Elite Manipulation, Not Chinese Demand Remain in Control of PM Prices

Jamie DimonFor 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?

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NFP: The Art of Deception

Chinese goldThe 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.
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Eric Sprott: The Great Non-Recovery

fiscal cliffWe 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 U.S. Government Is One Big Lie

ObamaThe 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.

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Pining 4 the Fjords: Why We Stack

stacked coinsOur narrative is a simple and honest one:  we are ordinary people who care deeply about taking care of our families and we work very hard to do so.  Unfortunately, when we try to save our money to do this, we are thwarted at every turn.  We see a profligate government determined to promise everything to everyone and spend without limit, we see endless Quantitative Easing by a central bank determined to devalue our currency, we see an ever declining real value of pensions and paychecks, we see a decimated middle class losing 30% of its net worth in just five years, we see interest rates on our savings approaching zero, and we see a wild west stock market that no sane person should trust their entire future to.
So in our efforts to protect our families and our financial futures, we invest in something tangible, valuable, and (over time) stable.  We store a portion of our hard-earned value in gold and silver.  And we aren’t going to be dissuaded from protecting our families by the insults of cognitively challenged TV hosts.
We are going to keep stacking.  [Read more...]

The Summer of Recovery

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 legendarySummer 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.
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Anatomy of an MSM Hit Piece

economic collapseSo 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...]

Yahoo Says to Avoid Gold, Bear Market Has 18 Years to Go!

gold MSM MopeFor those wondering whether Tuesday’s outside reversal off of gold’s June lows will mark the bottom of the 2+ year decline in gold and silver, Yahoo Finance has news propaganda for you: gold is going down for another 18 years!
Gold is pretty ugly- down over 30% year to date.  Do you look at gold here or just stay the heck away from it?
David Nelson: “I can’t find alot of reasons to like gold, you should avoid it.  The whole inflation argument that QE was going to cause inflation and hyper-inflation has been blown out of the water…If you go back and and look at the last bear market in gold, it took 20 years for it to bottom! Even if you think this might be a bottom, we’re only a couple of years into this.  You could be 5-6-7, even a decade early! Finally, the advent of virtual currencies like Bitcoin are a negative for gold buyers.
Can you smell the MSM desperation in the air?
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News or Propaganda? You Decide!

propagandaJust exactly who is controlling US media?
Watch the humorous but frightening clip below and decide for yourself. [Read more...]

A Quick Guide to What’s Fake: Everything That’s Officially Sanctioned

 

fake gold 3_0Neofeudal 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...]

Perception Deception

vampire squid goldmanRather 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...]

It’s never a good time to buy gold. Ever.

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.
Here’s why:
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Jim Sinclair: New Levels Of MOPE

jim sinclairJim Sinclair opines on the Bureau of Economic Analysis’ changes to GDP calculation announced Wednesday, which will add 3% to official US GDP (or an economy approximately the size of Belgium) by counting research, development, and copyrights as part of the GDP calculation for the first time.
Apparently the only way to delay recognition of the latest recession (for 2 quarters perhaps?) among the mainstream  is to blatantly manipulate the calculation by a whopping 3%.
MOPE at its finest.
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SD Metals & Markets: “MOPE” As Far As The Eye Can See

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In this week’s SD Weekly Metals & Markets The Doc & Eric Dubin discuss:

  • Bernanke’s congressional testimony- Bernanke admits he doesn’t understand gold, and that the economy would tank if the Fed actually withdrew QE
  • GOFO negative 10 days and counting- indication of gold shortage of historic proportions
  • 90% silver out of stock at nearly all US wholesalers, shortages again occurring in Eagles, Maples, and even generic rounds and bars
  • Cartel defending $1,300 gold and $20 silver with everything they have because they know a gigantic level of short covering will ensue at prices just above those levels

SD Weekly Metals & Markets With The Doc & Eric Dubin is below: [Read more...]

Bernanke Gold MOPE

BernankeIn testimony yesterday on Capitol Hill before the Senate Banking Committee, Federal Reserve Chairman Bernanke remarked:
“Gold is an unusual asset. It’s an asset that people hold as disaster insurance. A lot of people hold gold as an inflation hedge.  But movements of gold prices don’t predict inflation very well, actually. But anyway, the perception is that by holding gold you have a hard asset that will protect you in case of some kind of major problem.
I suppose that one reason gold prices are lower is that people are less concerned about extreme outcomes, particularly negative outcomes and therefore they feel less need for whatever protection gold affords…Gold price going down is not necessarily a bad thing from that perspective. It suggests people have somewhat more confidence, and are less concerned about really bad outcomes.”  (
Editor note: Really? Gold began a massive paper smash only days after bullion bank ABN Amro defaulted on allocated gold accounts because investors are less concerned about really bad outcomes???  More like: We intervened to take down the futures price of gold due to systemic risk of an imminent bullion bank collapse & contagion!) [Read more...]