Silver is Blowing Up

The price of silver is exploding more than it already has. I remember when silver was less than $5 an ounce. I couldn't convince people to think about it, much less actually buy some of it. I was buying it, but looking back, I should have mortgaged everything I had to buy it. I made at least 6-10 times my money I invested in silver. We will never see prices for silver that low in our lifetimes. NEVER! I guess that made it the investment of a lifetime back then.

Jump to 2011, and now the price of silver is close to $50 an ounce. The really scary part of this is that when you look at the fundamentals, along with the instability in the world economies today, the price of silver may still be low. The fact of the matter is that the banks that have been dealing with silver have been committing fraud. They have been 'selling short' silver that they not only did not own, but have actually been selling silver that did not exist. This enabled them to make money on non-existent silver, and to also suppress the price of silver as well. Selling naked shorts in silver amounts to a de facto flooding the market with 'paper' silver.

The problem now is that the banks are now caught up in a 'short squeeze'. This is when a seller of a commodity doesn't have it, and now much purchase it at the market price, no matter how high it may be. It would depend upon what price they sold it at that would determine the loss. The bigger the difference between the market price and the price they sold it for, the larger the loss. It looks like they may be in for multi-million dollar losses because the silver price is now approaching its historic high that was set back in the 1970's when the Hunt brothers were trying to corner the silver market.

I'm not sure how many people are open minded enough to invest in silver, but it has worked out great for me, and for plenty of other people who had enough guts to think for themselves instead of following the talking heads on MSNBC and other media investment pundits. One thing that they won't tell you is about systemic risk. You may think that your investment portfolio is well diversified because you're investing in a lot of different stocks, bonds, ETF's, indexes, etc., but I have some news for you. You're only diversified in paper assets. What happens if all paper assets take a hit? Is your portfolio equipped to handle that eventuality? That's where investment in non-paper assets comes in. Do your research.

Consolidation of Banking

I've been talking about economics and what is happening with banking for a while now. The fact of the matter is that there is a great consolidation of banking that has been initiated with this 'banking crisis' that has been in effect lately. Although the mainstream press would have you believe that it is the result of stupid, mistaken, idiotic bankers who are making errors, this is not plausible.

Virtually all of the people who are in charge of banks, banking and government policies are highly credentialed (i.e., have Ph.D.'s and other college degrees from mostly Ivy League colleges). This effectively negates the assertion that these people do not know what they are doing. I say that not only do they know exactly what they are doing, but that they are succeeding at what they have already planned to do.

Let's look at this logically. The banks made massive amounts of money from lending all through the creation of the 'Subprime Banking Crisis' before it was a crisis. This was all made possible by their great efforts (that eventually succeeded) to get the Glass-Steagle act repealed. This law was passed after the Great Depression of 1929 to prevent banking organizations from performing standard banking operations and investment banking simultaneously to minimize 'moral hazards' (i.e., a euphemism for stealing, plunder, profiteering and other scandalous behaviors).

So the banks (along with their paid cronies in government) made obscene amounts of money from this. This is in addition to their realizing astronomical profits from derivatives trading, which is mostly done 'off-the-books' because there is no standardized, regulated market for derivatives. They are virtually all customized transactions, and are therefore not regulated, not public and are difficult to value. It's like basically being able to stack the proverbial Casino in your favor.

But the ugly realities of making bad loans and continually making excessive bets have led to major structural problems in banking. So when the 'cookie jar broke' and the banks were about to all go bankrupt, they pressured their friends in D.C. to help them out, and that's exactly what they did. We know it as the TARP program, which basically amounts to 'corporate welfare'. Instead of the many trillions of 'investments' being valued at their actual market value, the government bailouts allowed the banks to keep their face values so that the banks would not experience actual losses. They were allowed to maintain the facade of being solvent, although the truth is that they are all technically bankrupt.

So for all of this, the People of the United States were given the bill for all of this. The payment for this will be through layoffs, higher taxes, less services, the collapse of local and state governments, inflation and/or deflation that will greatly erode the wealth of average people, and possibly totalitarian fascist police state provisions to keep the masses from holding the government and corporate people responsible for these events responsible.

I know I've covered a lot of ground in these few paragraphs, but I didn't want to overwhelm you with a lot of technical jargon that may confuse you. But I have found a great article that goes into great depth about this situation. It is lengthy, but if you can absorb the content and meaning of this article, you will have a much better understanding of where the economy is, and what is really going on in the world. You can forget the crap that they're feeding you on MSNBC and similar financial 'news' outlets because that drivel is merely designed to keep the sheep calm while they are being fleeced. This is some of the most important information that you can get for yourself, your family and your country. It will affect every facet of your life, and the lives of the people you know.

You may think I'm crazy, but you owe it to yourself to step outside of the corporately-controlled media and do some thinking for yourself. Running multi-trillion dollar budget deficits just isn't sustainable on a long-term basis. It appears to me that those who control governments and economies are purposely running all of the world's economies into the ground so that they can institute this One-World Government and One-World Currency. The old saying is that 'nothing happens by accident in politics', and you can best believe that with trillions of dollars in the balance, there are forces working to control them and gain as much of that loot as they possibly can. Don't be naive. Face reality and deal with it, because it will definitely deal with you one day! It has a nasty habit of popping up at the most inopportune moments.

Gloom Doom Reports

http://www.investmentrarities.com/11-2008early.html

You're going to want to read these tidbits from some financial analysts
that I've found. I've been saying the same thing, as my own research
and thinking has led me to the same conclusions. The stories and
explanations coming from the mass media and MSNBC just don't make any
sense when you stop and think about it. It is now time for all good men
and women to STAND UP for truth, justice and freedom. Stand up now
while you still can. Protect your assets while you still have them.
There is definitely a plan to separate you from them. Now is the time
to get educated about it. If you continue to exclaim, "It's too
complicated." "It's too much work." "I don't want to think about it."
"I don't believe it." "You're a conspiracy theorist." "The government
will handle it." "There's nothing I can do.", or whatever other
rationalization you can think of that I haven't listed, your assets WILL
be destroyed. Kiss your portfolio, your retirement, your pension, your
savings GOODBYE. I'm not giving investment advice here, but I am
putting you on notice that your assets are at risk, and you probably
need to learn and restructure your finances to come out with your
purchasing power intact. As the old saying goes, "A word to the wise is
sufficient." You have been presented with information, now what you do
with it is your responsibility.