Productivity | Strategy | Profitability
Productivity | Strategy | Profitability
In my book, The Silver Manifesto, I covered many aspects of the global financial system and why it would eventually destroy itself. The back cover outlines several topics covered in the book.
We state that the primary purpose of this book is to educate the reader as to why there is no way out of the financial morass by the political class or the financial elite.
We state that we have reached the point where the savvy few understand what is happening and act, while the rest are left watching, thinking the precious metals bull market is long dead. We mention how the 2008 financial crisis has been “papered over” and what to expect going forward. We state that it is possible there won’t be enough silver available for investment demand as industrial users scramble to hoard what they need to stay in business, and we state the biggest concern to all investors: The Debt Bomb!
The U.S. was a structurally sound economy in the 1970s and most of the ‘80s, although the U.S. abandoned the gold tie to the U.S. dollar in 1971. However, even in the 90’s, the technological revolution of the internet and related technologies were not enough to halt the transformation of the United States into a structurally unsound economy. It was during the 2000s and the 2008 financial crisis which put the U.S. past the point of no return.
The inflationary monetary policy combined with fiscal recklessness caused such severe structural changes. The next bubble to pop will be the debt bubble. Unfortunately, one cannot know the point in time or exact interest rate in advance. The entire global financial system has begun a collapse that can only accelerate. Some pundits will claim that the debt bomb has already gone off, and it is only a matter of time until the full extent of the destruction is known. Looking back, historians will be able to “pinpoint” when the ultimate destruction of civilised life as we know it took place. Indeed, we are facing as humanity the end of the world as we know it. This is not to say that civilisation is over, but it will be a more stressful time for the world than the Great Depression of the 1930s. Bold statement? Yes, and at this time, the truth hurts.
BOND MARKET AND INTEREST RATES
Everything is based upon trust. The world at large has trusted the U.S. to be able to make good on its promises, and the most significant commitment is that the U.S. dollar will continue indefinitely and there will never be a default.
Conventional wisdom goes something like this; the bond market cannot crash. U.S. issued bonds are backed by the treasury. If the bond market falls to unsustainable levels, the government would just “print” more money to keep the market solvent. In other words, the Federal Reserve will buy the U.S. Bonds that no one else wants to touch. The theory is that the U.S. will never ever default on a loan for the same reason it will never let the bond market crash-it’s too big to fail. If the bond market truly failed, then the dissolution of the U.S. government could take place. If this were to occur, the world would fall into a perpetual state of chaos if the world’s reserve currency was no longer trusted. Simply put, it can’t happen unless there’s a complete obliteration of what we now know as the United States of America.
Emotionally, most financial minds believe the bond market simply cannot and will not fail. However, the truth is that it is a mathematical certainty. However, the banking class are well aware of this fact and will put a new system into place before the U.S. dollar is wholly destroyed. This is their plan, and it may work. Yet, the markets could possibly overwhelm the Federal Reserve, Bank of International Settlements, World Bank, etc. This is unlikely because most people will look to the authorities to solve the problem.
Just before the end, which is when the U.S. dollar is rejected in all forms, currency, and any future dollar security, be it less than six months to thirty years, all countries will reject any further exposure to the dollar and only maintain what is necessary to keep the entire global system from collapsing. Currently, the Federal Reserve admits to an 8% inflation rate in the United States. The actual number is more than double that using the metrics for the CPI (Consumer Price Index) from 1980, which included food and energy.
The Fed is fooling most people and markets by raising interest rates and pretending to fight inflation. The real interest rate must be above the inflation rate to fight or curtail inflation. This means the Treasuries yield must be above the eight percent inflation rate. For example, the T-bill rate would have to be ten percent to get a two percent return. Raising interest rates that high is unlikely, because the system is so leveraged to the interest rate that the two quadrillion (one thousand trillion) derivatives market would literally blow up once a certain threshold is reached.
So, the politicians will follow the bankers’ orders and maintain a “tough” stance until the controlled demolition of the current system takes place with the solution already up and functioning in the background. Some will see through this ploy and others will readily adopt to it, especially if it involves Universal Basic Income and people are hurting so much that getting something to eat and having basic needs met will be quite appealing.
Early in the new monetary realm known today as cryptocurrencies, this writer became familiar with Bitcoin and was intrigued by the idea. It seems to be some grassroots idea that puts the power of money back into the people’s hands. However, during my initial investigation to determine the trustworthy source, it seemed that it was likely somehow tied to the Deep State.
SILVER PSY-OP MERELY A DIVERSION
I have done a significant amount of research on the topic and there are over twenty-five episodes of the crypto conspiracy series on our blog and the main website. Suffice to say, it is possible that a “silver psy-op” took place, which means the whole international crypto hype was a way to divert speculative (get rich quick) monies into the blockchain phenomena. The amount of currency going into this sector was over one trillion dollars in market cap near the top. It has dropped substantially since and was forecast almost a year ago in the early interviews.
The silver market is only 25 billion per year. If this is compared to gold, we get a different story, and the gold market is over ten times bigger than the crypto market. But the silver market is 1/40th the size of the crypto market. Think- if just 1/40th of the money that went into these questionable tokens went into silver instead.
Will some of the salvaged funds come back into hard assets? The answer is absolutely. How much, remains to be determined, but the silver market is not considered to be money by the establishment and it is improbable to be thought of in that way by the banking establishment.
REAL DECENTRALISED WEALTH
This insight gives crypto investors a way to hold real money that will essentially be ignored, even if gold is used to rebalance the financial misconduct at some point. The precious metals-backed cryptos are a solution for many currently in that system who wish to escape further losses. Precious metals-backed cryptocurrencies could save the blockchain for independent users while the political class implement their “solution” of Central Bank Digital Currencies tied to a real identification.
It seems this writer has been vindicated due to the crypto world’s uproar, especially when the obvious has been stated so many times. If you want real decentralised money, use silver (coins) as they are solvent, secure, a means of final payment, and private. Precious metals do not need computers, the grid, a counter-party, or an exchange.
It is time to get real, be accurate, and purchase real (money); changes are coming quickly and the new, ‘improved’ system will be upon us soon. If you wish to keep your wealth intact, it is imperative that you not only understand the importance of this message but are willing to take action. I recently reestablished consultations on the website. Many people with funds in the bank, (which technically belongs to the banks in most jurisdictions), want to limit having so much exposure to the banking system and convert their wealth to private property before it is too late. EG