Read the Beforeitsnews.com story here. Advertise at Before It's News here.
Profile image
By Silver Coin Investor
Contributor profile | More stories
Story Views
Now:
Last hour:
Last 24 hours:
Total:

Silver in a Deflationary Crash

% of readers think this story is Fact. Add your two cents.


Silver may be the good news metal, but it’s about to have a serious retest of its “bad news” capacity.

The 1970’s

It’s been a long while since we’ve witnessed visible inflation.                        

The last time occurred after Bretton Woods was rescinded in 1971 and the US Dollar was allowed to float.  Essentially, this was yet another in a series of defaults. Inflation rates soared.

Stealth Inflation

One of the most effective perceptual tricks played on the mainstream has been the modification of consumer price inflation.

Obviously, the new adjustments have helped to overestimate GDP and reduce the amount the social security price increases. In addition, the have completely masked the perception of real inflation and the reduction of purchasing power.

Inflation is real for those who eat and purchase fuel for their automobiles.

According to the Intuit Spending Index, over the past two years expenses such as daycare, tuition, health care, and utilities are up by solid double digits – while CPI remains below 2%.

Stealth inflation involves the growing implementation of product redesign. It also involves mainly resizing or re-weighting across the boards – from sugar to diapers.

The Next Visible Downturn

Any meaningful, sudden drop in equities would put immediate pressure on the FED to further support the financial systems and, mainly, the banking sector.

Despite warnings from the Treasury Board Advisory Committee (TBAC) with regard to limited collateral available for the REPO market, political pressure could very likely result in a fully captured Federal Reserve.

Leftover Federal Reserve independence (if any) would be gone instantly, and this could be the final nail in the coffin for confidence. A treasury default or collateral-induced credit freeze would likely create a much larger crisis, one that could quickly spiral out of control in terms of interest rates.

Sovereign creditors will not likely sell dollar denominated assets by choice. Rather, they would respond in the same manner as their Western counterparts – via an act of aggression or reaction to a crisis.

The Fed would need to step up, stoking money velocity and sending commodity prices soaring.

There is an irony to the results of this series of events. While solid industrial demand competes with silver investment demand, the drop in nominal economics activity would light the fire under investment demand – effectively ending price manipulation. 

For more articles like this, including thoughtful precious metals analysis beyond the mainstream propaganda and basically everything you need to know about silver, short of outlandish price predictions, check out http://www.silver-coin-investor.com



Before It’s News® is a community of individuals who report on what’s going on around them, from all around the world.

Anyone can join.
Anyone can contribute.
Anyone can become informed about their world.

"United We Stand" Click Here To Create Your Personal Citizen Journalist Account Today, Be Sure To Invite Your Friends.

Please Help Support BeforeitsNews by trying our Natural Health Products below!


Order by Phone at 888-809-8385 or online at https://mitocopper.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomic.com M - F 9am to 5pm EST

Order by Phone at 888-388-7003 or online at https://www.herbanomics.com M - F 9am to 5pm EST


Humic & Fulvic Trace Minerals Complex - Nature's most important supplement! Vivid Dreams again!

HNEX HydroNano EXtracellular Water - Improve immune system health and reduce inflammation

Ultimate Clinical Potency Curcumin - Natural pain relief, reduce inflammation and so much more.

MitoCopper - Bioavailable Copper destroys pathogens and gives you more energy. (See Blood Video)
Oxy Powder - Natural Colon Cleanser!  Cleans out toxic buildup with oxygen! 
Nascent Iodine - Promotes detoxification, mental focus and thyroid health.
Smart Meter Cover -  Reduces Smart Meter radiation by 96%!  (See Video)

Immusist Beverage Concentrate - Proprietary blend, formulated to reduce inflammation while hydrating and oxygenating the cells.

Report abuse
Loading...

    Comments

    Your Comments
    Question   Razz  Sad   Evil  Exclaim  Smile  Redface  Biggrin  Surprised  Eek   Confused   Cool  LOL   Mad   Twisted  Rolleyes   Wink  Idea  Arrow  Neutral  Cry   Mr. Green

    MOST RECENT
    Load more ...

    SignUp

    Login

    Newsletter

    Email this story
    Email this story

    If you really want to ban this commenter, please write down the reason:

    If you really want to disable all recommended stories, click on OK button. After that, you will be redirect to your options page.