Silver, Oil, and the Great Generational Heist: How Rigged Prices Are Robbing Humanity's Future
Editors Note:
Yesterday a post went out that was meant to “poke fun” of the stark difference between serious silver investing by stating the market often treats it like it is some kind of sports wager.
Nothing could be further from THE TRUTH
This news letter does not endorse gambling on sports whatsoever, it was intended to show that silver investing is serious business
end of segment
Manipulated commodity pricing often leads to wasteful consumption patterns and inefficient resource allocation. When gas prices are artificially low, consumers tend to make less economical choices. For example, they may opt for gas-guzzling vehicles like Hummers or large RVs, which consume significantly more fuel than smaller, more efficient alternatives.
Similarly, low energy prices can lead to wasteful behaviors in homes and businesses. People may be more inclined to leave air conditioning running all night or excessively heat their homes in winter, consuming far more energy than necessary.
In the case of silver, artificially low or rigged prices (created by paper trading of 400 paper ounces to 1 physical ounce) can lead to wasteful industrial practices. Industries may overuse silver in various applications, such as aerospace, torpedoes, other weapons, without considering long-term sustainability.
Rigged low silver prices serve the interest of the Federal Reserve and their clients. Their clients are the military industrial complex and the US executive, legislative and what we call “The Deep State”
Remember last Sunday; we discussed Napoleon Bonaparte during his final years; he became very philosophical and stated that when private bankers loan Governments money, they become more powerful than Governments because the hand that gives is above the hand that takes
This overconsumption can deplete silver reserves more rapidly than necessary, potentially leading to future supply shortages.
The manipulation of silver prices presents a complex issue. While low prices may seem beneficial for industries using silver as an input, they can also create long-term problems. Industrialists with banking connections influence the market by promoting short-selling of silver, keeping prices artificially low.
This manipulation distorts the true supply-demand dynamics, leading to inefficient resource allocation and future scarcity. We are here now, recall that we are now in the 5th consecutive year of a severe silver deficit. Meanwhile Mexico the #1 Silver producing nation has AISC numbers around $27.15 and Mexico’s MORENA party is leveraging their resource wealth signaling nationalization. (Perhaps a too Shrewd political move but strategic nonetheless)
These examples illustrate how manipulated commodity prices can lead to wasteful practices across various sectors, highlighting the importance of fair and transparent pricing mechanisms for sustainable resource management.
It’s important to review this post from yesterday where gentlemen like Terry Lynch and Eric Sprott are rallying the troops in an important fight against naked short selling of mining stocks
We see this dynamic play out in Oil markets too
The prolonged period of low oil prices has led to the current shortage through a complex interplay of factors affecting the US shale oil industry. Shale wells are experiencing increasingly rapid production declines, with the average US shale oil well declining more steeply each year.
This decline rate has grown by over 0.5% annually since 2010, with the steepest declines observed in the Permian's Delaware Basin.
Low oil prices discouraged investment in new wells and infrastructure, leading to a focus on maximizing short-term production from existing wells. This strategy involved more-intensive fracturing and tighter spacing to boost initial production rates.
However, this approach has accelerated the depletion of reservoirs, resulting in new wells being less productive than older ones and experiencing faster decline rates.
The industry's "treadmill" has sped up, making sustained production growth more challenging.
As the most productive areas are depleted, operators are forced to move to less prolific acreage or develop more "infill" wells where extraction is more difficult.
This trend is pushing up the breakeven oil price needed for new wells, further constraining production growth.
Regarding the Strategic Petroleum Reserve (SPR) releases, President Biden authorized the release of 180 million barrels over six months in spring 2022, with the final 15 million barrels announced in October 2022.
This decision was made in response to rising gas prices and concerns about supply shortages, particularly as the midterm elections approached.
The administration framed these releases as efforts to lower gas prices and ease the burden on American consumers.
However, critics argued that this move was politically motivated, aimed at creating an illusion of lower gasoline prices ahead of the 2022 midterm elections.
It's important to note that while these releases may have provided short-term relief, they also reduced the nation's emergency oil stockpile. This action, combined with the ongoing challenges in shale oil production, could potentially lead to future supply issues and price volatility in the oil market.
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