(Market Update 06-5)
by Edgar J. Steele
Note: This article was posted to the ConspiracyPenPal web site on a Saturday. The very next trading day, May 14, precious metals came under assault by the market manipulators, forcing serious declines all across the board. Here is the squib I posted on the site that night (and what I would have emailed you then if I had a functional list management system in place): May 15 - Back up the truck again: Silver closed in New York at $13.32 per ounce today. In the extended markets (Asia), it is down another 20 cents as of 5:30 pm PDT. This is a gift, folks. It is down about $2 from where it wants to be right now. All precious metals have been pounded down today and it isn't because of free market action. Those who are so desperately short silver derivatives have done it and will be in there very soon, covering some of their shorts again. This will happen again and again until they have eliminated their exposure. Most people buy when something is rising. Most people make very little money (actually, they lose it when you factor in lost purchasing power). Tomorrow morning would be an excellent time to visit your silver supplier and make a buy...or, go on line and invest in the silver EFT (SLV), then liquidate it and use the proceeds to buy real silver after the price goes back up again. If I had a functional list manager, I would send out an email to everyone, but this is the best I can do for now.
May 16 - I have just signed on to a new list management system and will endeavor to send this out now to at least that portion of the list that reconfirmed on my latest, not-so-great list manager that bowed to Internet censorship (Constant Contact, just so you know). All metals are bouncing back today, but silver has recovered only 26 cents, so still time to jump in...do it.
May 13, 2006From a NY Times article entitled "Finding Comfort (and New Friends) in Gold" (May 7, 2006) comes the following: "With their missionary zeal and weakness for conspiracy theories, gold lovers can seem a touch afflicted. They also collect and pass around offbeat, brain-teasing findings. One is that the dollar has lost 98 percent of its value since 1913, when the Federal Reserve System was established."
It gets harder and harder to sound outlandish when speaking of where the prices of precious metals are heading. Even so, let me push the envelope and say something right out loud that I have mentioned to a few in private: Before it is all over and the world settles down again into a semblance of normalcy, I believe that the price of silver will exceed that of gold.
Yep, you heard me right. Because of worldwide inelastic industrial demand, I do not believe that the amount of above-ground silver ever again will approach that of gold. Yes, there still is more silver in the ground than gold, but we simply can't get it out fast enough to make a dent in the demand deficit that has been growing ever since we used up those monumental stores of silver that have been sitting around...well, forever.
Now do you see why I'm talking about $15 silver the same way I did when its spot price was $5? Chances are, I will continue talking like this when $50 silver is but a memory, too.
There. That should ensure my title as resident Silver Loon for some time now.
What's Going On?
Conventional analysts and even many of my fellow loons consider precious metals now to be overbought and due for a correction. Maybe. I doubt it. These are not conventional times and that is where conventional analysis fails us.
Something is happening right now that hasn't happened since Confederate money went down the tubes: An American currency is crashing. In fact, all fiat currencies throughout the world are sliding into the pit right now, with the dollar leading the way, else the dollar's actual speed of decline would be all the more visible. Here's the best view on the dollar: virtually all commodities have doubled in the past 6 months. Not from speculation and not from some mysterious increase in absolute value. It's the measuring rod that is changing - the dollar.
It is said that, in time, all money reverts to its inherent value. Well, take out a dollar bill and look at it. Now lay a hundred-dollar bill next to it. What is the inherent value of those two pieces of paper? That's right, they are the same. Exactly, precisely the same.
Did you know that the Zimbabwe dollar today, inch for inch, is worth less than toilet paper? After all, toilet paper serves a useful function. They simply printed too many of them, the same thing the Confederacy did when on its last legs. What function is performed by a defunct piece of currency? Try to buy toilet paper with a Confederate dollar bill.
Like the Zimbabwe dollar, the American dollar is on a one-way trip. There is no rescuing it now, after all the inflation, the massive pileup of debt, the staggering trade imbalances, the loss of virtually all of America's manufacturing capabilities and the incredible profligacy of the current American Administration. WhirlyBen's solution? Print more, of course. That always is the answer. Make no mistake: the dollar is doomed.
And that is why conventional wisdom sucks when applied to today's financial markets. Conventional wisdom presumes a recovery. There will be no recovery this time. And, of course, we are about to have another World War, the time-honored way to revitalize the world's economy. The bad guys will lose. Who? Why, us, of course. You didn't really think the world would allow America to continue visiting its insanity upon small, defenseless countries, did you?
We Americans stand on the edge of an economic abyss, the likes of which we never before have seen.
Meanwhile, WhirlyBen Bernanke keeps printing it and Truly Insane ("God tells me to kill") George W. Bush keeps spending it. They know, of course, that the end is near, which is why they keep doing what they're doing.
Head for the hills. Hunker down. Trade your dollars for something that will survive the coming debacle. Have priorities and ensure your family's safety and relative comfort, first and foremost. Then put away something that will endure. I like silver, for so many reasons, but any commodity will do. Then, if you have anything left and like to play in traffic, try some mining stocks on for size. Their leverage can make some impressive profits, but only if you have enough sense to pull those profits out and put them into something other than dollars before it all comes crashing down.
Subscribe: Click here
My name is Edgar J. Steele. Please visit my
www.ConspiracyPenPal.com, for other messages just like this one.
Copyright ©2006, Edgar J. Steele
Forward as you wish. Permission is granted to circulate both the written version of this Notice among private individuals and groups, post on all Internet sites and publish in full in all not-for-profit publications.
On-Line link: http://www.conspiracypenpal.com/columns/update0605.htm
Note: One or both of the following buttons may not work with your email program. If so, then please visit www.DefensiveRacism.com and make use of the order buttons there, which should work with your browser...
Buy copies of Defensive Racism - An Unapologetic Examination of Racial Differences, which extensively addresses the problems confronting America, now is available through www.Amazon.com (please consider going there and posting a review if you already have read it), though you can get a $5 discount by ordering directly from the publisher. Additional significant quantity discounts will be applied during the order process. Visit www.DefensiveRacism.com for more information and on-line ordering information or simply click below (for an autographed copy, simply write in "Sign mine" in the comments section of the on-line order blank):
Donations to help with the cost of our efforts may also be mailed to Edgar Steele, PO Box 1255, Sagle, ID 83860. Until the politically incorrect begin to get a fair shake in America, and because of unfairly-applied income tax regulations, I regret that your donation cannot legally be deducted on your tax return. I must also make the following statement, to ensure that I need not declare it as income and pay tax on it and to avoid being charged with misuse of funds, for which some patriot leaders falsely have been charged and imprisoned: your donation is a gift to me, personally.
Subscribe: Click here
Complete archive of past articles, essays, rants, interviews and speeches, including sound files, maintained at: www.ConspiracyPenPal.com