by Dr. Eric Snyder
In January of 2022, I published an article on Ignite Liberty regarding the U.S. financial system and . The piece was subsequently reprinted for publication through the Sound Money Defense League whose purpose is to educate Americans on constitutional money and the importance of gold and silver. For those who have not taken the time to read the material, I encourage you to do so. Without an understanding of the difference between money and currency, paper dollars and precious metals, the prose below could undoubtedly fall on deaf ears.
In the past, it was often difficult to identify those responsible for the economic conditions of our nation. But recent geopolitical events and actions of our incompetent “elected” representatives, surely make it easier to point the finger at the root of the problem. Is it not peculiar that our nation is suffering from shortages of oil, gas, food, and every other commodity, yet we have unlimited paper reserves available for the Federal Reserve printing press? Is anyone else concerned that have been printed in the last two years? Has this resulted in poor and middle-class bank accounts overflowing with cash that actually maintains its purchasing power?
Symbolically, the M1 money supply chart above could be viewed as a heart monitor chart, with the U.S Federal Reserve note taking its first and final breath as the world reserve currency. Even if The Fed attempts to deflate the dollar by removing them from the market through an interest rate hike (reducing demand), the future will be a flatline and bubble bursts as nobody will want paper notes backed by nothing! This includes nations throughout the world who have begun to realize the purchasing power of the federal reserve note is decreasing daily. At that point, they will liquidate the paper assets, increasing the supply and perpetuating additional inflation. Eventually, this will turn into a deflationary event and that is when we will see a crash similar to 1929.
So where will Americans turn? Cryptos? Gold and Silver? Central Bank Digital Currencies (CBDC)? My belief as well asof Arcadia Economics is that humans will return to what we have always returned to —gold and silver as stores of value and money. The result will be the stabilization of the global monetary system which will grant our nation the opportunity to prosper once again.
The chart above shows the gold/silver ratio from 1693 to 2022. The ratio has historically rested at a value of 15-1. In 1919, the ratio was 18 to 1, in 1968 the ratio was 16 to 1. At the start of the coronavirus event, the ratio rose to 108 to 1 and as of publishing this article, the ratio was 78 to 1. The disconnect between the values of these metals is not natural as its existence is a direct result of derivatives and the selling of paper contracts on the COMEX and the London Metal Exchange. Don’t believe me? You can read about the creation of the gold futures market outlined in the Wikileaks document . Within the document, communication between the U.S. and Great Britain resulted in the creation of a futures market, with the intention, from the beginning, to manipulate the price and behaviors of Americans. How else could the powers in charge protect a dollar that was removed by Nixon from the gold standard in 1971?
It is easy to simply ignore a chart like this given the last time the ’s all-time high of $50 dollars, silver today would be trading at an equivalent of $172.16 or a 244% increase.seems to have mentioned the importance of sound money was in a 1986 published letter to the editor. Oh, how the Times have changed. But the truth is even without gold rising, a 15 to 1 ratio would put the value of silver well above $100 per ounce. This number is without adding in who were fined $920 million in 2020 for their involvement in suppressing the price of metals. Would you trade a fine of $920 million for control of a multi-billion or even trillion-dollar market? Would you do so to prevent the inflation-adjusted cost of silver per ounce from coming to fruition? Using the 1980
A 244% increase is a tremendous gain in any financial market. I have friends and family members who scoff at the prospect of this type of change as they deem it illusory. In response, I reference the recent March 8th, 2022 nickel squeeze where the commodity increasedin a 24-hour period and trading was cancelled by the London Metal Exchange? Have you asked your local bank for nickels lately (pre-2014 preferred)? Did your evening news cover this world event? Ever wonder why coin shortages are prevalent at local banks? Could this type of market event happen in the gold and silver markets? Will the global power structure allow it? As is the case with all other capitalistic market behaviors that promote true price discovery, the result of the recent nickel squeeze was coordinated efforts and rule changes by the London Metal Exchange, the billionaire Xiang and Tsingshan Holding Group, and our friends at JP Morgan. This outcome is eerily similar to the Hunts Brothers silver squeeze in the 1980’s. As such, nickel is no longer permitted to rise by more than 5% in a day. This must be because it is important for the billionaires to remain the billionaires as apparently we live in a world where individuals are now too rich to fail?
Can the London Metal Exchange (LME) and the COMEX in conjunction with big banks continue to manage entire global markets? What are the real price valuations of all of these commodities? Whether or not we ever reach true price discovery in the future will be dependent on the continuation of the perfect storm of national and international events which include the following. The list is not exhaustive but the impact of these events will be expansive to the global monetary system.
- Election Fraud or as Seth Keshel puts it so elegantly Electile Dysfunction. See recent Arizona AG Letter to Karen Fann which will result in prosecutions.
- Covid-19 Lies – See Pineapples on Mars here.
- Unrestrained monetary printing which results in superinflation, hyperinflation, stagflation, and global unrest.
- Hunter Biden Laptop, Trump Lawsuit, and Durham Investigations exposing the depth of the corruption within our system of governance.
- Forthcoming China/Taiwan Conflict.
- Systemic Issues of Child Trafficking, including recent exposure of Disney.
- Ukraine/Russia War.
While each of the events above requires entire books to be written about them, comprehension of the monetary impact of the Ukraine and Russian War is essential as it provides the playbook for the deconstruction of the Fed dollar.
Has it already happened?
The war in Ukraine began on February 24th, 2022. Since the first actions were taken, Putin has strategically positioned the ruble to rise as The Fed dollar dies. In 2013, we were warned of ’s take into consideration the price behaviors of the ruble since the start of the conflict.Brazil, Russia, India, China, and South Africa) system to dethrone the dollar. Were any of us paying attention back then? How many are conscious now? In order to provide concrete evidence, let
Russian Ruble to US Dollar Conversion:
Table 1 provides proof, that recent sanctions by the U.S., NATO and other nations on Russia have resulted in the boomerang effect as preventing Russia from using dollars or euros has resulted in payments in rubles and/or gold. On March 25th, 2022 the Bank of Russia ’s a baseline gold price of $1940. Will the London Metal Exchange and COMEX attempt to drive gold prices lower? If they do , they will also have to drive the price of rubles lower, otherwise, the market manipulations will be omnipresent.an agreement to purchase gold at a fixed price of 5000 rubles to 1 gram—tying the ruble directly to gold. This evaluation was an enormous global event because the ruble created the foundation from which other currencies can be valued in terms of gold. With a 5000 rubles per gram, it would take roughly 155,500 rubles per troy ounce and with RUB/USD of about 80, that
By linking the ruble to gold, especially as countries capitulate to Putin’s requests for payment in rubles and/or gold for oil and natural gas deliveries, the entire global trade system has been altered. Shame on the Europeans for allowing one nation to control such a large percentage of their oil/gas market. Austria imports as much as 80% of its natural gas from Russia and Germany 50%. These percentages are exactly why energy independence is critical for sovereign nations to survive and thrive. It is also why I believe Putin has the confidence to provide like the one below when referring to the U.S. Fed dollar and sanctions by the US and EU:
The illegitimate freezing of some of the currency reserves of the Bank of Russia marks the end of the reliability of so-called first-class assets. In fact, the US and the EU have defaulted on their obligations to Russia. Now, everybody knows that financial reserves can be stolen. And many countries, in the immediate future, may begin- I’m sure this is what will happen- to convert their paper and digital assets into real reserves of raw materials, land, food, GOLD, and other REAL assets.”
The playbook has been shared with all of us and while I certainly do not view Putin as a prophet, I am not incompetent enough to think our currency Ponzi scheme can continue for another 108 years. As this war continues to escalate in the coming weeks, unfortunately, our financial-based economy in the United States will continue to crumble as we realize how little we have of the “Real” asset classes. Are you surprised? Unfortunately, we have created a system with over-indoctrinated paper pushers who reside in our skyscrapers in our cities, while the BRICS nations were busy developing legitimate economies that are driven by commodity creators. What value do financed commercial paper, corporate bonds, and ETFs using special purpose vehicles through our treasury have when individuals want to purchase food to feed their families? Our best hope is that The Fed for all of these calculated errors and that the US Treasury asks for payment on the federal debt with interest as our elected officials realize we have been jested.
So what can Oklahoma’s leaders do to prepare?
In 2014, Oklahoma passed SB 862, which eliminated sales taxes on the purchase of gold, silver, platinum, and palladium coins, bars and rounds. As of 2022, only a handful of states have failed to pass legislation to omit sales tax on the purchase of these monetary metals. But the state of our economy in 2014 is drastically different than 2022. One would think that given the current government reported inflation rate of 8.5% (more like 17% if using 1980 calculations considering our current CPI excludes food and energy costs), that our elected leaders would want to protect Oklahoman’s. To do so would require our State Treasurer to be able to purchase and hold gold and silver bullion in the depository already located in our state capitol!
Hence, the importance of the proposed HB 3681 by Representative Roberts during the 2nd Session of the 58thLegislature (2022). The entire bill can be found “purchase gold and silver.” The language within the bill did not “require” or even “recommend,” the purchase of bullion, but rather provided the option to the State Treasurer. The first step to fix our monetary system is simply to permit the purchase of sound money. Instead, the committee chair, Representative Strom, who clearly does not understand simple mathematics, did not permit the bill to even be on in committee and killed the bill before it could even be introduced to the House., but the purpose of the legislation was to simply permit our state treasurer to
I was shocked to say the least—actually, I wasn’t as I am sure Representative Strom who is on the Appropriations and Budget Committee, the Business and Commerce Committee in Oklahoma has plenty of banker friends and ivy league pals who somehow feel it is in the people of Oklahoma’s best interest to continue to invest in paper-based debts that return a negative real-yield. Just today, the inflation was 8.5%. If our treasurer’s investments are returning 4%, the result is a -4.5% real yield on these paper-based assets. What are the benefits of holding the paper based assets for the people who pay taxes into the system? Representatives like this should be called and questioned by constituents, what is the reason behind killing a bill in committee that permits diversification of assets? Regardless, Oklahoma legislators need to seriously consider the following in the next session.
- Allow Oklahoma’s State Treasurer to purchase gold and silver— and store them in our already existing vault in the state capitol!
- Eliminate state capital gains tax on the sale of any precious metals (Arizona recently passed similar legislation).
- To salvage the forthcoming market implosion, have Oklahoma bolster its taxpayer-funded accounts (State pensions, Teacher Retirement Systems, etc.) with allocations to gold and silver. (Ohio allocated 5% of its 16 billion Police and Fire Pension Fund to hedge against inflation).
These small changes will not only put Oklahoma at the forefront of wealth preservation, but it will hedge against the impact of the War in Ukraine, the forthcoming China/Taiwan conflict, and future busts in the stock market, housing market, student loan market, credit card market, and subsequently The Fed dollar. We the people need to speak up and hold our leaders accountable while investing in our future. The price fixing is real. Fortunately, Mr. Putin has told us that our investments should be in REAL assets (silver), raw materials, land, food and gold. Otherwise, we should prepare to accept a universal basic income, own nothing, and pretend we are happy.