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Hi Everyone, I received this late Saturday night 6-7-08 from Ed Freeman, owner of Silver Snowball. It's a bit long but extremely important you understand the issues involved or you won'take the action you should to protect yourself. It's critical that you understand this. Time is extremely short for getting silver at a reasonable price! Ignore this at your own immediate risk!
Since this article came out the US Mint at West Point NY has Stopped making Silver Eagle coins. They ran out of Silver, and the price of oil went to over $140 per barrrel. Then the price of Gas went down to it's lowest in 2 years. The big bailouts were supposed to fix all this wild fluctuation in commodity pricing by restoring investor confidence, but it has not worked. The dollar will go to it's true value, which is 0, nothing. If you value your wealth or want to make advances in this period of financial misery, you need to move out of anything enumerated in Federal Reserve Notes and invest in precious metals, especially Silver. Now even the automakers are asking for the taxpayers to bail them out. NB Paul Stramer I'm sure you heard Friday's news. Here's a few headlines: Oil up almost $11 to mark its biggest daily dollar gain on record Last Update: 6/6/2008 4:52:00 PM Oil prices shoot higher by almost $11 a barrel, scoring their biggest one-day gain in dollar terms. Gold Surges Most in Six Months on Jobs Data, Dollar's Slump June 6 (Bloomberg) -- Gold jumped the most in six months after the U.S. jobless rate had the biggest gain in more than two decades, spurring a drop in the dollar. Silver also rose. The dollar took a nose dive as soon as this jobs data came out, and that's a big reason we've seen gold move up,'' said Matthew Zeman, a trader at LaSalle Futures Group in Chicago. Silver futures for July delivery advanced 34.5 cents, or 2 percent. U.S. stock indexes end with stiff losses on spike in oil prices Last Update: 6/6/2008 4:52:00 PM U.S. stocks drop sharply after the government says the nation’s jobless rate in May soared to 5.5%, the highest since October 2004, and as the price of crude-oil futures jumps atop $139 a barrel. Stocks slump as crude futures close at record high. Dow Jones Industrial Average loses nearly 400 points in 8th-worst such drop. NEW YORK (MarketWatch) - Slammed hard by the soaring price of crude-oil futures, which on Friday closed at a new record high, and a rise in the jobless rate, U.S. stocks more than wiped out weekly gains, with the Dow chalking up the 8th-largest point drop in the blue-chip index's history. Dear SSB Member - When I read the following article my first thought was, "Now that's a bit too bearish, even for me." Plus it was an article about oil and while it has tremendous implications for what may happen to the price of silver, the article really doesn't say anything about silver. So I originally wasn't going to send it out. Plus I thought that the current peaks in oil prices might be some sort of bubble. After all I've heard completely different things about oil. One theory is the world was running out of oil. The other was that there is enough oil in Alaska to provide us with oil for the next 200 years but we can't use it because we made a secret agreement with the countries in OPEC that we'd buy their oil if they agreed to price it in US Dollars so we could pay for our growing deficits. Only Iraq and Iran refused to do this so wars were created, or will soon be created in the case of Iran to solve this problem. Holy cow - that's a lot of conspiracy stuff. Is there plenty of oil or are we indeed running out? That's why I wasn't going to send out the article you are about to read - because I had no idea whether it could prove true, or whether it was just one of those contrarian signs that oil prices were peaking. As you know I'm big on when "everyone" is sure an investment will go one way that everyone has already invested or sold it so it naturally does the opposite of what everyone expects. However . . . with oil so much in the news on Friday, AND more talk of war in Iran, with gold and silver up big, with stocks down big and a bit too much of "It's happening right before our eyes", I thought I should at least let you read the article and decide for yourself if it has any merit. Maybe it does. And if it does, while the article only mentions silver once it does all tie in to my belief that IF this forecast is remotely correct, that certainly silver will return to its historical place as THE most accepted form of money. It's not going to matter how it's priced in terms of paper money since paper money may have no value at all. Silver will be what you need to buy food and other things to survive. So let's pray that this rather long article is too extreme. Let's hope it's totally off the mark and just a sign of a top in oil. And let's be prepared just in case it comes true. Here it is: Post Peak Oil - Anarchy and Riots in the Streets. Dear Reader, Civilization as we know it is coming to an end soon. This is not the wacky proclamation of a doomsday cult, apocalypse bible prophecy sect, or conspiracy theory society. Rather, it is the scientific conclusion of the best paid, most widely-respected geologists, physicists, bankers, and investors in the world. These are rational, professional, conservative individuals who are absolutely terrified by a phenomenon known as global "Peak Oil." Peak Oil is also called "Hubbert's Peak," named for the Shell geologist Dr. Marion King Hubbert. In 1956, Hubbert accurately predicted that US domestic oil production would peak in 1970. Source#1 Source #2 He also predicted global production would peak around the year 2000, which it would have had the politically created oil shocks of the 1970s not delayed it for about 5-10 years. A mere 15% shortfall in oil production will spike oil prices by 550%. Robert Hirsch on CNBC: Gasoline will soon be $12-to-$15 per gallon ". Big deal. If gas prices get high, I’ll just drive less. Why should I give a damn?" Because petrochemicals are key components to much more than just the gas in your car. As of the year 2002, approximately 10 calories of fossil fuels are required to produce every 1 calorie of food eaten in the US. Source The size of this ratio stems from the fact that every step of modern food production is fossil fuel and petrochemical powered: Pesticides and agro-chemicals are made from oil; Commercial fertilizers are made from ammonia, which is made from natural gas, which is also peaking in the near future. Most farming implements such as tractors and trailers are constructed and powered using oil-derived fuels. Food storage systems such as refrigerators are manufactured in oil-powered plants, distributed using oil-powered transportation networks and usually run on electricity, which most often comes from natural gas or coal. Like oil and natural gas, coal too is peaking in the near future. In the US, the average piece of food is transported almost 1,500 miles before it gets to your plate. Source In Canada, the average piece of food is transported 5,000 miles from where it is produced to where it is consumed. A recent article published by CNN documented just how much fossil fuel energy is used to produce our food. In the U.S., up to 20 percent of the country's fossil fuel consumption goes into the food chain which points out that fossil fuel use by the food system in the developed world "often rivals that of automobiles". To feed an average family of four in the developed world uses up the equivalent of 930 gallons of gasoline a year - just shy of the 1,070 gallons that same family would use up each year to power their cars. According to the Organic Trade Association, the production of one pair of regular cotton jeans takes three-quarters of a pound of fertilizers and pesticides. In short, people gobble fossil fuels like two-legged SUVs. Why our food is so dependent on oil? Will the end of oil be the end of the end of food? How will we grow food after Peak Oil? Hungering for natural gas "Are all forms of modern technology actually petroleum products?" Yes. It's not just transportation and agriculture that are entirely dependent on abundant, cheap oil. Modern medicine, water distribution, and national defense are each entirely powered by oil and petroleum derived chemicals. In addition to transportation, food, water, and modern medicine, mass quantities of oil are required for all plastics, all computers and all high-tech devices. Some specific examples may help illustrate the degree to which our technological base is dependent on fossil fuels: Automobiles: The construction of an average car consumes the energy equivalent of approximately 20 barrels (840 gallons) of oil. Ultimately, the construction of a car will consume an amount of fossil fuels equivalent to twice the car’s final weight. It's also worth noting that the construction of an average car consumes almost 120,000 gallons of fresh water. Fresh water is also rapidly depleting and happens to be absolutely essential to the petroleum refining process as each gallon of gasoline requires almost two gallons of fresh water for refining. Computers: The construction of the average desktop computer consumes ten times its weight in fossil fuels. Microchips: The production of one gram of microchips consumes 630 grams of fossil fuels. According to the American Chemical Society, the construction of single 32 megabyte DRAM chip requires 3.5 pounds of fossil fuels in addition to 70.5 pounds of water. The Environmental Literacy Council tells us that due to the "purity and sophistication of materials (needed for) a microchip, . . . the energy used in producing nine or ten computers is enough to produce an automobile." In his book "The Nine Nations of North America", author Joel Garreau explains in graphic detail just how much energy it takes to fashion a typical microprocessor: . . . microchips are not made one by one. They are printed in a batch on a silicon wafer, say, four inches in diameter. Each time a layer of stuff is printed on this silicon wafer, the wafer must be treated so the stuff you've laid on will stay there. This process is achieved through the application of monumental quantities of energy. In effect, as each layer of the circuit is laid on, the whole wafer is "baked" at temperatures sometimes high enough to reach the outer limits of technology. The Internet: Contrary to popular belief, the internet consumes tremendous amounts of energy. Author John Michael Greer explains: The explosive spread of the internet, finally, was also a product of the era of ultracheap energy. The hardware of the internet, with its worldwide connections, its vast server farms, and its billions of interlinked home and business computers, probably counts as the largest infrastructure project ever created and deployed in a two decade period in history. The sheer amount of energy that's been been invested to create and sustain the internet beggars the imagination. Recent estimates indicate the infrastructure necessary to support the internet consumes 10% of all the electricity produced in the United States. The overwhelming majority of this electricity is produced using coal or natural gas, both of which, as explained momentarily, are also near their global production peaks. Concrete, Asphalt, Highways, and Modern Cities: It is hard to precisely quantify how much energy is necessary to construct and maintain a modern city. Some of NASA's recent images of cities, however, hint that the volumes energy invested in modern cities is almost unfathomably prodigious. Consider, for instance, the following NASA image of Los Angeles Image of Los Angeles, courtesy of NASA's Visible Earth Site When studying the above image, keep in mind that the manufacturing of one ton of cement requires 4.7 million BTUs of energy, which is the amount contained in about 45 gallons of oil or 420 pounds of coal. "What about alternative energy systems like solar panels and wind turbines? Are they also manufactured using petroleum and petroleum derived resources?" Yes. When considering the role of oil in the production of modern technology, remember that most alternative systems of energy including solar panels/solar-nanotechnology, windmills, hydrogen fuel cells, biodiesel production facilities, nuclear power plants, etc. all rely on sophisticated technology and energy-intensive forms of metallurgy. In fact, all electrical devices make use of silver, copper, aluminum and platinum, each of which is discovered, extracted, and fashioned using oil or natural gas powered machinery. For instance, in his book, The Lean Years: Politics of Scarcity, author Richard J. Barnet writes: To produce a ton of copper requires 112 million BTU's or the equal of 17.8 barrels of oil. The energy cost component of aluminum is 20 times higher. Author Joel Garreau, in the same chapter of his book "The Nine Nations of North America" that was cited above, explains how energy-intensive the manufacture of aluminum is: The manufacturing of aluminum requires inexpensive energy as its most important raw material. It takes twelve times as much power to create a pound of aluminum as it does to make a pound of iron. A good sized aluminum plant uses as much power as a city of 175,000 people. Nuclear energy requires uranium, which is also discovered, extracted, and transported using oil powered machinery. For more information on metals shortages and energy production, see: Scarcity of aluminum, copper threaten solar installations Scarcity of highly refined silicon threatens solar industry Dwindling supply of rare metals imperils innovation. World running out of platinum, common elements Global shortage of metals looming. End from Ed Freeman. *************************************************************************** Now I (Paul Stramer) would like to add a few of my own comments. All of these crises are more a function of control of the money supply by big banks than they are of supply and demand economics. They are also a function of control by oil industry giants lining their own pockets at our expense. If you don't believe that just go to http://video.google.com and copy this in the search box. lindsey williams the energy non crisis Once you have seen this eight part movie you will realize that there is plenty of oil and much of it has been "capped off" to artificially create this crisis for the sake of control of the population and removal of our freedom to oppose one world government. The enemy is not oil, or oil companies, even though they practice greed beyond immagination. The real enemy is one world control of the money supply by centralized banks and bankers who know exactly what they are doing. If you don't believe that then you need to watch Fiat Empire Then look at the video library in that site and you will begin to understand the real problem. The single most important economic issue is "who controls the money". In America it's supposed to be the US Congress. Article 1 Section 8 of the US Constitution says that "The Congress shall have the power.....to coin Money, regulate the Value thereof....." The 10th Amendment, of the Bill of Rights says "The powers not delegated to the United States by the Constitution, nor prohibited by it to the States, are reserved to the States respectively, or to the people." That simply means that if it's not spelled out in the Constitution itself, then Congress doesn't have that power. So Congress did not have the power to delegate away it's authority to coin money and regulate it's value to any private bank like a "Federal Reserve"! In Section 10 there is another caveat. It says "No State shall....make any Thing but gold and silver Coin a Tender in Payment of Debts;...." But ( you might say ) we have always had paper money. No Look at the history of central banking right from the time of the Declaration and you will see that there was always strong opposition to putting the money supply in the hands of a few bankers. No less than twice the president put and end to the central bank for the very reasons we should do it today, that reason being the criminal manipulation of the money to the detriment of the population and country, and in favor of the banksters themselves. Up until 1971 we had Silver Certificates, payable to the bearer on demand in gold and silver! Since "tricky Dick" Nixon took us off the gold standard in 1971, we have had an absolutely worthless paper fiat currency. It's true value is about 3 cents per bill regardless of face value, which is the cost of printing. In fact that is exactly what the unlawful "federal reserve" (which is not federal and has no reserves) pays for the paper. They buy it from the US mint at the cost of printing regarless of face value, and then turn right around and loan it into circulation to their member banks AT FACE VALUE, AND AT INTEREST How would you like to have a racket like that? Yes it's a racket, and they have stolen your wealth with that racket for almost 100 years without any audit, and in almost total secrecy! Even US Congressmen can't find out who owns the "Federal Reserve". I thought "counterfeiting" was illegal, didn't you? But the Feds are doing it every day since 1971. But if you and I try it, what will happen? So now that you understand, you should be very fired up to work hard for the restoration of gold and silver lawful money in the USA. You should also undertake some preparation for you and your family by accumulating some real money.
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