David Morgan on the Value of Silver in an Upcoming Inflationary Depression
The Daily Bell is pleased to present this exclusive interview with David Morgan.
Introduction: David Morgan, editor of "The Morgan Report" and founder of Silver-Investor.com, started investing in the stock market well before turning 18 years of age. Several years ago, Morgan put his lifelong study of free-market economics to work researching the economy, stock market behavior and precious metals, especially silver. Although very familiar with gold, Morgan believed that silver needed more exposure and would be utilized increasingly as technology continued to demand more and more of the metal. He has followed the silver market daily for over 30 years.
Daily Bell: We've interviewed you before but give us background on your publication and interest in silver.
David Morgan: Our publication is called The Morgan Report and can be found on the web by clicking here. We publish at three different levels, one for buy and hold investors, the next level is aimed at market timing and the last is for hedge funds or high net worth investors.
Daily Bell: How are silver and gold performing these days?
David Morgan: Since August the precious metals have performed well. On the basic plus service I provide my own trades, bonds, gold, silver and the US dollar. Recently, I put on a trade for long silver basis $28.00 on the spot market.
Daily Bell: Is silver money?
David Morgan: Silver is both an industrial commodity and money. The word for silver and money is the same in the Romance languages. Anyone interested can do a simple search on Google – some of my articles will come up. The point, however, is 1.2 million references will be made in response to that search query.
Remember, the US was on the "International" gold standard until 1971 but not internally, yet 90 percent of silver circulated as the only "legal" tender through 1964! So silver was actually the ONLY MONEY in the US from 1933 through to 1964 inclusive. How soon people forget!
Silver has served as money through every debased paper currency since the dawn of recorded history. Any way you slice it, the fact remains the component of silver-as-money exists.
Daily Bell: It's been attacked for being an industrial metal. Your thoughts?
David Morgan: Silver is indispensable for modern life. So are many of the Rare Earth Elements, but without REE's life would go on. Without silver you basically would not be able to use electricity efficiently enough to have all the electronics and electrical power grids we now enjoy in modern society. No silver basically means no electricity. Think what that would mean to society.
Daily Bell: Is platinum a money metal? It's called a noble metal. What's that?
David Morgan: Platinum does have all the classic aspects of money—durable, consistent, divisible – but really is considered more of an industrial metal. Silver is 50 percent industrial and 50 percent money. Platinum is more like 90 percent industrial and 10 percent money.
It is called noble because it is 30 times more rare than gold.
Daily Bell: Where does silver go from here?
David Morgan: All markets go up and down; silver is no exception. We still have at least one more massive up leg in the gold and silver markets. I see silver making a new real high in the next four to five years.
Daily Bell: You called the recent bottom. Please explain.
David Morgan: I use a variety of factors and some technical analysis. I cannot give away trade secrets but my sentiment indicators are very reliable.
Daily Bell: What is the CFTC doing, if anything, about market manipulation?
David Morgan: Sorry, but in my view, very little to nothing. They have had more than ample time and we can be sure sooner or later some "official" statement will come from the CFTC. The gist of it will most likely be some adjustment to the number of contracts being held but there will be loopholes that favor those who have control now.
Again, excuse my cynicism but I have watched this situation since before the Hunt Brothers and it is the same old story, the same old crime and not much has changed.
Daily Bell: Will they get to the bottom of the manipulation?
David Morgan: No. If the CFTC cannot even define what a "swap" is and yet they are traded every day, how can we the public expect them to really understand how buying and selling pressure by large entities control a market?
Daily Bell: Does taking physical delivery put pressure on the big Wall Street firms who may be behind the manipulation?
David Morgan: Taking physical delivery is the worst nightmare for the paper-pushers. Yes, it does have a huge effect over time. This is what basically caused the Hunt debacle. Bunker had plenty of paper silver, but also TONS of real metal. In some cases the exchange could not deliver bars and substituted bags instead. Hunt agreed but had he known what was to happen later on, he may have demanded the contract be filled exactly, which he had every right to do.
Daily Bell: How do silver stocks fit into the bigger picture of investing?
David Morgan: This is the area in which the public will participate as the market begins to make new highs. The price of silver will discourage most investors but many that come late to the silver story will participate by buying silver stocks.
Unfortunately, this is also the time when many "new" worthless companies will be touted by those out to grab a piece of the action. We have a strategy that we will provide to our members when we see this taking place but, in our view, it is a few years off.
Daily Bell: Gold stocks?
David Morgan: Same idea applies to the gold stocks. We at TMR will be guiding our members through this very profitable period of time. It will be quite exciting and, in my view, will become a bubble much bigger than many anticipate currently.
Daily Bell: Explain the silver-gold ratio and how it is changing.
David Morgan: The gold-silver ratio is simply how many ounces of silver it takes to buy one troy ounce of gold. So for example, when the ratio is at 50 is takes 50 ounces of silver to buy 1 ounce of gold. The gold market new bull run started in 2000 but silver's recent major bull market did not start until September 2003 and the ratio was at 80 to 1. We have been as low as 36 to 1 and are currently around the 50 level.
One of my basic tenets has been that silver would outperform gold and, so far, that has been the case. Going forward, expect the ratio to narrow, meaning silver will continue to outperform gold.
Lastly, the ratio can be traded; in fact, I am currently holding that ratio trade and plan to roll it over for some time. Of course, our premium members were privy to this trade when I put it on some months ago.
Daily Bell: How do silver and gold track the 1970s?
David Morgan: This market will be far bigger and much more meaningful than the last bull market, in the 1970s. The problems that existed in that time frame are laughable relative to the massive currency destruction taking place now.
Daily Bell: Let's look at the larger picture. Where is the euro headed?
David Morgan: The euro is headed where all unbacked fiat currencies end up – into the dustbin of history. The greatest lesson of history is that people do not learn the lessons of history.
Daily Bell: Is the EU itself going to founder?
David Morgan: There is nothing more disruptive to any society than the one universal accepted truth that turns out to be a lie. The idea that you can live beyond your means by printing or borrowing the difference never has worked and never will.
Daily Bell: What's going on with the wars in the Middle East? Are we going to end up in a religious war with Islam?
David Morgan: In a word, yes. The West will end up in a war with "Islam" and the Middle East will be destabilized. This has huge ramifications for oil, which means energy, and nothing happens in today's world without energy. The US is in better shape than just a few years ago with the huge discoveries and new techniques being employed.
This, of course, was done primarily by the free market without any government sponsored energy policy.
Daily Bell: How does silver fit into a wartime picture?
David Morgan: Fortunately or unfortunately, silver is a metal of war! The larger the war, the more the demand for silver. I seldom get this question but you asked and that is the answer. Anyone who really wants to explore this might consider looking into Charles Savoie's work on our website.
Daily Bell: How high could silver go? Gold?
David Morgan: Putting a paper price on either could prove to be a futile exercise in a fiat system. However, if things hold together we are looking at a very conservative "matching" of the highs reached in 1980 in real terms.
This would suggest $2500 gold and $130 silver but in the 1980 highs these prices overshot considerably. I expect the same thing will take place again.
Daily Bell: What about China? Is China buying a lot of silver?
David Morgan: China has increased their silver consumption considerably. A few years back China exported 100M ounces of silver on an annual basis; now China imports 100M ounces. They are using a lot of silver but silver for investment purposes is just beginning to catch on in China. It will catch on more and more as the Chinese people have more experience of paper money failures than anyone else on the planet. Current count: eight fiat currencies in Chinese history and eight failures!
Daily Bell: Where is the dollar headed?
David Morgan: The dollar is headed to a point of either complete distrust or a point where a "new" currency or backing of some type is implemented just in the nick of time.
Daily Bell: Do you expect to see a new global currency in your lifetime?
David Morgan: In a way, we have it. I travel the world, as you know, and only use a Visa card. I never worry about the exchange rate, currency board or anything else. The Visa account sorts all of that out in the monthly statement. I can be in several different countries in a single month all using different currencies and just keep throwing it on the Visa card. So debt is very well defined on a global basis amongst the bankers.
Money is power and control; thus, the elite would like to garner even more. The question becomes will it happen even if that is what they want? I have my doubts as complex systems tend to unravel quickly and without warning.
Daily Bell: Is it going to be the SDR? Why isn't silver included in the basket?
David Morgan: It is possible the SDR is used as a "trial balloon" to test how the public reacts. Personally, I do not see the SDR being used long term.
Silver is simply too precious to be used in the equation. The "price" or ratio to gold would have to be so much better than currently that it will not happen. Putting silver into the mix has no practical use for the bankers, as either platinum or palladium; these markets are simply too small. Or if you prefer, too rare.
Daily Bell: What about the amero? Any thoughts?
David Morgan: Many in my field thought there would be ten or perhaps seven global regional currencies, with the euro being the first and the amero uniting Canada, US and Mexico. Since the euro is such a disaster I do not see any hope for the amero. However, this step may be skipped and again a "one-world" currency proposed.
Daily Bell: Let's talk about America, which is becoming increasingly authoritarian. Your thoughts?
David Morgan: It is sad times for anyone who understands the importance of freedom. If you don't mind putting a link to my video on the topic here, it explains my views: "Silver is The Achilles' Heel to the Entire Economic System."
Daily Bell: Who is going to win the election?
David Morgan: Does it matter? At this point is would be like changing the captain on the Titanic. There is no REAL difference between the parties but many think their vote matters when the truth is that the elected classes look upon the people as lesser than themselves.
How many even know that the elected do not participate in the Social Security System? Instead, they have their own special program. The idea "of the people, by the people and for the people" died a very long time ago. But most people are so distracted they have not even noticed.
The moral structure that makes us human has been destroyed in many ways. If you want to see more of my thoughts on this topic let me suggest the movie "The Four Horsemen," in which I participated. Here is a clip On Education.
Daily Bell: Did Ron Paul run an effective campaign?
David Morgan: How effective can you be when the controlled media blacks you out?
Daily Bell: What do you think of Obama?
David Morgan: I don't. My time is much too valuable to take any time thinking about the man.
Daily Bell: Who will win? Will it make a difference?
David Morgan: Again, to me it makes no difference. Will it affect the markets? Yes but only on a temporary basis. A currency crisis is coming, ready or not, and no human power can stop it! The markets are more powerful than any group or government. Yes, this is where the small (people) actually make a difference with many acting together out of fear. It could get ugly in some areas. Keep a high moral standard and set an example. Be your best. The world is crying for leadership.
Daily Bell: Are we headed to a worldwide depression?
David Morgan: We are moving toward an inflationary depression where money promises are largely maintained yet people become poorer and poorer. Even the "rich" suffer at some point because the quality of life is not money dependent − it is integrity dependent.
That is why I have fought for honest money most of my life – but alas, shouting into the wilderness can drain one's energy over time. For me personally, my cries have been heard by many such as this publication and many younger men and women have become interested in my work and others like-minded. This pleases me greatly. Never give up. Be the change you want to see in the world, as Gandhi said.
Daily Bell: What do people need to do to protect themselves?
David Morgan: Become themselves. Sorry for the esoteric answer. I mean, be true to themselves. Few read the classics, listen to classical music, get deep meaning out of anything they think, do, or say. Everything exists for them in the external material world. In a sense, a real man could lose everything and as long as he remains "himself" he would have lost nothing. But almost everyone reading this will not have a clue of what I just wrote.
Protection begins with something to protect. If all you care about is what is outside yourself you have missed the human experience. The real value is being free and so few know it and even fewer understand it. However, once it (freedom) is lost completely then many will rise and ask what happened.
Daily Bell: Is America headed toward some kind of social chaos? What will another term of the Obama presidency bring?
David Morgan: There will be social chaos in some areas, of that I have little doubt. Another term would accelerate the idea that government is the solution when, in fact, it breeds dependency; the very essence of freedom is to be independent.
Daily Bell: Is the Internet continuing to make a difference in terms of waking people up?
David Morgan: Yes. There is little doubt, in my view, that the World Wide Web is the freest market that currently exists – the free market of ideas. Being as idealistic as I have been and remain, there is nothing as powerful as an idea whose time has come. Now is the time for those who can critically think to take some action. Many of those are producing some fine information in various forms on the Internet.
Daily Bell: What has it done for your business?
David Morgan: My business has been built entirely on the Internet.
Daily Bell: Can anyone shut it down?
David Morgan: I have read articles of an Internet kill switch and, of course, individual sites could be blocked.
Daily Bell: Any other points you want to make?
David Morgan: Yes, nature preaches balance. Our entire system has become corrupted. I do not have time to go into the main reasons but few reading this will disagree that that the food chain, air and our water supply have largely been corrupted.
If we look further we will see even the human dignity has been taken away. When someone is given something without work, all self-respect disappears over time and what is left is a shell.
Daily Bell: Any comments on upcoming newsletter issues?
David Morgan: Yes. I will be raising prices in 2013 but all paid members before that time will be able to enjoy the current price structure.
Daily Bell: Any websites or other informational literature you want to point to?
David Morgan: For an overview of many of the things our staff does relating to silver go to www.SilverSpeculator.com.
If your readers want to join the free list they can access it by clicking here.
As far as something deep and meaningful to leave your readers with, let me suggest that perhaps they stop looking for answers and begin to ask the right questions.
Above all else, question authority – why is anyone the "boss" of you? My oldest daughter asked me this when she was three years old. I had asked her to do something – she promptly informed me that I was not the boss of her! But what would you expect from one of my offspring?
Coming full circle ... people, in my view, do not take the time to get quiet and centered and ask themselves what are the most important things in life. Money is important! But there is much more to life than money. Real security is being secure in yourself and knowing that is priceless. Learning to live a simpler life could lead to greater happiness and from what I see just ahead, almost all of us are going to have a much simpler way of life forced upon us, like it or not.
Daily Bell: Great speaking with you again. Thank you.
David Morgan has provided us with another insightful and well-considered interview. We would like to point out that people like David Morgan in the alternative media community have been correct for years when it comes to their positions on precious metals and the ramifications of metals price actions. Additionally, David has sought to offer ideas and insights to help people protect themselves against "others" who seek to deprive us of our liberties and freedoms.
What has emerged as a result of what we call the Internet Reformation and extensive new information available to people is a whole matrix of directed history.
Directed history is managed history. It is a series of events, as well, that has to collide with market forces and natural law.
It is the collision itself, as we have long pointed out, that provides both opportunity and difficulties. Those who understand the modern paradigm of directed history like David Morgan are better able to handle upcoming challenges - and there will be many - than those who do not.
This has relevence from a survival standpoint because as power elite policies continue to push society to the brink, more and more difficulties will emerge, from economic problems to massive military actions.
It is more important than ever to understand the Way the World Works. David Morgan does, and we hope you do, too. We hope you take the time to explore David's tremendous volume of previous work and stay tuned to his future analysis. Click here to learn more.
Posted by Peter VC on 09/16/12 04:38 AM
In an NBER paper of 2009, W. Buiter addressed the issue of a new currency. He did this indirectly, in a proposal to "authorities" to overcome zero interest rates on currency. His third proposal consists of using a new numéraire in a government determined ratio to currency or means of payments. This numéraire is only a unit of account and would not exists in tangible form. He used the "wim" for the Eurozone, but this could just as easily be interpreted as the "amero" for the US dollar zone. Besides being the devious, dangerous and delusional plot to fleece ordinary people and hard working entrepreneurs once more, it is a loud sounding alarm bell.
The financial elite is running out of ammunition. SDR's or amero's aside, this new plot to introduce negative interest rates on currency, was recently taken over by the ECB, in a speech delivered in february by Benoit Coeuré in Miami. It strikes me "they" don't realise their new "rules" would cause hyperinflation in the proposed rubbish currency and a deflationary increase in buying power of all other means of payment. The best of which will be gold and silver. And it would not matter if they were made 'illegal' or not. Even central banks cannot go against economic reality. Quousque tandem abutere, Bernanke, patientia nostra?
Posted by hivemind on 09/16/12 07:46 AM
"Become yourself," as opposed to the "You" who other people, your "leaders," and advertisers say you are. Good phrase.
Posted by Jaque on 09/16/12 09:13 AM
Very insightful interview. You are clearly a person with integrity. At the end of the interview you said:
"Coming full circle ... people, in my view, do not take the time to get quiet and centered and ask themselves what are the most important things in life. Money is important! But there is much more to life than money. Real security is being secure in yourself and knowing that is priceless. Learning to live a simpler life could lead to greater happiness and from what I see just ahead, almost all of us are going to have a much simpler way of life forced upon us, like it or not."
I ask you Mr. Morgan, where in the world do suggest people seek that simpler life? In the hills of Montana, or are there better, lower cost locations you like outside of the United States that provide additional "regional diversity" and thus "regional protection?"
Colombia has great mountains, maybe you should take a trip here and breath in the fresh, low-stress mountain air of Rionegro!
Posted by Danny B on 09/16/12 12:38 PM
David Morgan does a greats service to point out that money and happiness aren't necessarily intertwined.
"push society to the brink, more and more difficulties will emerge"Here's the plan;
Click to view link
From this page;
Click to view link
"The West will end up in a war with "Islam" and the Middle East will be destabilized."
I suspect that the West intends to supply the tinder and the spark. A gross reduction of food exports from the West will be the tinder. Every reduction in oil output means that GOV has less money to subsidize basic foods. It could result in a feedback loop.
As far as gold and silver for money, Fekete believes that it is inevitable. The scary part is that he believes that the banking system will go away. I don't see this happening peacefully.
"we have to write off the world's banking system as a total loss."
Click to view link
Anthony Wile used the term "shitstorm". I do have an actual crystal ball but, I can't find the "on" switch. I guess that I [we] will have to wait and see.
There are claims that preppers won't make it either.
Click to view link
Our very first act on the road to insolvency was the war on Viet Nam.
Will we reap what we sow?
Posted by dave jr on 09/16/12 01:08 PM
I like Mr. Morgan's esoteric view of life.
It helps me to put things in perspective by imagining the worst possible scenario. What if I were to wake up one day to find I am the only person on this earth? What would I do? Being king of the food chain, sole owner of all, would I set out to collect dollars or mine gold and silver? What would sustain me? I would have a lot of work to do, and without others and a division of labor, my standard of living would decrease dramatically.
So as individuals in a populated world, why do we stray so far from reality? The reality of the amount of work that is required to exist, or at least to be honest about the amount of human energy that goes into an expected standard of living. Because we can? I guess, for a period of time.
There is a big adjustment coming, true price discovery. It is inevitable. The free market respects natural law, and natural law will always prevail.
Posted by Don from the Republic of Lakotah on 09/16/12 02:19 PM
"In a sense, a real man could lose everything and as long as he remains 'himself' he would have lost nothing."
What does it profit a man to gain the whole world and forfeit his soul?
"Be the change you want to see in the world"
"Our very first act on the road to insolvency was the war on Viet Nam."
Teddy Roosevelt arguably kicked off America's modern era of insolvency by whipping out his "big stick" to show it off to the world. Among other expensive endeavors, Roosevelt steamed a Great White Fleet (commanded by John McCain's grandfather) around the world.
Building such fleets requires a disciplined workforce. Every worker needs to: show up on time, do things they might not otherwise choose to do, and respect the chain of command. America's public school system does a marvelous job of indoctrination in those three areas.
Posted by johnblenkins on 09/16/12 03:47 PM
Great Interview,It was DB who first introduced me to Mr Morgan a couple of years back. Been a big fan ever since but hey I would say that as a silver bug.
Amongst my silver purchases it was the research into silver world coins
that alerted me to the de-monetization of silver.
The end of WW1 saw the first step toward fiat, by 71, its all fiat.
Its no coincidence that 1913 was the last year that we in UK "Did not pay Income tax on labour"
The War Allowed the Gov to bring in emergency taxes legally. Technically this country is still in a state of emergency!!? Hence the tax.
There was a 1918 Income Tax Act. That somehow managed to sneak into law
a tax that is illegal under Magna Carter and the Act of Settlement.
The Government stationary office tells me no such 1918 Act exists.
Which is strange as its in Hansards of the day and referred too in
later Income Tax Acts!
Now bearing in mind 90% of currency was in silver coins .
Along comes 1920 an a new issue of the same coin arrives.
Same weight only at 50% silver: Sterling 92.5% gone stolen.
Just to rub salt into those WW1 wounds you are now and for ever
more paying the Gov a tax on your labour/time/skills.
That is some theft.
I know much in silver coin was similar across the world.
Tax I don't, my hunch is much the same.
Reply from The Daily Bell
The demonization of silver was likely cold theft. One after another around the world, countries renounced silver. Read the history ... Coincidence?
Posted by johnblenkins on 09/16/12 07:36 PM
It sure was cold theft.
I also agree with Fekete that gold and silver will inevitably,
be as it always has, the standard of exchange.
Fiat and the banking system must mathematically fail.
Despite QEIII or any other western debt buying all ponzi crash.
If History follows a war always precedes Grand Theft.
There are plenty of them, more than bubbling.
Posted by Danny B on 09/16/12 10:46 PM
Don from the Republic of Lakotah
You are correct about Teddy. I should have qualified my comment. After WW II, America was very solvent. I believe that the transition from creditor-nation to debtor-nation started with French Indochina.[post war] It accelerated with LBJ's Great society.
Armstrong said that we are the welfare-warfare state.
Silver; when "they" started up SLV, there was a SIGNIFICANT spike in the reported world supply of silver. This was because the bullion at SLV was added to the world total. The rumor was that Buffet sold his hoard to start SLV. BUT, how could the world supply take a big jump?
There is still the question if SLV has any silver.
"As Berkshire Hathaway stored its silver in London where there are no reporting requirements, the transaction has yet to be substantiated."
Click to view link
Shortly after the introduction of SLV, James Turk analyzed the language in the prospectus. It was VERY different than GLD. It inspired zero confidence that the silver actually existed.
Even though silver sold from the U.S. mint is supposed to be only domestic production, the mint has been selling more silver than the U.S. produces.
This is an interesting article about the silver shorts.
"The total silver futures and options traded in August 2012 was over 1,370,000 contracts or 6.8B OUNCES! It's all right here in the CME data:"
"And the crazy thing is that this figure from August 2012 is DOWN ALMOST 40% from August 2011!"
Click to view link
The M.O. of the CBs right now is to make all non-paper investments look so bad and volatile that everyone stays in approved paper. As China crashes, commodities in general will fall. The PTB hope that the general fall of commodities will bring down precious metals. Not bloody likely.
JPM and the big traders are all trying to drive out all the technical traders with their takedowns. It works but, only to a point. There are just too many buyers.
Tyler Drurden, "In the first few days of 2012, the US mint has already sold 4.3 million ounces in silver coins."
It appears that the mint can't get enough silver.
Click to view link
"The USGS actually lists the U.S. government's current stockpile of silver simply as: 'None.'
The truth is that silver is going to go way up eventually. There just isn't enough.
"In 2010, global silver demand exceed 1.05 billion ounces; but as you saw in the chart above, global mining has only provided about 700 million ounces."
Click to view link
The 8 big banks can drive out some people but, they can't drive out the industrial silver consumers. They can't possibly win.
Posted by johnblenkins on 09/17/12 05:48 AM
@DannyB, Good posts and links.
Earlier in the year I wrote here on the DB that in 2011 the US Mint sold 40 million silver eagles alone yet only dug 37 million oz out of American soil.
As David Morgan tells us silver is 50/50 industrial/money.
That suggests the US was something like 40 million oz short of filling its domestic consumption. Just think of Obama's solar panel program, 1/2 oz of silver per average panel, I understand.
Very little used in industry is recoverable. Very little gold is used in industry.
So if silver is mined at a ratio of 15 to 1 to gold, and lets say 1/3 of silver goes to industry.
The available supply is 10 to 1. Sure if the whole system collapses industrial silver will get smacked the same as much else.
Yet the realization that this financial s--t storm is well on its way and looking worse will dramatically increase investment silver.
I have long argued that the silver/gold price ratio is unsustainable even in a openly rigged market, allowing for the fact that gold is rigged too.
Silver truly is the Achilles Heel to the entire economic system. Talk is cheap: must go and hunt out this weeks instalment of physical silver to add to the pile.
I just love feeding the monster its own fiat for real money. Do yourself and your family a favour, feed the monster.
Many hands make light work.
Posted by dotti on 09/17/12 06:26 PM
I thought this interview was the bees knees!
Maybe someone can help me on something. I remember the big deal when the Hunt Brothers were accused of trying to "corner the market" in silver. I have always wondered whether they were doing something inherently wrong or if they were just threatening to beat the PtB at their own game. In other words, were they trying to force the "paper traders" to have to cover with physical silver. In the later case, I would be supporters of their efforts.
Another thing that I wonder about is when we hear that central banks are net buyers of gold/silver, do we know what they are doing with that physical metal? Are they perhaps leasing it back into the markets to suppress the price. Everything is in the timing, so if they purchase at the right time and put it back in the market at the right time, they could either make money or lose very little.
To Jaque, I recommend that if someone want to stay within the US, but prepare for the worst, the Appalachian area is a good choice. Any city is a poor choice.
DannyB, thanks for your links. I went to the one about Preppers not surviving and was impressed with the video.
My main response is that gold/silver won't do you any good if you don't have food/water/meds. And in a worst case scenario, you will ALSO need a way to protect your family against violence.
If one is accumulating guns/ammo to the exclusion of food/water/meds, I would have to think that they were planning to victimize their neighbors.
I am learning gardening with the hope that in a worst case scenario I will be able to provide help to my family and others, as well.
Someone asked me what good would it do to have limited supplies of beans/rice, etc. My answer is that if we can get by until the first harvest, we will have a chance at survival. The first harvest will be crucial.
Thanks DB for an excellent interview and feedbackers for your contribution as well.
Posted by Germaine on 09/17/12 09:42 PM
This interview is a pleasure to read.
It is greatly inspiring and reassuring to hear what David Morgan says about the individual and what makes a person strong and well prepared for challenge.
"Become themselves" is such a crucial statement. Alienation from oneself has led to all destructiveness in the world.
Posted by libertyjones on 09/17/12 10:56 PM
BRAVO! Best advice in the world given here in this interview.
If a critical mass of humanity does not become their "best selves", I think our species is doomed to failure. We've got some evolving to do that's for sure.
As Einstein observed, it will take a different mind to solve the problem than the mind that created it.
Posted by Danny B on 09/17/12 11:24 PM
Dotti, the very best way to prepare is to think what you would do if you had no preparations. THAT is what most people will do. Plan according to what they will do.
The main problem is the wide variety of possible scenarios. Sol is kicking up pretty strongly. Terra and the other planets are getting hit pretty hard.
Click to view link
CMEs are definitely in our future but, how many and how strong?
Years ago, Jennifer Lawson very accurately predicted storms, earthquakes and volcanoes by charting plasma flows. Today, Piers Corbyn is doing the same.
The increased plasma flows are kicking up quite a few volcanoes. El Hierro, among others are coming to life.
Click to view link
There is currently a $ 600 trillion overhang of derivatives. About a quarter of these are interest-rate-swaps. Everytime that interest rates rise somebody has to pay off a counter-party. The CBs have successful so far a driving down interest rates. ZIRP allows bond investors to make just a bit of gain. It's so little after inflation that nobody wants to buy bonds. Negative in many instances.
Eventually, we will have a rise in interest rates and a bank crisis.
The banks will close and the people will riot.
That's one more possible situation to prepare for. There are others.
An attack on Iran would push the whole world off a cliff. The Straights of Hormuz would be closed until the insurance companies felt that they were completely safe. 7 years for the Suez last time.
There is a varied menu to consider.
There is even a NEW problem. China seems to be doing some heavy provocation of Japan, Dunno why???
The best way to prepare is to prepare to get away from other people.
FOOD before silver and gold.
Posted by Danny B on 09/18/12 12:24 AM
Dotti, I forgot to tell the tall tale of H.L. Hunt's Boys and the Circle K Cowboys
It's quite entertaining.
Click to view link
Posted by dotti on 09/18/12 06:11 AM
Thanks for the link to Hunt brothers sagal It was fascinating. And enlightning. I still need to read it again.
Regarding to preparing not just for worst case, but for other scenarios like uou say, food/water/meds fist. A?nd don't forgt relationships.
I'm fading fast. I need to return in AM to finish up.
Thanks Danny B for your posts.
Posted by Danny B on 10/17/12 10:30 PM
I found a very good paper on silver;
Click to view link
There is a LOT of noise about a COMEX default. It's undeniable that silver stocks are falling;
Click to view link
I also found some interesting info on gold;
Click to view link
Strangely enough, America is exporting quite a bit of gold;
Click to view link
Mexico's gold is in London. Can't trust those thieves;
Click to view link
Just like silver, the ore grades for copper are in serious decline;
Click to view link