Jim Rogers on whether he agrees with mainstream economists purporting gold as a “barbaric relic”:
It does not matter what they or I think. The majority of mankind has accepted it for centuries and will continue to do so. I had rather go along with the vast number of “barbarians” than a few Ivy League professors.
Jim Rogers on whether he agrees with mainstream economists purporting gold as a “barbaric relic”:
Gold Manipulation Goes Mainstream: “An Examination of Gold Prices Reveals Machinations Fit for a Financial Thriller”
Good evening and welcome to the business magazine Makro. For many people, the purchase of gold represents a safe reserve for bad times. No wonder that, at the height of the financial crisis savers were queuing up at gold dealers. Throughout history, gold has served as a promise of reliability and stability.
But today there are considerable doubts as to whether that promise remains valid, because an examination of gold prices reveals machinations fit for a financial thriller.
Gold is the opponent of debt based moneys, i.e. currencies, and in particular the US Dollar. Therefore, the US Federal Reserve has an interest in a weak gold price, and the US government protects the manipulation of the gold price by the private banks.
For years, the US Federal Reserve has served as the lender of last resort. Gold must be weak if a loss of confidence in the US Dollar is to be averted. It has been difficult to prove that this is a rigged game with a stacked deck, but if the gold market manipulations are indeed encouraged in addition to being condoned, that would explain why oversight bodies have thus far turned a blind eye to it, despite years of massive conspicuous activities in the futures markets, as with the gold fixing in London.
Ladies and gentlemen, it is perfectly clear that gold prices are headed south – and in a big way.
For those of you who trust pictures, I have included a graph of gold prices since 1975.
As you can see – it is perfectly clear – repeat – PERFECTLY CLEAR – gold prices have NOWHERE to go but down, down, down. [Read more...]
For the past several weeks, we have shifted focus on what we see as the truer “story” of the PMs market, [Precious Metals]. Some may think we have gone off on an unrelated tangent talking about the elites and fiat currency. The PM community has maintained a relentless focus on how much gold is being imported by China, the diminishing supply of physical gold at COMEX and LBMA, and a host of other popular statistics that support what seems to be important for gold and silver adherents in their beliefs that should ultimately lead to higher prices.
The Law of Supply and Demand is what determines price. Not enough are looking at how the elites are able to distort that Natural Law and bend it to their will. It is the power they can exert, and distort, on any aspect of human life, at least in the Western world, that keeps gold and silver at unnaturally low prices. The more cogent issue is, for how much longer can elites keep their unnatural control over the natural forces of Supply/Demand?
The monthly non-farm payroll report has become perhaps one of the biggest tragicomedies manufactured by our completely fraudulent Government/Wall Street/financial media fairy tale factory. The report generates as much anticipation, speculation and discussion as any of the economic reports released. The week leading up to the release of the report is spent discussing and analyzing the numbers that are forecast by Wall Street’s brain trust, including the numerous last-minute revisions. Friday, for instance, with an expected headline print of 206k jobs created in March, CNBC’s Joe Kernan tried to heat up the anticipation even more a minute before the release by exclaiming “some of the whispers are expecting a three-handle” (meaning over 300k jobs).
The complete tragic irony in all of this is that the employment report is probably the most deceptively fraudulent reports produced by the Government. [Read more...]
We are now in the 5th year since the “official” end of the Great Recession. Numerous indicators of the state of the U.S. economy point to a non-recovery:
- The participation rate is low and supported by baby boomers working more or coming out of retirement.
- Students (the future labour force) are defaulting on their loans in record amounts.
- Disposable income is still below its pre-recession level.
- An ever increasing share of disposable income is being spent on health care, crippling discretionary spending.
- Higher interest rates are further depressing discretionary spending (home and auto sales).
- All of which is resulting in anemic business and economic activity.
Claims that the U.S. economy is suddenly rebounding have been made before. They are misleading at best and fallacious at worst. It would not be surprising to see further deterioration, which would force central planners to initiate additional unconventional intervention (i.e. Quantitative Easing). [Read more...]
The Government is lying through its teeth to us about the Ukraine situation. It’s amazing how quickly CNN and Fox News seem to have misplaced the Victoria Nuland phone tape discussing the $5 billion the U.S. has “invested” to foment the unrest over there. You know, the one in which she says “F_CK the EU.”
The Government also lies about the employment situation in this country. We saw the most recent example today with the Bureau of Labor Statistics monthly employment report claiming that the economy generated 175,000 jobs in February. The BLS claims that the construction industry added a total of 55,000 jobs in January and February. Yet, we know from homebuilder reports that housing starts have been tanking. And what about the “bad weather” narrative. If housing starts declined over the period and bad weather prevented this, how on earth is it possible that profit-seeking businesses hired workers?
The most frightening part about all of this the fact that the Government finds it acceptable to lie to us about everything. The U.S. Government has become as corrupted and self-serving as was the old U.S.S.R Government that many of us grew up fearing. The lack of fear about what has happened in our own backyard is truly stunning.
Harken, if you will, to the glorious days of times gone past when the stimulus flowed like honey and the unicorns of government-created prosperity roamed the land dropping their spoor of jobs and skittles hither and yon.
Those were the halcyon days, where every newscaster breathlessly intoned that the Green Shoots of economic recovery were popping up all across the country like some kind of genetically engineered super-weed of wealth.
Little Timmy Geithner, flitting from news show to news show like a diminutive pixie of prosperity, was endlessly repeating the magical words in that child-like voice of his: recovery… recovery… recovery...
Yes, it was 2010. The fabled and legendary “Summer of Recovery”. I recall its radiant splendor as if it were just four years ago.
The official unemployment rate, which everyone claims as the cornerstone piece of evidence for an improving economy, is only falling because the BLS fails to count discouraged workers who drop out of the labor force every month, pretending instead to the fiction that these people have found work. Without this pathetic sleight-of-hand, unemployment is actually solidly in the double digits and has not appreciably improved for years now, despite trillions in deficit spending, ZIRP, the various QE’s, MBS purchases, POMO cash, etc. Recovery my ass.
We should never forget: The media was wrong, the economists were wrong, the administration was wrong, the Keynesians and their central banks were wrong. Gold and silver were right. And they will be again. Stack while you can.
So I logged-on to the Yahoo finance page the other day and I came across a main page headline that was a genuinely perfect specimen. No, it wasn’t the “Eight Hottest NFL Wives” or “Superfood that boosts your sex drive” that caught my eye. The headline I read, carefully placed in the dead-center of the page to draw your eye, blared “THE LESSONS OF GOLD’S COLLAPSE”.
Intrigued by the fact that a 29% pullback in 2013 after a monster 500% twelve year bull run could be called a “collapse”, and wondering what sage lessons I might learn from this, I clicked… and was treated to such an outstanding example of a drive-by hit piece that I thought it would be fun to outline all of the techniques used in this article, and frankly many MSM articles, on gold. I think there are actually some valuable lessons to be learned from this thing, but I doubt they are the ones the author wanted me to take from it. So rather than take apart the mistakes of the article one by one (which was largely done in the comments section of the piece by some of the more informed readers), instead let’s examine the standard characteristics of a pedestrian MSM hit piece on gold. [Read more...]
Just exactly who is controlling US media?
Watch the humorous but frightening clip below and decide for yourself. [Read more...]
Neofeudal financialization and unproductive State/corporate vested interests have bled the middle class dry.
Yet we accept the officially sanctioned narratives as authentic and meaningful. Why? Perhaps the truth is simply too painful to accept, so we will reject it until we have no other alternative.
Let’s cut to the chase and generalize “what’s fake”: everything that is officially sanctioned: narratives, policies, statistics, you name it–all fake– massaged, packaged, gamed or manipulated to serve the interests of the ruling Elites. [Read more...]
Rather than source the abundance of information currently available regarding Chinese demand, Goldman chooses instead to use the Bloomberg/IMF data for their chart and research report. This is the same GoldmanSachs, mind you, that tells their clients that gold is heading to $1050 (http://www.cnbc.com/id/101220299), all the while accumulating shares in the GLD at a rate four times faster than anyone else on the planet and acquiring 1.45 million oz of gold from Venezuela! [Read more...]
Central banks are always selling gold, and nobody is ever buying it.
If the brilliant economists running our central banks are selling their gold, then it is obviously a bad time to buy… and the press assures me that central banks are almost always selling gold. And apparently, nobody ever buys it.
Yes, it’s never a good time to buy gold. Ever.