Points well taken. I seem to forget it’s not all about US and that the rest of the globe is seated at the card table. Gotta go check out eBay and see if there are any good junk silver buys being offered. Thanks for helping me to refocus.

In less manufacturing silver should not go down. Mining will though and since most silver is the byproduct of other mining it should push it’s shortage even further in the United States.

We have to remember that the United States is not THE ECONOMY of the world, nor is it the largest net user of silver, but rather just a piece of the bigger picture. Most Americans are 100% clueless about silver right now.

China is still expanding at a double digit clip and India still is expanding and Russia isn’t hurting either. Those are the countries that LIKE silver far more than we do with populations that dwarf ours. In a dollar asset collapse silver becomes more of a darling than fiat money and stocks not less.

Just a one billion dollar silver purchase today would send silver to the $40+ range. About $52 billion buys the entire lump of above the ground silver available. That is a tiny market cap.

In the early 1980’s when our energy prices skyrocketed, employment hit the skids, Volker had raised prime interest rates to 15%, cars–consumer goods not selling is when gold and silver went ballistic. Silver loves discontent, economic upheaval, war, social unrest and inflation and deflation. Silver hates smooth sailing economies. It is a protection asset as well as an industrial metal.

Averages historically with the US CPI Calculations (officially skewed by Gov.)

1974 silver was $4.70 average equals $20.12 today,
1979 was $21.79 $55.81 Today,
1980 $16.39 average $41.98 today,
1983 $9.12 average $19.32 today,
1984 $6.69 $13.59 today average coming out of recession.

Silver pricing at the all time high of $55 adjusted to inflation $120.30.

Today far more money is in the system to chase silver and far more people on the planet to participate in the market. Big difference. 1979 there was around $1.2 trillion in US Dollars floating around in print. Today there is over 10 times that. In 1979, Chinese folks could not buy silver and Russians and Indians had no wealth to own it. Today that has all changed.

I think today’s prices are bargain basement low on both silver and gold deflation or not. With a bond market teetering, stocks deflating, realestate shrinking, oil, food worldwide a problem, a dollar tanking, the metals will have their say.

Deflation will only occur in non-essential goods. Food, fuel, etc still will climb.

GG

I agree some things are going down in price. But the way I understand deflation to be is everyday a new lower price is presented. People don’t want to buy because they figure the price will go lower. Also, this is when silver price will crumble (manufacturing slow down) and gold will go down a little but not as fast as silver. In the long run gold will hold one afloat. At least this concept is what I read. Sounds like the really good sales have yet to happen.

I haint boobs with bones in them. It’s kinda like going out on a blind date and after heavy petting for several hours and eventually one gets lucky to explore the treasure that lies in between the thighs – only to find out you have been making out with a female impersonator. Gawd Awful :::spit spit – cough and a pow punch pop slap::::

Come to think of it, housing prices backing up is deflation-asset deflation, stocks going lower again is asset deflation, vehicles being a rebate, special financing or it won’t sell is price-asset deflation, used cars have less value than a few years ago so that’s price-asset deflation. Boats, motorhomes…playthings are deflating in price. We also see a lot of clothing deflating.

While gasoline inflates, some food stuffs-but not all inflate, utilities inflate, base metals inflate…by reason of the dollar deflating, we are indeed in a Stagflation scene.

Almost anything mined, drilled-refined or grown from the soil seems inflationary while most manufactured goods are having trouble selling without deflating in price and therefore profit margins. Pure deflation.

So Yes, we are already seeing a heavy helping of deflation & inflation and shrinking employment which adds up to stagflation. A very deadly economic game.

I guess first the assets sink, then employment sinks, then the money becomes near worthless, then society itself implodes.

Whether it goes into chaos or not is anybody’s guess. Hope it takes a long time instead of just BANG!

GG

Deflation….it’s here, went to the grocery store last night to grab a few things. Organic salad has been $3.78 a bag for two years but suddenly it adjusted to $2.58 not on sale I was told, new price. Boneless chicken boobs for a few years have been 3 lbs $5.99, then hit $6.49 and now-not on sale $3.99-new price. Reason is….. folks are cutting back and to move food before some spoils the prices needed to back up a bit. The same was true of bananas, celery, lettuce,,,, most produce.

In my area beef seems a hard sell as many grocers are now having sales and often. Ohio is a hard hit state anyway so I think we are the leading edge of what is to come all over in retail and grocery. Deflation on “some food items”.

Our dairy is lower than a lot of places as well. Picked up 15 lbs of butter a few weeks ago at $1.68 a pound. Even Lowes stores vary in price county to county based on incomes. Ours are lower than 20 miles north. So is our Penny’s store.

Right now my freezer is packed full after finding so many beef, chicken, pork sales plus fish. Last week I hit Angus Chuck Roast at $1.58 a pound and 92% lean ground beef at $2.10 if you took 10 lbs min of each. A lot cheaper than last year or even the year before if you are willing to buy in 10 lb minimums.

Folks are squeezed tight. If gas hits… WHEN gas hits $4 the real fun begins. Those rebate checks aint gonna help much of anything at $4 gas.

Yes deflation will occur and it will wipeout jobs as it does in a big squeeze between making a profit and lowering prices … vicious circle it will be.

The lower you go the more jobs and wages need cut and the more everyone cuts jobs and wages the lower the prices must go until there can never be a recovery based on that scenario alone. A race to the bottom with too many losses. That’s what buying foreign cost the United States… the best jobs, wages, benefits and economy.

One could see it coming back in the 1980’s era of union busting and the public’s hatred-bashing of union workers. They helped slit their own throats with that hatred. Hate to say I told ya so to folks, but I did.

Unreal what has passed for brains in the United States.

GG

Deflation is a concept that is not in our cross-hairs but could be. When, “Everyday Low Prices,” start to fall wouldn’t that be a time to really stock up with groceries?

How about taking US Citizens and sticking them in internment camps without due process while letting their kids enlist, fight and die for America. That’s a little negative I think.

GG

Great song idea.

I knew you had it in you even if I wasn’t the one who put it in.:) It came to you in the shower? Heheheh. Hehehehehehe…..

Voted for Mr. Paul yesterday and a friend said I wasted my vote. I told him that if I was to vote for the lesser of two to four evils I still end up with evil. Mr. Paul is not evil. Therefore most likely he had wasted his vote if he failed to vote for an honest man. A man can’t say he wants good change by voting for scum.

My county went to Bush in 04 and Hillary yesterday and it was at that point I knew for sure I was surrounded by brains that had atrophied totally and completely. Folks deserve what they get by what they do in the voting booth.

Sitting in a hot bed of job losses mostly due to Bill Clinton folks vote for the other Clinton. “Yea! Shoot us again and this time finish us off! Yea! rip our toenails out and make us eat them!”

Morons.

GG

My new car went up to $20.75 an ounce today. :)

YEA RIGHT!!!

Why do you think the Federal Reserve was created in 1913? It was the mechanism that banks could use to rob US citizens of both their personal wealth, but their taxes as well. Works Great Too!

Nothing Federal about it, reserves it has not. It simply decides how much bankers can steal and how often. That’s why I keep telling folks that most loans over and above housing are traps and savings through precious metals short circuits the pants off of these pigs. Do what they cannot control and be better at it than them. Create your own reserves and spurn debt like the plague.

Yea, I know Ipods and cars are more fun…

Use their money against them. Borrow low-fixed, invest it in oil or gas or gold or silver and pay back slow as those things rise. Make it on the spread.

Why buy cars and consumer junk when you can make a killing in a low interest rate atmosphere? Consumer goods depreciate while metals are flying. But that’s a choice few folks make and it makes them poorer and then they cry they were used. Did it to themselves they did.

If you lose your house that might be your fault for how you run your finances. Did you put a big chunk down? Did you read the loan terms? Did you save for bad times? Those are choices. Did you calculate for inflation? Did you budget your money? More choices.

Folks make bad choices and then they cry foul just like banks make poor choices and then cry.

When I have trouble I look to see where I messed up. That way I can learn from it. Blaming others teaches me nothing.

GG