THE UNITED STATES AT SEVERE RISK WHEN US TREASURY BUBBLE BURSTS
Very few analysts realize what will happen to the United States when the US TREASURY BUBBLE BURSTS. We are now seeing plenty of coverage and news releases on LIBOR manipulation, PFG bankruptcy, Gold Manipulation… and etc.
The world is really starting to realize just how bad the situation has become. All that is left is for the large DEAD STINKING CARCASS OF THE WESTERN BANKING SYSTEM to fall off the cliff.
When the world realizes that the ALLOCATED GOLD is not there, and in its place is nicely printed gold certificates… WE WILL ENTER INTO A NEW WORLD.
This will be great for a fraction of the public, but hell for the rest. This is also true for countries who produce GOLD & SILVER.
I would imagine gold and silver mines will be nationalized in shocking speed when this event takes place. The United States is not in a good situation as it only produces approximately 36 million oz of silver. Below we can see the LINEUP:
The USA comes in 9th in the long list of silver producers. If we take a good look at the different countries, common sense would tells us that these countries have the largest risk of nationalization:
1) Bolivia
2) Argentina
3) Peru
4) Mexico
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The first which is Bolivia would have the most risk, and Mexico would be the last. Don’t think that Mexico would not nationalize its mines, if the world could no longer trust Financial Institutions or Central Banks. These four countries produced 324 million of the total 750 million oz of silver in the world in 2011.
Russia and China are special circumstances. China keeps all of its silver, so you can forget ever getting any from them. Russia, does export some of their silver, but I would imagine this would vanish overnight when the worlds financial system collapses. These two countries produced about 144 million oz of silver in 2011.
Together, these six countries account for 468 million oz of silver production in 2011….or 63% of the total. If we look at my graph from a previous article, we can see that domestic U.S. silver production could not meet the demand of just the Silver Eagle sales:
Now, if we compare this to U.S. Gold production vs Gold Eagle sales, we can see quite the difference:
The United States was the third largest gold producer in the world in 2011 behind Australia and then China. Here are the figures:
1) China = 11.4 million oz
2) Australia = 8.7 million oz
3) USA = 7.6 million oz
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This presents a very dire situation for the United States obtaining silver in the future.
That is why, I believe silver will outperform gold on a percentage basis…. several orders of magnitude.
Source: THE UNITED STATES AT SEVERE RISK WHEN US TREASURY BUBBLE BURSTS - Silver Doctors
