Who is in Charge?
(Thank God that God's in Charge!)
Silver Stock Report
by Jason Hommel, March 7th, 2009
Thank God I'm not in charge of the Nation.
When I first began studying gold, I had a lot more arrogance about what "should be done" about gold by those in power.
Some of my more bizzare ideas were as follows.
At first, in my most naive, I thought that the government should BUY gold and silver, so as to protect the United States in the event of a currency collapse, so that the government could protect the people, economically speaking. In other words, do something like in Genesis, where Joseph in Egypt bought grain while cheap, and sold while expensive to "protect the people" from starvation. But that's an insane idea, as I later learned from years of study of free market dynamics, that the last thing we should want is a super wealthy Federal Government, as that would actually increase government power and control, and lead to totalitarianism!
Next, as I began to understand more about how the government was manipulating gold by selling it and/or leasing it into the marketplace, secretly, through large bullion banks like J.P. Morgan, I thought that the government should sell its gold openly and honestly and transparently, by paying gold to government employees, as at least that would be the "honest thing" for a government to do. But that's another insane idea. The last thing we would want, in the event of a currency collapse, would be for all the government workers to have all the valuable capital, as they are the least capable of running businesses! Also, such people would probably dump their gold for dollars much faster and more foolishly into the coin market, depressing prices far faster than the central banks are doing in a more "managed" way.
Next, I thought that it would probably be better if the gold of the
world were spread out more, so that the nations that did not have a lot of
gold, should be acquiring gold, such as China. But that's a rather
bizzare notion. If a large and powerful U.S. government that owned a
lot of gold is bad, then similarly, if the government of China had a lot
of gold, that would simply be worse.
For a while, I kept re-thinking that story of Joseph in Egypt, who
advised the Pharoh by interpreting a dream given by God. There were
seven fat years, and seven lean years. Joseph helped the Pharoh buy
grain when it was cheap and plentiful, and sold it when it was lacking,
and expensive, to "save the people".
The missed moral of the story is that Godly advice that leads to total wealth, when given to governments, and results in Totalitarianism and total slavery.
The other main theme of the Bible is that Kings are theives, as was pointed out by Samuel in 1 Samuel 8:6-18. When the Israelites wanted a King, and before Samuel annointed Saul to be their first king, he carefully warned them that the King would take their sons, daughters, horses and lands.
I believe, and free market principles show, that when the government tries to "force good" on people, the end result often has unintended negative consequences.
Andrew Jackson knew a thing about bankers, and he fought the Central Bank, and won. Then, he passed a law saying all land sales had to be in gold. That was good, as it collapsed the debt created bubble in land values. But it was a government edict, decree, command, force (force is bad), that overvalued gold, because the value did not come from the people, and so it had a bad ending.
Silver Advocates back in the late 1800's wanted a government price fix ratio of silver to gold. That was bad, because they did not trust a free market price. The government responded, but said you could not pay debts over $5 with silver.
So, I have finally concluded that we should not be desiring to give the government Godly advice on what to do. Entrepreneurs need the advice. Wealth builders need the advice. Risk takers and employers need the advice. Business owners need the advice. They are the ones who will make society strong, not government.
On the other hand, now I've begun to fear if the government did listen to me or ask me my advice, because the last I would really want is to help them grow wealthy compared to others. But the bad thing about being an honest man is that if they did ask my advice, I would have to tell them. So in that sense, it's great that the Government is not listening, and doing the opposite of my recommendation, which is to say, they are selling gold.
So, let's be thankful! The power of oppressive government is waning, as they do the wrong thing by selling gold at this time. They are doing this to prop up their failing paper currencies, but it will backfire on them, and they will be much weaker as a result in the long run, which will ultimately be much better for the prosperity and freedom of the rest of the world.
The main advice for businesses is that they need to pay off debt, especially silver debts, especially as silver rises.
Part of what is causing the lack of liquidity in silver is many bullion traders and mints operate in debt.
It's commonplace in this era for businessmen who are willing to take risks to go into debt to start a business. But price swings in bullion are killing them.
This includes most mints, and many large well known bullion dealers who overspend on advertising to attract a large capital pool from which to "float", and use as debt financing.
As silver prices rise, the time it takes them to deliver will just keep increasing by weeks and months until they go bankrupt.
Trouble is, if they have a silver debt, or a silver short position by floating on customer money, they can't just "cover" and go long, since they have no money to buy the silver that they owe in the first place.
They can't cover and go long just as the average person cannot instantly pay off a home loan and then put $500,000 cash in the bank.
Thus, it's becoming more and more important to pay attention to user ratings from people who have purchased in the past. My user ratings are 100% positive 5 star ratings over 180 ratings.
People should be buying silver like crazy, and yes, silver buying has been up in the past several years--enough to finally manufacture bars and rounds.
But the fact is, people have not yet begun to really buy silver and gold.
You know what it's like trying to convince your friends, they generally don't listen.
I have a slightly better time at it, I think, because I'm wealthy, and live in a nice house, but still, not even that is enough to convince all family and friends.
When it comes down to a choice, many people have a real hard time saving anything at all, let alone silver.
Convincing people to buy silver is still very hard today, although it's getting easier.
Don't you feel like when you try to talk about silver to your friends and family, doesn't it feel like you're trying to convince an Anexoric to eat food?
They both desperately need it, but generally speaking:
don't know it,
Perhaps the mature perspective is that it's probably ok if they don't listen. After all, maybe God does not want them to grow wealthy in the next economic cycle. Maybe they are not ready for the responsiblity of wealth. And that's probably ok, because maybe they are not ready to be put in charge of very much.
I grow weary of reading all sorts of articles that try to pinpoint and discover the grand conspiracy of who is in charge "behind the scenes". God's in Charge, and God has put you in charge of a few things at least, especially your life. It does no good to seek who is in charge of anything, unless you are willing to do two things, first. First, acknowledge that God is in charge of everything, and second, realize and understand your own God-given responsibilities.