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Buying Silver in the Age of Transitory Inflation and Other Political Delusions

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Buying Silver in the Age of Transitory Inflation and Other Political Delusions Powered By Docstoc
					Buying	
  Silver	
  in	
  the	
  Age	
  of	
  Transitory	
  Inflation	
  and	
  Other	
  Political	
  Delusions	
  
	
  
Spokespeople	
  for	
  the	
  U.S.	
  Federal	
  Reserve	
  have	
  been	
  saying	
  that	
  rising	
  food	
  and	
  
energy	
  prices	
  are	
  transitory.	
  They	
  have	
  now	
  been	
  pushing	
  that	
  illusion	
  on	
  the	
  
market	
  for	
  ten	
  years,	
  and	
  some	
  traders	
  are	
  still	
  waiting	
  for	
  inflation	
  to	
  fall.	
  
	
  
Nevertheless,	
  the	
  fact	
  is	
  that	
  these	
  price	
  rises	
  are	
  not	
  transitory,	
  and	
  they	
  are	
  
instead	
  permanent,	
  systemic	
  and	
  intentional.	
  Furthermore,	
  prices	
  are	
  going	
  to	
  keep	
  
on	
  getting	
  higher	
  and	
  higher	
  by	
  all	
  rational	
  indications.	
  
	
  
Debt	
  Expansion	
  Policy	
  Makes	
  Inflation	
  Inevitable	
  
	
  	
  
When	
  Ben	
  Bernanke	
  was	
  first	
  appointed	
  Chairman	
  of	
  the	
  Fed	
  by	
  then-­‐President	
  
Bush	
  in	
  February	
  of	
  2006,	
  the	
  U.S.	
  Treasury’s	
  funded	
  debt	
  was	
  ‘only’	
  $8.183	
  trillion.	
  	
  
	
  
Nevertheless,	
  by	
  last	
  December,	
  when	
  the	
  FOMC	
  announced	
  its	
  latest	
  monetary	
  
policy	
  measures,	
  the	
  U.S.	
  Treasury’s	
  debt	
  had	
  more	
  than	
  doubled	
  to	
  hit	
  the	
  even	
  
more	
  astronomical	
  16.376	
  trillion	
  level.	
  
	
  	
  
In	
  other	
  words,	
  the	
  Treasury’s	
  funded	
  debt	
  had	
  increased	
  by	
  more	
  than	
  100%	
  over	
  
a	
  period	
  of	
  almost	
  seven	
  years,	
  averaging	
  a	
  rise	
  of	
  roughly	
  14.6	
  percent	
  per	
  year	
  
during	
  that	
  time	
  frame.	
  	
  Commodity	
  price	
  rises	
  in	
  U.S.	
  Dollar	
  terms	
  have	
  been	
  
relatively	
  subdued	
  in	
  comparison	
  with	
  this	
  remarkably	
  high	
  level	
  of	
  U.S.	
  debt	
  
expansion.	
  
	
  
Silver	
  as	
  the	
  Financial	
  Solar	
  Plexus	
  
	
  
The	
  solar	
  plexus	
  of	
  the	
  human	
  body	
  is	
  where	
  the	
  connection	
  between	
  the	
  body	
  and	
  
mind	
  -­‐	
  the	
  organic	
  and	
  the	
  non-­‐organic	
  —	
  come	
  together.	
  Silver	
  is	
  like	
  the	
  solar	
  
plexus	
  of	
  the	
  world	
  of	
  economics	
  and	
  finance,	
  acting	
  as	
  both	
  a	
  tradable	
  commodity	
  
and	
  a	
  monetary	
  asset.	
  	
  
	
  	
  
In	
  the	
  silver	
  market,	
  the	
  relatively	
  primitive	
  market	
  laws	
  of	
  supply	
  and	
  demand	
  
interact	
  with	
  the	
  higher	
  level	
  market-­‐driving	
  factors	
  of	
  faith,	
  perception	
  and	
  
behavior	
  on	
  the	
  part	
  of	
  its	
  human	
  participants	
  to	
  determine	
  a	
  market	
  price.	
  
	
  
Read	
  the	
  rest	
  of	
  the	
  article.	
  
	
  

				
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Description: Buying silver is a bet against faith, confidence and human perception, given that the silver market’s price discovery mechanism is being increasingly usurped by obsessive technical analysis and computer driven trading that largely amounts to picking up nickels in front of a steam roller.