An uninformed look at economic markers in Canada and the US

Interesting things happened to the North American economic markers this week. Especially Friday. While these numbers are not catastrophic of themselves, they cannot be ignored as not meaningful. The first is precious metal prices. Gold hit an all time high, again, which is what, the third or fourth all time high in the past 75 days or so? I am not going to check the history but something very close to that from memory. Silver gained something like 2$ on Friday to close for the weekend at $33.68 USD. Not an all time high, but a significant gain for a day. Over 6%. Also the premium, or amount over spot silver price at Silver Gold Bull is at around CDN $6.00/Oz. This is over twice what is normally is, which is under $3.00 as a rule. Attributing meaning to this is also tricky. But normally in retail you drop the margins to sell stock which is high priced unless the market demand is crazy high. I wonder what retailers did with Beanie Babies back in the latter half of the 90s.

And the Canadian dollar is down, now trading at 1.38 against the USD. Which means however bad the US dollar is, the Canadian is worse.

A person could spend the rest of this year listening to analysts as to why these markers are as they are right now. Of course by Tuesday, everything could be totally different and none of it would matter. But these markers do seem to carry more significance than usual and probably deserve at least a little speculation. After all, an Oz. of prevention is worth a pound of cure. And especially when its in Troy ounces.

One possible reason could be the advancement of BRICS currency.

Another could be the guaranteed political instability about to grip Canada and the US over the coming US election, no matter who wins, but the instability will be by the left in both cases. Should Trump win, in the short term there will be a lot of chaos and destruction by the left. But it will likely right itself within a year. Even so, there will be a year where confidence for the USD will be low, and stability and confidence is what makes a Fiat currency work. And our enemies know that all too well.

There are also rumours of national governments trading fiat for gold and silver as fast as possible, as well as a renewed need for silver for new electric generation infrastructure associated with the need for the massive amount of power needed for AI.

Here is Mark Carney who has been trying to sell the clean energy scam for years now, and may very realistically be the next PM of Canada. I mean if you can believe that the failed actor, Justin Trudeau could ever be PM, then believing Carney could, despite his open admiration of Marx, Engles and Lenin, could easily be PM. Carney’s particular dialectic is where he claims that AI requires a great steaming load more power, and for some reason the creators and developers of AI really care how it is generated, and they insist that the power they consume is made by the methods he likes. Which is illogical. People who want electricity want electricity. It makes no difference how it is generated so long as there is lots of it, and it’s affordable. But also no mention of nuclear, which would be an actual solution if people believe that carbon based fuels actually cause climactic issues. Proving as usual that the problems are invented in order to implement  solutions that the state wants which have nothing to do with the problem, since the problem isn’t real.

In other words, create a problem, then invent a solution that means more state power and less individual rights across the board.

Also Carney has massive investments in oil pipelines. Did I mention that? No? Pierre Poilievre does a lot. 

Just released today here we have Carney talking on Nathan Erskine’s YouTube channel. You won’t believe what you are about to hear. They want ESG to dictate who gets business & who doesn’t & Carney claims this is what we want because we voted for Trudeau. pic.twitter.com/tbZIieupz9

— Ryan Gerritsen???? (@ryangerritsen) October 19, 2024

So upcoming US election with a lot of unknowns, except instability is guaranteed. Indications that the Democrats plan to steal the election are so abundant that even if they don’t manage to do it, confidence in the US democratic process will be smashed either way. This means a lower $ and some of that fear will translate to money moving to metals.

It is the belief of this author that the higher the level of abstraction of wealth, the less stable it is, and the more it requires a trust based civilization to allow its use with any confidence at all.

Having a secure warehouse full of necessitates such as water and food and clothes is primary level wealth. But highly impractical. So having a medium of exchange in which each person can be self determining in terms of how much that medium is worth to them for their goods and services is lowest level of abstraction of wealth. Traditionally this is precious metals. It worked for the Romans till they cheated the public with inflationary alloying it with baser materials.

Then, some kind of paper script which had a gold or silver amount attached to it. Like, I dunno, if we produced a note that claimed to be exchangeable for say, one pound of sterling silver for instance. I don’t know what we would call such a note, but say we made one up. That would be the next level of abstraction of wealth or stored value. Then, we detach the notes from the metals and treat them like shares in a company, only the country that issues the notes is the company, and that works extremely well so long as the board of directors works for the good of the company. And that has a shelf life. Most countries appear to be using an exit strategy or even a poison pill in some cases with their share prices. This detachment of the script with the metals is also a giant leap of increased abstraction of wealth.

Then we have 0s and 1s on a hard drive representing how much paper money is in our account which we can more or less access when we want if we answer questions at the bank just right.

Ultimately we get to crypto currency which requires so much infrastructure it is patently nuts to think of it as money at all. It is more like an online casino where the imaginary house issues its own chips and its value is set mysteriously and the chips themselves, to borrow a term from geology, are deliquescent. They evaporate on contact with air. Imagine an authoritarian world where all internet is totally monitored and controlled and someone who has a million dollars with of Bitcoin is desperately trying to convince someone to trade it all for 1 Oz of actual silver they can hold in their hands, and not get the deal. That is how I see it. Crypto is just a ponzy scheme. And the proof is the number of TwitterX users who waste your time trying to get you to buy it. Their holdings are only worth anything if other people keep buying into it. But even if it was money, its at such a high level of abstraction of wealth that its actual value is too unstable to be practical at all.

But, as we say, on Tuesday, or any day in the next week or two, everything can change with these markers. Like elections, the economy is too important to be left to mere people to decide. There are likely people who create these circumstances, and we can know for a fact George Soros is one of them.

As an aside, Soros was once asked why he did what he did to the Bank of England and the British economy. His answer defined the nature of a sociopath better than anything else from a hundred psychiatrists.

He said: “If I didn’t do it, someone else would have”.

Wow. There is an excuse to do absolutely anything you want for the rest of your life to anyone you want something from. You may as well do it, cause if you don’t, someone else will. And the media never held his feet to the fire for that answer.

Some might argue that something of his may be held to the fire for a very long time for the suffering he has caused to so many. I’ll leave that to the theologians.

At the end of the day, it seems like there is not much of a downside for people to at least purchase some small amount of gold and silver for their own to hold. Some amount where the money spent has no impact on your quality of life, but in the event that you need the physical silver, it could be the most important thing you own. It may in fact be a kind of insurance against economic apocalypse, but your premiums stay with you, and can always be traded back for fiat currency should you wish to do so. And yes, silver and gold is very high now. So it is a bad time to buy into it if you still think of metals as a kind of investment where you trade it back and forth for paper to increase the numerical value of the paper you hold. You may have missed that boat or you may not have.

But to hold some small amount of metals as insurance against some of the more catastrophic outcomes predicted by doom merchants and reasonable forecasters alike just doesn’t seem to have a downside.

Source: https://vladtepesblog.com/2024/10/19/an-uninformed-look-at-economic-markers-in-canada-and-the-us/