When the Federal Reserve reduces the amount of fiat currency loaned into the banking system. The price of silver in fiat dollars will decline. By ending quantitative easing and raising the interest rate applied to the fiat currency. It has lent into circulation, it can lower that amount of fiat. It is impossible to stop quantitative easing or raise interest rates due to the extent of federal debt held by almost every country. Even a 1% increase in interest rates would result in an annual increase of $140 billion on the 14 trillion dollars in US debt. An interest rate of 14%, which is what Greece is already paying on its debt, would equal $1,820 billion, or nearly $2 trillion, in annual interest payments. The US Government’s expected annual debt is around the same. Checkmate.

Until the dollar is rendered obsolete and a new monetary system is created, silver’s value in terms of dollars will continue to rise. US Congressman Ron Paul is suggesting the introduction of silver and gold coins as an alternate form of currency to compete with fiat currency as one transitional strategy to a more stable monetary system (Federal Reserve Notes). Currently, the sale of gold, silver, or platinum for fiat money is subject to capital gains tax. These coins wouldn’t be subject to taxes if they were regarded as legal tender, or an alternative form of currency, just like fiat money isn’t when it’s used to transact goods and services. James Turk’s invention of gold grams, which are currently only available in certain circumstances, is another strategy. Grams of gold could be used as the medium of exchange for goods in electronic transactions.

Silver Increased after a 9% Rally

Following a 9.2% increase in the previous session. Spot silver increased further to $21 per ounce. The highest price in three months. Driven by safe-haven demand as bond yields dropped and the dollar weakened. The surge follows the release of new data showing that manufacturing activity in the US rose at the slowest rate in more than two years, indicating a slowdown in the largest economy in the world and diminishing the need for the current strong tightening of monetary policy.

Due to rising interest rates around the world and waning demand, silver has been circling near 2-year lows and fluctuating around the $19 mark.The US Federal Reserve, the most powerful central bank in the world, increased interest rates by 75 basis points for the third time in a row and predicted that borrowing might reach 4.4% by December.

Because 72% of the world currently uses their notes as “reserve” currency (by which to make loans 10X their reserves). If one is skeptical that a privately held institution founded in 1913 by JP Morgan. And other bankers and misleadingly called the “Federal Reserve” will be replaced. Just consider how quickly change occurs in the world today. Searching for “new money reserve, BRIC countries” on Google may also be a good idea. China, Brazil, India, Russia, and other countries have already established trade agreements that do not rely on FRNs. The BRICS are likewise attempting to replace the FRN with a different global currency independent of US banks.

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