Silver Is Crashing! Oooh, The Humanity

Thanks, Stewart. I try to be as informed as I can be. The Internet is a HUGE resource for everyone with computer access. News from all over the world can be found very quickly. I try not to form my opinions based on 1 or 2 news sources but several instead.

The creation of a "world market" began about 15-20 years ago and is proceeding by leaps and bounds. By and large, this is a good thing, as it may be possible to eliminate war from this world via tying it all together economically and financially to the point that war becomes pointless.

Many things will become common around the globe. English is very widely spoken in many countries and is easier to learn and speak than Chinese or Russian. When the Russians and the Chinese want to speak to each other, it is frequently in English because the successful people in those countries have traveled quite a bit and have learned English as a way to avoid having to learn multiple other languages. All airline pilots and tower personnel where international commercial flights are concerned must speak English.

I believe that a single world currency is not all that far off. Like the Euro, it will probably be a basket currency that is formed from the currencies of several major economies. I am hoping that it will also have some commodity backing of some kind to resist inflation and give it some intrinsic value.

Even if it does not, though, it will still be an improvement over the single nation currencies because the whole group of countries will have to vote on how much currency to allow in circulation. No one or two countries could simply run the printing presses 24/7 any more. That would be a good thing, economically and financially, in spite of all the squealing and crying that would ensue from not being able to be completely irresponsible any more and having to live within one's means. If memory serves me, the USA preached that lesson to many other countries around the world over the past 50 or so years and now very well may have to take some of that very same medicine.

Yes I have to say IMO, I agree with Ed and most, that China is getting out of the dollar as fast as possible. It is a fact that for years China exported gold and silver, and in most recent years show they peaked out in US dollars around 2009, and since that time a huge amount of dollars has been dumped into, you guessed it, silver and gold. So they go from exporters to importers of pm's....

There is a bank in Mexico city, perhaps the HSBC that no longer accepts the dollar, come on every country knows, this is not new news....

http://www.thepeoplesvoice.org/TPV3...lly-sheds-th

Call me crazy, but China dumping it as fast as they can buy gold and silver, and Mexico not accepting the dollar is a clear sign of the demise of it....

The Chinese government continues to buy massive quantities of U.S. Treasuries.

+272B year over year change.

http://www.treasury.gov/resource-ce...ents/mfh.txt

When will the markets get the point? They are outdated and NOT in control of silver anymore.

They can raise the rates to 100%, but they can't stop silver.

Silver up past 38 again...and still climbing!

I hope it's in this range for my coin show next week. I will be a buying all kinds of PM's!

Nations that print fiat money in amounts VASTLY in excess of their national productivity do not have to "give up" their currency. They are throwing it away as fast as they can. At some point, they cannot decide their financial fate; other countries will TELL them what will happen. If the dollar were to crash, all bets would be off, because we will have proven ourselves totally incompetent financially. At that point, we will have to do whatever those who lend us the money to survive tell us to do.



I'm unconvinced that the Euro scenario is all that different. Time will tell on that one and we may have years or even decades before the curtain comes down on the final act.



Creditor nations will not be forced into any world currency. The debtor nations probably will be. Both Australia and Canada have relatively strong currencies and are exporters of raw materials. This puts them in a strong position. They may decide to join a new world currency or they may not. The choice will be theirs. I am not convinced that the US will have this option. We have terrible monetary and fiscal management in this country. It cannot go on like this forever. There WILL be a day of reckoning and it will not be pretty when it arrives.

I would caution that higher risk does not always translate to higher returns. Stocks, for example have gone down in value since 2000, Also, kids who put yheir money in high risk assets and see it take an 80% hit will get frustrated and bail. Financial services firms push kids into risky fnds because they make more in fees.

A good mix is 50% bonds and 50% stocks. Excellent returns, much lower standard deviation. No more than 10% in PM's this silver crash shows why extreme volatility and price manipulation.