The most important aspect of the SCOTUS tarrif ruling involves the trillion dollars of revenue the administration was budgeting to offset their military expansionism. Already running a 2 trillion dollar yearly deficit the extra trillion (through only 175 billion has been collected) was supposed to make the global military expansion - with ICE at home and wars across the globe - deficit neutral.
Now, on top of having to fund thousands of court cases that will result in billions of dollars of refunds, the military ventures both domestic with ICE and foreign with wars in South America, the Middle East and potentially with CHina/Russia, will all have to be funded with deficit spending.
I'm not going to go through the math. Do it yourself. But the numbers are so vast and fantastical that if you compare the size of the beficit spending to the size of the gold and silver markets you'll find it necessary to multiply existing monetary metals valuations by mind numbing denominators.
And what this implies is that silver too is becoming a monetary metal.
This is debatable because most central banks are not using silver as a monetary metal.
But China and the US have both designated silver as a critical mineral that must be hoarded for national security purposes. This is because it is by far the most efficiant electricity conductor of all the metals and as such is vital to every critical tenchnology from Electric Cars to AI to advanced weapons systems.
The fact that is was a monetary metal for 3 thousand years of human history means that for many private consumers acrosss the globe it is still used as a store of value, even if the central bansk no longer use it that way.
But now that gold is firmly over $5000 and climbing it is clear that for many outside the top 1 percent silver is a viable way to hedge against the persistent and ever increasing monetary debasement.
As long as governments continue to deficit spend this trend will continue.
No comments:
Post a Comment