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THE END of the US ECONOMY: But NEW AGE for SILVER
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Thread: THE END of the US ECONOMY: But NEW AGE for SILVER

  1. #1
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    Nov 2009
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    Default THE END of the US ECONOMY: But NEW AGE for SILVER

    Peak Oil, Skyrocketing Costs and a Falling EROI

    Anytime I discuss peak oil with a layman in the city or country, the normal response I get is this, "Them damn oil companies, all they have to do is open up the spigot and let more oil out." Of course trying to give this person any additional information is a complete waste of time. Most people will take this FALSE CONSPIRACY to their graves. Sometimes the public is collectively right about a certain conspiracy...but on the Peak Oil topic....they are downright ignoramuses.

    Normally the layman will tell me that he has a friend in the oil industry and the USA has capped its oil fields and is depleting the foreign oil first. This layman goes on to say that its the Environmental wackos that are keeping the US from drilling for oil. These are the two normal KNEE JERK reaction you get from your typical JOE-BAG-OF-DOUGHNUTS.

    Unfortunately, when the US economy totally collapses and the price of oil and gasoline shoot thru the moon, they are going to blame it on a false conspiracy of the ELITE doing them in. Yes, the Elite might have something to do with certain Paper manipulation, but not physical.

    COSTS OF DRILLING ARE SKYROCKETING

    The cost to drill a new oil or gas field have gone through the roof in the past several decades. Why on earth would DOMESTIC
    (repeat: I said D-O-M-E-S-T-I-C) oil companies pay several factors more today for a well than 20 years ago, if there is all this CAPPED OIL?? For those who remain skeptical....here are the numbers:

    COST PER OIL WELL (in 1,000's)

    1960 = $52.20
    1970 = $86.70
    1980 = $272.10
    1990 = $321.80
    2000 = $593.40
    2006 = $2,238.60


    2006 was the last year the EIA stated the cost per well. I would imagine the price is higher still. But, if we take the cost of a well in 2006 and divide by the 1960 cost we get the following:

    $2,238.60/ $52.20 = 42.8 or 43 times the amount it did 46 years ago.



    As you can see costs are going up EXPONENTIALLY. How can this be if the United States is swimming in oil just below the surface in CAPPED WELLS????? Of course, JOE-BAG-OF-DOUGHNUTS does not know the real information, just garbage he regurgitates from other idiots. Thus, we have the BLIND (morons) leading the BLIND (morons).


    THAT LOUSY OIL EROI IS STILL FALLING



    Falling EROI of U.S. OIL and GAS (EROI-energy returned on invested)


    Again, as I said before the present EROI is probably between 6-8:1. But this does not take into account the Trillions of Dollars of worthless US Treasuries and Dollar denominated assets that the EROI was figured. Because the US Dollar is inflated in value, so is the EROI.

    A basic rule of thumb for a modern society to survive is an EROI of at least 3:1. Now the EROI figure comes from wellhead. That means the energy returned on invested as the oil flows out of the well itself. Don't forget we need to factor the pipelines, the cost of refining, the cost in transportation and the cost to maintain the infrastructure like the roads and highways. This is why you can't go down to an EROI of 1:1.

    If we assume that at some point in time the US Dollar and US Treasury market will collapse, so will the EROI ratio. That will mean HYPERINFLATION of OIL and GAS virtually overnight.

    This is the very reason why there is such a manipulation in GOLD, SILVER and OIL. Gold has broke its $1,000 mark after 3 attempts, but Silver is still trading at $17.50 or so, about $4.00 below its recent high in March 2008. There is severe pressure by the FED, US Treasury through JP MORGAN to keep Silver depressed.

    You see, once SILVER goes above that $21 level....it's game over. It will be the realization that SILVER is no longer just a stupid commodity as many trading morons say. SILVER will become the QUEEN MONETARY METAL in the minds of investors all over the world once again. This is the very reason why there is so much manipulation and concentrated shorts against the rise of the price of SILVER.

    Yes, Gold was the first line to cross, but Silver is the last line in the sand to cross before the world realizes the US Dollar is Dead.
    Last edited by SRSrocco; 18th March 2010 at 16:46.

  2. #2
    Join Date
    Apr 2009
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    Default

    General Pertreaus says; "will catch Bin Laden alive"....


    Seriously though, yes, what we can use is a silver stake, and drive it through the rotting heart of these vampire banksters.
    "The bank hath benefit on the interest on all monies which it creates out of nothing." - Bank of England charter 1694

    "the centralization of wealth in the hands of the state by means of a national bank with an exclusive monopoly" - Karl Marx, Communist Manifesto

  3. #3
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    Nov 2009
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    Post The Good News just keeps on coming......

    STRATEGIC DEFAULTS now over 25% of FORECLOSURES

    Everyday you wake up, grab your coffee and look online for some GOOD NEWS is another day wasted. Of course, if you put on any MSM, you can find someone who saved the life of an endangered bird, or someone who rescued a baby from a burning house....so on and so forth. Sure, that is GOOD NEWS....but not if you looking at the MACRO picture.

    The Graph below shows the amount of Strategic Defaults as a percentage of total Foreclosures:



    A Strategic Default, is a homeowner who CAN AFFORD to pay his or her mortgage, but decides instead to stop paying. Currently, the Strategic Default percentage is over 25%. I would imagine by 2011, when most of the ARM's reset we will see the Strategic Default rate hit over 35-40%.

    Few in the country and few on this forum realize the impact of REVERSE LEVERAGE on a system. This along with a falling EROI will take the masses by surprise. Few if any are preparing for the coming DISINTEGRATION. Instead, most might still blog, head to the coffee house for a double decaf expresso and a crumb cake and talk politics with their friends.

    People will continue to be FASHIONABLE, wear trendy clothes, hairstyles and makeup right up to the point the whole SCHBANG comes tumbling down. I am not here to warn or to convince others to see the light....as that time has passed. I am just ranting. It's good for my soul you see.

    Precious metals has a place in the DARK FUTURE....but there so many more things people should be doing. But hey, it was a nice ride the past 100 years or so wasn't it? Nothing wrong with sipping on that last cup of Vanilla Chai Tea before the lights go out is it?

  4. #4
    Join Date
    Aug 2009
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    Default

    There is still time to prepare and to educate others that they too need to prepare. We all see the outcome that the politicians/bankers of the USA/PTB have unleashed on our world. I have been approaching people with information about inflation not doom and gloom. Prudence incase of environmental calamity, they see the logic and I believe their outlook is changing. If the masses are not prepared for what is coming, God help us all. We have time to acquire PM's, food, water, security and get our debt down but the time is definitely short. Knowledge is power and we have it, lets use it.
    The definition of luck is when preparedness meets opportunity, and we should always be prepared.

  5. #5
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    Nov 2009
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    Default Inflation-Hyperinflation will be the least of the problems...

    Quote Originally Posted by PlataTruth View Post
    There is still time to prepare and to educate others that they too need to prepare. We all see the outcome that the politicians/bankers of the USA/PTB have unleashed on our world. I have been approaching people with information about inflation not doom and gloom. Prudence incase of environmental calamity, they see the logic and I believe their outlook is changing. If the masses are not prepared for what is coming, God help us all. We have time to acquire PM's, food, water, security and get our debt down but the time is definitely short. Knowledge is power and we have it, lets use it.
    Very few realize the implications of REVERSE LEVERAGE. Very few. This goes above and beyond the mere episodes of Inflation-Hyperinflation. Very few understand the JUST IN TIME INVENTORY or SUPPLY CHAIN SYSTEM we now live. Very few, indeed.

    The Grease that makes the Supply Chain System work, is the Commercial Paper Market- or to a greater extent the Money Market Funds. There is over $3 Trillion in this market. This is the very market that seized up just a few days after Lehman Brothers went belly up in 2008. The Great Magicians of Hank Paulson, Bernanke and Bush all had to come out saying everything was going to be fine as the US GOVT guaranteed the Money Market Funds...and rightly so.

    As of JAN 27, 2010 the SEC voted 4-1 to allow banks to SUSPEND MONEY MARKET REDEMPTIONS. You can check out the article on Zero Hedge here if you haven't read it already: http://www.zerohedge.com/article/sus...gulation-4-1-v

    Furthermore, as most of you already know, Citibank announced that they have the right now to withhold WITHDRAWALS without a 7 DAY WRITTEN NOTICE. Do you folks see the writing on the wall? Does one need to S-P-E-L-L it out?

    If I come across as DOOM and GLOOM, so be it. But folks, time has run out the clock for the American Public I am sorry to say. When there is an emergency, the public goes out and clears out the local supermarkets within hours, not days. Without the trucks supplying the supermarkets at NORMAL BUSINESS, the store would be empty in 2-3 days. Walmarts within 1-2---Food Area only. If there was PANIC, these stores would be empty within hours.

    Even if all Americans wanted to stockpile food for this upcoming emergency....there is not the FOOD AVAILIABLE.....only for a small percentage who act now. The world is at the lowest GRAIN STOCKS ever......Eric deCarbonnel has been researching and writing about the coming Food Inflation due to food shortages coming this year.

    The time for America to prepare for PEAK OIL and PEAK FOOD was decades ago. We have such a fragile Just In Time Delivery Supply Chain System that works because the US Dollar is still taken on its FAITH alone.....faith that won't last that much longer.

    The Local and State governments are BLEEDING to DEBT. Police are being laid off, and in some instances police cars are being REPO'D and taken back. In other states, public libraries are being closed at the rate of 1 A WEEK. Public Street lights are being turned off and parks and rest areas are being closed. This is just the beginning.

    Folks, there are NO BUBBLES left to Prop up the US Economy. The Housing Bubble was the last in a chain of bubbles, starting in the 1980's. The US Treasury Bubble will be the largest and last to burst. I am sorry to be so BLUNT and GLOOMY about America's prospects....but those are the facts.

    Again....I wish I had better news....
    Last edited by SRSrocco; 22nd March 2010 at 12:26.

  6. #6
    Join Date
    Aug 2009
    Location
    Canada
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    Default

    Dont get me wrong SRS, I completely agree with you, the US is done, the PTB have all but divided and conquered your country. They will buy up everything of value at rock bottom prices and control all for generations. I am very grateful that I live in Canada, but we will certainly not escape what is coming, guilt by association. I have learned over the last couple of years that people will not see the big picture, so the soft sell is my course. Doom & gloom/tin foil hat does not get people to prepare. I know it is only a little Truth but something is better than nothing. As Jack would say "you cant handle the truth", so I sugar coat it for the masses and they seem to at least think about it.
    The definition of luck is when preparedness meets opportunity, and we should always be prepared.

  7. #7
    Join Date
    Nov 2009
    Posts
    52

    Post I agree as well..

    Quote Originally Posted by PlataTruth View Post
    Dont get me wrong SRS, I completely agree with you, the US is done, the PTB have all but divided and conquered your country. They will buy up everything of value at rock bottom prices and control all for generations.
    Platatruth.....good for you living in the Canadas. Yes we are screwed here in America. Here's the numbers when it comes to OIL;

    THE CANADAS (mbd= million barrels a day)

    TOTAL PRODUCTION =....3.2 mbd
    TOTAL CONSUMPTION = 2.2 mbd
    TOTAL OIL FOR EXPORT = 1.0 mbd


    THE UNITED STATES OF THE AMERICAS

    TOTAL PRODUCTION =.....7 (+/-) mbd
    TOTAL CONSUMPTION = 19 mbd
    TOTAL OIL IMPORTED = 12 mbd


    By looking at these two figures we realize that the CANADAS are in good shape with an EXPORT of 1 mbd, while the United States of the AMERICAS are IMPORTING 12 mbd. This is by far now one of the biggest problems with the USA. Add the falling EROI to that and a bad situation becomes even worse.

    Platatruth states the PTB is buying up everything for rock bottom prices and will control the American Public for generations. I have heard this argument before, but I must be honest....the facts will prove otherwise.

    I am getting ready to write an article to be posted on many investing websites about the US ECONOMY. Very few realize a falling EROI (energy returned on invested) will make a large percentage of the economy virtually worthless. Those late night Financial INFO-MERCIALS pushing people to get into Real Estate now to catch the bottom are some of the biggest MORONS and NIMWITS out there. They fail to realize a large percentage of the city and suburban real estate will become disfunctional and worthless as time goes by. Buying Real Estate today for the most part is by far the most INSANE thing an individual or investor can do. But me saying it won't stop them.

    This is what people fail to realize. They think the wealthy are going to buy up the Real Estate and businesses and make slaves of Americans. The falling EROI will destroy the US economic system as we know it. The economy will change and become local again. Those who look forward into the future and invest into businesses that are more local and actually IMPROVE the EROI will do well.

    The END to BIG RETAIL and LARGE CORPORATE ENTITIES have begun.
    Last edited by SRSrocco; 22nd March 2010 at 19:27.

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