patrick.net

Canadian dollar sinks amidst debasement
http://m.theglobeandmail.com/report-on-business/top-business-stories/canadian-dollar-sinks-amid-amazing-race-to-the-bottom-for-world-currencies/article20529859/?service=mobile

smaulgld says

1/10 1/4 and 1/2 ounce

So at current prices that would mean 1/10 would be $2.00

indigenous says

smaulgld says

1/10 1/4 and 1/2 ounce

So at current prices that would mean 1/10 would be $2.00

Correct and and dime about $1.5

indigenous says

smaulgld says

An ounce can be valued easier

making change might be difficult? Assuming big time deflation.

From what I hear, the immigrants who face this problem say silver coins dimes qtrs and halves and dimes are better

As long as there are central banks we wont have deflation- we should have had it the last six years

The Professor says

I particularly like Mercury dimes and Franklin halves

prefer mercury dime to Roosevelt for sure!
can't go wrong with franklins but the walkers are nicer looking

The Professor says

smaulgld says

How much is a silver dime or quarter worth?

An ounce can be valued easier

IF the time ever comes, the public will quickly learn the difference between a pre 1965 90% silver coin and the parking meter tokens we call money today.

True but a silver dime quarter will have harder to determine dollar values than divisible silver rounds

smaulgld says

Blurtman says

How much is one US dollar marked $1 or one Canadian dollar marked $1 worth?

$1 as legal tender $about $19 for silver content

And the paper of fiat has zero intrinsic value.

Consider the coins to be derivatives (options?), with a face value floor and theoretically unlimited upside, which is subject to manipulation.

Blurtman says

Consider the coins to be derivatives (options?), with a face value floor and theoretically unlimited upside, which is subject to manipulation.

right and the $5 Canadian one ounce coin would be worth more than the $1 one ounce US coin.

But what do you make of the $20 and $50 coins that have about $5-12 in them.
They will always maintain their face value and they may grow into their face value via their silver content

smaulgld says

But what do you make of the $20 and $50 coins that have about $5-12 in them.

They will always maintain their face value and they may grow into their face value via their silver content

The floor is all you get. The rest is underwater. Since the face value is literally fixed, consider it to be fiat with an intrinsic value option, currently out of the money.

Blurtman says

Since the face value is literally fixed, consider it to be fiat with an intrinsic value option, currently out of the money.

precisely. And the $5 Canadian one ounce silver coin is a fiat hedge against a drop in the value of the silver in it

What about Silver bullets vs rounds or coins? https://smaulgld.com/how-to-buy-silver/

indigenous says

smaulgld says

1/10 1/4 and 1/2 ounce

So at current prices that would mean 1/10 would be $2.00

7:28 – Silver coins are better for small barter transactions.
http://blog.europacmetals.com/2014/09/gold-videocast-peter-schiff-answers-your-faqs-video/

Real men hoard pennies.

and nickels http://www.wallstreetoasis.com/blog/20-million-nickels

smaulgld says

As long as there are central banks we wont have deflation- we should have had it the last six years

If inflation gets going Yellin will have to raise interest rates which will cause some/many to default. This will bring about deflation. How do see this not happening?

indigenous says

If inflation gets going Yellin will have to raise interest rates which will cause some/many to default. This will bring about deflation. How do see this not happening?

another disincentive to raising rates much- the US can't afford it nor can the economy or any one who owes any money -they want and need inflation and they will have it.

http://mises.ca/posts/blog/government-interest-payments/

smaulgld says

nother disincentive to raising rates much- the US can't afford it nor can the economy or any one who owes any money -they want and need inflation and they will have it.

http://mises.ca/posts/blog/government-interest-payments/

Yup, BUT if you have printed 4 TRILLION dollars out of thin air the likelihood of inflation is just about guaranteed.

I know but we haven't seen it yet, BUT...

Call it Crazy says

smaulgld says

What about Silver bullets

The Lone Ranger is still around?

or, were you referring to Coors Light?

No actual silver bullets- They are referenced in one of the early paragraphs with a link here:
https://smaulgld.com/how-to-buy-silver/

indigenous says

I know but we haven't seen it yet, BUT...

We HAVE seen massive inflation in asset prices of real estate and the stock market-that do not correspond to fundamentals The prices are higher as a result of the inflation of the money supply.
This is the "great deformation" that Stockman writes about.

We also have food price inflation and all prices higher than the otherwise would have been if the market had been allowed to enter its deflationary depression in 2008/09

smaulgld says

We also have food price inflation and all prices higher than the otherwise would have been if the market had been allowed to enter its deflationary depression in 2008/09

I'm looking at the purchasing manager's report a week ago and China's PMI report being flat Germans' being down and the US report being up. If manufacturing is on shored as it is being this is one of the ways that inflation can get percolating in the main part of the economy.

indigenous says

I'm looking at the purchasing manager's report a week ago and China's PMI report being flat Germans' being down and the US report being up. If manufacturing is on shored as it is being this is one of the ways that inflation can get percolating in the main part of the economy.

Could be. I am in the stagflation camp
inflation with no "benefits"

indigenous says

smaulgld says

As long as there are central banks we wont have deflation- we should have had it the last six years

If inflation gets going Yellin will have to raise interest rates which will cause some/many to default. This will bring about deflation. How do see this not happening?

Zero Hedge: Why we won't have deflation in an era of central banks
http://www.zerohedge.com/news/2014-09-11/death-deflation-central-bank-era

smaulgld says

Zero Hedge: Why we won't have deflation in an era of central banks

Yup, BTW we did have deflation from 2009 to 2010.

Japan has been fighting it since the 90s

If inflation gets going the only way to stop it would be to raise interest rates.

With money velocity at record lows that might be considered a form of deflation?

Probably we will see it go back and forth between inflation and deflation unless some of that 4 trillion starts making its way into main st.

indigenous says

smaulgld says

Zero Hedge: Why we won't have deflation in an era of central banks

Yup, BTW we did have deflation from 2009 to 2010.

Japan has been fighting it since the 90s

If inflation gets going the only way to stop it would be to raise interest rates.

With money velocity at record lows that might be considered a form of deflation?

Probably we will see it go back and forth between inflation and deflation unless some of that 4 trillion starts making its way into main st.

What ever happens won't be because of the market determining events but rather incessant massive interference by central banks to create inflation.
If they ever get into a bind whether its a disaster either way- they will ALWAYS choose inflation- because they can always reset after the collapse and still stay rich!

As long as central banks exist there will NEVER be a deflationary collapse, just an inflationary one

smaulgld says

What ever happens won't be because of the market determining events but rather incessant massive interference by central banks to create inflation.

Yup

smaulgld says

As long as central banks exist there will NEVER be a deflationary collapse, just an inflationary one

If they are able...

The credit market is 60 trillion the money supply is 12 trillion. They have printed 4 trillion as massive as that is it is 6% of the two combined. Point is that it could get away from them...

Of course it can get away from them but they can print a lot easier than raising rates
A debt laden system based entirely on credit cant raise rates without an entire collapse
Central banks will always choose to inflate away

There is a reason they have an inflation target instead of a deflation target as no amount of deflation is acceptable to central banks

smaulgld says

Of course it can get away from them

The current situation is not always...

smaulgld says

but they can print a lot easier than raising rates

Yup

smaulgld says

A debt laden system based entirely on credit cant raise rates without an entire collapse

If inflation really gets going they will not have a choice.

smaulgld says

Central banks will always choose to inflate away

Which is why I vote for honest money after the collapse. Which will come sooner than later.

In the mean time bet on inflation

http://smaulgld.com/negative-interest-rates-and-janet-yellen/
And dont forget greenspans we can always print money

Unfortnately it doesnt require an anaysis
You just have to know central bank mentality around the world is anti deflationary
They will create inflation no matter what distortions result

smaulgld says

Unfortnately it doesnt require an anaysis

You just have to know central bank mentality around the world is anti deflationary

They will create inflation no matter what distortions result

What do you think about the emerging Chinese (Russian?) gold exchange? I certainly do not appreciate the power that exchanges have in the world. Your comments?

Blurtman says

smaulgld says

Unfortnately it doesnt require an anaysis

You just have to know central bank mentality around the world is anti deflationary

They will create inflation no matter what distortions result

What do you think about the emerging Chinese (Russian?) gold exchange? I certainly do not appreciate the power that exchanges have in the world. Your comments?

Russia and China are all that stand in the way of 100%manipulation. Unfortunately, they if they had the chance would do the same:

http://smaulgld.com/rise-shanghai-gold-exchange/

https://smaulgld.com/china-boosts-silver-production-domestic-use/

http://smaulgld.com/russia-adds-gold-reserves-july/

The Professor says

smaulgld says

100%manipulation

What is the percentage manipulation now?

I keep hearing about the paper price of PM being manipulated but where is the manipulation if I can still buy physical at the paper spot plus a premium?

The price is manipulated downward via naked short selling of contracts:
Here is a two part series I did that explains it:

Part 1 https://smaulgld.com/gold-silver-price-manipulation/

Part 2 https://smaulgld.com/gold-silver-manipulation/

The only reason paper and physical cost the same is so that the real stuff can be leveraged against to the greatest extent the market will bear, but the hardcore bugs don't feel that way. Neither do the Chinese. Neither do I.

deepcgi says

The only reason paper and physical cost the same is so that the real stuff can be leveraged against to the greatest extent the market will bear, but the hardcore bugs don't feel that way. Neither do the Chinese. Neither do I.

Gold and silver and manipulation has gone on for hundreds of years. Gold was fixed at $35 an ounce from 1934-1971

Gold and silver are competition to the fiat currencies, so fiat currencies are used to suppress their prices.

The Professor says

For how long?

Up until the point that the mutts say the king is buck naked...

indigenous says

The Professor says

For how long?

Up until the point that the mutts say the king is buck naked...

Or until physical demand overwhelms paper shorts

smaulgld says

Or until physical demand overwhelms paper shorts

Same difference

Central bank in battle against deflation

U.S. sees Europe deflation risk, plans G20 bid to boost global demand

http://uk.mobile.reuters.com/article/idUKKBN0H72HR20140912?irpc=932

Nothing new but a new article by schiff re
Central banks attack on deflation
http://www.lewrockwell.com/2014/09/peter-schiff/get-ready-for-runaway-inflation/