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Spot price of silver as of me writing this: $25.15/oz
Last "stimulus"- $1.9T
51B * $25.15= $1.28B
So the last "stimulus" alone could purchase the entire 5000 year historical mined supply of silver almost one and a half times over.
What do you make of this?
Metal bars and coins were always clumsy tools as currency and always in competition with such other commodities as wheat, salt, certain spices, even olive oil.
What people use as their economy's currency is only as good as the economy's transportation and telecommunications technology, and the quality of the people, of course.
In the Information Age, money/currency grows on electrons and is transported instantly, quickly backed up by motor vehicle, aerial and sea transport of goods and merchandise.
I am more concerned about the stricken ship blocking the Suez canal than the price of silver.
The real question is to what extent are the contaminants in the money supply making it inefficient that it would render the economy largely dysfunctional, domestic, global and otherwise.
I don't think we are at that point yet. And if we ever get to that point, new technologies may come along to change the equation.
In the meantime, the price of silver and gold is mostly a curiosity, outside of any industrial applications, and though still tradable on financial markets as a somewhat distant and cloudy reflection of general economic volatility.
You should be making the opposite assumption. That little silver can command that much money. But USD needs higher denomination to command lesser and lesser product/services.
.
Silver had a cost to mine. It had a cost to transport it and convert it to be usable. Then you throw in the fact it’s owned by people who won’t sell or are going to use it for industrial purposes. Then you’d need to transport it again if you bought something with it. Not to mention the fact this is talking about history...so in other words, you had to wait for the slow trickle of money to come in and the time value of money associated with it.
In other words, the gross value is way higher than its actual realizable value. It’s inefficient, slow, costly, and largely irrelevant.
Silver is for industrial use and a small play people could/should have in their portfolio. It’s relevance to the USD system is minuscule at best.
Or you have the power to create the same amount of purchase of goods or services from nothing.
And with a flick of a pen you could buy it all again.
How is silver more powerful than the USD again?
Last edited by Thatsright19; 03-29-2021 at 07:23 AM..
Continually exploding debt levels and funny money creation + falling oil production- those two factors alone are enough to make a debilitating currency crisis unavoidable and inescapable.
You actually make a good point: the U.S. is doing a lot of things wrong.
A year ago, we were:
1. the top oil and gas producer in the world
2. a major energy exporter
3. growing in steel production
4. growing in plastics and chemicals production
5. rapidly rising employment and shrinking unemployment/nonparticipation
6. increasing military power and readiness
Today, we have flipped every one of those metrics around to the opposite. We're rapidly trying to de-emphasize energy production, industrial manufacturing, and military power.
We're printing money like there's no tomorrow, handing out bread and circuses to the peasants while Rome burns.
I honestly can't think of a worse outcome to a viral epidemic. What are we made of?
You actually make a good point: the U.S. is doing a lot of things wrong.
A year ago, we were:
1. the top oil and gas producer in the world
2. a major energy exporter
3. growing in steel production
4. growing in plastics and chemicals production
5. rapidly rising employment and shrinking unemployment/nonparticipation
6. increasing military power and readiness
Today, we have flipped every one of those metrics around to the opposite. We're rapidly trying to de-emphasize energy production, industrial manufacturing, and military power.
We're printing money like there's no tomorrow, handing out bread and circuses to the peasants while Rome burns.
I honestly can't think of a worse outcome to a viral epidemic. What are we made of?
We were on track for a cataclysmic collapse of the financial system with or without Covid, Covid just accelerated the process. Nothing got solved after the 08 crash, we just papered over the problems with even more debt. Before Covid, we were adding $5 of debt for every $1 of GDP- that's already insanity, but now, we've injected trillions of dollars of "stimulus" to get a basically stagnant economy. The fundamental problem is our voracious consumption and an infinite growth economic/financial model in a realm of finite resources and energy.
We were on track for a cataclysmic collapse of the financial system with or without Covid, Covid just accelerated the process. Nothing got solved after the 08 crash, we just papered over the problems with even more debt. Before Covid, we were adding $5 of debt for every $1 of GDP- that's already insanity, but now, we've injected trillions of dollars of "stimulus" to get a basically stagnant economy. The fundamental problem is our voracious consumption and an infinite growth economic/financial model in a realm of finite resources and energy.
Just tell us when so we can act .
Any prediction referring to ONE DAY is useless to us
Here's a fun fact- the Federal Reserve alone is currently printing $5100+ for every oz of silver coming out of the ground. That number is guaranteed to go much, much higher...
Here's a fun fact- the Federal Reserve alone is currently printing $5100+ for every oz of silver coming out of the ground. That number is guaranteed to go much, much higher...
And they need to satisfy both the domestic mandate and its responsibility to the world
There’s insatiable demand for the USD. And as USD debt grows from the creation of money since all money is created by debt issuance, there’s increasing demand to earn and/or shift into usd to pay usd debt.
If I had the foresight to predict the future in detail, I wouldn't care about silver, I'd be buying lottery tickets.
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