The Debt Bomb
David Morgan, the Silver Guru, one of the premier silver experts in the world, just came out with a new book The Silver Manifesto In this video David talks about his new book. This book is one of the most complete books on the history and opportunity of silver I’ve read. Silver has been an enduring store of wealth throughout history and has been recommended by investing experts from all over the world as a safe store of wealth. In this video he is asked about one of the most startling chapters in The Silver Manifesto entitled The Debt Bomb. David explains one of the best reasons for investing in silver. The United States has been exporting it’s inflation for years to the rest of the world. As other countries currencies become more expensive it adversely affects their ability to export since their goods become too expensive. So they are forced to print and inflate their own currencies. It becomes a race to the bottom but the longer this race goes on the more serious the eventual collapse will become.
The bankers last best vestige of hope is the ability to con the people. However we have seen a lot of cracks in the smoke screen that has been used to hold the price of the precious metals down and convince people of the strong unshakable value of the dollar.
The Debt Bomb David writes about is the mountain of debt that could trigger a currency collapse. If that did happen and what would it look like? More people today are seeing those cracks in the smokescreen and entertain the possibility it could happen. Rollover, a fictional movie, paints a possible scenario. In the movie Arabs decide they have had enough and they decide to take their money out of the fiat currency. You see all of the brokers frantically calling to unload their dollars before the bottom falls out. But with today’s high speed trading and interconnected information systems the word spreads like wildfire and no one is buying. The system collapses overnight.
Reset into some type of world currency or north american currency before the final collapse is possible. But what if the bankers’ solution of a reset is rejected by the people? What if the people say we are mad as hell and we are not going to take it any more? What if the people decide to get out of the system entirely and instead decide to take out their money and invest in precious metals? There won’t be enough physical precious metals available. The fiction and fraud of paper precious metals will be exposed.
David Morgan feels that things will be falling apart in the fall because of the momentum, the money supply, his 40 year experience in the field, an element of seasonality, his global feel for what peoples concerns are, and the tenuous overextended position of the stock market.
Greg asks David if these indicators all say the dollar and the stock market is in jeopardy why is the price of silver so low. David says that it is a question of supply and demand. It’s a paper problem. You can always create an infinite amount of paper precious metals. However there is only a limited amount of physical precious metals. A run to physical silver could upend the apple cart. A wise investor would be prepared by diversifying into precious metals before the debt bomb collapse.