Its also partially about inflation, and how the governments of the world have built a house of cards so tall and so complex, if just one card falls over the entire world enters a "global economic crisis," as stated in the video before this post.
The main point of this blog is that we cannot rely on anything to do with the US dollar, because of its inevitable collapse. This blog encourages the purchase of gold, silver and bitcoin.
However, gold and silver have become heavily manipulated investments. Potentially even manipulated by the federal reserve to try to prove that the US dollar is stronger than it actually is. How would Big Ben Bernake manipulate gold and silver prices?
Let me introduce to some people the 'short sell'.
A short sell is when an investor borrows a stock or commodity, then sell it on the open market, driving the price down, and hoping it goes down further. If and when the price is down as far as the investor thinks it will go, the investor buys the stock or commodity back and repays the loan.
So if you think the price of silver will go down, you borrow an ounce of silver from me, and sell it to your friend for $20. When the market price of silver goes down to $15, you buy the silver back from your friend and pay me back my silver. You've made $5.
Now lets make this crazy!
There is such a tactic called a 'naked short' where the borrowing never occurs. In the example above, you just write 'SILVER' on a piece of paper and sell it to your friend, redeemable for physical silver if and when he wants. What this does is manipulate supply demand economics because you've created silver out of thin air. In the event your friend demands that ounce of silver, you must buy it at market price and give him his silver.
Paper silver/gold, shorts, and naked shorts all drive the price of gold and silver down below what would be the market price. Another interesting tactic is, wait for it, "rehypothecation" (see below article
Here are some interesting articles
JP Morgan Chase is selling paper silver, while at the same time buying physcal silver.
In April the price of gold fell $300 because of a 500 metric ton naked short
More on naked shorting - mentions rehypothecation
In general all these articles would lead one to believe that silver is good investment. If huge banks are buying physical silver by the truckload, something good has to happen?
In general, the paper and electronic markets for gold and silver ONLY exist because taking physical delivery of huge amounts of precious metals can be cumbersome. If a bank were to REALLY sell 500 tons of gold, shipping would be a logistical nightmare.
So again, electronic gold/silver exists because its easier to manage. The existence of paper gold/silver open it for WILD manipulation of the price.
Bitcoin, it all its glory, is already a digital asset. You wouldn't create 'paper bitcoin' because there is no benefit of it. Bitcoin is already infinatly transportable.
I highly recommend storing as much wealth in gold, silver, and bitcoin as anybody reading this can. Only keep enough money in the bank to use for day to day operations. One day this house of cards is going to come down, and holders of physical assets will laugh their way all the way to the bank(if the even exist).
Moving forward though, gold and silver will become increasingly manipulated by the federal reserve, while bitcoin will remain untouched.... kind of, more on bitcoin manipulation later.
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