Who Here Believes in the Power of the SLA?
- Thread starter beardo
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beardo
Well-Known Member
Im reading Silver Bulls now, thanks, just got it because of you.gentlemen, you are going to lose all your money, this has been done before by the hunt brothers, and the government fucked them by just changing the rules. It caused the silver crash of 1980's, and they will figure out a way to do it again,
BUNKERED: THE GREAT CRASH OF 1980"I was just trying to make some money."
Tom Dyson
That's what Bunker Hunt said to his sister having just bankrupted one of America's richest families. It took him just three months to lose a multi-billion dollar fortune.
The Hunt brothers will always be remembered as the fools who dared to corner 'the market.' So notorious was the episode, we first learned about it in a textbook at school.
To paraphrase a long story, they bought as much silver as they could...silver futures, silver coins, silver ingots, silver mines. By January 1, 1980, they had accumulated over 192 million ounces of the metal, valued at $35 an ounce.
On the other side of the trade, a whole group of Wall St. types had gone short silver futures, and were getting 'squeezed.' These firms had a legal obligation to deliver silver at predetermined prices to the counter-parties in the trade. Only problem was, the counter-parties - the Hunts and the other silver bulls - already controlled the world's supply of silver.
As the old Wall St. adage goes:
He who sells what isn't his'n, Must pay the price or go to prison.
The 'shorts' were trapped, so what did they do? They changed the rules at the silver exchanges, limiting the amount of silver any one individual could own and increasing margin requirements. Stability was the official justification. It's one of Wall St.'s favorite tricks...if the rules don't work in your favor, you get 'em changed.
Whatever the case, the Hunts were forced to liquidate parts of their position, and silver crashed...from over $50 at its intra-day peak, to below $10 less than two months later. The Hunts went bankrupt and Paul Volcker organized a $1.1 billion dollar loan to "prevent the very fabric of American finance from tearing apart."
That's the story we were told at school. It's also what you read in the newspapers and in most books. But as we found out, it's not necessarily the TRUE story.
Readers will be astonished to learn that the Rude Awakening has inside connections to the story. You've heard us mention Options Hotline editor, Steve Sarnoff. His Dad was Paul Sarnoff, research chief of a large commodity house and a major player in 1970s and 1980s commodity trading.
In fact, when researching this story at the local library, we saw Paul Sarnoff quoted so frequently in the NY Times, we couldn't afford to print all the references.
Sarnoff had first-hand knowledge of the entire episode, and knew many of the principles personally. He even wrote a book about the crash, called "Silver Bulls." You can buy it on Amazon. We had Steve Sarnoff send us a copy.
On April 23, 1980, Sarnoff recalls, he happened to be the speaker on precious metals at the Financial Analysts federation in Houston, Texas. He was interviewed by the Houston Chronicle and told them "Bunker Hunt is not a villain, as the papers and magazines made him out to be."
"It was a personal pleasure" to tell them so, he commented later. The Hunts were not motivated by greed in the slightest, Sarnoff explains, but more by paranoia.
Think of it like this: Everyday his family was trading innumerable gallons of a scarce natural resource - petroleum - for paper dollars. Not a great trade if you're worried about inflation. "Bunker and his family had the ability to see twenty years down the road and realize that the purchasing power of paper dollars could only go one way: down," explains Sarnoff. "So it is understandable that Bunker searched for a natural asset to replace the one sold by the Hunts, which over a period of time would appreciate in value despite inflation."
It's just the kind of logic we like - here at the Rude Awakening regional branch in Baltimore - and we'd buy silver for the same reason.
In fact, Bunker Hunt and his brother still own large quantities of silver. How much? "If you can count it," says Bunker, "it can't be very much."
In 1989, Bunker left bankruptcy with a net worth of between $5 and $10 million, according to Forbes, though he still owed the IRS more than $90 million to be paid over 15 years.
By 2000, he'd already paid it off...which made us wonder what he's doing with his money, now he doesn't have to divert 70% of his income to the IRS.
"Some of that [cash] is going into 4 legs," Forbes answers. "Hattiesburg, a 3-year-old he bought for $20,000 in July 1999, has won $357,000. Asked about it, Hunt says, 'I don't really know anything. I am just trying to win a few races.'"
"...and make a little money," he might have added.
Really? When I started telling people to buy silver in 2008 they all looked at me like I was a lunatic. My parents said I was a fool to think silver would ever be worth more than $10 when I told them to buy as much as they could when it was at $9 an ounce. I told everyone at work, got the same look, only the new kid who started working there did any of my suggested reading and he bought 1,000 ounces at $14.
newworldicon
Well-Known Member
I hit the same walls initially but with friends or family you have more time to explain the whole thing, however I speak of the whole story not just silver and it's fledgling journey. I found it easier to explain the relevance of silver by explaining the entire story about the struggle we face today.
As you well know it is hard to convince a newcomer to the whole NWO movement but as soon as you show the existence of the Bilderbergers then it's all plain sailing from there on out.
We need to keep talking though, we are not out of the woods yet!!
beardo
Well-Known Member
I think you said it
Big P
Well-Known Member
Well dudes look at this, this is not as simple as they make it seem, must read:
http://www.silver-investor.com/misc_articles/SilverHitsWall.htm
http://www.silver-investor.com/misc_articles/SilverHitsWall.htm
I read this, and the only thing the author forgets about is how fucking LONG it takes to get a silver mine up and running. Avg time 7-10 years. we have time for silver to skyrocket before they can start mining the little deposits. The author did touch on this a tiny bit, its a bit buried though.
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beardo
Well-Known Member
should have gotten started when I made that post, you'll be hard pressed to get it under 50$ now, in a few weeks it will be 60$
bobbypyn
Well-Known Member
I hate infowars with a burning passion, BUT I dig that ya'll are doing this cuz I hate the fucking federal reserve corporation with an unholy passion. It tickles me to death how the far right's views are now almost in line with the far left's. this is true Class Warfare at it's fucking finest and my hat is off to ya! I hope you bankrupt the bastards!!! 
beardo
Well-Known Member
And the ever increasing cost of mining.