This is Why NO $50 Silver

NorthKorea, take your assertion to its extreme and assume that productivity keeps improving. Your assertion predicts that prices will just keep increasing so that the more efficient we become, the more everything costs. This is of course absurd. The end result of nearly 100% efficiency is actually a 100% unemployment rate wherein everyone is taken care of by their robotic servants. Thus prices are essentially zero, not infinite. The end goal of improved productivity is a utopia where work is purely optional and no longer necessary. Everyone is independently wealthy. This is how the free market works without central banks. Prices keep going down over time, people are able to retire earlier, and everyone enjoys more of society's increasing aggregate fruits of their decreasing aggregate labor. Just compare any industrialized country to any third-world country -- even though third world countries often have fewer climate driven needs (housing, heating, etc), it still requires significant labor just to put food on the table. Industrialized countries meanwhile enjoy exotic recreational sports, a vast panoply of entertainment, and literally more food than we can eat. And that's WITH central banks consuming half of economic output! Common sense should tell you that your assertion is absurd. The same amount of money chasing more goods necessarily means lower prices.

 

Log in or Sign up to hide this ad.

Hi NorthKorea, You've got me on this one; as I read and re-read this, I am trying to envision what's happening.. Seems like a circle going on. I believe I am missing something, but will think on it. Why adjust fixed assets upward? And variables. Sounds like tweaking the books to me.. and in fact would they be depreciating anyway (fixed assets), not gaining? Don't mind me, I'm not versed in any of this; I'm painting a picture using our business as the model, trying to see it play out as described.

There is such knowledge here on this thread, I feel like I'm attending an economic think-tank session (as a bystander of course!) Ok, maybe just peeking thru the window.

Thanks again.
Lucy

 

As a software engineer, I was intimate with the Y2K problems. It could have ended up just as bad as many were predicting, but thankfully we got out in front of it well ahead of time and fixed the bug in all major systems. Interestingly, there's still a Y2k38 bug which will cause any systems which store the date as a 32-bit integer to misinterpret the date starting sometime in January 2038. I doubt we'll still be using any current software at that point and hopefully programmers will be forward-thinking enough to start using larger data types to store dates long before then. Anyway, you weren't wrong to want to be prepared heading into Y2k. Thankfully that insurance wasn't ultimately utilized, but that doesn't mean it was for naught. The nature of most catastrophes is that they don't announce themselves ahead of time. Y2k did. This coming hyperinflation has, at least to those who want to analyze the situation. Getting prepared for the hyperinflation is a good excuse to be prepared for anything and everything. It's too bad you've "de-bugged" very much, as both nature and humankind can throw something at you at any time.

 

When I say fixed assets, I mean real estate, not machinery.

 

Lucyray….. N. Korea’s formula applies to a world view, not necessarily the U.S. alone. So your concerns in Michigan are real. I live in north central Wisconsin, and it’s not pretty, what’s going on here, but if it’s any consolation, were no alone, by a long shot. This country needs to stop spending money we don’t have, like any other business or pay the price. Simply based on history, it looks like were traveling a dangerous path, and our intellectuals don’t seem to be concerned, so play your cards the way you see them, I am.

 

Don’t be fooled by this absurd formula for success, this thinking is what drove countless industries, the FHA, Social security and many States to near ruin. You would think the housing boom fiasco would have taught us something about being paper rich. Eventually it caught up with the participants, and nationwide individual bankruptcy and foreclosures was the result. It did not work in the past, so why would you think it will work today. Too much smoke and mirrors for my taste. We became the most admired country on earth, using time proven methods and common sense, so why tamper with the receipt. An old man once told me, god put your brains in a hard skull, so you could not play with them and ruin a good thing, some truth to that.

 

Well, hmmm. My bldgs and land have not adjusted "up", perhaps because of the times.. and it seems that when productivity rose enough to warrant a change in work force, attrition came in.. that was not true when business was 'booming'. But today it is. Gosh, there are so many ways to process all this data!
Thank you again.
Lucy

 

I wonder what this thread will be like when $50 comes. $39 today

 

I don't know what in my post you're referring to as not working in the past. Free markets?

 

I hope the top of the roller coaster is $49.98.

 

lol I like your humor

 

Passantgardant, I have enjoyed reading your posts. I began researching this a couple of years ago and began making some preparations for a declining dollar, the 2008 financial crisis was my wakeup call. I have read a couple of good but very different books:

1) "When Money Dies" (Adam Fergusson)
2) "A Secret Gift: How One Man's Kindness and a Trove of Letters..." (Ted Gup)
3) "Losing Groung" (Charles Murray)

It's hard to read these books and not regard our Central Bank's action as at least ill advised. The Ferguson book is more about the reason for hyperinflation in Weimar Germany and the Gup book was more about personal stories of suffering of people in Canton Ohio during our Great Depression of the 1930's. The Murray book is more about the impact of social policy on society. In your research on this topic what have been some of the most insightful books on the topic of the fall of fiat currencies and the impact of the people who endure it?

Regards,

Bluesboy65

 

One of the most amazing things is to read one of the few blogs written by people living through the hyperinflation in Zimbabwe. The real-time description of events is incredible. I've also read online accounts after-the-fact of people who lived through Argentina and a few others. And of course the first-hand stories from my wife who survived hyperinflation in Poland.

Some good books include:
Extraordinary Popular Delusions and the Madness of Crowds by Charles Mackay
Millionaire: The Philanderer, Gambler, and Duelist Who Invented Modern Finance by Janet Gleeson
The Great Swindle: The Story of the South Sea Bubble by Virginia Cowles
The Creature from Jekyll Island by G. Edward Griffin
The Road to Serfdom by Friedrich Hayek
The Law by Frederic Bastiat
War Is a Racket by Gen. Smedley D. Butler
How The World Really Works by Alan B. Jones
Freedom Under Siege by Congressman Ron Paul
Blowback: The Costs and Consequences of American Empire by Chalmers Johnson
The Sorrows of Empire: Militarism, Secrecy, and the End of the Republic by Chalmers Johnson
Nemesis: The Last Days of the American Republic by Chalmers Johnson
The Market for Liberty by Morris and Linda Tannehill
Economics in One Lesson by Henry Hazlitt
The Failure of the New Economics by Henry Hazlitt
What has Government Done to our Money? by Murray Rothbard

 

There are a lot of VERY intelligent people on this thread and I love the "discussions" back and forth. Sometimes with all the information available, I think people can over-think and bypass the obvious and simple. By this I mean I've asked a lot of people in casual conversation about silver investing ( I'm in sales and cover thousands of people in 20+ states. A very low percentage are heavily invested, but the numbers of people and amount invested are growing. Also, go to a TRUE coin/silver dealer and ask for bullion rounds or bars...........there is currently a 2 month wait for new product............In my simple opinion.....will silver hit $50.......oh yea.

 

That's what I was gonna say! Watching the steady stream up and past $50 will be fun for all!! Besides that, more coin for our coins when we sell!!

funny, funny Yak!! :thumb:

 

Silver WILL make a new high

As long as we're into some friendly speculation, I do believe that silver will definitely take out the old high over $50/oz. It will be fueled by pure speculation and momentum. After that, it's anyone's guess.

IMHO

 

I wanted to call out this section of Passangardant's recent post because he has very clearly articulated my personal believe with regard to the accommodation treadmill we are on. If you read nothing else of P's post, re-read the last paragraph I have quoted here (The situation is unrecoverable.....). If this assertion is correct it seems that gold and silver will continue to sawtooth upward for the foreseeable future. I would love to see some mud thrown on this in the form of a quantitative rebuttal to see if anything sticks. Is there another way out?

Regards,

Bluesboy65

 

The only way out, IMO, is to vote people in to office that will sever their own heads......Lol. In other words, government would have to be reduced by 50% or more...... Cut all the BS programs, stop paying off countries to be "on our side", and make the public more self-reliant by getting rid of social security(this would take many years as I believe if you have put in to the system you should be able to draw out) and promoting "savings accounts", which is an unknown with most people, and getting rid of most federal programs.

Of course these kind of changes will be frowned upon by modern government-aided Americans, thats why:

It will never happen!

P.S. I believe there are many great federal government programs, but when you are getting down to the nitty-gritty, it will take drastic changes that will never take place. People will be willing to sink this country forever before they are willing to give up their lip lock on the great teat that is our government.

 

SilverCeder ....

You mentioned saving accounts. With interest rates like half percent or less, many feel they are better off buying than saving. While on the subject of interest rates, imagine the money that would be loosen up if the Government would put a realistic limit on credit card fines, 18% plus is ridiculous. Their here to serve their citizens not entrap then. Just my opinion.

 

The way out in my perception is to tie the dollar to gold. However much gold we have divided by how many dollars in circulation will be the value of each dollar going forward. Even if it's only a small amount of gold, at least you set a baseline to stop further devaluation and provide some stability. Even with willing leadership, easier said than done I'm sure. I can only guess as to the far reaching impacts, but it can't be worse than hyperinflation.

It's too bad we have to make cuts at all when there has been so much money thrown away. As much as I personally disagree with socialism and bloated government I think we would be able to afford a lot it without rampant manipulation and fiscal irresponsibility. Although I agree it makes no sense whatsoever to continue bankrupt programs. I will be really upset if PBS goes away, Charlie Rose and Bob Ross are a dynamic duo!