SGS Notes: The BIG News this week has been the Senate Bill due to be introduced this coming week by Sen. Bernie Sanders requiring the CFTC (Commodity Futures Trading Commission) to use emergency authority to impose limits on the positions investors can take in crude oil, gasoline heating oil, and metals. Bix Weir says, 'Keep an eye out for an announcement of charges against JP Morgan for silver manipulation.'
Basic Info on Silver for the Tea Party
What is the Federal Reserve? And why do some say we should use Constitutional money, such as silver and gold?
I'm hearing that most Americans, even in the Tea Party, don't know who the Fed is, or why we need to use silver and gold as money. This article is for them.
If you have USA paper money in your wallet, or if you have money in the bank, then you have been ripped off. Paper money in the USA used to be called "silver certificates", as recently as 1964, which was 47 years ago.
They were called silver certificates, because each "note" stated: "This certifies that there have/has been deposited in the Treasury of the United States of America (number) silver dollar(s) payable to the bearer on demand."
This turned out to be a great big lie. It was fraud. Current paper money is the evidence of the theft.
I used to call paper money an "unjust weight and measure", but paper money today is no weight and measure of anything at all. It's a broken promise to pay a devalued amount and an unjust weight of silver!
Who cares? Well, you used to be able to get a silver dollar coin for a paper silver certificate. They were equal in value, as one was a promise to deliver the silver.
Today, the price of that same silver dollar coin, containing .76/oz. of silver, costs about $30 from a coin dealer, with silver prices at $36/oz.
The paper money buys much less silver, it buys less gas, it buys less of everything today compared with prices in 1964, and about 99% less of everything than 100 years ago in 1911.
The Federal Reserve was created in 1913. They got a 100 year charter that expires in 2012! Congressmen and Tea Party activists ought to seriously reconsider the Fed's charter very carefully right now!
Right after 1913, the USA had funding to fight in World War One, and then suffered the false bubble economy of the "roaring 20s" bull market in stocks which, when it popped, led to the great depression in the 1930s, followed by World War Two in the 40s.
After WWII, the US paper dollar became the world reserve currency, which helped to effectively loot the productivity of the rest of the world. Well, we did win the "world" war, and the world became the spoils of the war. The rest of the world's central banks began accumulating paper dollars, instead of gold.
This theft of the world's assets was both good and bad for the USA. Good, because the USA can simply print the money to send to the other nations in return for real assets such as oil, machines, food, clothing, or whatever. But it's bad, because our nation got addicted to the benefits of the false and inflated values of free paper money, and grew lazy, and we forgot that the benefits and bounty of freedom are greater than the benefits of a free lunch paid for by slaves.
Today, we are still free to go into the market and buy physical silver, and let me tell of this wonderful opportunity in silver.
To create this paper money world in which we live, the world's bankers launched a propaganda and education war against silver first, and then gold, to prevent their use as money. This war dates back to the late 1860's. They succeeded, as no nation on earth uses silver as money. Reduced monetary demand has reduced the value for silver, making it an attractive and cheap investment.
Then, by the end of WWII, the age of electronics began, and the use of silver as a conductor of electricity in all sorts of electrical devices simply exploded, about ten times as much as previously. Modern nations use about 3/4 of an ounce of silver, per person, per year, in industrial applications.
Today, world industry consumes about 600 million ounces of silver per year. Industry consumes nearly all of world mine supply, leaving only recycled silver, only about 200 million ounces, available for investment demand. This scarcity of silver makes it an even more attractive investment.
The bankers of the world have not cornered the market on silver. The exact opposite happened. They tried to make silver as cheap as possible, by not buying it themselves, and trying to divert investment demand away from the metal where ever and when ever they could.
For example, any time any of the clients of any of the major western LBMA (London Bullion Market Association) banks wanted to buy silver, the banks said, "sure", and opened up silver and gold accounts for their clients, without going out to buy and store the actual metal, yet they charged their clients storage fees. This created, according to the BIS (the Bank of International Settlements) a "gold and silver" liability that is up to about $600 billion in gold, and about $200 billion in silver. That's about 6 years worth of world mine annual production of gold, and about 10 year's worth of annual production of silver. That's silver and gold that the major banks owe their clients, and never bought in the real market, to help suppress prices, and prop up paper money.
Another way that banks suppress silver prices includes offering investment-grade sized silver certificates (not paper money), as they do in Canada and Australia even today.
But when they offer bullion accounts, or certificates, those trade in a non-transparent way, as they don't create price quotes, and it's difficult to find information on how much bullion fraud has taken place.
The main way that the banks manipulate the prices of silver and gold is through the futures markets that generate minute by minute price quotes that other industry players such as refiners and miners and large bullion wholesalers must look to in order to conduct business to buy and sell silver and gold.
Futures markets are price manipulative and price suppressive because the sellers offer far more silver than they have, and they offer silver on the worst possible terms and conditions.
They offer to sell up to 800 million ounces of silver, on paper, over a year, when they only have about 30 million oz. of silver in their vaults ready for delivery. Why then, do people buy paper silver? The lure of greed through leverage. You can put only about 10-15% of the money down to buy silver, and thus, if silver prices double, you can earn 1000% on your investment, instead of 100%.
But what honest industrial participant needs silver "a month or so from now" for delivery at some vague time within a whopping 30 day time period, and in the form of a bulky 1000 oz. bar that is particularly difficult to ship by mail or even melt down? I won't even bother ordering any silver from any supplier who will take even 21 days to ship it out. I expect my suppliers to ship out silver the next day, like we do, or maybe at the most, a week after I wire them the money.
The modern way to keep people away from buying and taking delivery of real silver is to offer silver in the form of an "Exchange Traded Fund" or ETF, such as SLV, which can be bought or sold as easily as a share of a stock in a company like Microsoft. Recently, it was pointed out that the modern forms of paper silver, such as the futures markets and ETF's traded an entire year's worth of silver production in a single day. I don't think that would be possible unless there was a massive amount of fraud taking place, instead of any real delivery of real silver taking place, but that's just my opinion, of course.
Real silver is real freedom.
All forms of paper silver are like slavery; the paper virtually enslaves the promising party, the seller, to deliver and perform for the promised party, the buyer. But the promises are often broken, especially when entities promise to deliver many more times worth of gold and silver than flows in the world on an annual basis.
The slavery is bad. Defrauding others is bad.
But real silver creates real freedom.
A real understanding and commitment to own and trade real silver also destroys the power of governments to steal from the people through the Federal Reserve's monopoly power to print money, which devalues people's money.
The paper money in your pocket (formerly silver certificates) is the best evidence and reminder that promises to deliver silver are always created to excess, for the purpose of fraud.
Think: What kind of business is it, if you can take people's money, and never have to deliver the underlying product? That's what banking is.
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