Silver Coin Commerce™

Robert Reich, the former Secretary of Labor has put together a short video as to how best “fix” the U.S. economy. It’s worth a watch.

Reich focuses on 5 points:

1. Economy doubles since 1980, but wages flat

2. All gains from the economy go to the super rich

3. With money comes political power

4. Huge budget deficits

5. Middle class divided

And in doing so, completely ignores what may be the real cause of all of the above.

Consider the alternative (opined) version:

1. Economy (increased money supply) doubles since 1980 as a result of taking U.S. dollar off of the gold standard. Wages no longer can be equated with “real” wealth.

2. All gains from the “play money” go to the super rich.

3. Politicians have lost the ability to discern the difference between “real” money (commodity based) and “play money” (fiat).

4. Politicians keep spending play money like it is real money.

5. Middle class gets screwed because they were/are -mostly- apathetic.

Your thoughts?

And if you’re wondering…

“The United States Secretary of Labor is the head of the Department of Labor who exercises control over the department and enforces and suggests laws involving unions, the workplace, and all other issues involving any form of business-person controversies”. – Wikipedia

Robert Reich is also an author. He’s written quite a few books including “Supercapitalism” and most recently “Aftershock: The Next Economy and America’s Future”.

Hilda Solis is the current U.S. Secretary of Labor.

Pete Skenandore

The U.S. dollar was leading to the biggest drop in six weeks after the recent U.S. government jobs report that showed fewer jobs added in November with unemployment at 9.8 percent. More than likely this will lead to more money pumping into the financial system by the Federal Reserve.

Silver has increased 74 percent in 2010. We’re near the end of the year and it looks like it will continue the upward march as we near $30 per ounce. This leads silver to the biggest annual increase since 1979.

This week alone the price of silver jumped 9.3 percent, the most since January of this year.

Something to think about: In today’s age almost all newly mined silver ore travels through the smelting and fabrication operations of China. China offers a better deal to mine owners with upfront cash for ore, and higher prices than other competitors around the world, some of which have had to close leaving China the only game in town for silver miners. Since most of our electronics are built there anyway… maybe this isn’t such a bad thing?

Pete Skenandore