>>61174512
Because it is capital and not credit. They control the price because the credit system is all encompassing. But dilution, inflation, write offs and bankruptcies will be impacting credit investments, not capital ones. The woes plaguing the financial systems are a shortage of collateral/capital. Lower quality collateral (treasuries), and a lack of resources generally with increasingly unwilling trade partners not wanting to subsidize American consumption any longer. While America is importing a $700BN of goods in excess of what we export, we will never be wealthier. The trick is understanding that that arrangement is temporary and entirely defendant on foreigners. Real wealth is sustainable and requires the economic fundamentals of land, labor and materials to produce valuable goods and services. It involves real savings backed up by capital. All we have is credit and liquidity sloshing around. The service economy of selling craft beer and burgers to one another will not bode well against the manufacturing powerhouse that is the East. Our dollar supremacy on the global markets to enable consumption that makes us feel rich is not a fate that resides in our own hands.
What will revalue? The dollar. Gold payment will always command more purchasing power in the global market and the quality factor of gold will prevail.
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>>61139894
I tend to agree. I don't think it is far fetched to see $50 as the floor. The metals exchanges can't stay solvent with prices this low. Whatever financial damaged is being caused to the shorts really isn't there problem.
One thing to consider is the mining sector no longer needing to hedge their metal if they can find private buyers willing to buy at higher prices. The influx of capital chasing after high margin metals could set them free from needing to sell undercost to royalty companies. Once the mines are free of this constraint the price of metals is free to move OUTSIDE of COMEX control.
I feel like I am starting to see the urgency in controlling the metals price. Underinvestment in the sector is how you control them. Limiting their profit margins is how you scare away investors. If the dam breaks here and some larger industry buyer steps in to finance production at a PREMIUM then the futures price no longer matters. It is no longer a subjective valuation but one based on supply/demand.
I tend to agree. I don't think it is far fetched to see $50 as the floor. The metals exchanges can't stay solvent with prices this low. Whatever financial damaged is being caused to the shorts really isn't there problem.
One thing to consider is the mining sector no longer needing to hedge their metal if they can find private buyers willing to buy at higher prices. The influx of capital chasing after high margin metals could set them free from needing to sell undercost to royalty companies. Once the mines are free of this constraint the price of metals is free to move OUTSIDE of COMEX control.
I feel like I am starting to see the urgency in controlling the metals price. Underinvestment in the sector is how you control them. Limiting their profit margins is how you scare away investors. If the dam breaks here and some larger industry buyer steps in to finance production at a PREMIUM then the futures price no longer matters. It is no longer a subjective valuation but one based on supply/demand.
>>60967049
Have you looked into the GME saga? Market makers are literally sitting around selling fake shares to retail, thereby counterfeiting shares and stealing their money. And the short position is so massive and everyone knows about it that the market crash of our lifetime is looming.
Even the BBBY saga it has been proven that consultants hired by JP Morgan were advising the board of directors to assist short sellers and avoid a purchase (debts and all) of the company. They've been doing it for decades too. When you see a company with a market cap of $28, they want to get inside the company and destroy it while hedge funds short it into the ground. Then when the company is hurting, an investment bank walks up and says, we'll finance your turnaround if you give us convertible bonds. To which they they convert ALL of the bonds to shares to flood the market with excess quantity which drives the price down and prevents any further financial assistance.
It's really fucked up. Without a doubt, the stock market is hands down nothing more than a scheme to extract resources. People think they are being financially liberated when they earn passive income, but the banks are eroding those assets via dollar dilution. They like to overleverage certain stocks and then funnel all the dumb money into it and use your pension and 401k to unload overprice stocks onto the masses as a defacto subsidy.
Now that the system is saturated with debt, it's probably a good time to start thinking about taking purchasing power off the table.
Have you looked into the GME saga? Market makers are literally sitting around selling fake shares to retail, thereby counterfeiting shares and stealing their money. And the short position is so massive and everyone knows about it that the market crash of our lifetime is looming.
Even the BBBY saga it has been proven that consultants hired by JP Morgan were advising the board of directors to assist short sellers and avoid a purchase (debts and all) of the company. They've been doing it for decades too. When you see a company with a market cap of $28, they want to get inside the company and destroy it while hedge funds short it into the ground. Then when the company is hurting, an investment bank walks up and says, we'll finance your turnaround if you give us convertible bonds. To which they they convert ALL of the bonds to shares to flood the market with excess quantity which drives the price down and prevents any further financial assistance.
It's really fucked up. Without a doubt, the stock market is hands down nothing more than a scheme to extract resources. People think they are being financially liberated when they earn passive income, but the banks are eroding those assets via dollar dilution. They like to overleverage certain stocks and then funnel all the dumb money into it and use your pension and 401k to unload overprice stocks onto the masses as a defacto subsidy.
Now that the system is saturated with debt, it's probably a good time to start thinking about taking purchasing power off the table.
>>60939383
>how can that be?
Despite your dedication, you seem to have zero capacity to influence anyone here.
Captcha: XTR AG
>how can that be?
Despite your dedication, you seem to have zero capacity to influence anyone here.
Captcha: XTR AG
I will not be a victim of the fiat fallout
>>60908449
>How is this relavent?
It's relevant because it gives away how little of it there truly is. The physical silver market is too small to handle the capital flows from credit assets.
>>60908449
>Lmao how's your degree in commercial banking working out?
Investment banking* Life is good. How's crawling out of the Dalit class going for you?
>How is this relavent?
It's relevant because it gives away how little of it there truly is. The physical silver market is too small to handle the capital flows from credit assets.
>>60908449
>Lmao how's your degree in commercial banking working out?
Investment banking* Life is good. How's crawling out of the Dalit class going for you?
I just started reading "When money dies" and it's interesting so far.
The point out that the government debt was all paid off a year before the hyper inflation, and there was an incredible class division as the stock market was rising precipitously. Some people were partying hard but plenty of people were also extremely uneasy about their newfound wealth. Economic misery was everywhere in the streets as prices were rising and peoples wages were constantly seeming to fall behind and stagnate. Pensioners were the first to fall behind and become destitute. Fortunately, the work ethic of the German and Austrian people was high so many people did continue to go to work for less and less pay.
From their viewpoint, they saw other currencies rising in value and thought they were under attack and not having the perspective that it was their currency that was undervalued. People sometimes thought they were going to get a good deal and bought German Marks at a massive discount, along with warbonds etc only to find out that they jumped into the fire.
The most important thing to take away here are the headfakes and the misguided sense of wealth from rising asset prices. Monetary collapse is a weird phenomenon. Alastair McCleod points out that the dollar is an international currency, so domestically, we may be the last to really experience the loss of confidence. We benefit from a $700BN trade deficit so there is a very obvious source of economic pain we can experience if there are less goods to buy. The conditions set up for Weimar are not exactly parallel to America, obviously. But interesting case study nonestheless.
The point out that the government debt was all paid off a year before the hyper inflation, and there was an incredible class division as the stock market was rising precipitously. Some people were partying hard but plenty of people were also extremely uneasy about their newfound wealth. Economic misery was everywhere in the streets as prices were rising and peoples wages were constantly seeming to fall behind and stagnate. Pensioners were the first to fall behind and become destitute. Fortunately, the work ethic of the German and Austrian people was high so many people did continue to go to work for less and less pay.
From their viewpoint, they saw other currencies rising in value and thought they were under attack and not having the perspective that it was their currency that was undervalued. People sometimes thought they were going to get a good deal and bought German Marks at a massive discount, along with warbonds etc only to find out that they jumped into the fire.
The most important thing to take away here are the headfakes and the misguided sense of wealth from rising asset prices. Monetary collapse is a weird phenomenon. Alastair McCleod points out that the dollar is an international currency, so domestically, we may be the last to really experience the loss of confidence. We benefit from a $700BN trade deficit so there is a very obvious source of economic pain we can experience if there are less goods to buy. The conditions set up for Weimar are not exactly parallel to America, obviously. But interesting case study nonestheless.