Sunday, February 13, 2011

Ron Paul Speech-Bullish for Silver and Gold


  1. Might it not be more bullish for gold if Obama, Pelosi, and Reid appeared likely for re-election?

  2. I am a big fan of Ron Paul and a return to Austrian Economics as a whole; however, what will the ramifications be for both gold and silver if Mr. Paul is elected president and he is able to implement much of what he speaks of in this video?

    My initial thought is it will be bearish...long term for PMs. The way I see it (without writing a small novel) as we clean up our deficits (budget and trade) it should increase the strength of the dollar relative to other currencies and significantly improve our economy. This will cause the FED to raise the cost of borrowing to keep inflation down as the US economy heats up. If the cost of borrowing is raised enough so the real rate of return is positive (ie: interest rates – inflation is positive) this doesn’t bode well for gold and silver especially considering gold and silver are priced in dollars. I make the assumptions that the dollar will remain fiat and there is no return to the gold standard (likely to cause a short term leg up in the PM markets). Also, this will take many years (maybe 10) to really take foot.

    Anyway, just curious to get others thoughts on the above. Not trying to cause any trouble just trying to stimulate an intelligent conversation. Also, what are the short term ramifications of what Mr. Paul plans?



  3. Understand that I voted for Obama in 2008, because Bush had been such an abject failure. I do, however, LOVE Ron Paul. I hate Republicans and Democrats in general, because as he says, they all drink from the same koolaid. If we had 100 Senator Ron Pauls, and 435 Congressman Ron Pauls and 1 President Ron Paul, the United States would be in far better shape than it is now.

  4. My thought is this: An election based on ending the fed AND going back to a gold standard should revalue gold/silver/other PM's in our favor as the price would need to reflect the current supply of US$ in circulation...because surely they cannot take these dollars back out (or raise rates for a very long time).
    Its the revaluation of PM's that seems bullish to me as well as the need to continue exploring these PM's in order to keep growing a 'money supply' thats actually backed by something. This would put upwards price pressure on the PM's, as the supply sinks-short term. No idea about long term, I do not care about the long term, as in this world of currencies, corruption, and Neocons, they hold the cards, not us and if we could have a shift of wealth short term for us metals bugs, then we are ahead of the game, and will be better positioned for the 'new' game to be played out. Lets keep this topic going here, good stuff.

  5. SGS - we might get some comment streams really cooking if you took off the requirement that you have to review the post before allowing it.

    We all sweat this stuff too much. Gold and silver will do well against fiat currencies period. Just look at the long term track record. And there's some added bonuses:

    If we ever go back to a gold standard or partial gold standard, the price of gold would have to be valued at about $60,000 an once to account for all the printed and electronic dollars in existence. Possibly quite a bit more if you allow for all the euros, pounds, yen, renminbi in existence also.

    Then as far as silver goes, it will always be part precious metal so it would tag along with gold. Then there is the issue of severe depletion in available supplies at these price levels. What's it going to take for grandma to bring her sterling silver tea set in to the local coin shop for melt value? $100 an ounce? $200 an ounce?

  6. End the FED and the IRS...both came into being in 1913 and both are un-necessary abominations. Replace the IRS with a national VAT tax if needed. That saves a lot of public money and keeps Government off our backs. It's hard to break tax laws if you have to pay the tax immediately on purchase.

  7. "SGS - we might get some comment streams really cooking if you took off the requirement that you have to review the post before allowing it."

    Keeping it on for another day, some idiots posting preposterous crap/drivel/ verbose nonsense not related to anything...will change soon dont worry

  8. NO VAT AND NO NATIONAL SALES TAX. How many of you know that if the Fed Gov. abolished the income tax and the Irs that the Fed. Gov. would still have the same revenue as it had in the year 2000? Government needs to be cut 90%. As to those worrying about what will happen to the price of silver when Ron Paul is elected? Don't worry. Silver will blow up before Ron Paul is sworn into the white house In January of 2013.

  9. Have any of you ever thought we might not have a presidiental election in 2012? Ron Paul commented on CNBC with Larry Kudlow that the United States could disintegrate just like what occured to the Soviet Union in 1989.

    Very few understand the JUST IN TIME INVENTORY SUPPLY CHAIN SYSTEM we have and how vunerable it is if the COMMERCIAL PAPER MARKET implodes like it almost did in 2008.

    In the United States it takes 7 calories of energy to move 1 calorie to market by the TRUCK SYSTEM. In Russia it takes only 1 calorie of energy to move 1 calorie of Food. This came from Nicholas Taleb at a convention last year.

    RUSSIA produces 10.5 mnd (million barrels) of oil a day and only consumes 3.5 mbd. It exports the rest as REAL WEALTH.

    The UNITED STARES produces about 6.5-7 mbd of oil and has to import 11-12 mbd to run the SUBURAB LEECH AND SPEND ECONOMY that does not create any wealth whatsoever.

    The Collapse of the FIAT MONETARY SYSTEM will destroy the JUST IN TIME INVENTORY SUPPLY CHAIN that brings food and goods to market here in the United States. Very few people understand this problem.

    Gold and Silver will be money again....but the world we will live in at that time here in the FORMER UNITED STATES might be hell on earth.

  10. SRS
    excellent points, ever go around to Walmart and take a look at them? How many are prepped? how many can take of them selves? Shit they just wait for the JPMorgue visa to get their weekly food. If the trucks stopped running and the visa's stopped coming you better plan to stay home for quite a while.

  11. SRSrocco....... Well said. The sad part is 99% of people are so normalcy bias they cant see the forest for the trees. Lets hope it doesnt happen, but my guess is its more plausable than most think.

  12. World economic collapse film, 1981
    Best part starts at 3:30.

    "...the Dollar is down 10%. They even yanked the Euro Market deposits that weren't due....and Gold just went over 2,000".

    "By tonight that'll be cheap".

  13. I'd like to point out that if the monetary system is not wholly reformed in a way that rewards those who add value to our life then no real progress will be made. It makes absolutely no sense that the CEO of a bank gets a lot of fiat while the hardworking "peasants" are living on next to nothing despite the fact the CEO of the bank adds absolutely no value to our lives, quite the contrary, they degrade our standard of living.

    I urge you to stop thinking in terms of fiat as this system is rigged in the favor of those living in the "Principal + Interest" world and the owners of the bond market [1]. In short, do not expect any improvements as long as the current morally and economically corrupt monetary system remains in tact.

    Let's examine the unifying factors of this group:
    1. We agree that the current monetary system is broken beyond repair.
    2. We agree that the current "experts" touted by the media arm of the monetary system are absolutely unqualified to deal with the mess.
    3. We agree that silver has intrinsic value and [like before] would not be averse to using it as the base of a new trading system.

    My question is why are you waiting for the unqualified narcissists to establish a new trading system. It's not going to be in our favor, why should it?

    There is nothing good in watching civilization burn to the ground. This preposterous outcome can and has to be avoided at all costs.

    I suggest creating an online forum where we can debate a new system. I am willing and able to establish such a medium of communication. If you want to enact changes then you have to be the change you want to see. I find it extremely unsatisfying knowing that a tragedy is bound to occur, yet not being able to do anything about it [2,3,4].

    I find it quite amusing that this was all, more or less, encoded in the Wonderful Wizard of Oz, yet most think it's just a bed time story [5].

    There isn't much time left.

    [1] Renaissance 2.0 By Damon Vrabel.
    [2] Damon Vickers, CNBC.
    [3] Damon Vickers, Prison Planet.
    [4] Damon Vickers, Prison Planet.
    [5] The secret of Oz.

  14. Is anyone familiar with Hugo Salinas Price ideas of how to reintroduce silver coins back as circulating money. I think it is a good idea and very bullish for silver. Watch this presentation as he speaks before an English audiance. He concept could work in all soveriegn currencies...

  15. FIRST.....SGS, excellent blog and cartoons on gold-silver manipulation. Do you really get inside information from individuals in the know?

    SECOND...replying to YOUSIF...the suburban retail-warehouse-service economy will collapse do to a falling EROI (energy returned on invested). Monetary printing is just a symptom.

    If we remember Martin Armstrongs work on the FALL OF THE ROMAN EMPIRE, he blamed it on the debasement of the silver coin called the DENARIUS, and the Emperors towards the end who used socialism to rob the rich of their wealth. These two aspects are true....but they are symptoms

    The Collapse of the Roman Empire was sowed in its beginning ECONOMIC MODEL. This Economic Model was to use the military to conquer lands and take the STORED SOLAR ENERGY that was in the form of wealth (GOLD-SILVER-LEAD-MINES-RESORUCES and etc). As time went on, the easy pickings were gone. The Romans could beat the northern Germanic Tribes, but there was not much wealth there. On the other hand, there was plenty of wealth in PERSIA, but it took too much energy to conquer it as the PERSIANS also had a very strong military.

    To keep the ROMAN SYSTEM going (as it had to now sustain a bloated military empire with forts everywhere on its borders), debasement of the coin had to occur as less and less EASY WEALTH was obtained. When the Romans had to survive on RENEWABLE SOLAR in the form of agriculture, it could not sustain the bloated system. Thus it collapsed.

    The UNITED STATES is in the same boat....but OIL is its culprit. The easy to get to OIL-NATURAL GAS is gone. It is now only the expensive stuff that remians. TAR SANDS and SHALE OIL are 2/4 to 1. The US ECONOMY was built on a HIGH EROI....30/100 to 1 return on invested. That is, for every barrel of oil used to drill the USA got 30-100. Today its below 11.

    To keep the same standard of living, the GOVT had to resort to dropping the DOLLAR from the GOLD PEG and now in the end.....MONEY PRINTING. Now we have a mixture of FASCISM and SOCIALISM to do complete the final collapse.

    The United States Suburban Leech and Spend Economy can only survive on CHEAP and ABUNDANT OIL at at high EROI.

    The Society Of Engineers gives the USA infrastructure a GRADE of D in 2009. There are 250,000 water main breaks a year in the country and most local municpalities are just patching up WATER SYSTEMS, ROADS, SEWER LINES and etc, hoping the hole thing doesn't collapse.

    We cannot go back to manufacturing in the USA to save the current system as there is not the available cheap energy to do so. We WASTED OUR WAD on the SUBURBAN LEECH AND SPEND ECONOMY with millions of McMasions and Strip Malls all over the country with millions of WAREHOUSES to support the SUPPLY CHAIN. It was wasted capital that really can't be reused in an economical way.

    In the will collapse. How it does and what the details are will be seen in the following years.



  16. Yousif

    I replied you when you talked about LETS in the "The last raid by EE?" post. I Think Ripple is the way to go. I think Bitcoin has the technology that project needs.

    I'm not against fiat. Silvio Gesell's free money would be better for a nation than gold standard. The main flaw of his solution to the monetary problem is that it has to be implemented by governments. We cannot trust governments once again: they would sell privileges to the banks again.
    The new system you talk about has to be completely decentralized. Ripple makes possible to anyone (not just the banks) to issue new money, but it needs a trusted third party (the server in which it is run). Bitcoins needs no third party. We got to merge both concepts.
    As a proof that fiat is not the problem, I predict that the value of the bitcoin (being fiat) will rise as the dollar devalues itself.
    I don't want Bitcoin nor gold nor silver to be the money of the future, but I'm buying them. I trust them more than government fiat and I don't want to lose everything when the government fiat (dollar, euros, pounds...) collapses.

  17. "Do you really get inside information from individuals in the know?"

    No I have this crystal ball that tells me exact top and bottoms of silver price trading. LOL

    Yes I have insiders. In fact, I am speaking with insiders right now in regards to whats inside the SLV vaults. Stay tuned. Sometimes I say 'insiders' in my videos when I shouldnt, people really take it the wrong way.