Best of the Week
Most Popular
1. Investing in a Bubble Mania Stock Market Trending Towards Financial Crisis 2.0 CRASH! - 9th Sep 21
2.Tech Stocks Bubble Valuations 2000 vs 2021 - 25th Sep 21
3.Stock Market FOMO Going into Crash Season - 8th Oct 21
4.Stock Market FOMO Hits September Brick Wall - Evergrande China's Lehman's Moment - 22nd Sep 21
5.Crypto Bubble BURSTS! BTC, ETH, XRP CRASH! NiceHash Seizes Funds on Account Halting ALL Withdrawals! - 19th May 21
6.How to Protect Your Self From a Stock Market CRASH / Bear Market? - 14th Oct 21
7.AI Stocks Portfolio Buying and Selling Levels Going Into Market Correction - 11th Oct 21
8.Why Silver Price Could Crash by 20%! - 5th Oct 21
9.Powell: Inflation Might Not Be Transitory, After All - 3rd Oct 21
10.Global Stock Markets Topped 60 Days Before the US Stocks Peaked - 23rd Sep 21
Last 7 days
Quantum AI Stocks Investing Priority - 26th Jan 22
Is Everyone Going To Be Right About This Stocks Bear Market?- 26th Jan 22
Stock Market Glass Half Empty or Half Full? - 26th Jan 22
Stock Market Quoted As Saying 'The Reports Of My Demise Are Greatly Exaggerated' - 26th Jan 22
The Synthetic Dividend Option To Generate Profits - 26th Jan 22
The Beginner's Guide to Credit Repair - 26th Jan 22
AI Tech Stocks State Going into the CRASH and Capitalising on the Metaverse - 25th Jan 22
Stock Market Relief Rally, Maybe? - 25th Jan 22
Why Gold’s Latest Rally Is Nothing to Get Excited About - 25th Jan 22
Gold Slides and Rebounds in 2022 - 25th Jan 22
Gold; a stellar picture - 25th Jan 22
CATHY WOOD ARK GARBAGE ARK Funds Heading for 90% STOCK CRASH! - 22nd Jan 22
Gold Is the Belle of the Ball. Will Its Dance Turn Bearish? - 22nd Jan 22
Best Neighborhoods to Buy Real Estate in San Diego - 22nd Jan 22
Stock Market January PANIC AI Tech Stocks Buying Opp - Trend Forecast 2022 - 21st Jan 21
How to Get Rich in the MetaVerse - 20th Jan 21
Should you Buy Payment Disruptor Stocks in 2022? - 20th Jan 21
2022 the Year of Smart devices, Electric Vehicles, and AI Startups - 20th Jan 21
Oil Markets More Animated by Geopolitics, Supply, and Demand - 20th Jan 21
WARNING - AI STOCK MARKET CRASH / BEAR SWITCH TRIGGERED! - 19th Jan 22
Fake It Till You Make It: Will Silver’s Motto Work on Gold? - 19th Jan 22
Crude Oil Smashing Stocks - 19th Jan 22
US Stagflation: The Global Risk of 2022 - 19th Jan 22
Stock Market Trend Forecast Early 2022 - Tech Growth Value Stocks Rotation - 18th Jan 22
Stock Market Sentiment Speaks: Are We Setting Up For A 'Mini-Crash'? - 18th Jan 22
Mobile Sports Betting is on a rise: Here’s why - 18th Jan 22
Exponential AI Stocks Mega-trend - 17th Jan 22
THE NEXT BITCOIN - 17th Jan 22
Gold Price Predictions for 2022 - 17th Jan 22
How Do Debt Relief Services Work To Reduce The Amount You Owe? - 17th Jan 22
RIVIAN IPO Illustrates We are in the Mother of all Stock Market Bubbles - 16th Jan 22
All Market Eyes on Copper - 16th Jan 22
The US Dollar Had a Slip-Up, but Gold Turned a Blind Eye to It - 16th Jan 22
A Stock Market Top for the Ages - 16th Jan 22
FREETRADE - Stock Investing Platform, the Good, Bad and Ugly Review, Free Shares, Cancelled Orders - 15th Jan 22
WD 14tb My Book External Drive Unboxing, Testing and Benchmark Performance Amazon Buy Review - 15th Jan 22
Toyland Ferris Wheel Birthday Fun at Gulliver's Rother Valley UK Theme Park 2022 - 15th Jan 22
What You Should Know About a TailoredPay High Risk Merchant Account - 15th Jan 22

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Juxtapose - Debt, Money, Silver and Gold 

Commodities / Gold and Silver 2015 Feb 13, 2015 - 10:57 AM GMT

By: Dr_Jeff_Lewis

Commodities

One of the most compelling ratios describing the true nature of the current economic-financial state of affairs is the current relationship between labor force participation and corporate profits. 

Labor participation is at historic lows at a time when corporate profits and equity markets are at all time highs. 


One of many such ratios, this represents the quintessential reflection of the effects of monetary policy gone wild - where asset prices have risen without the promised underlying surge in real economic growth. 

Mainstream economists will no doubt rationalize that seven years is 'not enough time' to perceive the trickle down effect of monetary policy. Or they proclaim that we should have done more - even more evidence of the absurdity. 

The consequent destruction of labor, in addition to (but also apart from) the turning of demographics, coincides with the demise of culture and can only lead to a more unstable society.

We are beginning to see the effects of this today, where civil unrest slowly feeds the political appetite for the growth of totalitarian statism. 

While this relationship between labor force suffrage and the falsity of corporate profits is one relationship, similar dichotomies can be observed in the housing market and, of course, price discovery in commodity markets - with silver being the poster child. 

In housing, on average, the relationship between rents and underlying property valuation has once again disconnected beyond the rational. 

In many pockets of the world, real estate values have gone up. And has once again, (not with the widespread organic participation of individuals and families, but through the use of investment leverage [debt] and cash as hedge funds and other speculators), swooped in on the tailwind of negative interest rates. 

Instead of increasing home ownership, the numbers are in decline. In fact, the rate of home ownership is at a fifteen year low. 

In turn, the cost of renting has increased, and yet not enough for the future servicing of landlord debt -  the low-interest rate leverage employed to reflate property values. 

Again, this false dawn in housing was fueld by the speculator class – hedge funds and private equity. Because property management requires actual management expertise, the quality and value of housing will likely decline much further and faster as the leveraged private equity realizes losses and abandons ship. 

It's one thing when legions were turning in their keys as valuation fell below the water line for individuals, but quite another when investors walk away, leaving a qualitative dimenstion to the vacuum left behind.  
  
But the poster child for financial-economic derived mismatch is of course the silver market, where price management has occurred for so long that few recognize it - and this includes a significant portion of the precious metals analysis community. 

That every other asset class is overtly manipulated is not yet enough to remove the taboo around gold and silver price manipulation.
As real physical supply becomes further constrained by the failure of new stock from mining to come to market and the continued yet constant baseline sequestration of metal into the myriad of industrial uses, the price should naturally rise. The absence of profit margin in the remnant and battered mining sector should be a flashing neon sign for common sense.   

Ultimately, real supply pales in comparison to the sheer volume of paper promises. Instead, we have the illusion of supply from futures markets; represented and managed by the sheer size of the concentrated corner of selling in silver. A selling position maintained by the tiny few investment houses – and equivalent concentration of power that exists above the law. In fact, nothing comes as close to directly determining price. 

The big short is like a giant planet orbiting around this planet of paper price discovery, exerting primary influence and controlling the tide of valuation. 

It is not some natural law holding it in place - like a new force of gravity. It is artificially dense and held together via belief, faith, and a thin layer of force. A force defending the last gasp of fiat.

The longer it goes on the more visible it becomes and the harder it is to ignore, unitl ultimately, we get to a galactic implosion and then explosion we've all been waiting for.

For more articles like this, and/or for a breath of fresh silver market reality amidst the stench of denial and technically meaningless short term price obsessed madness, check out http://www.silver-coin-investor.com

By Dr. Jeff Lewis

    Dr. Jeffrey Lewis, in addition to running a busy medical practice, is the editor of Silver-Coin-Investor.com

    Copyright © 2015 Dr. Jeff Lewis- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Dr. Jeff Lewis Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in