Silver prices are pushing the known limits, today. Overnight, there was a big boost to the spot price, which took it to nearly 27 fiat dollars. As for the other side of the equation, the dollar index is pushing the limits to the downside as it sinks to below 76. It looks like the Fed's commitment to continue buying the government's paper promises with the funny money is having the desired effect. The bright side of this is that when an ounce of silver is worth as much as what they have borrowed from the Chinese government, they can pay them off with one solitary silver round. The Chinese government is not the only entity that has bought promises from our government, however. They are merely the entity that seems to be buying the most.
Before the government, for which we citizens are ultimately responsible, will get to pay off this debt with one piece of silver, there will be some tantrums thrown, and when people with large, nasty weapons throw tantrums, it can get messy. Other entities, including those Americans that thought they were rich with a fortune stashed away in bank accounts and stock certificates, will be throwing tantrums right along with them. Many of them even own some of those promises from our government. The two-fold promises that many Americans purchase are called bonds and notes. They are actually promises to pay a certain amount of promises. Actually, the Federal Reserve note that we call the dollar is merely a paper promise.
Some think that rapidly devaluing the promises that have already been made is a good thing. They think that devaluing the government debt will allow them to pay less. They may be surprised to know that this does not only mean that the value of the amount owed will be reduced but that the government can get away with borrowing more upon promises of a percentage of our paychecks. The more shameful part of all of this is that not only our paychecks will be applied to these promises. It will linger for many generations to come. Those of later generations that come to the labor market will be expected to pay for the money that is being borrowed and spent, today.
The ominous and literal meaning to the word "currency is that the actual value changes, continually, and silver prices reflect how many fiat dollars it costs, currently; it does and will change. Currency has a current value, and the future value will be less. That is the trick of fiat currency. One unit of fiat currency is a written promise to pay whatever the promise is worth when it is redeemed with the promises losing value, continually. To keep from losing all of the value of the promises, they must be redeemed immediately! The rate at which promise-holders immediately redeem their promises without holding on to them is referred to as the velocity of money, and as this increases, the faster the promises lose value and the silver prices rise.
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