Silver: The Irresistible Force
Jeff Nielson

Close followers of my work may have detected what seems to be a conundrum, if not an outright contradiction in my writing. Having been the first to write about our Hostage Markets of the last 3 ½ years; it was recently asserted (in my June 19^th column on precious metals) that gold and silver are about to break-free of this crime paradigm. Call this "the irresistible force".

On the other hand; my latest commentary for Sprott Money states categorically:

…we now have an abundance of evidence to conclude that the One Bank will never (voluntarily) allow gold or silver prices to rise by any significant amount.

Given the relentless, absolute, choke-hold which the bankers have exerted over both the gold and silver markets for the last 40+ months; it is easy to visualize this obstacle to legitimate markets as the (proverbial) "immovable object". This sets up the eternal, and equally proverbial question: which side will win when the Irresistible Force meets the Immovable Object?

Let's begin with a (simple) mathematical/theoretical answer to this question. The Immovable Object is a force of inertia (i.e. mass alone), and can thus be mathematically described as an object of infinite mass. Conversely, the Irresistible Force is a mathematical product.

Based upon kinetic energy; the Irresistible Force can be mathematically characterized as (infinite) mass X (infinite) velocity, or simply "infinity squared". We now have a theoretical answer to our conundrum. Clearly infinity squared must prevail over (mere) infinity. The Irresistible Force trumps the Immovable Object.

The task of this commentary is thus to prove that reality will reflect this theory. The time-frame stipulated in The Daily Grind for this process to transpire was 12 – 24 months. While this may not seem imminent enough for impatient investors who have been (among) the victims of these Hostage Markets, "immovable objects" are not displaced overnight.

Here readers need to understand the specific dynamics involved: the (short-term) crime paradigm of the bankers, and the (long-term) fundamentals of these markets, which provide precious metals with sufficient economic "kinetic energy" to justify the title of Irresistible Force. It may seem absurd to describe the multi-decade manipulation of the silver market as a "short-term" phenomenon. Readers simply need to adopt a larger perspective.

The contest of the Irresistible Force meeting the Immovable Object epitomizes the phrase "eternal struggle". Such ultimate clashes of great forces take many, many years to develop; many, many years to play out. The genesis of the current paradigm dates back over a century, and has been chronicled in great detail in Charles Savoie's "The Silver Stealers".

To understand the reason behind the One Bank's obsession with absolute dominance over the gold and silver markets requires understanding the minds of the bankers, themselves.

"Give me control of a nation's money and I care not who makes the laws." -Mayer Amschel Rothschild

The 'logic' here is the logic of the criminal. Controlling a nation's printing-press allows a corrupt Possessor of such power potentially unlimited wealth, and the power (via banking) to plunder the wealth of others. The relentless hollowing-out of (nearly) all the wealth of the Western world proves both the existence of this crime-strategy and its extreme effectiveness as a tool for financial crime.

This is where precious metals enter the equation. Gold is the economic barometer which alerts us to such crimes-via-currency-dilution through what we now know as (price) "inflation". Prices for goods, most-particularly the price of gold, start to soar, demonstrating that the currency is rapidly losing purchasing-power, proving it is being printed in (grossly) excessive quantities.

When the "barometer" (i.e. the gold market) is allowed to function freely/legitimately (through significantly higher prices); it serves to put the brakes on the money-printing scams of even a corrupt operator of the national printing-press. Silver, on the other hand, performs an entirely different but equally important function.

With the bankers, themselves, often resembling comic-book villains (as they start wars, and destroy the economies of entire nations); silver can best be described by a comic-book metaphor. It is the bankers' "kryptonite". Silver's power against the banking cabal (and its serial, financial crimes) manifests itself primarily in two ways.

Of greatest importance; when the Average Person stores their disposable wealth in silver, it immunizes that wealth from most of the bankers' financial crimes – most particularly their theft-via-currency-dilution. Obviously one cannot be victimized by the bankers' relentless, extreme, and deliberate dilution of our (paper) currencies if one does not hold their paper.

It is certainly possible (in theory) for gold to fulfill the same function, since it possesses the same monetary properties. However, because of its greater scarcity (and thus greater value); gold tends to be the "money" of governments and/or the wealthy. It is also not as practical for use in most of the commerce in which the masses engage.

It is silver that is both accessible to all of the masses (thus allowing them to protect their much smaller nest-eggs of wealth) and is most-practical for using in most of our routine, daily commerce: paying bills, or shopping for groceries and most consumer goods. It is only the more-extreme suppression of the price of silver which makes it currently seem impractical for use in even larger purchases.

It is these two vital roles which silver could (and should) be fulfilling in our economies which terrify the bankers even more than gold's role as our economic "barometer". Unless it is also used to back our currencies (i.e. a "gold standard"); gold merely serves to warn us of the bankers' financial crimes – most particularly those relating to currency-dilution.

It is silver which not only protects us from the bankers' predatory/rapacious plundering, but commensurately, it also reduces the size of those crimes. Storing our wealth in silver protects every 'dollar' of that wealth from theft-via-currency-dilution, and thus reduces the total quantity of the bankers' funny-money in circulation. Equally; using silver in our commerce would similarly reduce the demand for the bankers' fraudulent paper, and thus reduce the amount in circulation.

As our economies turned more and more to "honest money"; the financial carnage wrought by the bankers within our economies would be greatly reduced, even if our corrupt governments continued to refuse to uphold the Rule of Law. Such is the power of silver.

What makes it appear that the current scenario of extreme price-suppression in the silver market is about to fail? Several factors point in this direction. Let's begin with some significant details divulged by the mainstream media, and seized upon by the vigilant eyes at SGT Report.

The bankers now tell us that their obviously/absurdly fraudulent paper-gold market is an $18 trillion market, while the bankers' paper-silver market is a $5 trillion market. This ratio of slightly more than 3:1 is extraordinary, once we plug-in some other numbers from this sector to provide context.

We begin with the current price-ratio between gold and silver. For over 4,000 years; this ratio averaged 15:1, commensurate with the fact that silver naturally occurs in the Earth's crust at a 17:1 ratio to gold. Today, that ratio stands at a contrived, fraudulent level of more than 60:1.

Meanwhile, more than a half-century of extreme under-pricing has decimated global silver inventories and stockpiles. This is the inevitable result of under-pricing any good: demand is over-stimulated while supply is depressed. This results in a permanent supply-deficit, until either some form of inventory default occurs or there is a dramatic price-increase to rebalance supply and demand.

The most generous estimates of current above-ground stockpiles of silver versus gold are a ratio of 6:1. Some writers now suggest that gold stockpiles could actually exceed silver stockpiles. But let's stick with the more conservative figure.

With six times as much silver in existence, but the gold/silver price ratio skewed to more than 60:1; simple arithmetic dictates that the gold market should be at least ten times as large as the silver market, and significantly more than that if we estimate the depletion of global silver stockpiles more aggressively.

The fact that the actual differential in the size of the two markets is only roughly 3:1 indicates that the paper-silver market is at least three times more-fraudulent (and three times more-leveraged) than the gold market. Here we have more numbers to plug in.

One of the bankers' favorite front-men, ex-Goldman Sachs banker Jeffrey Christian, divulged that the "gold market" (i.e. the bankers' paper-called-gold market) is 100 times larger than the actual amount of gold in circulation. But that revelation is now more than four years old.

All of the bankers' financial mega-frauds have swelled significantly over the past four years. However, the last 40+ months of Hostage Markets for gold (and silver) suggests that the level of fraud in this sector has accelerated at a much greater rate. Such an extreme degree of price-suppression in these previously "volatile" markets requires a lot of downward pressure (i.e. paper-fraud).

One must suspect that the paper-called-gold market is now pushing 200 times the size of the actual amount of gold in circulation (if not more). And now we know (from the mouths of the bankers themselves) that the silver market is (at least) three times as fraudulent, and thus three times as leveraged. This suggests that the paper-called-silver market exceeds the amount of actual silver in circulation by some ratio in excess of 500:1.

Even with the One Bank controlling our markets, controlling the market-regulators, and controlling our governments; at some point such extreme leverage/perversion/fraud in any market simply implodes. After decades of this systemic fraud in the silver market; do we have any reason to believe that now, finally "the end is near" (i.e. the Irresistible Force prevails)?

Yes. We need look no further than the bankers' own behavior. When the bankers artificially created a "supply crisis" in the silver market in 2008 (by crashing the price of silver by 60%), we know how they responded in order to prevent implosion of their paper-silver scam back then.

They backed-off on their price-suppression. They allowed the price of silver to triple over the next 24-month period, and by the end of that time-frame, higher prices caused silver demand to plunge by more than 50% in the largest market for silver: India. In 2013; the contrived plunge in bullion prices once again led to a supply-crisis in the silver market; once again its epicenter was India.

Indian silver-demand in 2013 exceeded the record levels recorded in 2008, while current inventories/stockpiles are (must be) even more-depleted than they were five years earlier. Yet how have the bankers responded to the new silver supply-crisis, in 2014?

They have refused to allow prices to rise. Instead, all they have done is to reverse their own previous crime-strategy of curtailing gold-imports into India, which had exacerbated Indian silver-demand. Not only does this tactic once again increase demand pressures in the gold market (which prompted the One Bank's original attack on India's gold imports) it only marginally reduces demand for silver.

It suggests capitulation by the bankers: resignation to the fact that their crime-paradigm in the silver market (in particular) is now past the point-of-no-return. It took the bankers 24 months to cool-off the last silver supply-crisis. Even if we assumed a more-radical strategy of allowing prices to rise; it seems unlikely that an increasing-price strategy could alleviate a supply-crisis in any less than 12 months.

This forms the basis for the parameters of my prediction. It is the bankers, themselves, who now tell us (via their actions) that their 50+ year-old paradigm of crime in the silver market cannot survive another 12 – 24 month transition period, to stabilize their paper-called-silver "market" (i.e. scam).

The Irresistible Force must prevail over the Immovable Object. And now the countdown has begun.

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