Thursday, March 24, 2011

Silver prices shot past $38 today

Silver prices shot passed $38 and gold price is at $1446.00 an all time high
The bottom line is 1) we will have a collapse because nothing will be done except maybe delay it slightly, we're so far past the point of no return, and 2) when it does happen, the government and fed will be as secretive and creative as possible to forestall or deny it, point to scapegoats, cover up its role, etc. so don't expect to get an official memo urging people to prepare, and 3) when it does happen, it will be ugly at best and medeival at worst so we must prepare.

Debt peaked. But we were talking about inflation versus deflation. The fed doesn't "print", it electronicaly puts money into accounts that is used the same as printed money. All this money creation is causing prices to rise same as if the fed had used the printing press- bottom line! Money creation is why prices are going up in the mideast and begining to do so here on all but housing. . So far the trend is dollar depreciation but it's possible you are right. I would argue that, as people get margin calls on their unrealized futures losses (m-t-m), they can use electronic money or send checks against their electronic money in their bank accounts to meet those requirements. Also, for every loser there is a gainer who gets the money, and ultimately if we have inlfation, whoever gets it will spend it quickly.

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