Re: Crash JP Morgan.

Silver?

The argument for silver is based on: #1 - That silver:gold hold a common ratio with the idea that silver plays catchup and thus a long-silver/short-gold (*1) position is lower risk than going long each metal alone. #2 - That silver has had its price deliberately manipulated down by JPM (and Merrill Lynch I might add) under instruction from the USA Federal Reserve which is desperate to hide the debasement of the currency from 1995 and earlier (but particularly 1995 when it was "boom-or-collapse" re ending the 1990s recession and preventing the

1990 house price decline continuing the 1980s bubble unwind like Japan, only to overdo it and create an even bigger bubble in the arrogance that they had ended boom and bust ignorant of the bigger vacuum they store up in the future - off their watch and many others who can take a risk-free, vastly-leveraged, vastly-profitable play).

In the USA silver does not attract VAT (it may attract local Sales Tax in some states, but nothing like our level of VAT). In the UK silver does attract VAT and that same VAT is due to rise to 20% - thereby making silver even less attractive as an investment vehicle.

The real fear of the Federal Reserve is a) oil no longer backs the dollar (eg, Saddam restricting supply by letting oils go into disrepair despite Western slant-drilling under Kuwait border to steal it and even Saddam pricing in Euros) and b) people finally wake up to the debasement of their currency against real assets. The plan of the banking elite is inflation, quite brutal inflation, to a) support house prices at current levels because deflation once it takes hold is notoriously difficult to remove as Japan will happily demonstrate and b) to erode debt levels and c) to create a feel-good-imbecile factor where people see rising wages and so wealth effect and spend more in the 70%+ consumer-based economy. The huge problem with this is hiding real inflation from the CPI & RPI figures - which had superbly managed as 1995 - 2008 showed when real pay stayed stagnant or fell, yet people spent & borrowed like imbeciles. The idea you traded up a housing ladder to then buy a bungalow on retirement got blown up as all house prices went up - the huge houses went up little, the invariably shit housing stock went up rather a lot. Worse, it has created a cost of living bubble which basically leaves the country with two huge problems - #1 future generations will be an underclass buried in debt, priced out of housing and #2 future generations will require an even bigger bunch of mugs to pay their benefits (health & pension) whose liability has now been hugely inflated by a bubble.

Therein is the rub, people have just no idea how big the unfunded liability is. Let me run a figure of 22,000B$ past you - that is the liability for future medicare costs alone, not social security, nor defence, nor infrastructure or utility repairs in USA. The USA is utterly bankrupt, as is Japan, as is UK, as is everyone. Therefore at some point I am afraid the toilet-paper currency, along with Amercianism toilet-paper-certification & attendance-certificate system, collapses with a new currency emerging. The real nasty here is your pensions & savings get debased in order to pay off the idiots debts, the biggest theft in human history.

Silver is not a good choice, but realising the bankers have every intent of slaughtering savers & pension holders to bail out the debt bubble is very important. Even the republican party in the USA is opposed to the USA Fed Reserve (private bankers) printing yet more money, a party known for its continual handing of power over to the private bankers (not that congress would have a clue about economic policy beyond pork, bribes & handouts).

It is *extremely* likely that both USA & UK will force pension funds to buy government debt - indeed convert savings automatically into toilet paper gilts/treasuries particularly of a non-index-linked form. In that way they can conveniently steal money at 5-8% a year without people realising it, that is indeed their plan until 2030 at least.

It is not by chance that UK Index Linked Saving Certificates were bought-up & withdrawn earlier this year, just be aware that a) not having all your assets in UK currency b) not having all your assets in one asset-class is a very good idea. This caught out the Brazilian middle class who found their pensions & savings got turned into bum- paper overnight, whilst their debts were not similarly depreciated - leaving them essentially very very much poorer. Meanwhile Citibank busy loaded up the planes with gold bars, quite literally, and flew them out of Brazil.

At some point the farmer will be the next stockbroker in the West, and the stockbroker merely a labourer :-) The pendulum only swings so far, and the cycle is past its peak for the west. Living standards have peaked.

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