Silver Birds and the Bank of Last Resort

by Walter
(Lansing)

Consider the familiar term, ‘food bank’. It is a bank that actually stores food. The idea that a bank is a place where assets are stored is a pretty good one. That description used to be true for monetary banks. This essay is going to explore a contrast between banks that only store pictures of wealth and the bank of Bank of Last resort that has silver birds.


Public banks were invented a long time ago so customers could safely deposit and store their wealth in a single guarded place. The bank would issue a receipt of ownership to the depositor. The receipts became paper money; and originally, paper money was backed 100% by the deposit held in the bank as a reserve against the receipt. Banks learned how to print new money against those deposits to make loans; and the process went viral when governments became the borrowers. This was called fractional reserve banking. The receipts should be called fractional reserve money.

We should think of our money as only a fraction of real money. Here’s why. If we consider money a picture of wealth, the picture of fractional reserve money has two parts. One part of the picture is wealth that has been brought into existence by real work to be used or stored as a real physical tangible asset right now. The debt portion of the picture is the part that is waiting for future work to bring that asset wealth into existence. The debt fraction has become so large now that if you think about this, you will understand why a run on the bank leaves many holding an empty bag. The empty bag is the substance of the assets that haven’t been produced yet.

Does the proverb, “a bird in the hand is worth two in the bush”, mean anything important in this context? I think it does. The way I read that proverb is like this: A physical asset held in possession now is worth more than twice the promise of that kind of asset in the future. The proverb is just a fore shadow. Today’s ratio of birds is quite different from what that proverb suggests.

Let’s rephrase that proverb into an important question relevant to the modern times. What if a bird in the hand becomes so hard to catch that it is worth 100 birds in the bush? What if you knew that for every ounce of physical silver you own there are more than one hundred receipts out there in circulation claiming to represent that ounce? Silver gurus across the Internet have repeatedly shown us that silver receipts have already been fractionalized. Only 1% of silver investors own actual physical silver in their hands. The other 99% only hold only paper receipts or paper promises.

So consider this question: What do you think will happen in the future when the holders of paper receipts try to turn them in to the bullion banks for real physical silver? Can you spell Bankruptcy? Next, ask yourself how high your silver bird in the hand will fly when you are the president the last real silver bank standing, a bank that is solvent, a bank that actually stores the wealth as at the beginning, the bank that will be know by a new title: The Bank of Last Resort.

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Sep 03, 2015
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Eli NEW
by: Anonymous

It isn't since no problem finding any essay writing service since folks consider. I have already been buying a program for quite a while and also everyone I take advantage of gets the identical articles and also display helping to make the task seem cloned. I must locate a special article writer shortly.

May 27, 2012
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pay it foward
by: contrarian

with silver so low spend 30.00 and buy a silver coin and give it to a stranger or a friend. you just might entice someone to investing into the silver market. even if they seem "homeless" it might surprise you how much they really have. tell them what you want----it fell from the sky, it is a a gift from Jesus, a bird gave it to you. it does not matter if you tell them anything other than it is real and you are paying it forward

May 17, 2012
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Ha! I wish I thought of that!
by: A

Show this to your friend and family members who doubt the truth! Great piece , plain and simple logic is difficult to argue against.

May 16, 2012
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Other Metals and Why You Need Them
by: Tom Haslebacher

One of the major leaps forward in civilization came when we leaped from "stone age" to "bronze age". What does this mean? Mankind went from using stone tools to tools made of metal. I know, I know, this website is all about silver. But what about the other non precious metals.
I am not a machinist, I am a geologist. But growing up as the son of a general contractor, I always had access to a lathe, drill press, grinders, torches and a welder. I grew up in a world of bronze, brass, copper, iron, lead, zinc and steel.
I learned at an early age to make bearings, pins, etc. out of scrap that we picked up at construction sites, or high quality metals we bought from specialty stores. With the equipment my dad ran, if it broke, you had to make a new one.
I don't work construction but I do have all the tools my dad had. I also have all the metals (non-precious) that my dad kept handy. In addition, I have physical silver. If worse comes to worse (and I pray that it doesn't) I can make what I need or buy it with something other than paper. So don't discount metals other than silver and gold. They are what distinguish us from the caveman.
By the way, my parents always kept silver stashed away.

May 16, 2012
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Best form IMO any/all pre-'65 US90%
by: Anonymous

Thanks again Walter! We just can't say it enough, or loudly enough it seems! Only REAL is REAL, all else is blue sky. Almost 56 to 1 today. OUCH, but if we don't end up like Japan for then next ten years...the silver-faithful should be rewarded THIS year! My goodness, I sure hope so! Suggestion for everybody: Long-standing family COIN collections are often inherited. PRE-1965 90% silver U.S. coins are globally-recognized, and have no serial numbers, and are often found to comprise the bulk of inherited collections. This form of silver is truly the most liquid and tax-protected form of all! IRS: "Hey you, you tryin' to tell me these 2007 Maple Leaf coins were part of your grampa's collection?" You, "No sir, those were purchased later by me, to supplement my long-standing, multi-generational family, antique, collectible coin collection." ----- You dig? --- Say, I dig! --- BUY US90% NOW ---

May 15, 2012
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"BULKY"
by: trashfocash

Great article, I have quite a few " Physical
Birds"
But I'd like to comment on a Comment. JohnHoagland ~~ I loved your idea on scrapping
silver, which I know is hard to do. I wish there
were More articles on aquiring metels "Other" than
the choices of only coins or bars. Although it is tough work, I believe it is less attractive to be
stolen compared to MY coins etc..! Although I love
all the articles & comments here ~~~ I don't here anything on where to hide all the "Bulky"semi-valuable silver! Ihave north of 1,000 coins/oz's
& it's hard to second guess a "Good burglar", which is usually someone ya know,etc. Although I know silver is more rare,& better profit potential
I sold a few hundred Eagles last year, as it is/was easier to hide a few gold coins over the
"bulkyness" of silver !!! And I shore ain't gonna trust a bank's "SAFETY (??)Deposit Box"!!! Even if I did,the cost ofthe MANY boxes wouldn't justify it. Anyway~~good comment John & keep accu-
mulating. Good Luck & Fortune To All.

May 15, 2012
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Collecting silver the only way I can
by: John Hoagland

Love this article.

Alas I do not have enough cash to sock away silver or gold. I would if I could.

So I collect it.

I learned how from a program called Scrap4Treasure. Cost me about $30 and I've paid for 10 times over so far.

The idea is to recover the PMs from scrap electronics and machinery. It's not as nice as buying silver coins but it sure is better than having none at all.

May 15, 2012
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Bank of Last Resort
by: Chenz62

Very Nicely thought out piece! Everyone who seriously wants to protect their family should aspire to amass silver. The published reasons are all logical and many.
Some additional KEY THOUGHTS, are these:

Hold PHYSICAL SILVER in YOUR IMMEDIATE POSSESSION ONLY!

Keep your lips TIGHTLY SEALED

Monitor Government Regulation always

Aspire to trade for goods and services with silver

Don't panic when the price of silver falls. This is your "silver is on sale" opportunity.

And live a happy lifestyle, not a life of worry.

May 15, 2012
Rating
starstarstarstarstar
Bank of Last Resort
by: Chenz62

Very Nicely thought out piece! Everyone who seriously wants to protect their family should aspire to amass silver. The published reasons are all logical and many.
Some additional KEY THOUGHTS, are these:

Hold PHYSICAL SILVER in YOUR IMMEDIATE POSSESSION ONLY!

Keep your lips TIGHTLY SEALED

Monitor Government Regulation always

Aspire to trade for goods and services with silver

Don't panic when the price of silver falls. This is your "silver is on sale" opportunity.

And live a happy lifestyle, not a life of worry.

May 15, 2012
Rating
starstarstarstarstar
Bank of Last Resort
by: Chenz62

Very Nicely thought out piece! Everyone who seriously wants to protect their family should aspire to amass silver. The published reasons are all logical and many.
Some additional KEY THOUGHTS, are these:

Hold PHYSICAL SILVER in YOUR IMMEDIATE POSSESSION ONLY!

Keep your lips TIGHTLY SEALED

Monitor Government Regulation always

Aspire to trade for goods and services with silver

Don't panic when the price of silver falls. This is your "silver is on sale" opportunity.

And live a happy lifestyle, not a life of worry.

May 15, 2012
Rating
starstarstarstarstar
Last laugh - longer laugh
by: C.G. BHARGAV

And the guy holding the silver bird will laugh.
He will laugh longer. Why? Because those who laugh last, laugh longer!

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