Posted: May 25th, 2011 by SilverShield
Here is a picture of a gas station in Ashland, Oregon selling a gallon of gas for 20¢. This is a great way educate people on how much our currency has been debased. As you all know, the price of gas has not gone up as much as our currency has been destroyed by exponential money printing diluting the value our money. The obvious result of this inflation is that we need more of these worth less dollars to buy the exact same goods and services.
If we go to Coinflation.com we see that this is not a great deal for the buyer of gas since this is about $5 worth of silver for $4 of gas. This is a 20% hit on the value of your silver. If you realize that for decades before silver was taken out of our money in 1964 after JFK was murdered and Executive order 11110 was thrown out, a gallon of gasoline sold for about 25¢ a gallon. The reality is, this is a good deal, historically speaking.
I believe that silver is telling us all that there is a lot more inflation on its way. I wrote an article about$7.78 Gasoline and how we will one day see it as they continue to destroy the dollar. The article was based off of the historical observation that a gallon of gas cost about 25¢. Even after we had a silver drive by shooting, that knocked 30% off the price of silver, that same 90% silver quarter if worth $6.30 and still way above the going rate for a gallon of gas. With the world moving away from the dollar as a reserve currency at the same time we have more debts that need the Fed to buy, there are going to be more dollars chasing after fewer goods. Any amount of Middle East turmoil could decrease the supply of oil at the same time that more dollars are coming on to the market, this combination will lead to much, much higher gas prices.
One of the questions I get from people is what will happen to silver if we get stuck with some new Bankster fiat currency? First, I tell people I don’t think we are going to have a further consolidation of power and that the collapse of all world currencies will lead to a shattering of globalization and the rise of localization. I don’t think that the date rapist banksters are going to get a second date with our money. People are going to create their own forms of money and I believe that silver is going to be vital part of that for many communities. It will not be the only answer but it will be a very important part. When the dollar collapses do you think people are just going to throw their arms and saw that’s it no more living? No. Humans are very adaptable and will adjust to the new paradigm. Some will be further ahead of the curve than others. The ones that are the quickest to adapt will embrace silver and do a lot of business when everyone else is running around like chickens with their heads cut off.
The second thing is that even if it does happen there MUST be a massive revaluation of values of debt and assets. The Quadrillion dollar world of debt, liabilities and derivatives MUST be expunged in order for a new paradigm to exist. The collapse of this world system is a mathematically inevitable event, there is no doubt about this. The only question is how long can the Elite hide/delay the inevitable and how long it is going to take for people to wake up to this fact. When this revaluation happens debts will be worthless and REAL assets will revalued much higher. Food and fuel will lead the way as the most basic human necessities. The reality is that all tangible assets will have tremendous revaluation relative to paper assets. What would you rather of had a Confederate bond or a gold coin or heck even a sack of potatoes or a watch? Our American paradigm is about to be Gone With The Wind.
Finally, silver does have real purchasing power it is just not being used for direct exchange money. A little angel just gave me a $50 dollar Canadian dollar to support the site. This is cannot buy anything in the US, but it has value. In fact it is easier to spend silver than this $50 bill from across the boarder. I would have to give this bill to my bank pay them $10 and then I have to wait a week and then I will get $40 FRNs back. So I essentially lose 20% in the exchange. Silver on the other hand is much easier to convert. In fact, I would get a nice premium over the paper exchange price and not get raped by the bank. I could go to Ebay, a coin store or Craig’s List and have FRN’s in no time.
There will come a time when the dollar’s value will decline so much that people will be begging for REAL silver. Silver has been trashed for decades as an industrial metal and not valued as a precious metal. This industrial use and supply deficit has destroyed above ground stocks of REAL physical silver. Now investment demand is starting to pick up as an investment to protect against the destruction of paper assets. This alone will send silver’s value to the moon as Quadrillions tries to find a safety of REAL tangible assets. The final hyper drive for silver is when people demand REAL money as their fiat money dies. This is when the purchasing power of silver will dramatically increase. There will be direct transaction of silver for real goods and services like this picture above. People will no longer fear the government like they do now. They will see that they have been screwed by the Elite and do anything and everything to survive and not get fooled again.