Silver Crash

The recent silver "crash" was caused by the same circumstances as the price drop in the fall of 2008. Not so much history repeating itself as rhyming.

When silver bottomed out at $8.83/oz. in 2008, it was due to Wall Street selling off paper gold and silver futures to meet margin calls.
This month's run down to $30? Same thing.

Also the same story as fall 2008 is a big demand for physical silver concurrent with the paper selloff. When spot bottomed out in 2008, you still couldn't buy a bullion ASE in Denver for less than $17.

Agreed, Fredd. IMO, there has to be a general trend of falling prices in many items for it to qualify as "deflation". If we look at the nitty gritty of even a healthy economy, we can almost always find a few items that are falling in price as the majority hold steady or move a little higher.

The one thing that Bernanke and other banksters will not tell you is that deflation is marvelous for anyone who has MONEY. I mean, just think about it. All of a sudden, your money buys a lot more goods and services than it did before. Problem? No, not really. True, your hard assets are also likely to be worth less than before but if you aren't selling them, no problem. Me thinks that deflation IS a big prob for the banks and that is why he is so fiercely against it.

As far as the citizens go, INflation is a MUCH bigger problem. Suddenly, your money buys a lot less than it did before and any money you've saved is worth less as well. This is how your standard of living is eroded, not by deflation.

Doesn't that assume that your income is also inflating? If it isn't, then lots of inflation is a financial killer.

I'm sure that we both well remember the inflation of the Carter era and what it did to people living on fixed incomes. It definitely was not pretty.