and silver returns to a free market pricing mechanism. When that happens, you'll probably not be able to afford silver then, so, word to the wise, stretch your ability to the max and buy silver NOW. Not tomorrow, not next week, certainly not next year-NOW. Because silver is going UP, way the hump up. Industrial use of silver pretty much destroys it. Without dirt cheap oil, which we last saw when you had hair and I had patience ( i.e., a long time ago ), it is near impossible to affordably recycle industrial silver.

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Which means that the insane amounts of silver mined over the last century are for all intents and purposes gone. There is more gold above ground than silver. Forget the gold and silver ratio pricing you've seen historically. Silver will be headed to the moon ( the caveat is timing, of course ). Which is, paradoxically, why I don't buy more of it. A little is going to go a long way. If you don't buy now you are going to feel like a real idiot, but you can also buy as little as ( in theory, granted ) $100 worth now and have a couple of years wages later.

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Now, that said, silver and gold kind of suck as wealth. They are great preserving value, are easily hidden, but if you ever have to cash them out you are kind of screwing yourself. Because, except for this very short period of history when we turned the last of the oil into tangible assets, gold and even silver are so scarce that once used will probably not be easily replaced. Think about After Oil, when you have one tank of gas left. Once you use it ( ignore shelf life issues for now ), that is it. All gone, sad panda.

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Precious metals WILL get that way again, I can guarantee it. Why am I so confident? Because almost all ores are now at the bottom of the barrel stage, where huge machines must move huge amounts of earth which contain very little ore. If petroleum becomes too expensive, that ore is not mined. Even with the gold price at $1400, almost all of that is extraction cost. Just in the last ten years, each ounce of gold is now requiring a significant increase in fuel to process. I want to say fifty percent more, but don't quote me on that.

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Even as companies are busier than ever using silver in solar panels or anti-stank socks or water filters, the amount mined in the last three years has dropped. Followed to its logical conclusion, we are soon out of new silver ( the belief that we will extract it from seawater stretches credibility as a believable strategy ). To my mind, that means that while you must have silver to combat hyperinflation, it is also a very poor move to ever sell it.

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So, while it is wealth, it is largely a one off store of wealth. It is like your youth. If you don't invest your youth into retirement, it is a one time nonrenewable resource more than it is wealth. That is what paid for shelter is, not wealth but turning wealth into a means of not needing wealth. Not needing energy you only had in youth. Gold and silver is just stored energy, but energy that cannot be replaced. It sucks, but that doesn't mean you don't do it. It would suck MORE if you didn't.

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Isn't that what wisdom in old age is? The realization that optimism was ill founded :) Now, let us return to a business as wealth. That too is problematic. Not just because the lawyers will steal the assets. And not just because of obsolescence. But because business in and of itself is also going to be an endangered species soon. You all agree that you need to Tribe Up, for security. Guess what tribes DON'T do. They don't practice capitalism but rather communism ( the good kind-and yes, that is a thing ).

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Capitalism is NOT the best way to run an economy. It is the best way to run an economy with a surplus. It is also the best way to run an empire, but the cost is a central bank ( we've covered that before and I don't wish to get sidetracked ). Capitalism is NOT run for the benefit of the individual but for that of an elite class. Philosophically you have been taught that capitalism benefits everybody, but in real life the benefits always go PRIMARILY to the elite. Some is left to the commoners but that is not because of capitalism but because of the surplus in the first place. Don't put the cart before the horse.

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You seem to forget that work Unions were primarily because of communism, NOT capitalism. No capitalist wants to give the workers extra wages. That wouldn't be “efficient”. Workers must, let us not mince words, steal the extra wages by force. I personally approve of such an arrangement. I didn't before, but that was at the beginning of the thirty year long wage suppression sold to us under the guise of a free market. Now that we see the end result of all capitalism and no communism, it isn't the great system we thought it was going to be.

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Without surplus energy, you can't have banking or capitalism. You can only barter. And barter doesn't work all that well in a severe resource scarcity. If there is just enough game to provide meat for everyone, you cannot barter it. That suggests some tribe members will starve ( Food Stamps don't belong in a system of pure capitalism. Want to get rid of them? If you do, you are an idiot. What if you had no choice but to need them? ). That is when pure communism is practiced. Not that it ever had that name, before Karl Marx wanted to write instead of work at a factory.

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A tribe is just like a family, but without incest. You don't practice capitalism with family. Go ahead, I dare you. You REALLY think that money you gave your sister is a loan? It won't get paid back on the principle, let alone the interest. Family really does run on the NEED principle, certainly not the ABILITY part. Same with a tribe. Capitalism worked, while we had surplus. Surplus is ending, along with capitalism. Forget a business long term.

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Now, you could plan along the lines of a non-profit business, in that you are generating profit ( at times, perhaps ) but that doesn't guide the business as much as transitioning to a non-capitalistic system does. I'll cover that tomorrow ( last installment, I promise ), along with all the other partially successful wealth storing strategies to generate a whole system of wealth preservation.

( .Y. )

( today's related Amazon link click here )

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note: good gravy!  It seems the only new PA books out there are either zombies or Super Fem Ninja's.  What are you going to do?  Free for today, another female hero tale HERE. 
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