The Silver Movement

It began because I had just read The Wizard of Oz and realized the allegories:  The Green Hot air balloon was the dollar, the path of gold was walked on silver slippers.  And that was it.  I realized that the wizards were going to fly away by their fiat greenback, while the people, if they thought to, could walk the yellow brick road in silver slippers and make it home.

That was February of '10 that I began to write 'Buy Silver'.  And the exact reason was that I thought if the system would fail like I thought, then gold may be confiscated, but not silver, and silver defines the term 'money' just as gold, therefore we the people would be best off buying silver.  This is exactly what Gerald Celente has said he is doing as of a few months ago.

Then I began to learn about finance and how the exchanges work.  I was reading Zero Hedge and listening to Max Keiser everyday.  As a silver bull, I already knew that by buying it we could take back the money supply, but then I learned about naked shorts, and shorting in general; then I learned that JPM was naked short silver.  I had already learned about supply and demand as a student at a major university studying economics, and knew how the price action moved.  That was when I came up with the 'Buy Silver - Crash JPM' Movement.

Buying silver puts sound money in the peoples pockets; score one for the people.  Then because JPM and other Major Banking Houses are short silver, and naked, then they would need to come up with the collateral if their shorts were blown out; they would need to deliver the bullion.  So if there was no bullion to deliver, it would put a squeeze on the price like none other.

At the same time, industrial demand is high, and supply may be falling.  Everything is in favor for a squeeze on price.  This is why it is very possible that if we move on the bullion we could squeeze JPM out of their short positions, and thus crash their balance sheet.  Yet it doesn't end there, it only begins.

In November of '10 Keiser decided to use the Buy Silver Movement.  Interviewed on the Alex Jones Show he admitted he had heard about the Movement from Mike Krieger who said it had been started 'On Zero Hedge'.  Keiser may have had his ego put in a boot since then though, as he often refers to it as 'his idea'.  His idea is simplistic though, as the movement never ended with just crashing JPM.  No, it ended with crashing the dollar, and I will now explain the final way that buying silver would end the Fiat Ponzi as we know it.

Everyone knows the dollar is the reserve currency, and that it is also known as the petrodollar as it trades in an inverse relationship with oil (as it trades for oil), which is known as the lifeblood of the economy.  Oil trades at a one to one relationship with silver; the prices move together on a long term chart. Historically the ratio it trades at is 3:1 for an ounce to a barrel.  So now we have established the Aristolian logic that the dollar trades inversely with silver.  Therefore, if the price of silver rises, then the dollar falls.

This fall of the dollar would destabolize the Military Industrial Complex, because the MIC does not have anything that backs it besides the dollar.  It has technolgy, but that technology needs upkeep.  It has personel, but that takes wages.  It needs oil, and the US government does not have enough oil to provide transport and the military it currently has.  It relies on the reserve currency status. 

If the dollar failed, it would end the fascist United States government.  And, and at the same time, the people of the world would have put something of value in their pocket:  MONEY.  Silver is money because the definition of money, besides being fungible and a medium of exchange, is that it must maintain its value.  Value as in price can fluctuate, but value in terms of its intrinsic value means it keeps its complexity.  Precious metal has a half life of 500,000 years.  It has the longest half life of anything.  Then we can discusss finite supply, and its technological value, but this does not make it money.  It is money because it keeps its molecular structure.

This crashing of the Banking Houses, and of the dollar and thus the Military Industrial Complex, and putting money in the pocket of the people, is the movement.  Some of this was lost along the way.  It will be important for us, those that understand the movement, to put it back in perspective, so we can have our movement realized, so we can take our money back, and thus take our rights back.

Down Goes Europe!

Europe is and has been in political turmoil for years following their Euro Zone experiment where they combined currency though they still had different ways and means to make money.  Some States rely on tourism, others production; whereas these different systems worked in times of surplus, now that money is stagnant problems have risen.  Led by housing bubbles and unemployment in a socialist system, the Euro Zone appears to be collapsing.

When I think of Europe my first thought is that the US Government is in a similar situation, and the only difference is that Europe is managing multiple societies, whereas America is managing different cultures.  This is a big difference, and it is ill thought that the States of Europe could find harmony in monetary and fiscal policy, but EUrope does have some great advantages to its Western Power counterpart.  First, it is connected by land to the greatest oil producers in the world:  the Mid East and Russia.  This is a great advantage.  Second, it's popluation does not have the reliance on oil that America does due to its infrastructure.  Also it has not the complacency of having the reserve currency; America has been spoiled with such.

Yet their situation is dire:  the banks are undercapitalized, unemployment is high, and they have many promises to pay that are unsustainable; but isn't this just like America?  This conjures up the Sun Tzu quote, "When you are weak appear strong, and when strong appear weak."  Is it that Europe is taking the heat off of America, because when America collapses under its debt burden it will be the end of the Fiat Ponzi, and the Euro Fiasco can prolong the inevitable?  As Europe and America are joined at the hip, I do believe that the reason Europe's problems have been stretched out is to keep the eye off of America.

This is why the problem, reaction, solution has gone into overdrive, with Germany bluffing and bluffing again that they will not pay the next bailout, though they always do.  Same with Greece accepting the bailouts.  There will reach a point of no return; in fact we are past that point, but the result will be just as bad for America as for Europe, and the collapses will be simultanious, as FX swaps will have little meaning when one country collapses.  Will the DXY go up as the Euro goes down?  Will Bernanke cut the value of the dollar by fractionally reserving it to stem the tide, only to increase the price of all assets?  Are there any real solutions?  Considering the debt burden of all Nation-States, and considering they are using fiat to denominate said debt, there is no real solution.  So down goes EUrope, and with it, the Keynesian Experiment.

The ECB Gold

It took gold to become a member of the Euro Zone, and that gold was held at the member bank, the ECB.  A member of the ECB uses the euro.  Once a State defaults on their debt obligations, they will likely not use the euro any longer, and as likely, not get their gold back.  Therefore, the last State in the ECB gets all of the gold.

This may be the reason for the EuroZone.  It may have been invented to sucker in all the States only to have them default due to, basically, sub prime lending.  It is well known that Greece and other member States should not have been approved for admittence.  This would make sense now that we have outlined that Europe's gold will be owned by the strongest member.

Many have long fought for gold.  Was the EZ set up as a way to steal all of the gold in a legally binding way?  I think so.

Kicking the Can

Judging by the laissez-faire nature of the Heads of State at the G-8 meeting yesterday, the only plan they have ever had, kicking the can, is going to continue.  It appears Merkle understands that deflation is not in the cards for any of the Central Banks, and that her political posturing has been mere rhetoric to appear to Germans as at least trying not to spend their future on Greece and other insolvent Euro States.  Hollande, a long time French political insider, will change the European course of austerity.  This is their hope of keeping all States inside the Eurozone not before another State, like America or Japan, go bankrupt, which is a suicide pact of epic proportions.  Since the Keynsian policy model is doomed to fail, because debt does not equal growth, and it sure doesn't equal money, well spent or otherwise, there will be failures, but for now, the long term policy of can kicking continues.

Yet there are no alternative choices when it comes to economics.  It is a study deemed a 'science', and there is no aggressive movement to change it, Ron Paul excluded.  And since the media did everything in its power to defame Paul, the status quo has not changed much.  The hope is that it has changed enough, and that when the can kicking can not go any further, those that hold a different theory than printing trillions upon trillions of fiat currency to throw at the banking system will be asked to step down, and new theories will form to create a discussion outside of this Hegelian dialectic that has formed over the last hundred years.

Now that the Heads of State appear to agree to print ad infinum, the Central Banks have the green light to do so.  This should all but put a lid on the dollar's price appreciation, and a floor under equity.  If this does not happen, then pensions turn negative.  Also, since it is not just a battle of the euro vs the dollar (although it may appear that way for everyone watching), and a battle between all Central Banks, oil and precious metals will find great support at these ranges; so great that we may never see them lower.  In fact, if the photo ops from the G-8 are as they appear - a unity of fiscal and economic policy - then we may see oil and precious metals move higher soon, and quickly.

One thing that was mentioned at the G-8 was releasing oil reserves.  This is a manic decision.  The thought is because the Iran Sanctions are about to be fully levied.  The problem is that these reserves will run out, which means the price in the long term will rise.  Last time it took only a few weeks for the price to rise back up.  Is flushing the holdings of our most important resource worth a few weeks of cheap oil?  Not at all, but these policy heads are just that stupid to try.

Economics Hangs in the Balance

If JPM does indeed get their balance sheet blown out, and the recovery never truely takes hold, it will put pressure on the "science" of economics because it will show that the policy that was used was not sound.  If it was not sound, then economics is not a science.  If economics is not a science, then the whole structure of finance will need to be reorginized.  This will cause great instability, and societies around the world will have to change to fit into the picture of a new economic landscape where true economics reigns supreme.  The difference between current policy and sound policy has many variables, some of which are - How do we determine value?  And what characteristics embody the consumers?

Economic policy dictates that when times are good it is prudent to save, and when times are bad then wealth must be created and spent.  The problem with this is that the consumer is not rational (despite the science's theory) and the consumer often spends most during good times, leaving their wallets empty when a depression arrives.

The next factor is that even if the consumer were rational, the crux of the system is based on an instrument of finance that holds no intrinsic value.  This instrument is the dollar, and it can be printed and loaned out from a promise to pay into an infinite amount.  Since the entire system uses this tool to implement value, value is actually lost before it is ever understood.  This creates a great amount of chaos and if, or rather, when, people come to terms that using fiat currency to trade is different from using it to store value, then real wealth will be demanded with sudden force.  If someone wants to use paper money that is backed with another item that is one thing, but when one hoardes it as if it has value, it is merely done with poor understanding of the thought investment.

And with these fundamental problems also comes the fact that those in charge of making finance work are crooks and inept at making investments proper.  The Central Banks can not really bail them out, because the Central Banks do not create wealth themselves, but just percieved wealth in the form of fiat currency (nevermind the Central Banks are crooks themselves, because they knowingly create and pop bubbles).  There will soon be a moment when actual goods can not trade for fiat currency; this will be when supply is constrained and demand moves higher.  Because the Major Banking Houses continue to falter, we may be fast approaching this moment when the Fiat Ponzi collapses.