CAUTION: Monetary System Collapse (Youtube K. Denniger)

Youtube ^ | 15 September 2009 | Karl Denninger

[Errant]

I was hoping for a pull back myself. I hate to buy during a panic but...

[Errant]

Some rough scratch pad calculations I made a while back just for fun and these figures may be way off:

Since recorded history there has been approximately 5B ounces of Gold discovered for a total value at today's prices of around $5T. This would finance the U.S. government for about two years.

There has been about 8.5 times more silver mined in the same period but gold is currently about 60 times more expensive than silver. I believe the historic price ratio was about 16 to 1

To date about 1 ounce of platinum for every 28 ounces of gold has been produced yet platinum is currently priced only about $300 more than an ounce of gold.

[justa-hairyape]

It is a crap shoot. I have enough silver for an inflationary hedge and also some silver based coinage to use during a dollar collapse or bank holiday. You need that as a minimum. Buying during a peak run is very risky. About the only thing that would bring it down now would be another economic deflationary collapse and that is possible. But if the collapse occurs while the Chinese are going All In to the commodities and dumping the dollar, what is a bunch of poor Americans to do. Right now I am working on replacing cash lost during the summer of 09. One of the worse summers for business since the Y2K summer. If the economy can just hold together for two more months....

[Errant]

"This would finance the U.S. government for about two years."

This does not include any entitlement programs like social security, medicare, black programs, foreign countries supported or any stimulus or bailouts.

[justa-hairyape]

Thought the recent price ratio was 50 to 1 Silver to Gold. Back during last years peak gold run we had $1,000 gold and $20 silver. So silver would still be the better buy. The silver I have was bought with spot prices between 10.25 and 11.25. So my spot price gain is about 60 % in under a year.

Yikes gold now back to 1,017. Rising straight up in Dollars and Euros. Gots to be the Chinese.

[Errant]

I think the economy will go on for a time and actually ignore the price of gold and silver at first. Eventually the government will find it harder and harder to borrow and print more dollars. Once the printing of dollars shifts to overdrive the dollar will collapse and prices of goods and services will adjust accordingly. The ones I'm afraid that will suffer the most will be folks living on a fixed income, government assistance, savings or fixed wages.

Sounds like about everyone...

[Errant]

"Gots to be the Chinese."

Yep, everyone else is asleep! LOL

[torchthemummy]

I'm coming to suspect that 0 is using liberalism and socialism and the Cloward-Piven Strategy as cover and a tool in a Machiavellian effort to bring America to it knees for (a Marxist) conquest of the country.

Fixed it. Islam is a means to an end and then even socialists will chuck them to the side.

[justa-hairyape]

Running your own micro business has its advantages. Just paid my 3rd quarter estimated taxes and it looks like I probably paid too much with this economy. Everything until the end of the year above expenses is now gravy. Time to work like a squirrel gathering nuts for winter.

[meadsjn]

Wish he would tell us where we should we put our money.

He doesn't say outright, but the tone indicates:
- canned food, canning supplies
- alternative energy
- camping stuff
- survivalist books
- gardening stuff
- heavy metals

[PGalt]

(Revisiting thread)

Thanks for posting, Errant. Thank you Karl Denninger.

[Palin Republic]

Think bigger than a inflation vs deflation tug-of-war.

We’ve never before seen the collision of such massive inflationary and deflationary vectors; this is War in the Heavens. This is financial Ragnarök, the world of money is being destroyed and renewed. Yggdrasil, the petro-dollar based World Tree, shudders and groans.

Necessities will continue to rise in price as non-necessities fall.

Invest in land, copper, brass, and lead.