$50 Silver by Dec 31, 2012

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?

Site News: Update

I’ve been doing quite a bit of behind-the-scenes coding to improve the site lately.  When I’m done with that, I’ll start adding more PM dealers to the price tables.


Hyperinflation: 56 Modern Cases

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?

Modern Hyperinflation Chart

Read the full report of 56 cases of modern hyperinflation.

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.

Zimbabwe 100 Trillion Dollar Bill
Zimbabwe 100 Trillion Dollar Bill

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.

Wheelbarrow of Money (Devalued Currency)
Wheelbarrow of Money (Devalued Currency)

On the other hand, the Germans could use their worthless, paper money to keep the kids entertained…

German Children Playing with Devalued Currency
German Children Playing with Devalued Currency

…or heat their homes.

Woman Burning Devalued Currency
Woman Burning Devalued Currency

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.

Social Security Disability Fund Will Run Out in 2015

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.

The Shining: Kubrick’s Secret Gold Message

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!