Silver Update: Austerity Riots

September 26, 2012 By 6 Comments

BrotherJohnF’s latest Silver Update:
Austerity Riots

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Comments

  1. Avatar of AGXIIK AGXIIK says:
    September 27, 2012 at 12:46 AM

    As I read the charts that Bro Jo just put up, the steady trend upwards is a compelling notation. If the 1970-80 silver price increase has any modern parallels then we are well below what is possible in price
    These are approximates but are reasonably close to the figures we can use for comparison
    From 1972 to 1978 silver increases to $8 from $2 an ounce  this is a 4 fold increase in 6 years
    From 1979 to 1980 the price went to $48 from $6 an ounce, an 8 fold increase in 2 years.

    Silver went to sleep for nearly 30 years. 
    From 2008 to 2012 silver went to $34 now from $8 an ounce. This is a 4.25 fold increase in 4 years  That FEELS like the ’72-78 period. A big jump but modest compared to 1979-80.
    Will we see 8 fold increase from 2013 to 2015, mimicing the last two years of 1970?
    Or will we see a more modest increase and still with in  that 6 year time period relfecting   its slower rise in price, bringing the price to $48 in 2014-15 from $8 an ounce in 2008?
    $48 is not bad overall if we get there by the end of 2013 but patience is going to be watchword in that time period.
    IMO we will more likely see the 8 fold that takes that modest increase to $34 upwards to $240 a ounce of more.  The Casey chart indicates that the higher range of $48 of our last cycle which ended early last year will be the base  for the next serious price increase.  The higher price of $240  reflects the real inflationary price increases of the last 30 years, something that has not yet been reflected in the present price.
    BY way of reference, the 1970 to 1981 time period was one of 10% or greater inflation year by year. Nixon imposed wage and prices controls. Gas was rationed even as it spiked by 400% in price. Shortages developed in some foods and commodities. No matter what the government tried, wages were never once able front run the inflation rates as people’s livelihoods and savings ground down to dust.
    Yes, CD rates were sometimes as high as 10% and mortgages ranged from 10-15% but we were always behind the inflation curve. If we use the parallel today of ZIRP on savings, 3% on mortgages and 8% present day inflation, you can see these times have some real similarities to that lost decade, one in which the DOW started and ended the decade at 800. We started and ended the 2000 decade with Dow at about 12,000.
    The DOW to gold ratio was 1 to 1 back in 1980. Now the DOW to gold ratio is 7.5 to 1 Something has to give.

  2. Avatar of REPUBLIC OF MARS REPUBLIC OF MARS says:
    September 27, 2012 at 1:00 AM

    Thanks BrotherJohnF

  3. Avatar of THORISHERE THORISHERE says:
    September 27, 2012 at 3:33 AM

    Its just a matter of time before the US will be forced into austerity.  That’s when things will get really interesting.  

  4. Avatar of binahmax binahmax says:
    September 27, 2012 at 4:42 AM

    austerity riots in the usa …. one very large difference to europe …. guns …. the police wield and use them and the citizens have them … the same citizens who have watched the banks swallow there homes there savings and there superannuation …. i dont think it will be pretty
    max

    • Avatar of PowerBall PowerBall says:
      September 27, 2012 at 12:09 PM

      This is why the NDAA was passed on Dec. 31, 2011 which also allows the military to enforce rule of law within any city.  Gerald Celente has covered this in detail.

  5. Avatar of Sumkid Sumkid says:
    September 28, 2012 at 8:22 PM

    The fake gold bars filled with tungsten makes me wonder what’s actually in China’s gold reserve since the source of these bars comes from that country. That’s one more reason why you should own silver instead of gold since there would be no incentive to hand craft fake silvers because there wouldn’t be any profit. Plus, there is nothing that weighs like silver while gold weighs like silver.
     

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