dollar bubble

Silver is the best investment

The National Inflation Association says Silver is the best investment.

In our opinion, investing into silver is the only sure way to tremendously increase your purchasing power over the next ten years.

Throughout world history, only ten times more silver has been mined than gold. If you go back about 1,000 years ago between the years 1000 and 1250, gold was worth ten times more than silver worldwide. From year 1250 to 1792, the gold to silver ratio slowly increased from 10 to 15 and the Coinage Act of 1792 officially defined a gold to silver ratio of 15. The ratio remained at 15 until forty-two years later when the ratio was increased in 1834 to 16, where it remained until silver was demonetized in 1873.

The gold to silver ratio remained between 10 and 16 for 873 years! It is only over the past 100 years that the gold to silver ratio has averaged 50. History will look back at the artificially high gold to silver ratio of the past century as an anomaly, caused by the dollar bubble and the world being deceived into believing that fiat currencies are real money, when in fact they’re all an illusion. Next decade, the fiat currency experiment will end badly in a currency crisis. The wealthiest people will be those who bought silver today and were smart enough to research and pick the best silver mining stocks.

OWNx.com

While the vast majority of the gold ever produced remains sitting in vaults, 95% of the silver produced has been consumed by industry for thousands of applications in such tiny amounts that most of it will never be recycled and seen on the market again. Nobody knows the exact above ground supply of silver today, but most likely it is somewhere in the neighborhood of 1 billion ounces. That’s a total worldwide market value of only $17.4 billion, when the world has over $7 trillion in foreign currency reserves, mostly in fiat currencies that they will need to diversify out of due to rampant inflation.

Besides the fact that the world has been ignoring the monetary value of silver, silver prices are artificially low due to a large concentrated naked short position. It’s not a coincidence that the day silver reached its multi-decade high of over $21 per ounce in March of 2008, was the same day Bear Stearns failed. Bear Stearns was a holder of a massive short position in silver. In our opinion, this was likely a naked short position because there is nobody in the world who owns such a large amount of silver for Bear Stearns to have borrowed.

The reason why we believe the Federal Reserve was so eager to orchestrate a bailout of Bear Stearns, is because Bear Stearns was on the verge of being forced to cover their silver short position. Because the silver market is so small and tightly held, if Bear Stearns was forced to cover their short position, silver prices could’ve potentially rose to $50 per ounce or higher overnight. The world would’ve seen how economically unstable our country is and confidence in the U.S. dollar would’ve rapidly deteriorated. JP Morgan still holds the silver short position they inherited from Bear Stearns. The concentrated naked short position in silver today is the largest short position in the history of all commodities, as a percentage of its market size. Eventually, JP Morgan will have to cover this short position or it could jeopardize their existence.

The best evidence that the short position in silver is naked and not backed by real silver, is the differential between what silver trades for on the Comex and what real people are willing to pay for physical silver on eBay. Every hour on eBay, there are dozens of one ounce silver coins selling for approximately $25. That’s about a 43% premium over the current spot price of silver. With so much demand for physical silver, we doubt the silver shorts in the paper market will be able to manipulate prices downward for much longer. A major short squeeze could be right around the corner and silver could take off in a way that shocks even those who are most bullish.

Feds May Seize Liberty Dollars

Coin World reports that the feds are looking to seize liberty dollars from collectors and those using the coins instead of inflation-ridden Federal Reserve notes.

Liberty Dollar

Officials with the U.S. Attorney’s Office said on August 24 that the coins are contraband. The Secret Service, the federal agency responsible for confiscating counterfeit money, did not provide any definitive comments concerning under what circumstances Liberty Dollars would be seized, according to Paul Gikes of Coin World.

The coins are illegal even if they are not used for barter, the feds insist. Jill Rose, chief of the August 24 that the Liberty Dollar medallions are confiscable as contraband if they are being exhibited for educational purposes or held privately.

Rose was the lead prosecutor in the Bernard von NotHaus case. Von NotHaus is the creator of the Liberty Dollar. He was convicted by the feds in March on multiple charges involving the alternative currency that competes with fiat money distributed by the privately owned Federal Reserve. During the trial it was determined that Liberty Dollars are counterfeits, contraband and subject to seizure.

Von NotHaus was convicted by a jury after the feds successfully argued that Liberty coins are counterfeits because they include the words “Trust in God,” similar to the words “In God We Trust” on Federal Reserve coins. He faces up to 15 years in jail, a $250,000 fine, and may be forced to give $7 million worth of minted coins and precious metals – weighing 16,000 pounds – to the government.

The prosecution and conviction of von NotHaus was politically motivated. He is the founder of NORFED, the National Organization for the Repeal of the Federal Reserve and the Internal Revenue Code.

Following the verdict against von NotHaus, the government characterized him as a domestic terrorist.

“Attempts to undermine the legitimate currency of this country are simply a unique form of domestic terrorism,” said U.S. Attorney Tompkins. “While these forms of anti-government activities do not involve violence, they are every bit as insidious and represent a clear and present danger to the economic stability of this country,” she added. “We are determined to meet these threats through infiltration, disruption, and dismantling of organizations which seek to challenge the legitimacy of our democratic form of government.” (Emphasis added.)

The Liberty Dollar raid was indistinguishable from “similar raids conducted by Soviet and Chinese communist officials against private businesses operating in those countries,” writes Jacob Hornberger. “Unfortunately, in the post-9/11 world in which we now live, anything goes as far as federal power is concerned. The heavy-handed, perhaps even fraudulent, Soviet-style attack on NORFED is proof-positive of that.”

According to Rose and the government, the Liberty Dollar is “a pyramid scheme imbedded with fraud” that had nothing to do with barter or trade. “Barter is an equal and knowing exchange,” which the Liberty Dollar is not, Rose and the government claim.

Coin World had previously published comments from the U.S. Attorney’s Office in Charlotte stating that while mere possession of Liberty Dollar medallions was not a violation of federal statutes, actual use or intent to use them in the manner for which von NotHaus was convicted would be considered a violation.

Glen Kessler, assistant special agent in charge in North Carolina for the U.S. Secret Service, told Coin World that the Secret Service is “duty-bound to confiscate” Liberty Dollars.

George Ogilvie, the public affairs officer for the federal agency, told the publication the Secret Service had no comment on the matter.

It now appears the feds are moving to criminalize mere possession. Collectors are now at risk, especially if they oppose the Federal Reserve and are politically active.

Article written by Kurt Nimmo
Infowars.com
August 30, 2011

Another good reason to own physical gold and silver

Peter Schiff puts forward a good reason to own physical gold and silver as the dollar is collapsing.

The US dollar is in terminal decline; America is tragically bankrupt, unable to pay its lenders without printing the dollars to do so, and embroiled in an economic depression. It is only a matter of time until the dollar faces a crisis of confidence. The difference between this collapse and the bursting of any other bubble is that the dollar is the backbone of the global economy. Its disappearance will leave a vacuum to be filled.

There are three main contenders for the role: the euro, the yen or the yuan. But each of these currencies suffers from a critical flaw that makes it unsuitable as a reserve currency. When it comes to fiat alternatives, the world would be going from the frying pan into the fire.

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