Beiträge von bullionbulls

Zitat von silver__surfer

der chart ist wohl hochgradig seltsam. real price ATH von 800$ bei gold ratio von 1:15? dann müßte gold bei 12000 gewesen sein im realen preis. das kann wohl nicht ganz sein.

First of all, since this chart is in my most recent commentary (which I posted here Monday), I'll assume that this is the source for these subsequent posts.

The first observation is that these are "inflation-adjusted" numbers, meaning that the "600 year low" in the price of silver is in REAL not nominal dollars.

In addition, because "official" numbers in recent years grossly underestimate inflation, the numbers on that chart (even up to 1998) significantly under-state inflation on the right side of the chart - meaning that the write portion of the chart should be pushed even LOWER (as of 1998).

Put another way, John Williams of Shadownstats.com has written that using REAL numbers for inflation that the price of gold would have to rise to $7500 (in USD's) just to EQUAL the 1980-high.

Start playing around with THOSE metrics and THEN you will get an idea of where the price of silver is REALLY going!

Monetizing Silver: Instant Prosperity

For well over a year, we have been forced to listen to “economic experts”, media talking-heads, and government “leaders” yammering on and on about “currency wars” or “trade wars” – and all because people who know nothing about economics are wailing about how the value of their money isn’t falling fast enough.

In this insane world, serial inflationists like “Helicopter” Ben Bernanke are deemed to be the “winners”, since they are destroying their national currency the fastest. For those who are sickened by continuing to listen to their own governments lament about not destroying our wealth fast enough, let me recommend “taking a vacation” – in the real world.

In the “real world”, people don’t want their money to be worth less and less and less (and eventually nothing), they want it to be worth more. In the real world, it is considered a tremendous advantage for one’s currency to appreciate in value.

Over the past several months, Hugo Salinas Price has trumpeted the growing “political movement” in Mexico to partially “re-monetize” silver – as a parallel currency to the current banker-paper (i.e. the peso). Indeed, commentator Ben Davies speculated that this factor alone would send the price of silver soaring higher, as yet another incremental source of demand (in a world where silver stockpiles are gone)...

Full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

The parameters I discuss in relation to North American economies are also highly relevant to Euro-zone economies, so hopefully the members of this forum will pay close attention to the contents.

Simply: you have all been DECEIVED. What is dragging our economies down into bankruptcy is NOT "over-spending" it is collapsing revenues. NONE of our economies generate enough revenues at any level of spending to make our economies solvent. Thus "spending cuts" can only INCREASE our plunge toward bankruptcy - not stop it.

This is simple arithmetic - which is ALREADY clearly on display in Greece in Italy. Europeans would have to be just as stupid as North Americans to think things will be ANY different when Portugal, and then Spain, and then Italy, and then France go down the exact same road...

The ONLY salvation for our economies is to tax-back the $10's of TRILLIONS hoarded (and stolen) by the ultra-wealthy - so that our economies once again have "blood" circulating in them...

Our ‘Blood-less’ Economies

http://www.bullionbullscanada.…:us-commentary&Itemid=132

Given the inept clods who are currently in charge of our economies, it would be a doubtful proposition for them to “fix” things, even if they actually knew what the problems were. The fact that our “leaders” display not the slightest comprehension of the real, structural problems which exist in our economies obviously means zero possibility of (real) improvement.

In this respect, a simple analogy is in order. If our problems are explained to the people first, then maybe they can explain them to our “leaders”. There is no better analogy to use in “diagnosing” our economies than to equate the wealth in our economies with the blood in our bodies.

The parallels are many and obvious. Indeed, economists talk about wealth “circulating” through our economies in much the same manner that doctors speak of blood circulating through our veins and arteries. Framed in this manner, our “problem” becomes simple to identify: there is very little wealth “circulating” in our economies – mirroring the situation when our bodies have too little blood being pumped through our circulatory system...

full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

LuckyFriday, your cynicism concerning markets is understandable - given that "market fraud" is a common theme of my own writing.

Never forget that this is a "two-edged sword". It is PRECISELY and ONLY because of rampant manipulation that we were all able to purchase our bullion so cheaply - and can STILL buy it below "fair market value" (while we already sit on large profits).

It would be FOOLISH to ignore the profit-potential of the miners simply on fears of the SAME manipulation.

For the record: we are STRAIGHT (and only) "longs". There is no reason (at all) to incur the additional risks and complications of shorting - when we can simply BUY when prices are low and SELL when prices are high.

We are not BANKERS: people whom are so greedy that they NEED to try to "turn a profit" (I.e. cheat someone) every day. We are "investors", helping other investors to capitalize on one of histories all-time great "bull markets".

Here is something different: the work of my PARTNER, Brian Boutilier.

Brian is a very sharp, very dedicated person - who provides us with excellent mining analysis, along with creating and updating our database of mining companies...

"Yukon Gold Rush: No Place For Greenhorns"

There is a modern day “Gold Rush” taking place in the Yukon. Gold and Silver in the Yukon is far from a new story, its beginnings date back to the early 1800s. The Yukon has exacted a steep price on those who would make their fortune, with its harsh lands and harsher climate. The indigenous Cholkoot Indians reportedly didn’t take kindly to their land being invaded by outsiders, and defended themselves aptly. One hardy soul named George Holt braved these conditions during the 1870s and produced enough gold for others to take notice. By 1880, there were nearly 200 gold panners working the sandbars along the Yukon River.

As I understand it, luck had more to do with the Yukon Gold Rush than skill. A traveler (non prospector), George Washington Carmack and two Indian friends happened upon a large gold nugget nearly buried in the Klondike River. Word spread of the shear size of this nugget. By 1898, over 100,000 adventurers departed from whence they came for the Yukon to strike it rich. Sadly, only 40,000 actually survived the trip.

So, history repeats itself in the Yukon over a century later. In 2008, Underworld Resources reported significant mineralization on its White Gold Property. It wasn’t a massive nugget, but surface gold “open” in all directions. As in the past, the ground near Dawson Creek shook as exploration companies rushed in. Intrepid claimstakers, whom had braved the downturn of gold prices in years past, finally get to rock on the front porch with a glint in their eye and potential royalties in their pocket.

Gold exploration continues actively in many areas spurred on by the successful exploration of the White Gold Property by Underworld Resources (now owned by Kinross). One has to ask, where did all the alluvial gold come from that was panned in the past? Is the source of this gold being closed in on? Investors with a passion for junior miners are looking for the next best story, the next junior to come up with broad intercepts, the next “ten bagger”...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

Undoubtedly there will be material in this commentary which is of use to all the members/readers of this forum...

The Tools of Disinformation

In the preceding piece to this, I introduced readers to the topic of disinformation. I pointed out it was a technique for psychological manipulation which was literally thousands of years old, and one which our governments have made a great effort to master – either out of desire, or necessity.

On problem with analyzing a topic of this nature is that people will naturally associate it with “conspiracy”, since there is specifically an element of secrecy to this form of propaganda. In turn, readers have been conditioned to immediately become suspicious of any/every “conspiracy theory”. Ironically, this itself is an illustration of the one of the largest and most successful disinformation campaigns in our societies, but I won’t go into detail in that respect until later.

Having discussed disinformation previously in the somewhat theoretical context of war, many readers may be thinking to themselves that, in fact, this is a topic which has no relevance in “the real world” (i.e. peoples’ day-to-day lives). In actuality, we are being saturated with disinformation every day of our lives, much like the deluge of ‘ordinary’ propaganda – to which growing numbers of people are finally awakening.

For the most common form of disinformation we need only look to our stock markets (one of the “playgrounds” of the bankers). Go to any/every “stock bulletin board” or forum anywhere in the Western world, and every day you will see an army of “trolls”, whose sole (paid) function is to spread disinformation about various companies...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

I took a moment to consider what "thread" I would use to post this general commentary. I quickly decided that I couldn't find any area where "disinformation" had played such a major role as in the Made-in-the-USA "Euro debt crisis"...

The Age of Disinformation

...Disinformation is a highly-specialized form of propaganda. While some types of disinformation are even cruder and more mindless than the propaganda with which we are already familiar, some pieces of disinformation are very cleverly constructed and distributed – for the “consumption” of a totally unsuspecting public. Herein lies the key to disinformation: it is an indirect attempt to control our thoughts.

Propaganda is a very “blunt” instrument for attempting to influence our minds. The “message” is delivered directly to the “target”. The success of propaganda depends primarily on the persuasiveness of the message, and secondarily on the credibility of the source of the message.

In historic terms, we are most familiar with propaganda (and disinformation) in the context of war. Thankfully, very few wars end with one side simply exterminating the other. Instead, “defeat” takes place when one side loses the will to continue fighting – to the point where they become willing to accept surrender on their enemy’s terms. The “prize” for winning the battle of propaganda is so large and the “penalty” for losing so severe that our governments have devoted tremendous amounts of time and energy to becoming masters of propaganda...

full commentary: http://www.bullionbullscanada.…nal-commentary&Itemid=133

0% Interest Rate = Worthless Dollar

In a recent piece I wrote, ‘Suicide Bombers’ in the Gold Market?, I strongly asserted that the highly-leveraged spread-trade which ‘blew up’ – and caused the most recent sell-off in the gold market – was deliberately orchestrated by the anti-gold banking cabal.

To briefly summarize the facts, an unknown “trader” was able to leverage a $10 million “fund” (i.e. bet) into an $850 million dollar spread-trade, representing nearly 15% of the entire Comex futures market, while leveraged at an absurd 85:1. It was a “trade” created to fail. Of more relevance (to this piece), I observed that such tactics would likely become commonplace with the banksters, since a mere $850 million was “nothing” to them – in a world where they can get their friend (and fellow, private banker) Ben Bernanke to simply print-up $850 million more in Bernanke-bills, and “lend” it to them at 0% interest.

A reader of my previous piece attempted to criticize that commentary by noting that the actual losses on the trade(s) would have been nowhere near $850 – totally missing the point. With the Wall Street bankers able to obtain (and Ben Bernanke willing to print) infinite amounts of Bernanke-bills, “loaned” at 0% interest, this paper has become nothing more than “confetti” to the banksters.

Several observations need to be made about the United States’ “zero interest rate policy” (ZIRP), observations which (strangely) no one in the mainstream media has been willing/able to make...

full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

I'm particularly proud of this piece, and would expect most of the readers here to gain a better understanding of the silver market from reading it.

The Future of Silver Mining

...What I demonstrated conclusively (through simple arithmetic) is that the only reason that most of the world’s silver production doesn’t come mostly from “primary” silver mines is purely a function of the price of silver (i.e the extremely low price).

More specifically, I pointed out how it was the relentless manipulation of the price of silver – which was kept far below its “fair market value” – that resulted in the “silver mine” becoming an “endangered species”. In this commentary, I intend to build upon that analysis, by explaining the implications of that analysis with respect to the creation of new silver mines.

To start this process, it is first helpful to examine the gold mining industry, given the many and obvious parallels between the two metals. With respect to the gold market, knowledgeable investors are well aware that this metal has also been subjected to decades of price manipulation. While the manipulation of the gold price can be seen as “extreme” relative to the pricing of other metals, the manipulation of silver was “extreme” in relation to the price of gold...

full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

(Leider Übersetzung nicht verfügbar)

The Miracle of Deflation

One of the benefits of reading/listening to the insightful presentation of data from others is that it should stimulate the thought processes of the recipient of that information. When such a presentation is accompanied by excellent analysis, that effect is multiplied. So it was for me after a reader passed along a clip to a wonderful presentation by Joseph Salerno, an “Austrian school” economist, and academic vice-president of the highly esteemed “Ludwig Von Mises Institute”, named after the godfather of Austrian economics.

While there were many memorable moments in the presentation, what sent me racing off into my own tangents was when Salerno brought up the subject of “deflation” – and the many and obvious benefits which deflation bestows upon both economies and individuals. Salerno didn’t spend too much time dwelling upon this subject, since to the “Austrians” this is highly self-evident material.

He pointed out a couple of obvious examples. The price of computers has steadily fallen since these vital products were introduced into our markets and societies. Has anyone heard a politician, banker, or media talking-head warning us that “the sky is falling” because of the rampant deflation in that sector? Has deflation destroyed either the manufacturers or retailers of computers? Rather, has deflation not actually created a much larger, much healthier sector for both manufacturers and retailers alike?

Salerno also pointed to the more-recent example of “big-screen TV’s”. Given that the extreme phobia of politicians, bankers, and media talking-heads toward inflation is a recent phenomenon, has anyone heard any of these deflation-Chicken Littles “warning” us that deflation in this rapidly growing sub-sector of the electronics industry is going to “destroy” these companies, or harm the general public in any way?...

full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

The Myth of the ‘Primary Silver Mine’

...Any investor even modestly familiar with the red-hot silver sector will know that the majority of silver currently mined each year is produced as a “byproduct” of other mines (roughly 2/3 of all silver production). In other words, contrary to the vast majority of other metals, silver is unique in relying upon this “incidental” production to satisfy the massive and growing demand for silver both as an “industrial metal”, and as an investment/insurance/“good money”.

There are many supply/demand dynamics which flow from this current paradigm of production, but even before we get to those factors, we need to analyze how we ever reached this current scenario. Certainly, throughout thousands of years of history, “silver mines” (i.e. mines which primarily produce silver) have been just as prevalent as “gold mines” – subject to the qualification that local geology will make one or the other more predominant in any particular region.

The obvious question then becomes: how did the precious metals sector evolve into the current state where (on the one hand) we have most gold still produced from “gold mines” (i.e. primary gold producers) while with silver we are dependent upon mainly “byproduct” production for most of our silver? The answer can be reduced to one, very simple equation: the gold/silver price ratio.

While most informed, precious metals analysts (including myself) will state unequivocally that gold is under-valued today, the price-ratio of silver to gold (which has averaged roughly 15:1 over 5,000 years) is currently at the still-extreme level of more than 40:1, despite the explosion in the price of silver in 2010. Thus if gold is “cheap”, then silver is “dirt-cheap”...

full commentary: http://www.bullionbullscanada.…ver-commentary&Itemid=130

Analyzing a Basket of Miners

This is the sequel which I promised readers following my previous piece, “The Bullion Bulls Basket”. Before I get further into this, I want to remind readers that this is not an exercise in pointing readers toward particular companies, but rather in teaching/explaining to readers how to select and invest in these companies on their own.

As I pointed out in the first commentary, we have been left with little choice when it comes to handling our investments. First, the vast majority of financial advisors demonstrated (via the Crash of ’08) that they were utterly clueless as to the level of vulnerability they had created for their clients.

Following that ugly episode, these “experts” (on a near-unanimous basis) pronounced that “buy and hold is dead” – this being the strategy which they had consistently recommended to these same clients in previous years. As I also observed, warning their own clients that they could no longer trust the investments which these experts chose for them (over any length of time) is nothing less than an admission of their own incompetence. Telling an investor to “buy something”, and then whispering in his ear “…but don’t hold it for too long” is not financial advice which inspires confidence.

Having thus been forced to take responsibility for our own investments, the obvious question to ask is “how can we possibly justify paying trading commissions to these incompetent middle-men?” For those who are unable to come up with a good answer to that question, we offer investors guidance in becoming their own “financial advisor”...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

U.S. Housing ‘Vicious Circle’ Worsens

...New numbers show that roughly 27% of all U.S. mortgages are currently “underwater”, worse than the (supposed) “bottom” of the original collapse, when that number soared to a previous record of 25%. This single number exposes a multitude of myths.

For three years, Americans have been told by both politicians and bankers that they were “working hard” specifically to eliminate/alleviate the blight of underwater mortgages. In fact, what this number proves is that these charlatans were “hardly working”. Their “progress” after three years is less-than-zero.

For two years, Americans have been told by politicians and bankers that there is a “U.S. economic recovery” underway. Two years ago, the U.S. housing market was in the worst shape it had ever been in, after a collapse more severe than the worst years of the Great Depression. And now after two years of a “recovery”, it’s in even worse shape?

Quite simply, one could spend their entire life scanning the annals of economic history, and would never find another example where a housing market which was already at a multi-decade bottom has deteriorated after two years of “an economic recovery”...

full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

‘Suicide Bombers’ in the Gold Market?

I was listening to another fine interview on the King World News site, this one with Ben Davies of Hinde Capital, when I was immediately intrigued by some of Davies’ remarks.

He stated that he considered the entire, recent trading-episode in the gold market “suspicious”, for two reasons. First of all, he was susprised that any (competent) trader would have leveraged himself into such a dangerous position in the first place. Secondly, and connected with his first observation, he expressed equal surprise that the so-called “regulator” (i.e. the CME Group) would have allowed such a flawed and vulnerable trading position to have been created, in the first place.

What Davies (and others) have apparently not considered is that this “leveraged”, “dangerous” trade was created to fail – in spectacular fashion. Essentially it appears that the Wall Street banksters (and the corrupt institutions who serve them) have imported the terrorist concept of “the suicide bomber” to precious metals markets.

For those not familiar with the episode Davies refers to, a previously unknown “metals trader” named Daniel Shak used $10 million to leverage his way into an $850 million “spread trade” (i.e. 85:1 leverage) in the U.S. gold futures market - equal in size to more than 10% of this entire market...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

As we educate our readers on investing in precious metals mining companies, a common theme in our message is that investors must own/hold a “basket” of these companies. This criterion is based upon several factors.

As is the case in many sectors, “high growth” is only available via investing in the smaller mining companies – the “junior miners”. Conversely, while these smaller companies offer vastly superior growth profiles versus the “seniors”, the trade-off is that (naturally) there is increased volatility with these companies, and risk.

This “risk” comes in two forms. There is the absolute risk that any particular miner might fail to succeed, and will saddle its investors with long-term losses. The other aspect of risk is with respect to the rate of development of these companies. With their more speculative nature, even the expert analysts in this sector cannot predict with precision the speed with which these companies will develop.

Holding a basket of these junior miners addresses both of these categories of risk. Spreading out our investments among more companies, greatly reduces the impact of any one “loser” on our overall performance. Similarly, by spreading out our “bets” among these companies we also address the second form of risk – the amount of time we must wait before the investment potential of a particular company is realized. By holding a number of these companies, we will (hopefully) always manage to pick a few of those miners who manage to excel over the short term...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

Precious Metals Bull-Riding

For obvious reasons, there is no metaphor more applicable to investing in the precious metals sector than riding a bull. With gold and silver prices having risen relentlessly for a decade, the stature and stamina of this “bull” are beyond question. Equally, remaining atop this “bull” has been an activity to challenge the perseverance and staying-power of the most dedicated rider.

Helping us to improve our prowess as bull-riders have been two groups of “trainers”. However to state that these two groups have opposite intentions is clearly an understatement. On the one side are long-established websites like Jim Sinclair’s site, GATA, and LeMetropole Café.

These fine sites have performed several valuable functions. They provided novice bull-riders with guidance on the precious metals sector. Of equal importance, they have continuously shone a spotlight on the manipulative activities of the bullion-banks. In other words, they have taught us about the tactics and motives of the “bull” we have sought to ride. Lastly, they have supported those whose “grip” was weakening to help them stay atop the bull, while encouraging those who have been “thrown” to get back on the beast...

full commentary: http://www.bullionbullscanada.…old-commentary&Itemid=131

Deutsche:

Precious Metals Bull-Riding

...Natürlich, die Goldbarren-Banken wollten nicht zu "trainieren" bull-Fahrer, sie wollte nur bull-Fahrer brechen. Doch bei der Versorgung der bösartigste "Ausbildung Stier" konnten sie für die Novizen, die Bull-Fahrer sie jetzt mit den Folgen leben müssen werden gesucht aufbringen. Während viele waren gebrochen, haben diejenigen, die auf Eis verwalteten enorm versierte gewonnen, verliert alle Angst des einst einschüchternd Bullion-Banken.

Der Beweis für diese neue Haltung ist alles um uns herum. In früheren Jahren auf unserer eigenen Seite war es üblich, Kommentare und Fragen fragen laut, wenn die Bullion-Banken "unbesiegbar" waren, wenn die Branche einen "top", oder sogar eine "Blase" erreicht hatte erhalten. Solche Zweifel sind einfach verschwunden. Anstatt zu fragen, "ob" der Drossel-Hold, in denen die Banker diesem Sektor seit Jahrzehnten gehalten haben gebrochen werden kann, alles, was unsere (ungeduldig) Leser wollen jetzt wissen, ist, wenn ihre "endgültige Niederlage" auftreten wird?...

volle kommentar: http://translate.google.com/tr…commentary%26Itemid%3D131

Fraud Suit Against JP Morgan Displays Bankster ‘Culture’

If I were to try covering every fraud-based law suit against Wall Street bankers, I would need to be writing more than a commentary a day. However, occasionally one of these actions is so emblematic of the crime-culture of these banks that it becomes useful and notable to cover one of these “dog bites man” stories.

In the matter at hand, we have one group of predatory bankers (those of Bear Stearns) lying, cheating, and stealing from its own clients. We have a second group of bankers (those of JP Morgan) who cannibalized Bear Stearns – so that they could lay claim to the profits from that lying, cheating and stealing.

As with the most of the recent law suits alleging fraud against Wall Street, this suit begins with Bear Stearns fraudulently selling “toxic” mortgage-backed securities to its clients (after getting these banker scams rubber-stamped by their accomplices at the ratings agencies). And as is also generally the case, there is not the tiniest sign of ethics/integrity/morals with these banksters. Rather, all that the facts illustrate is that the (former) Bear Stearns bankers (now JP Morgan bankers) who ripped-off their clients demonstrated the clear intent to cheat their clients and commit further crimes – at every opportunity...

full commentary: http://www.bullionbullscanada.…:us-commentary&Itemid=132

I don't usually comment on individual companies, but I have held this one for quite a while.

First the "history": one billion ounces of silver extracted from the world-famous Guanajuato mine - but ALL at depths of 400 meters or less. The reason? None of the previous owners had the technical expertise to mine below the water line (400m), which is a trivial issue to modern mining companies.

This 1+ billion ounce deposit was/is "open at depth" for over 5 km. Subsequent drilling has demonstrated that mineralization goes to at least the 600-meter level, while crude "modeling" of the deposit suggests as much as 50% more silver below the 400-meter level.

Ironically, shortly after changing the name of the company from "Great Panther Resources" to "Great Panther SILVER" they started hitting some really nice GOLD intercepts in their most recent drill results. Whether you want to interpret this as "much lower cash costs" for its silver, or large new "gold credits" added to its revenues, what it means is that profit margins can be expected to go much higher even if bullion prices stayed flat.

There is also the capacity to raise TPD's at Guanajuato with minimal capital investment. The company has merely been waiting to increase access to new ore (along with adding a couple of scoop-trams) before pushing the TPD's higher. So there will be some cheap production-growth ahead for this year as well.

For all the German investors who follow these Canadian-listed companies, I would like to remind you that we have a LARGE database of these companies on our website - kept up-to-date by our Mining Coordinator, Brian Boutilier.

http://www.bullionbullscanada.…=section&id=10&Itemid=117

We are also always available to discuss these companies with visitors to our forum:

http://www.bullionbullscanada.…122&func=showcat&catid=10

High Wages and Economic Prosperity, Part II

In Part I, I briefly reviewed the approximately 400-year history of our current low-wage/high profit economic model. At the conclusion, I boldly predicted I could show the “great evils” of this economic model, while simultaneously claiming I could demonstrate – empirically and theoretically – that a high-wage economy leads to “maximum innovation, maximum efficiency, and maximum prosperity”. Time to deliver.

The most obvious “evil” of a low-wage economy is an artificially low standard of living for the vast majority, so that a small minority can enjoy a much higher standard of living – and build-up ever larger hoards of wealth, which damage the economy still further. The wealth which circulates in our economies is like the blood which circulates through our bodies. As these very wealthy parasites suck all the wealth out of our economies, the economies sicken and die, much like a person sickens and dies through losing too much blood...

full commentary: http://www.bullionbullscanada.…ian-commentary&Itemid=134

High Wages and Economic Prosperity, Part I

...we have a group of theorists who are in complete agreement that we don’t want most of our economy’s wealth to flow into the possession of another country, and are in complete agreement that we don’t even want to see our own governments accumulate large pools of wealth – because just like draining us of our blood makes us anemic (and eventually kills us), draining the wealth out of an economy (and allowing it to accumulate in huge hoards) must always sicken and kill an economy.

It is only blind self-interest and elitism which makes these theorists incapable of seeing that allowing vast hoards of wealth to be accumulated by a tiny group of individuals is just as destructive (if not more so) than through allowing our economies to become hollowed-out by other means. It is nothing but elementary arithmetic to point out the obvious: low wages lead to high profits, which in turn leads to the accumulation of large pools of (idle) wealth, which in turn dooms an economy to implode. However, this principle implies much more.

In Part II, I will expand further on the great “evils” of the low-wage/high-profit economy, along with demonstrating (both theoretically and empirically) how a high-wage economy must ultimately lead to maximum innovation, maximum efficiency, and maximum prosperity.

full commentary: http://www.bullionbullscanada.…ian-commentary&Itemid=134