switching assets 3

SWITCHING ASSETS 3

Things always look great, right before the plunge over the Seneca Cliff. Gasoline is about the cheapest its been in fifty years, going by real money ( silver ). Of course, gasoline is 10% corporate welfare in the form of ethanol, and 33% banker welfare in the form of Free Money ( it won't be repaid ) to the fracking companies who pour money into the ground and get fuel out at a loss. Call it another 7% Department Of Defense subsidy in the form of lower oil due to colonialism. Gasoline should be a minimum of twice as expensive.

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But then, silver should be much more expensive. It has been kept artificially low by derivatives manipulation. Hell, the entire world economy has been kept afloat for the last ten years by derivatives. The last true words out of Warren Buffet's dingus hole was “derivatives are financial weapons of mass destruction” ( before he sold his soul to the Rothschild's-or, really, when they called in their marker on him-and is now their propaganda boy. Only believe the exact opposite of what he now says ). Before Peak Oil can mop the floor with our asses, derivatives will crash this whole house of cards.

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The true real honest to goodness unit of wealth for the last hundred years was oil. If you look at silver or gold during that time, they pretty much just reflected the price of production ( with a smidge of profit thrown in-this from the SRS Rocco Report Dude, an impeccable source. If I'm paying someone on Patreon each month, as I do him, they are top of the heap analysts. Orlov is on double secret probation. He might be the smartest guy in the room, but he has also been reluctant to write, much )

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The US economy was twenty years ahead of the Soviets reaching peak petroleum production. Our economy crashed, hard. If you don't consider the entire industrial base of an economy being moved overseas to drastically cut input costs a severe crash, I'm afraid you have no idea of what is in store for us. Only Saudi Arabian oil saved us. Gold disappearing from Fort Knox was immaterial. It was all about energy control and access. That entire time, with one exception that occurred during the transaction process ( industry to financial ), gold and silver were secondary to oil. Texas Tea.

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Silver has been artificially low just because oil existed in the first place. It has been held down through derivatives manipulation ( institutionalized Money For Nothing, which can never last very long ). It has been treated and depleted as a industrial commodity. To think that silver cannot price increase six times is ludicrous. It has already quadrupled in price just in the last fifteen years. It hasn't even started reverting to its pre-oil price ( see the beginning about gasoline being artificially lowered in price ). Furthermore, supply ( please bear with me as I repeat-this is rather important ).

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The YouTuber “Silver Report Uncut” pegs the above ground supply of silver as BENETH the weight of gold. Because silver is essentially destroyed if put into solar panels or water filters or circuit boards or antibacterial socks ( or what have you ), the cost of recovery being what it is. SRS Rocco says the amounts are even ( X number of tons of gold, compared to silver mined but NOT used for industrial purposes ). I believe SRS is being ultra conservative so as never to be accused of doom and gloom. But we'll go with that.

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If there is the same amount of silver hoarded as there is gold, what the hell are you using the gold/silver ratio for? Yes, in the past the ratio of silver to gold was around 17 to 1. That is the ore availability in the earths crust. By law, Rome said 12 to 1, the US ( before precious metal was withdrawn as money ), 15 to one. All well and good. If silver is now 75 to 1, you can expect silver to revert to historical price points. Silver, by this metric, should be $100 to golds $1500.

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But silver WILL be worth a heck of a lot more than one fifteenth of gold, because when the whole thing collapses, there will still only be half gold and half silver above ground. The price of silver can be held so much lower because there is a lot of it mined every year. But every year, the industrial demand for silver increases, even as the globe stagnates economically. As the production of silver declines. And that is JUST looking at primary silver mines. Secondary silver ( byproduct from copper, etc., mining ) is low as industrial metals use declines. From any way you care to look at it, silver WILL go up drastically in price.

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Not in inflationary pressure price, either. In purchasing power price. Yes, I'm well aware that except in 1980 as the Hunt Brothers manipulated the silver market, silver has stayed low all our lives. As I said, oil has been the metric of wealth. We've gone to war over it for a century ( WWI was a colonial resource war, and involved the US stealing [ at first it was balance of payments, but then we never paid back those holding dollars ] gold, but it was also the first war waged over middle east colonies which holds you know what ).

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But this is were my usual deafening insistence on Peak Oil comes in. If we are indeedally doodally running out of petroleum, then the entire economic foundation of our world is crumbling beneath us. If oil is no longer wealth, gold and silver will return to that role. And beware, I'm talking about a world where trade is still conducted. Precious metals are worth pretty much zero in a civilization collapse. They are worth less than zero during a die-off. They are only good for hoarding for future generations throughout a Dark Ages.

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But during an economic collapse, where the infrastructure of government and trade still hold on, no matter how dysfunctional they have become, silver is still worth big bucks. In 1980 it was worth over $700, in today's dollars. It is worth $1500 right now, if the derivatives market imploded. Not that it WILL get that high anytime soon, because people simply have no idea so little silver remains above ground. They only look at how much was mined. But people are idiots, aren't they?

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People are genetically programmed to follow the herd. A fact the elite know very well. Of course, people also lie very well to themselves, so even the elite are blinded by their own hubris ( and, apparently, by the need to be pedophiles as we seem to be witnessing from the last Clinton “suicide” ). The question is, are you willing to believe not is all it seems? I am. Money where my mouth is. I mean, don't think I'm not sweating it a little bit. There is always that kernel of doubt. But I stayed far too long in “safe, as defined by the past” mode. Time to bet on the future, as it is almost here.

( .Y. )

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