CSP Exclusive

Why anybody would want to keep their labor in paper currencies issued by centralized and private banks is beyond me. This disposition is what one might call symptomatic of a slave mentality. Sure, there are risks when diversifying out of the currency of one’s country, but, at the end of the day, there are risks in staying in that currency—especially if that currency is either backed or is the U.S. Dollar, hereafter referred to as the Federal Reserve Note or Fed Note or F’d Note. Oh, wait—every currency on the planet is backed by the Fed Note. From China to Timbuktu, everybody is screwed!

The myriad list as to why the Fed Note is destined to fall is familiar to anybody with an internet connection, a pair of eyeballs and an inkling of curiosity—truly, an inkling is all it takes. There are many nations across the world who day-in and day-out finance intelligence agencies to research ways by which they could undermine Fed Note primacy. North Korea, for instance, has its own agency to counterfeit currencies, namely the Fed Note. What if the amount of these sophisticated and counterfeited $100 began to undermine the worth of the Fed Note in people’s minds? Where would people go?

Perhaps as accurately, the case can be made that the “private-public” Federal Reserve itself—what amounts essentially to a dominant and stealth enemy cell planted on domestic turf—is doing most the counterfeiting. What happens when this reality catches up to the economics?

As many of the readers of this here website have done, I personally look towards silver and its diverse array of uses as a vehicle for me to put away for later the hardwork of now. Silver has more than 10,000 uses. For instance, it’s one of the world’s best conductors of heat and electricity. Inventors have filed more patents on silver uses than any other precious metal. When this silver gets used, it’s gone. Wherefore? The overhead to recycle silver in cell phones is simply too high…for now.

The amount of silver used for surplus and investing is marginal—a mere 12% – 17%. With demand increasing, this will have to become a greater chunk of the overall silver production and use. This likely will happen over the coming years as industrial outlook does not improve and investment demand for silver goes up. An argument oft given against silver is that its industrial applications dampen its upward performance potential. But, one can be certain that the investment demand for silver will make up for the lack in industrial demand. Of that silver made available to investors, approximately 43 million ounces were allocated to exchange-traded funds like the iShares Silver Trust (SLV) and the Sprott Physical Silver Trust (PSLV.)

Moreover, silver has become more than an industrial metal and a metal that, historically, has represented the monetary foundation of this country, for the metal has become a symbol of populism amidst elitist-driven strife. The poor man’s gold—that is, silver, for the uninitiated—has become a means for individuals to undermine the power of major banks, such as JPMorgan, who inherited large silver shorts in recent history. They have stood by these shorts, and have probably failed to cash out of these positions with enough time for any significant increase in the price of silver to undermine directly their own stock price. JPMorgan, in fact, has been acquiring massive amounts of platinum. Could this be a means of entering into a precious metal other than gold without tipping off its investors that the bank, if it made sound and ethical investments, ought to right-this-very-second be long silver?

What people must realize is that the Fed Note has become a short-term vehicle of purchase. In other words, it cannot be seen, any longer, as a store of value. This is obvious and basic. To see it as such is to overlook basic economics, is to be totally ignorant of history. History is not static. It is constantly fluctuating, even if the general structure of relationships and business remains similar to the hitherto way; that is, command-and-control if not by priests, king and queens, then by secular rulers from finance or the darkest bowels of academia.

The F’d Note simply exists to increase the velocity of money in the everyday exchanges of individuals and institutions. The F’d Note is effectively just like a German regional currency, which is automatically devalued each three months. Therefore the holder of such a currency is enticed to spend it quickly, thus promoting business, not savings.

This is where F’d Note is today. That is why individuals must look to other means of savings, whilst spending F’d Notes on their day-to-day necessities.

By Justin O’Connell

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