-- Posted 24 December, 2006 | | Source: SilverSeek.com
Silver has been outperforming gold, albeit with fits and hesitations since 1990 when the ratio went to just over 100. Since 2003 the Ratio favoring silver has declined from 84 to about 48 where it is today. We can't repeat history exactly, but we certainly should use it as a guide. The cyclical trough for the Ratio was "14" in 1980.
Every country of the world has a history somewhere along their timelines of silver as a circulating money. Some may have limited experience with silver exclusively as money, but either alongside other local commodities, or in a bimetallic form with gold, silver changed hands among the people universally.
It's often been said that central bankers are stupid. They sell their gold at the bottom, and buy it back near the top of the cyclical. Nothing could be further from the truth. It is their sales that make the $ price go down, and their eventual buybacks that make the $ price rise. They do not exercise this apparent moronic behavior for the benefit of their citizens, but for the benefit of themselves to retain power. Once you understand that the central bankers (CBs) collaborate with the anointed we elect to office, you begin to understand the CB actions more clearly. Sometimes they get it wrong, the citizens revolt and throw them out, or string up their own el duce from the nearest gaslamp lightpost.
Unless you've been living in a closet for the past five years it's abundantly clear to you that the intention of the global elites is to bring the whole world under a one fiat currency umbrella. It has to be done in increments. Waging war is oftentimes a necessity. On receiving a promotion in my working life my boss cautioned me that there were many changes that had to be made, but not to get too many fires going at one time. So true. Bankers and their sovereign-surrendering political collaborators know this all too well. One step at a time. Easy does it.
People are going to catch on to this evil scheme. The French are already balking about the EU. The British debate about joining the EU rages on. The North American Union (NAU) melting down the US, Mexico and Canada into one blob is planned for 2008-2010. The amero is the mentioned new money for all of us.
Commensurate with these government and banking consolidating events, is the overriding terror of the world's central bankers' that the US$'s in their bulging reserves will come crashing down, and take them and their politicos down with it. They see the lamppost beckoning.
What do they do? What will their own citizens tolerate? How much lost freedom will they put up with? Will the media propaganda machines be enough to quell dissension? Will they be spawning an entirely new breed of home grown nationalist patriots whom they must euphemistically label as "terrorists"?
Mexico, Canada, and numerous So. American countries possess bountiful silver (and other natural resources). Want to see the fortunes of those citizens rise - - introduce a circulating silver standard amongst the citizenry! Already Mexico has before its congress, bills that are vigorously supported by the courageous Hugo Salinas Price. Want to see our illegals beat feet back across the border? Give them an honest peso to work for. Additionally, the larger governments are now minting silver collectible coins such as the American Eagle and Canadian Maple Leaf. Private mints in the US are having a strong demand, and have actually begun a limited circulation between merchant and customer. The State of New Hampshire is contemplating a hard money of silver as substitute for public debts. Who knows? What about Nevada? Whatever the outcome - the word is going around that you better get yourself some silver, just in case.
Oftentimes sleight of hand and Pinocchio words are enough to get us to look elsewhere. But, wouldn't it be the cat's meow if China was secretly sleuthing the world buying silver, not gold? Could they ostensibly be selling their silver mines' productions on the world market, but then be buying it back clandestinely? As earlier iterated China has a history of a very strong affinity for silver as money, as does Mexico. China's burgeoning majority is an enormous farming population still living in the agrarian world of poverty. I bet you they understand the value of silver. China had always been on a silver standard. Best to keep them down on the farm with silver coin! China's industrial cities are just too large for the western mind to envision. A tide of social unrest arising from a depreciating domestic yuan as a result of their dollar reserves losing value can be quieted with payment in honest silver money.
I can see Mexico asking silver for their oil, can't you? Their new government should get right on it. Our US trade dollar failed in Asia. The Mexican silver 8 reales Libertad was too well entrenched in China for our silver dollar to replace it! Our old Marxist chum Hugo Chavez could come right into the limelight by telling the international oil companies, "No silver, No Washee!" Imagine that for a minute. Oil companies would have to set aside, not dollars or euros, but silver! It all trickles down.
The big unknown is how greedy will these host governments be? Will they nationalize the mines without just compensation to shareholders or set up a quasi-government mining industry as did South Africa which has virtually torn asunder their gold mining sector? Either way it won't be paper irredeemable in silver that will quiet the people. Show me the shine, man!
I'll finish this up with a graph kept in 1876 measuring silver in relation to gold. Realize that in this period values were determined against a gold dollar, not a fiat dollar. Hence, the expression is in gold terms which was fixed at $20.67. It's only a mind twister to us because the US dollar in 1876 was a fixed amount, unlike today which has us on a paper standard. We have a whole new world opening up which will force us to think and measure intangible assets relative to an honest standard of weights and measures.
Isn't it amazing how universal morality is when you have an honest standard?
- - CV
-- Posted 24 December, 2006 | |