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Number 8. The value of total energy inputs.
Why Gold went up some 20 bucks an ounce;
I don't know, cause its scarced.
Thousand men were start searching for Gold,
after six months one of them was lucky,
One out of thousand.
His finding represents not only his own labour,
but out of 999 to boot.
That is 6,000 months, 500 years.
scrabing over months, going hungry and thirsty.
Now to Gold mister worth what it is cause,
the human labour that when to define,
didn't get it of it.
Now think about how much, energy, labour,
ingenuity and time goes into finding that silver and refine it.
The mining company produces Silver bars,
the composition of which is 93% to 97% pure Silver.
It sells the bars to a refinery,
which further purify them, for sell to industries.
The action begins down in the mine,
where geologists point a night hung gun,
at various spots in the rock's face.
The device detects the levels of 40 different elements , including Silver.
Silver in its natural state isn't silvered colour at all.
It is charcoal grey.
Those silver looking deposits are actually zinc and lead.
Miners drill holes in the silver rich areas the geologists pinpointed.
Then insert sticks of dynamite.
After the blast, carts hold the chunks of rock called ore to the surface.
Geologists then test ore piles and blend them as required,
to achieve consistent amount of silver content per kilogram of ore.
The ore first goes into the primary crasser.
The machine uses steal teath, breaks up the big chunks into smaller pieces.
Those pieces then drop through grades bellow into the secondary crasser,
which breaks them down into even smaller pieces.
Those go into vibrating cone crushers, which poverize them into tiny pieces.
A conveyer trasports the crashed ore to the ball mill.
At this point the ore pieces are roughly 6mm big.
As the mill's large cylinder rotates, steal balls bounced around inside,
grating the ore into powder.
A water circulation system flashes the silver rich powder out of the cylinder,
and into large tanks which keep the water moving.
To separate and dissolve the metals the powder contains,
workers pouring acid.
72 hours later the rock waste now settle at the bottom.
The solution containing dissolved silver is pumped through filter presses.
The filter plates are treated with a zinc base chemical which attracts silver molecules.
As the solution passes through, the plates trap articles contain silver,
forming a layer of black powder called silver precipitate.
This Precipitate is composed approximately 50% silver and 50% waste.
The waste been a jumble of various metals, dirt and other impureties.
To separate the silver from the waste,
they first dry the precipitate in a gas furnace for a couple of hours.
In the mining companies lab, technicians continuously test,
or samples to determinate the grade.
The term for the quantity of silver per kilogram of ore.
They heat the samples to 1093 degree Celsius,for about 1 hour to burn of the impurities.
What is left after the burn off are the silver and other metals,
such as lead, zinc, copper, selenium and cadmium.
Lab Technicians then treat the samples with a chemical that prevents silver for burning of,
and put them back in the οven.
When the samples come out, about an hour latter,
all the other metals are burned of and only silver is left.
They weight the silver and compare it to the weight of the original sample,
in order to calculate the grade.
The key to running a profitable mine is to ensure that the grade is consistently within certain parameters.
Back at the mill, workers put the now dried silver precipitate into an oven,
along with chemicals which prevent silver from burning of.
Approximately 4 hours later the silver and waste are separated and melted.
Workers poor them at bar shaped molds.
The silver been heavier settles at the bottom.
Workers skimmed of the waste floating on top.
In less than five minutes, the molten silver cools and hardens,
enabling workers to extract what is now a silver bar.
The mining company sells the bars to a refinery, for processing into industrial grade silver.
It is crazy to think that all those tonnes of earth were move just to find 1 ounce of silver,
and right now we can buy it all for less than a dinner for four in our local sports bar.
Number 7. Silver has no counter party risk.
Silver has another awesame quality, it has allodial title to it.
If you hold it you own it.
Most every asset you own its controlled by somebody else.
If you own your house outright, you stuffed to paying property tax,
which means you really don't own it.
Your cars, computers, TVs and clothes are render less valuable with each registration,
taxation, new fashion or plain obsolescence.
Even your stocks are not really yours, because the actual certificates are been held by the nefarious DTCC.
Who knows if they are selling stock that maybe they don't have.
Have you ever heard of naked short selling.
Silver is without counter party risk.
You do not have to rely upon somebody else for fulfilling a promise, for your asset to have value.
All paper assets have counter party risk.
They use interest rates to value the risk that you might not getting your money back.
This would became very important as our society collapses, and promises are broken by all.
When collapse accelerates, people will do the unspeakable thing as they became more and more desperate.
People whom you have rely upon for years will suddenly brake faith.
This will not only happen on an individual level, but also on a corporate and governmental level.
Pension will be cut, benefits terminated, interest payments not paid.
And this is were things getting really scary.
At this point we will either see a deflationary crash or a hyper-inflationary depression.
It will be a deflationary crash if there is not enough money to pay the increasing debt and interest.
But I believe that he Elite will pay all the obligations to keep the game going.
"Do you still believe that we should maintain the fundamental principles of social security as we did in this room?"
"I thing we should maintain the principles of social security,
but I think the existing structure is not working."
"and that into it to construct a system which creates the savings that required to build the real asset,
so that the retirees have real goods and services."
"We don't have a system that its working."
"We have one that basically moves cash around,
and we can guaranty cash benefits as far out and whatever size you like,
but we can not guaranty the purchasing power."
"And this is why the issue ofently, is cast to be resolved in terms of do we have the material goods...
...and services that people would need to be or need to consume."
"Not whether or not we pass some hurdle with respect to how legal financing occurs,
because the financing is secondary issue as the means to create the real wealth. Not an ending itself."
This will get every promise paid with toilet paper currency.
Number 6. Silver is bellow the inflation adjustment high.
We all know that $50 in 2012 does not buy you anywhere near what it did in 1980.
If we factor that record 1980 price of $50 in silver, using the government's rate of inflation numbers,
that means that we would have a real inflation adjusted high of silver at $130.
That would mean that we still 75% bellow the real inflation adjusted high of silver back in 1980.
If we use that same inflation calculator for gold, we would see the real high for gold is $2,300.
This means that we still 25% bellow that record in real terms.
I believe the real, REAL high of silver and gold is much, much higher than that for many reasons.
First the government is lying to you about the real rate of inflation.
A recent CNBC article saws that government is lying to you, even today about the real rate of inflation.
They do this so they can steel from you, plain and simple.
Every dollar that they print is a direct tax against your wages and savings.
They need to keep your expectations low, so that you are not panic while they are gotting you.
The Government hides this inflation of the currency through 4 major tricks.
Number 1, is Hedonic Adjustments.
If a car goes up in price, say from $20,000 to $21,000, it would on a face of it saws a 5% increase in the price.
The government does not want that, so it creases an adjustment which takes into account...
... the value of the options added.
They arbitrarily create a dollar figure of value of say of better standard radio, better tires,
lombard support, upgraded clut seats, an a dual exhaust.
The government can say that added $1,500 worth of value to that car.
So in calculating for inflation the price of the car went down 2.5% to $19,500.
Does not matter if you don't want, need or even value those options,
The price goes up for you and down for the government.
A trick corporations use is to say a 12oz can of soda is $1,
and through smaller cans is now 10oz and still charge you $1.
You lose 17% of your soda, which cost more per oz.
The government says it still a can of soda,
and its the same price. So no inflation. Presto.
The second trick they use is Substitution.
If inflation can not be tain through Hedonics,
they simply subtitute a product in the basket
with a less expensive product.
Say the original basket of goods have filet-mignon in it,
and now it went up from $9 to $10 a pound.
They can simply substitute with a porter house steak
and say $6 a pound.
And actually say that inflation went down to eat meat.
They can then substitute that with ground beef,
chicken, pork or even dog food.
The very fact that people would substitute
a higher product for lesser one because of cost,
is clear evidence of inflation and yet they use it to understate it.
If housing remains to expensive, they use rental rates.
Remember is all about contain your expectations.
The 3rd trick they use is Weighting.
When that does now work, the government changing the weight of a higher category with a lesser one.
For example, Healthcare and Education are notorious for rising cost.
They make up 20% of the economy.
And for the CPI the government might only weight it as 15%.
Lessening the effect of the overall number.
Or they might weight certain regions in the country, more than others.
Or they might weight discretionary consumables,
better known to be falling in price, that we buy infrequently,
and they are not vital to the necessities that we need and buy everyday.
The 4th trick is when all are fails they don't count it at all.
Left out of all these real infation equations for the government,
are the most essential parts of our lives.
Food, Energy and Taxes.
I don't know about you but these 3 things,
are the things that I care about the most in my budget.
In addition to these internal tools,
the government can export inflation by sending money overseas, so it never hits our economy.
Also if money can be pushed into stocks, it does not enter the real economy and that also benefits the Elite.
Especially when there is an orchestrated fleecing
of the public through crashes.
So there were the four tricks that the government uses
to lower our expectations on inflation.
They use Hedonic Adjustment, Substitution, Weighting and Subtraction.
This allows the government to post benign inflation of 2.4%,
when the real rate is easily over 10%.
So if the real rate of inflation is 4 times higher
than the official CPI number of Silver and Gold,
That would put the real high of Silver at $528,
and Gold at $9,220.
This is a much more realistic number,
because the money supply in USA its been vastly increased since 1980.
Using the broad component of M2 there is approximately
10 times the amount of money in the Economy.
So if Silver was at close to $50 in 1980 times,
10 times more dollars in circulation,
now means that Silver is close to $500
And Gold should be close to $8,500
With those numbers in mind we are still
miles away of hitting any real record in Gold and Silver.
And this is just one factor in the price of Silver.
When you realize that there is lot less Silver in the World since 1980, $500 is to low.
When you realize that there are 50% more people in the world since 1980, $500 Silver is to low.
When you realize that only about 15% of the World Polulation
even had the opportunity to participate in the bull run of 70s and 80s, $500 Silver is to low.
When you realize that there are a lot more Dollars, Euros,
Yen, Yuan and other currencies of the world since 1980, $500 Silver is to low.
When you realize that we are going to have a mathematically inevitable collapse
of all fiat currencies, all paper assets like Stocks, Bonds and Real Estate
Silver is actually Priceless.
Number 5. Silver History as Money.
Throughout history Silver is been used as Money in more times and more places than Gold.
To functions as Money a monetary item should possess a number of futures.
It needs to be a medium of exchange.
It should have the liquidity and be easily tradable.
It should be easily transportable.
Precious Metals have high value to weight ratio.
and it should be durable.
To be unit of account, it should be divisible into small units without destroying its value.
Precious Metals can be coined from bars, or melted down into bars again, with a low percentage cost.
It should be fungible. That is one unit, or one piece is equivalent to another unit,
which is why Diamonds and Works of Art and Real Estate are not suitable as money.
It must have a specific weight, or measure, or size to be certifiably accountable.
The 3rd future is that it needs to be Store of Value.
It should been long lasting durable and it must not be perishable or subject to decay.
It should have a stable value, it should be difficult to counterfeit,
and in genuine it must be easily recognizable.
Today Silver is not used as Money, since it does not circulate,
but it still provides a crucial role as a Store of value.