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Thursday (Friday) Conversation - David Jensen

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The #SilverSqueeze movement has been rolling for a couple of weeks now and it has certainly been interesting to watch. However, for it to have a long-term impact, we must continue to draw physical metal away from the Bullion Banks and force a de-leveraging of the fractional reserve pricing scheme.

It is in understanding this that I reached out to David Jensen this week. You'll recall that David is an expert precious metals analyst and that he played a vital role in documenting and explaining the #PalladiumSqueeze" of 2016-2020.

So let's bring this full circle. Can silver ultimately be squeezed in the same manner as palladium? Recall palladium saw its price move up 5X as The Banks were forced to unwind leveraged short positions and source actual, physical metal, instead.

If this were to happen in the weeks and months ahead, what would be the signs and signals to look for? For that answer, we turn to David. Please be sure to give this podcast a thorough listen and note the chart below when he mentions it in the second half of the podcast.

Thanks for listening and sharing.

TF

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tommyUbik Kosmil
Feb 13, 2021 - 10:34am

crypto as slv/futures

Now I'm a firm believer that the bankers see gold and silver as their primary enemy. When the blockchain was used to create coins by an anonymous genius, I was skeptical. I was more in the camp that is was created as an alternative to get people away from the metals (like they had done with creating futures and ETFs, we got the transcripts).

Also the end of the Keynsian experiment for the bankers is a global digital currency, whereas the (informed) people would like to see a more decentralized medium of exchange that would guarantee our sovereignty (cryptos do claim they are that, but you know...).

There was a lot of discussion about that and me being an activist investor didn't want to play ball. Still there was a consensus that the way to create interest in the cryptos (apart from constantly talking about them and putting their quotes next to oil and gold) was to raise there 'value'. Oh well, pity I suppose. But we still have to remember we all made a lot of money in the past few years, so I'm happy anyway.

Don't get me wrong, I see the merit in blockchain technology(created by this anonymous genius, yes right) , but to think it's going against the system, I just don't buy it...

AIJ Tahoe
Feb 13, 2021 - 10:28am

The flood gates

https://twitter.com/zerohedge/status/1360605955952680964

Open Letter To $ADA, $DOT and $ETH Hodlers:

You've got an amazing opportunity right now to switch these funds over to $ATOM. In one week IBC will launch which will make all Cosmos blockchains interlopability possible. Look at this chart to see how valuable this is. pic.twitter.com/gMszFQRI09

— MoonRoyalty.crypto (@MoonRoyalty1) February 13, 2021
MarcusAGXIIK
Feb 13, 2021 - 10:26am

@ AGXIIK

Well said (as usual). Shine on, you cranky diamond.

AIJ Tahoe
Feb 13, 2021 - 10:16am

Good definition of a smart contract

"A smart contract is an agreement between two people in the form of computer code. They run on the blockchain, so they are stored on a public database and cannot be changed. The transactions that happen in a smart contract are processed by the blockchain, which means they can be sent automatically without a third party."

Sep 28, 2020"

What is a Smart Contract and How do Smart Contracts Work

The whole idea of smart contracts is disintermediation...elimination of the middle man. This is why the establishment is so afraid of crypto....it will eliminate much fat in the system....

AGXIIKsilverseeker
Feb 13, 2021 - 9:34am

Swimming in the Blockchain sea, the first order of business is

stay afloat. Learning to swim is a simple process, a skill many of us learned as kids. Learning to swim when the conditions are not ideal or where there are challenges, such as what faces a rescue swimmer or when one is involved in athletic competition, is another matter entirely.

Most of us are swimming though life, working hard to handle job, business, family and other activities which demand close attention to details that avoid major or minor set backs

In my business the complexities of a financial service business are many, even for veterans engaged for decades in this particular activity. Managing the flow of data inside the business, application of resources that have the business function efficiently, providing the clients with enough information that they have a good understanding of the process, assembling the data in a way so as to produce a result that benefits the client without making the process overly complex, ultimately helping the client achieve their desired goal allows the service business owner to make an good income. Both parties have happy ending without brain damage.

That income should be commensurate to and fitting for the knowledge and effort applied. Unlike dabbling in cryptos, the delusion of something for nothing does not apply.

The process that gives the client a desired result and the rationale for the income should be summed up in no more than a few sentences of easily understood written information or verbally explained in 10 minutes or less.

Unlike the wordy paragraphs above, the KISS rule must apply

When I read the indigestible word salads presented on these pages a few things come to mind. One is that Tulip Bulbs are just bulbs, with little use outside growing a flower or an unusual salad garnish.

Forcing a person to decipher Dil-Speak, the jargon used by Adams in his cartoon Dilbert, is certain to lose that person in about 30 seconds.

Using MBA buzz phrases like "Empowering the Stakeholders" makes me want to puke. It's little more than a verbal ruse that generally means the stake holders will get no power except what they are deluded into thinking they have, like sending kiddies to the sand box to make mud pies while telling them they are creating things of great value. People who utter that phrase should be beaten like baby seals.

That phrase is total bullshit and a smoke screen used to deceive the powerless illiterates while those with real power are finding 10 ways to steal what few meager assets are parceled out to the stake holders.

A stakeholder never has enough ownership to demand a place at the table. A stake holder will never be allowed to have real power because it's not in the interests of the owners to give stake holders anything other than an illusion of power.

Fortunately no one used the word Synergy. If they had I would have been forced to terminate them. Synergy is a word that should have a capital offense rating, like currency debasement or murder in the first.

It's my opinion that anyone who thinks that block chains and cryptos are some nirvana that will allow the average Joe some real financial freedom is delusional. If that was true it would be banned, made illegal and removed from the public square. The BIS is working overtime to see to that end.

It might be trolled passed the illiterates as some trifle that detracts from the total clusterfuck of what we see happening in real time but to think that this new system will save even a handful of people from what is coming is as delusional as believing your tenured professor at some Ivy League college is giving you the keys to being able to answer all the questions in life after you get your $300,000 sheepskin, as they teach/deceive you using Latin, racial justice CODEX and hyper complex mathematical formulas understood by no more than a few Nobel Laureates.

I like what Mort Sahl said when asked to define Transcendental Meditation

He said it was something a bearded little motherfucker would say while talking above your head as he put a bite on your wallet. See Robert Rubin or Jamie Dimon

I might be a little cranky this morning or maybe I am getting really sick and tired of crypto twaddle being run past us on these boards. What I do see is something that should be made infinitely simpler rather than spoken of in reverential terms like a thing that will grow to infinity provided to you figure out the jargon, know the secret handshake and use your special decoder ring you found in the bottom of a cereal box.

That is both the path to madness and bankruptcy, no matter how much a person might see in faux wealth as a result of possessing a wallet full of Bitcoin.

Remember that hairy little motherfucker who's talking above your head? He's going to put a bite on your Bitcoin wallet eventually. And that hairy sumbitch will have an army when he comes for your token trifles.

Ask me which I believe has value. Something that's had value for 5,000 or something that's supposedly had value for 10 years.

LiberoLibero
Feb 13, 2021 - 9:18am

Thanks all, I get crypto a little more

and when someone says "coin speculation" I still think someone who buys a roll of 1921 morgans. I get the blockchain as a record keeper or placeholder for a single transaction. I don't get how valuable some of these placeholders (coin tokens) can grow by merely wanting them as a matter of supply and demand. And a lot of these "new" tokens get created with little effort like crazy.

I think the "safest" for guys like me is to nibble in the ETF route (GBTC in particular) and let all the computer geniuses do the 'splainin.

tony727silverseeker
Feb 13, 2021 - 9:04am

So, who wants to be a

So, who wants to be a millionaire?

Because here is what I see the utility of the blockchain...

I am in healthcare administration. Along the continuum of care, every provider has their own computerized or paper medical record. The physician office software may not communicate with the emergency room program which certainly is different than my software as a post-acute provider. Incredibly inefficient and frought with opportunity for error. Not lean.

But develop a blockchain-based, immutable electronic medical record accessible to all providers along the continuum, who could then "pull" the information the need for a given care encounter versus having information inefficiently "pushed" to providers via fax, text, email, etc.

That is the beauty of the blockchain and if I was smart (which I am not) I would build this blockchain medical record system and be able to afford all the silver and gold I wanted...

Ubik Kosmil
Feb 13, 2021 - 8:27am

A clear silver manipulation explanation

https://seekingalpha.com/article/4404967-silver-shortages-suggest-are-on...

I don't recall seeing it so clearly explained before but maybe that's just me being slow :-)

Why suppress the paper silver price?

The answer to a physical shortage is of course to allow the paper price to rise in order to alleviate the shortage. People buy less of the commodity that way, and supply meets demand at a new clearing price. So why not just let the paper price of silver rise to meet physical demand? What interest is there in keeping the paper price of silver low?

The answer is that monetary demand is very different from industrial demand by its very nature. Monetary demand, if not suppressed, can easily turn into a positive feedback loop, because the more value a monetary metal like silver has in dollar terms, the more demand there is to have it as a monetary reserve in place of the dollar itself. There is no natural balancing mechanism as there is in consumable commodities that are not used as money.

In that sense, a silver run is similar to a bank run. Bank runs tend to feed on themselves. Monetary demand for silver is essentially a run on the dollar, which is itself primarily a monetary reserve. The way you stop a run on the dollar is you raise interest rates on the dollar. But what if doing that is impossible because the level of debt in the economy is so enormous that raising interest rates would collapse the economy and the stock market?

Raising interest rates was possible during the last run on silver in 1980 when it last hit $50, because debt levels were much lower back then than they are now, and stocks were also nowhere near highs. This is exactly what then-Fed Chair Paul Volcker did, pushing up overnight interest rates on the dollar to near 20% so as to increase demand for the dollar as a monetary reserve, which eventually crushed monetary demand for silver and brought the price back down in dollar terms.

But if you can’t raise interest rates, the only way to stop a dollar run and a flight into precious metals as a monetary reserve is to push the paper price of silver down by shorting silver futures. Banks have a vested interest in doing this because if the dollar falls too fast, the value of the bonds on their balance sheet plummet, causing a systemic banking crisis. If silver stops rising in dollar terms though on the paper markets, the demand for it as a monetary reserve tends to eventually ebb, stabilizing the dollar that way.

Ubik KosmilLibero
Feb 13, 2021 - 8:16am

Possible explanation of difference

Between financial products and crypto assets.

First of all the disclaimer that I don't know what the author really meant.

But I can see that crypto financial products can be viewed as a wider category than Crypto assets.

People refer to crypto assets as tradable tokens that can either be fungible (Link) or non-fungible (crypto kitties :-) ).

So smart contracts allow the creation/development of new crypto financial products, similar to derivatives in the non crypto world and some of these can be securitized into tradable assets.

Garrysdad
Feb 13, 2021 - 7:22am

Ronan Manly interview for Wall Street Silver

The sound quality is a little poor but the content isn't. Ronan expands on his 'Houston we have a problem ' article.

https://www.bullionstar.com/blogs/ronan-manly/houston-we-have-a-problem-...

#SilverSqeeze Series: Ronan Manly (BullionStar) on Wall Street Silver!

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