Ocean Rising
posted on
Oct 15, 2008 04:24PM
(PRESS PROFILE TAB FOR FACT SHEET & UPDATES)
I just read this from silveraxis.com............
A reader points out that the Monetary Base as tracked by the St. Louis Fed has now exceeded $1 trillion. Well, I would like to point out that the rise was achieved in a remarkable fashion not unlike a helicopter taking off. Tomorrow we’ll find out what our brave boys at the Fed and Treasury have been up to in the past week. Are they continuing to try to nickle-and-dime the confidence of the markets back to health? If so, the result will remain more like a death by a thousand cuts.
Alright, so where does this leave us silver and gold investors? My strong suspicion is that the world is about to witness a very sobering development, not unlike what beachgoers on the shores of the Indian Ocean experienced on Christmas 2004. Many people on the beaches that day were compelled to watch or even investigate the sudden disappearance of the ocean from the beach. Some even ventured out to pick up fish floundering on the exposed ocean floor. In many cases, water had receded as far as the eye could see. And then the waves came. Almost everybody was caught unprepared and there was nearly universal surprise that water which had drained away so fast could come back even faster.
I suspect we’ll witness something very similar with the monetary system in the next few weeks and months. The experts now fear that money will drain away forever as the banking and financial crisis escalates. There is no consideration being given to the fact that the money supply is not actually shrinking but rather growing. And just like an earthquake that causes a large plate to shift on the ocean floor, the huge and growing liquidity injections have caused a large shift on the monetary floor (the Monetary Base). No doubt most people in the world will be surprised by the speed with which the monetary tsunami will reach our shores. I’m predicting the first wave will appear before December 2009, but it could be much earlier.
Safety during an ocean tsunami depends on seeking and finding high ground in advance. Safety during a monetary tsunami depends on seeking and finding gold (and silver) in advance. Will you be safe?