Wynter Benton (wynter_benton), is an anonymous blogger on Yahoo Finance who claims to be a group of former, disgruntled JP Morgan commodities traders under Blythe Master. They have accurately predicted many silver moves in early 2011, and now they have made a new prediction: silver will trade above $50 before Dec 31, 2012.
According to wynter_benton, the take-down of MF Global on October 31, 2011 was designed to prevent wynter_benton from taking delivery of a massive amount of physical silver that would break JP Morgan’s naked short silver position.
Benton also claims that JP Morgan’s $36 silver derivative time-bomb is still ticking, and that the ex-JPM traders have re-grouped and are on the offensive again.
I have no doubt silver will break $50 in the near future. The question is: how long will it stay there? Will it stick this time?
Here’s a great chart from the Cato Institute, which depicts 56 cases of hyperinflation in modern times. Hungary wins the prize for having the highest monthly inflation rate of 4.19 X 1016% -that’s 41,900,000,000,000,000% or 41.9 QUADRILLION PERCENT.
I think one of the more interesting points in the table is the time required for prices to double. Can you imagine the price of food doubling ever day? How about every 15 hours?
Many people who don’t understand the concept of sound money say you can’t eat gold. In fact, in just about every discussion on the internet concerning monetary collapse, there is always at least one troll saying you can’t eat gold. Guess what: you can’t eat paper money, stocks, or ETFs either. But I bet if you live in Zimbabwe, you can get a lot of eggs for a silver coin. And the next week, you can buy the same amount of eggs for a silver coin. However, if you’re using Zimbabwe dollars, you might need an extra wheelbarrow of paper dollars to buy the same amount of eggs you purchased the week before.
Thank goodness the central bank of Zimbabwe printed one-hundred trillion dollar bills, so Zimbabweans no longer have to carry their money in barrels, like the Germans did in 1923.
On the other hand, the Germans could use their worthless, paper money to keep the kids entertained…
…or heat their homes.
Note, by the way, that when speaking of the German case of hyperinflation between June 1921 and January 1924, Germany is often referred to as the Weimar Republic. To clarify: The Weimar Republic was not some obscure neighbor or German annex; the Weimar Republic was in fact Germany. The Weimar Republic is simply a name historians use to indicate a point in time (in 1919) when Germany changed its form of government.
According to the Social Security Trust Fund, the Social Security Disability Fund will run out in 2015. Either benefits for 12 million people will get cut by 30% (current law), or any shortfall will have to come from more deficits and debt. I suppose a third option would be to put the government in charge of health care to ensure these 12 million people die early.
On August 12, 2012 Max Keiser stated that he believed there is a 90% chance there will be a global fiat collapse between now and April 2013. Only time will tell if he is right, but it’s pretty bold of Max Keiser to stake his reputation on this prediction, and great change is certainly ahead.
According to Brandon Smith at alt-market.com, a drop in the Baltic Dry Index is a prelude to a market crash (around 8 months later). The Baltic Dry Index (BDI) went down in 2008, just before the market crashed, and it went down again dramatically last January. So keep your eyes open around September 2012.
According to Amphora CIO John Butler, gold could reach $10,000 per oz if the world moved to a gold standard. Rest assured that if such an event occurred, the price would be for physical gold because paper gold would “vaporize“.
Here’s a fantastic video series about a secret message Stanley Kubrick has hidden in the movie, The Shining. Not only does the creator of these videos make keen observations about the movie; he also presents great historical information about the decay of the US monetary system from the gold standard to the worthless fiat it is today. Enjoy!