Seneca’s Cliff: Greece, Debt and Paper Silver

(by Shadow of Truth, The Daily Coin)

“The path to growth is gradual but the road to ruin is rapid.” – Lucius Seneca, Roman philosopher.

When the system finally starts to unravel, the speed at which it will unravel and how it takes down the fiscal economy will be breathtaking. – Steve St. Angelo, Shadow of Truth

We hosted Steve St. Angelo at the Shadow of Truth for a fascinating, if not startling, look at the big developments that look to have the west – and possibly the entire world – headed for an unexpected collapse.

There’s really no good solution. This is the dilemma faced by every western country. The west, including Japan and the United States, has accumulated a catastrophic level of debt in order to sustain a standard of living that is not even remotely supported by economic output. The Greece situation is the poster-child for this dynamic. However, make no mistake about it, the United States is Greece on steroids.

The only difference between Greece and the United States with regard to its lethal level of debt is that 1) the U.S. has the unfettered ability to print money and create more debt in quantities needed to service its existing debt and pay ongoing expenses and 2) the U.S. has a world-ending arsenal of nukes – Shadow of Truth

What we are seeing occur right now going on in the market for physical gold and silver is Gresham’s Law in motion. Bad money chases good money out of the system. This means that anyone who is holding “bad” money – and understands it to be bad money – will take the bad money and exchange it for good money – physical gold and silver – and remove the good money from the system. This is exactly what is occurring with massive transfer of gold and silver from the west to the east:

In the last 15-20 years, money has been funneled out of physical things and into paper digits and assets…money stored in a safe in the form of physical gold and silver – that’s stored economic energy…Unfortunately, 99% of U.S. citizens and folks around the world took the all the excess surplus paper money [money that has been printed] and put it in “digits” and they think they’re going to get that back. And that’s the reason that gold and silver are so undervalued…and the market hasn’t realized that…Steve St. Angelo, Shadow of Truth

The mining stocks currently are more undervalued now in relation to the current price of gold and silver than they were at the beginning of the precious metals bull market in late 2000. Many of the junior mining stocks can be bought at a stock price that equates to a few dollars per ounce of the amount of proved gold and silver they have in the ground. Every surviving company, large and small, has cut its costs to the bare bones.

When the price of gold and silver resumes its bull market trend – and we believe it has this year – the price moves will be amplified by the declining supply of mined gold and silver globally. The increasing price will fall right to the bottom line of mining companies. Junior miners which have “fattened” up their proved gold/silver resource base over the last four years will see their acquisition value spike significantly higher.

By the end of this year, or let’s say by September/October, I think it’s a perfect scenario for things to get out of hand. If people don’t buy silver right now, I really don’t think they’re going to be able to find it in the future. – Steve St. Angelo

This was a Shadow of Truth series interview with Rory at The Daily Coin and Dave from Investment Research Dynamics.  If you haven’t checked out their sites yet, I recommend that you do.  There’s a lot of excellent material.

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24 Comments on "Seneca’s Cliff: Greece, Debt and Paper Silver"

  1. People, don’t be sucked into mining shares they equate to paper promises. Even if they to shoot to the moon, a mining(or any) share is a by-product of the actual asset.

  2. Growth for the sake of growth is the same ideology as the cancer cell!

    And as so, the entire system will decay and die.

  3. Maybe some mining stocks are better than many other stocks, but being in any stock at this time is risky. As Eric says, they are a future promise that might get honored.

  4. Paper is paper. Mining stocks or US dollars. Don’t get sucked into the worthless paper world. If things go sideways. Miners will be either nationalized or taxed beyond profitability.

    Even cash money, if it is not in hand, can be used for “bail-ins” under Dodd-Frank.

    Buy for cash, keep your cash in hand, and stash for yourself.


  5. To most regular visitors of this site, gold and silver are a pure religion. They worship gold and silver. The prices of gold and silver must only go up otherwise that’s manipulation. Mr St Angelo is like a vicar whose job is to firm gold and silver bugs’s blind faith in gold and silver. I bet even when gold crashed below $1000 and silver $12, Mr St Angelo would still be screaming “gold and silver are going much much higher”.
    I know that numerous zealous gold and silver bugs will jump out instantly and label me as a paid troll. But you will repent on the day when silver crashes below $12 for having shot the messenger.

    • Frank,

      Nice try. While saying gold and silver are a religion sounds nice at face value, but religion is based mostly on faith. However, gold and silver are monetary metals due to fundamentals. This has nothing to do with religion.

      Thanks though for the interesting comment.


      • We bet on metals, you bet on what?

        We base our bets on fundamentals, you base on what?

    • You might want to brush up on your History. I know you were bored reciting dates but gold and silver has always been the monetary exchange throughout history. So using words like “religion, worship, and zealous does not make a good argument. What’s that? Don’t tell me you slept through debate class too?

    • Semi-articulate psychobabble. Enough so to be entertaining.

      Physical supply and demand GENERALLY don’t matter when the COMEX tail wags the dog. But if the [extremely well-documented Frank] gold and silver manipulation tries to push the price down further, Asians and Russian [at least for gold] and other central banks, sovereign nations, businesses, or individuals back up the trucks and suck down physical supply. The demand even bleeds over to the ETF’s and yes even the COMEX [even though that is protected as sacrosanct by TPTB].

      The whole system…everything having to do with currency & money [including G & S which have thousands of years’ history as money and currency] is being run for broke. The appearance to the uninformed or under-informed masses has to be “all is under control”. Few if any problems are being fixed, so we can expect relative status quo until a critical piece of the system breaks. When it does if ATM’s, credit and debit cards don’t work, and banks run out of or severely limit cash withdrawals, cash in hand will be king. But at the same time digital currency units would seek refuge in physical PM’s, overwhelming COMEX control. PM’s will go up in fiat valuations. If/when confidence is lost in fiat currency most tangible assets will go up valued in fiat currency units.

    • have to agree with the “gold and silver are religion” view. many people don’t view g&s as money but as salvation or something, they get hysterical about it. people, if g&s ever spike up to $10,000 it will be because a dozen eggs will cost $10,000. if g&s are ever used as money again, it will be in an environment where the economy has been driven back to the stone age. everyone with anything will be doing all they can to hang onto it for as long as possible. remember, money is a medium of exchange, and in that environment no-one is going to trade you anything for any amount of gold for a very long time, probably generations. you’re better off buying beans or something.

      • “remember, money is a medium of exchange, and in that environment no-one is going to trade you anything for any amount of gold for a very long time, probably generations. you’re better off buying beans or something.”

        I think the last part of your comment above is wrong. Even in a really bad scenario there are some who “have”, while others do not. Gold will be trade-able or will “buy” things. The world has seen a lot of horrible times but gold and silver was always treasured.

        It is true in horrible times with bad weather people need food, shoes, clothes, coats, and shelter. But there will be some buying, selling, trade, and barter. I’ve heard some say in a severe crisis if one pulls out gold or silver when few have it they will be pointed out and attacked for it. But the same would be true for food, liquor, cigarettes, guns, stockpiles of clothes, or anything useful to those that don’t have these items.

      • Max Meister | June 24, 2015 at 1:51 am |

        1 oz of Gold for a dozen eggs. Haha…
        I recall that a view oz of Gold have purchased a whole row of business buildings in Berlin during Weimar hyperinflation. Those buildings regained their value quickly after the monetary reform and the owners where a lot richer than before.

    • Frank,
      I only became interested in Gold and finance as the logical conclusion of my interest in social justice. I love the honesty and fairness of a gold reserve system, even if it isnt as liquid or fluid as other systems – their very fluidity is the source of corruption and sly transfer of wealth.

      Are you really happy with a world situation in which a dominant Fiat power – the US millitary industrial complex – can start and perpetuate any war to theive resources from others by hitting CTRL Print ad infinitum ?
      Were other nations holding the US to the limits of its gold holdings it would be a significant force for peace

      • Same here. There will always be some sort of fiat paper money as well as gold and some exchange rate between the two. Gold and silver are honest, real money and undervalued (in regards to the amounts of fiat out there), the other is a ponzi game that is fooling the masses. For me that makes it a pretty simple choice. Good luck to all.

  6. Come on people calm down. Everyone Knows that Australian Realestate is the only true messiah and one true RELIGION…………….

  7. silverfreaky | June 23, 2015 at 10:54 am |

    All day down.Today 2.35%.

  8. According to the latest info posted by Jim Willie, this whole BS global finances is about GOLD and SILVER…NOTHING else!…Greece only bought the Fascist (Vatican) a few more weeks by selling their GOLD to the EU (47 tons?!?!)…TALK ABOUT STUPID!!!
    IF they (Greece) They deserve to loose their sovereignty! They NEED to ask Iceland HOW they succeeded AFTER getting rid of their fraudulent bankers!
    Hopefully the Russians and Chinese will help them WAKE-UP!
    By the way folks…DO NOT invest in OIL stocks…NEW forms of Energy (Not really New!) will be Announced VERY soon that will make Oil; Coal; Nuclear: and Gas, will become OBSOLETE so FAST it will make your heads Spin-Off!
    Watch for the NEW technologies…coming SOONER THAN YOU KNOW!

  9. “By the way folks…DO NOT invest in OIL stocks…NEW forms of Energy (Not really New!) will be Announced VERY soon that will make Oil; Coal; Nuclear: and Gas, will become OBSOLETE so FAST it will make your heads Spin-Off!
    Watch for the NEW technologies…coming SOONER THAN YOU KNOW!”

    Don’t bet on it. An energy savior is unlikely to ride in on a white horse.

    Energy has to come from somewhere; not from thin air like fiat currency. I saw one BS ad for gasoline from??? for about 57 cents per gallon. I didn’t pay to find out what this “miracle” was. They said it didn’t come from other energy sources. What would one make gasoline from? Mind boggling that so many are so gullible. I did get from the ad that the “company” was looking for investors. Good luck on that one.

    Think I’ll start selling stock in company that cheaply turns lead into gold. Oh yeah no carbon footprint either.

  10. kid dooshamite | June 23, 2015 at 5:09 pm |

    I saw a Tesla today with license plate frame that said :

    In Elon Musk

    I Trust

    Please tell us of this free energy technology that will make our heads spin off.

    • Apparently not many people ever learned about what Nikolai Tesla ACTUALLY produced when he was still alive, because the “Bankoholic’s” JP Morgan and others SHUT that story down.
      Tesla actually PROVED beyond doubt that MASSIVE energy exist right in the AIR we breath!…But because the bankers couldn’t “Meter” this energy for a profit and “Control”…They proceeded to TRASH that part of his creation…THEN HIS WHOLE LIFE (He died Broke!)
      The bankers HATED the idea of “FREE ENERGY”…Even though TODAY…THEY KNOW it exist and are using it in “Classified Projects”…AMERICANS WILL BE SHOCKED OUT OF THEIR SOCKS WHEN THEY FIND OUT…BEFORE THIS YEAR ENDS!!!
      Unless you start finding out the REAL truth about WHAT the bankoholics are REALLY up to about ALL Energy…You will LOOSE out Badly IF you have ANY other so-called “Energy stocks”.
      As I write this post governments all over the world are “Secretly” making arrangements to ANNOUNCE this to ALL the Planet…Only the bone-headed bankoholics are struggling to keep this a secret (Loosing BADLY though!!!)
      There are t”Forces” FAR more POWERFUL than anyone can imagine that will GUARANTEE this will happen…THE GOVERNMENTS OF THE WHOLE WORLD WILL HAVE NO CHOICE BUT TO REVEAL THIS TO ALL MANKIND!
      Till then Gold and SILVER will be the ONLY acceptably currencies!
      I could write a book here, about this subject…Do YOUR own research about this matter and you will SEE it is TRUE!

      • Kennyboy, I’ve been hearing about Tesla’s free energy ever since I found out about peak oil back in 1999. And at the present the world gets 0% of it’s energy supply from these so called free energy devices. Now I am not saying that they do not exist but if you have some inside information please share it instead of making blanket statements which give you zero credibility.

  11. Steve,

    The title of this column is “Seneca’s Cliff: Greece, Debt and PAPER Silver”. Many are busy or otherwise won’t listen to the interview. I’ll look forward to more discussion or information, like in the interview, about ever-tightening global PHYSICAL silver supplies.

    Over 90% of people never think about silver, then most of the rest, that absent facts like you mention in this interview, dismiss it as a bad investment or bad choice to exchange fiat currency for. Nothing could be further from the truth.

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