This MSM hit piece may have just shot itself in the foot and opened-up friendly fire on the cartel itself. Here’s why…
When markets reach certain levels of manipulation that MSM propagandists do not understand, it is reasonable that those writing the propaganda may actually cause more harm to the cartel than the good they do by offering up the gold hit piece in the first place.
We just saw that with the latest gold hit piece on CNBC.
Before sharing what may be friendly fire on the cartel unbeknownst to the writer, here’s a quick primer on how to tell if you’re reading a gold hit piece.
Gold hit pieces are actually anti-gold articles, videos, speeches, etc, which are flat out negative on gold, or they are of the sneakier variety gold hit pieces that appear to be pro-gold articles but their intent is to do some good old-fashioned gold bashing.
Why do they do it?
Well, when price is rising and the cartel is either out of bullets or for one reason or another can’t talk the price in the direction they want through their various channels of communication, the MSM is there to help shape the anti-gold perception.
Remember, rarely in the mainstream are there any simple pro-gold articles.
The mainstream’s products are the debt market, the housing market, and the stock market, and gold is to be avoided at all costs.
That said, whenever gold is mentioned because it cannot be avoided, gold must be cast into a negative light so as to leave doubt in the reader’s mind. And that is where the gold hit piece comes in.
In the latest from CNBC, here’s how you know it’s a gold hit piece (there is more than just this in the article, but here’ an example):
Gold is highly sensitive to U.S. interest rate hikes, as such moves increase the opportunity cost of holding non-yielding bullion, while supporting the dollar — in which the commodity is priced.
Breaking down the single sentence in the order of things covered, this is either a lie or gross negligence of misunderstanding.
Gold has risen as interest rates rise. Furthermore, “non-yielding” gold yields way more than interest rates because real interest rates are negative. That is to say, from the meager 100-125 basis points of interest yield we have now, whenever the inflation rate is above it, which it nearly always is, than the purchasing power of the yielding asset (such as a savings account earning a real-world .02% yield) is dropping. Then for good measure, they like to throw in the whole – “gold is just a commodity anyway” even though gold is much more than “just a commodity”.
So to the point where the particular hit piece may have shot itself in the foot and opened-fire on the cartel itself:
Investors tend to move into safe-haven assets such as gold, the Swiss franc and the Japanese yen in times of geopolitical turmoil as traditional assets such as stocks and bonds are often perceived as a more volatile investment.
First of all, it is absolutely hilarious that the article would go on to mention the Japanese yen as a “safe haven” asset. The BOJ has been on a money printing binge for over twenty years, but regardless, here’s what the writer may not know:
One of the carry trade currencies used to manipulate and suppress the price of gold is the Japanese yen, and the correlation is uncanny:
You see, when the dollar strengthens against the yen shown by a rising USD/JPY, the price of gold drops. Said differently, when the yen strengthens against the dollar as shown by a falling USD/JPY, the price of gold rises.
Therefore, fundamentally speaking (and technically as shown above), if the yen is to strengthen as a safe haven because people all of the sudden have to rush into a currency which the Bank of Japan just can’t print enough of, then it will act as a turbo boost for the price of gold and give the cartel even more problems.
So we’ll let this one slide, because it is actually helpful to our cause, even if the writer and editor don’t understand why, and even if they think they have covered their bases by putting in some gold jabs wherever they can.
To sum it all up: The CNBC article is damaging to the precious metals price suppression and market manipulation schemes.
Sometimes the enemy attacks it’s own.
About the Author
U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.