Renowned precious metals analyst David Morgan is out with a new book
called "The Silver Manifesto." In a chapter called "The
Debt Bomb," Morgan lays out the biggest problem and the biggest
reason to own precious metals. Morgan contends, "Basically, the United
States have exported our inflation to every other country. So, for them to
stay competitive, they are required to weaken their own currencies for what
is called competitive advantage. It simply means if they don't print ...
their currencies would become too strong, and they would not be able to
export. In order to keep trade flowing, these other countries are basically
required to do what the U.S. government does, and that is export a great
quantity of un-backed paper promises that are impossible to pay back. That's
the crux of "The Debt Bomb." It's going to explode. ... The
basic premises are: You default on the debt ... or you keep kicking the can
down the road, and you continue to debase the currency, which is what
governments have always done when it's a non-backed currency. If you look at
the value of the Federal Reserve from 1913 to now, in a little over a hundred
years, the Federal Reserve itself will admit that 100 cents is now worth
about 4 cents. So, you have lost 96% of the value of the U.S. dollar.... That
has been a failure, a tremendous failure. That is a collapse in slow motion.
Now, what we are really arguing about is what's going to happen to the last 4
cents of the U.S. dollar.... It looks to me that at some point, a tipping
point, that you will get an acceleration ... and things will change
dramatically."
On the Greek debt crisis, will it be forced to default? Morgan says,
"Yes, and the problem is everyone in power is acting like a bunch of
kids. No one wants to be an adult and state the problem clearly. This new
regime in Greece actually has. They are the only truth tellers at the
political level that actually said we are bankrupt."
On the price of silver, Morgan says, "What is $16 silver compared to
$5 silver over a decade ago, and basically they are the same price. Isn't
that amazing, this inflation that nobody talks about. It you take the $5
silver price back in 2003, and you use the true money supply of fiat currency
today, hey guess what, it is pretty close to $16. So, in a nut shell, because
you are buying the same silver for basically the same amount over a decade
ago, it's really on sale. It is really a bargain."
When might the economy and the "debt bomb" explode? Morgan
predicts this fall. Why? Morgan says, "Momentum is one indicator and the
money supply. Also, when I made my forecast, there is a big seasonality, and
part of it is strict analytical detail and part of it is being in this market
for 40 years. I got a pretty good idea of what is going on out there and the
feedback I get.... I'm in Europe, I'm in Asia, I'm in South America, I'm in
Mexico, I'm in Canada; and so, I get a global feel, if you will, for what
people are really thinking and really dealing with. It's like a barometer
reading, and I feel there are more and more tensions all the time and less and
less solutions. It's a fundamental take on how fed up people are on a global
basis. Based on that, it seems to me as I said in the January issue of the
Morgan Report, September is going to be the point where people have had
it."
Join Greg Hunter as he goes One-on-One with silver guru David Morgan of Silver-Investor.com.
(There is much more in the video interview.)
