Why I buy silver part 2

So we have made it through the cheap credit and the Roaring 20’s and in 1929 we had a crash of the stock market. Folks that got the cheap credit and bought on margin saw all those profits wiped out. Folks that bought the car, radio and phonograph found they couldn’t afford those anymore with out a job and we hit deflation. Many companies and jobs wiped out. This was world wide pull back of cheap credit. Hoover tried to save capitalism by creating false shortages in agriculture and paying farmers to destroy their crops to drive up the price. But since jobs were gone and folks had no money they couldn’t buy food, and or they still had all that easy credit to pay off. Then the “Dust Bowl” crushed the small farmer. The few that could grow crops got crushed cause folks had no money to pay for food. Well the USA limped “Prosperity is just around the corner” until a new savior came along FDR and American voted for him and for the “New Deal”. I don’t blame them really they wanted food and jobs. I truly hate FDR I see him as a American dictator. I think many of his policies were wrong. But especially the confiscation of gold and his arbitrary setting the price of gold. So I can’t be even handed in regards to FDR.
Thankfully WWII happened and that put lots of folks to work. Honestly the war killed many folks and labor became valuable once again. The GI Bill got folks educated and VA loans got the housing market moving again.
Brenton Woods it was decided that the US Dollar would be the reserve currency until the world recovered from WWII. Plenty of Gold in reserve and we move along to the next generation.
Nixon in 1971 detached Gold from Dollars, and while Americans could buy gold once again the Federal Reserve and banks no longer had to trade gold for dollars or hold it in reserve. Nixon I hate as well for introducing price fixing. Which created nothing but shortages. Carter did a cross between the price fixing of Nixon and extra regulation ala LBJ/FDR and got Stagflation.
 Along come Reagan who got rid of regulation but went big time on expanding the Military with no cuts at the Federal level. He had to defeat the “Evil Empire” and he did. He outspent them into debt and crushed the USSR’s economy. Reagan didn’t bail out anyone in the 87 crash, though he was told to by all the talking heads to bail them out. But the die was cast,  deficeits didn’t matter and all government spending leads to growth. Away we go….After Reagan it became all growth is good growth. Instead of Joe six pack having an addiction to credit in the 20’s the Fed and the US government fed an addiction to debt.
Now debt and credit I think of as very different ideas. You will have to decide what you think. But I think using your “credit” to pay off debt is usually a bad idea.
Now as I have given you a very quick and dirty lesson of USA economic policy.  FRN’s are nothing but an IOU from a bank, a corporation. It’s not backed by anything but faith. Silver and gold have been used for 6000- 10,000 years as an item of value. Now I may not understand the why, but I can’t think of any other item that is still valued over that length of time.
Silver unlike gold has industrial uses and is destroyed via electronics. Unlike gold that sits around in bricks and is considered valuable. There is a saying that gold is the money of Kings, Silver is the money of gentlemen, barter is the money of common folk(serfs/peasants) debt is the money of slaves. Where are you at?

Advertisements

6 Responses to Why I buy silver part 2

  1. Kurt says:

    What we learn from it all is that any time government tries to solve the problem, they become the problem of an even bigger nature. They can't manipulate silver as much as they'd like, but they might try and make it illegal to use it in trade at some point. Hide it well either way.

  2. Kurt I think you are worring needlessly over the confiscation of PM. I think the FEDS would have confisicate our guns first. I don't know how you feel about that but I won't give up my guns. Plus in confiscating gold in the 1930's less than 5% was turned in/ conficated. Most of that was via bank Safety deposit boxes or voluntary turn in for paperbacks.

  3. Kurt says:

    You have me wrong. I do not think they will confiscate PM. I think they will make it illegal to use it in trade, making it almost worthless in most peeps eyes, without needing to confiscate it.

  4. Kurt do you mean like Drugs 😉

  5. Kurt says:

    Yep. And most likely with a similar effect. Many people will refuse to touch drugs for any reason because the government declared it to be evil. They think it wrong just because they were indoctrinated. Same thing happened when alcohol was made illegal. "The government said it so it must be true and we must report any use of it" mentality cropped up. Don't get me wrong, I do not recommend recreational use of drugs. Its extremely unhealthy at best. But with many people its almost a religion: their government said it so it must be true. Well, when the government says its illegal to use PM in barter, and that they are evil, and people using them are hurting the economy/country, many people will refuse to even consider it, and even report you for asking. Might make it a wee bit harder to use them in such a fashion. Now ask me if I have plans to give up what little I have stashed just because of that possibility alone. I ain't saying don't buy some, just keep in mind the potential of it becoming less valuable because of government shenanigans of some sort or other. Even if they do make it illegal, it might come in handy in ways not suspected yet, like getting out of the country if need be, or water purification, or…… maybe even barter on the black market.

  6. My point Kurt is, drugs are illegal yet the sell just fine. The War on Drugs didn't stop the buying or selling of drugs. The Feds are already trying to force folks into using only plastic so they can control and monitor. I have no doubt that they will continue with the nudges, like that Visa commercial showing someone using cash or a check was slowing everyone else down. Everything will have risks, from having food and being declared a hoarder, to having gold.

%d bloggers like this: