Silver will be 20 Million $ an Ounce.

So, is the sky really falling? Many say yes. But, not so fast. Sure, some things don’t look good. We have an intrinsically worthless fiat paper money, but is that new? Since, the 1970s the fiat in deed has been intrinsically worthless, but not extrinsically valueless. Hmmm? So where does the value come from? Confidence? Well yes. The amount in circulation? Well yes. Anything else. There is one factor, the most important, that gives the dollar real value. Guess what it is? Well silver is THE constitutional money, so I will focused on that lawful real money. Today, there are no substantial above ground silver stocks. OK, but what is the annual production of silver 400Moz? Guessing of course, never said I was an expert. But, nonetheless, that's allot silver. Sure, there is also what 440Moz in Demand. That's allot to. Ok, and there has been for 15 years running, a 40Moz annual deficit in silver, which was made up by bank sales, which are now exhausted, with some scrap filling in. We all get this. But, Silver is mineralized in many different ores, and is produced mostly as a by-product of mining. Today, the vast amount of silver on this earth, is low grade, well, low grade relative market price. Hmmm? What if silver was 10,000$/oz, would there be a few more "profitable" mines about. I would think so. There is plenty of silver world wide, if the price was right to mine low grade ores.

I love the real dooms-day guys, Hat-Trick and Daily Reckoning are the stand outs of course. I just roar, at times, at the self centeredness of them all, with their little hoard, while pounding the doom-and-gloom. If gold and silver goes through the roof, sure, us bugs would do well, but lets at least acknowledge the greed motivations behind most their prophecies. The US government will continue its twin deficits, and that's a good thing, if you want the dollar to become toast as I do. Its alleged by these oracles, that the four insolvent pillars to the US Economy, federal budget, current account trade deficit, bank capital, and homeowner equity are insolvent with all directed toward mammoth unprecedented monetary inflation. Ok, that is the economic reality. But is it really so bad? Actually, I am cheering them on, the printing presses, actually. I want the fiat dollar absolutely destroyed, burnt, and toasted crisp because I want a return to real money economies worldwide, and the world reserve currency is the best place to start the conversion. The doom and gloom folks only look for what they want to see to sustain their shrill, their subscriptions, their mine share prices, while pounding their chess in coc-sure predictions.

I come at it from a different direction. The dollar is to be gracefully, (not catastrophically), degraded for some time to come, to sustain the USA empire, in its role as global cop, to civilize this world. Its all about d$/dt, the time rate of change of the dollar value. The dollar will take major hits from time to time, but will bounce up from time to time as well, in the continue graceful degradation. One may ask, how can that be, if all looks so bad for the paper dollar. Well, the US government has jurisdiction over you and your money, we can not hide, as we spend 20% of our time just trying to figure out how to reduce our tax burden. That is evil for sure. The tax on income is obscene of course. Tax property, tax sales, tax inheritance, but the government should never tax income, that engine which drives all prosperity in the end. When the fiat is finally destroyed, I hope DC has wisdom to revamp the tax code to limit taxes to only property, sales and inheritances, and no more. However, the power to tax is that mythical power that breaths that unknown value into the paper fiat dollar. The government will tax you, and will demand payment or throw your butt in jail, but wont ask for payment in cows or goats, but paper fiat dollars, and to pay, you have to sell your cows and your goats to get those tax fiat dollars, or you go to jail. As such, the government, through federal taxes maintains the value of the dollar, and yet through its printing presses degrade the dollar, and between the two, the government effectively has absolute control of the graceful degradation of the value of the dollar, to sustain it, as long as it want. Did you get that? The government can intrinsically control the dooms day.

In other words, the US government can degrade the fiat dollar has much as it decides to do so, and can project power world wide, as long as it wants to, through deficits, and can balance the value of the dollar, through taxes. Only when the world is civilized, and that means completing the war on the islamofascists first, and only when the majority of the people have had enough of the IRS and their enslaved tit-sucking-pigs, will the government trash the paper dollar and go back to a real money economy. There is no doom-and-gloom, but rather, a tight-rope balancing act of economic, political, and military forces that control the graceful degradation of the dollar, enroute to when the world and people demand fairness, and when war and fiat are completely replaced by trade and gold. The government needs the value of gold and silver to also rise to maintain miner supply of real money. Hence, the Gold Cartel and the Silver Price Managers will enable a continuous rise in real money value in reciprocal to a graceful degrading dollar. See how that works, its all about d$/dt. In those days, when the fiat is finally abandoned by all, the government can redeem FRNs at 50 billion dollars an ounce and wipe out the national debt in a glorious rebirth of freedom using real money, which means that silver will be 20 million dollars an ounce.

Derrick
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