- Personal Finance
Gold and Silver: Economic Order In A Virtual Fiat World
Gold and Silver: Economic Order In A Virtual Fiat World
While there is little to be optimistic about in precious metals these days, now is not the time for self-pity or regret, or second guesses. Now is the time for honest reflection about why we buy precious metals in the first place.
It’s hard to do the right thing in times of historic upheaval and change, a change which escapes the consciousness of most people. It’s hard to come face to face with tyranny and stand strong in defiance of it. It’s hard not to act on your own doubts about gold and silver and sell during price smashes executed specifically to elicit that exact visceral response from you. It’s hard to watch the DOW fly by 17,000 knowing that the debt train is chugging along disastrously yet never seems to crash and burn. It’s hard to endure stupidity from friends and loved ones who refuse to even entertain the idea that precious metals are their only weapon against inflation. Oh yeah, it’s hard. Apparently, in a post-Glass-Steagall world, dollars can be created forever with no threat of inflation, the DJIA can go up forever with no threat of a significant correction, U.S. business cycles can function forever with no threat of a recession or depression, and vital lifeblood commodities like oil, silver, and copper lose value and utility, even as ZIRP remains anchored in Fed policy for 6 years now. The chart below appears to contradict itself. A frothy market with contracting volume? How can this be? What is driving the DOW if not small investors? The economy used to drive legitimate asset valuations. Now, phantom asset valuations drive the economy.
How long momentum trades, stock buy backs, and mergers and acquisitions can move the needle is anybody’s guess, but I assure you, the coming correction will wipe out(again) the recent gains in your 401k. And like the 2008 episode, it will be totally unexpected. Wealth that you cannot access in a moment’s notice does not exist. It's that simple. Those zeroes in your retirement account are an illusion, a hoax, a Central bank magic trick. Those zeroes lure you into placid thoughts of a distant future in a world that was never intended to include you. Those zeroes belong to somebody else and they will loot them again, and you will assist them in the theft by participating in their fiat currency racket. In a recent RT interview, author and economic expert James Rickards distilled our plight to its core:
RT: China is slowing, the other BRICS, except for India is slowing, and Europe is slowing. Who is going to pick up the slack?
JR: Nobody, we are in a depression. This is a global depression. It started in 2007 and it is going to continue indefinitely. Depressions are structural, monetary solutions are cyclical: you cannot solve a structural problem with a cyclical remedy - monetary policy will not work. What it could do eventually is cause inflation. So far people say: “Where is the inflation?...We printed trillions of dollars, there is no inflation”. That is because we would have had deflation, extreme deflation, but for the money printing. It did produce inflation to the extent that it offset the deflation… The world is in depression, we are not getting out of it.
His explanation seems logical and convincing, even as the seemingly impregnable DOW explodes higher. The reluctance on the part of the Fed to adjust interest rates in this supposed recovery is the telltale sign of a broken and bankrupt banking system now completely dependent on intervention to keep it functioning. I’ve been saying it for years that deflation and inflation can and will occur at the same time. We have the inflationary policy of central banks battling the deflationary forces of a free market desperately trying to find equilibrium. Of course CB policy is currently winning(what other option is there?), but suspension of free market price discovery can only last so long before the effects of currency devaluation are felt in all asset classes. We’ve seen this already in things like paintings, classic cars, and real estate in places like Hong Kong and London. But every ponzi scheme,yes,even a complex Central bank ponzi scheme, must collapse sooner or later. Only this time around,the repercussions of endless liquidity injections creating nothing of any real value in the real world will ultimately alter what we deem as money and throw the entire world into chaos. We're already seeing it in places like Argentina, Venezuela, Ukraine, and Greece. These are but small crises leading to the main event.
The future for precious metals is not uncertain, for gold and silver have always been superior forms of money,a safe harbor far beyond the tentacles of the Central bank crime syndicate. What remains uncertain is the duration of time left for the Central Banks and their partner bullion banks to execute their PM manipulation in the COMEX and LBMA at the behest of Petrodollar hegemony vigorously defended by the Pentagon and the CIA. Precious metals are problematic to the banksters because they account for missteps in their monetary policy, they restore economic order, they augment freedom, and they expose every fallacy forced upon the public by their Keynesian masters with their printing presses and their unmanned drones. Gold and silver will eventually win the day; Gresham's Law and history say so.
The road to liberty is booby trapped with fiat land mines. You’ll either navigate them with real money or you’ll eventually step on one. My question to you is: Which will it be?
The last paragraph of my article is from a recent Zero Hedge piece, contributed by Burning Platform:
“The suppression of gold prices is essential at all costs to the Anglo-American banking interests. The saber rattling and attempts to lure Russia and China into military conflict are about who controls the financial world. Russia and China keep accumulating the eternal currency – gold. The American Empire and their EU disciples continue to accumulate debt and print fiat currencies. Has fiat paper ever won out over gold in the long-run? Change is coming. Revolution is in the air. You can sense the desperation of the ruling oligarchs. Their fiat world is beginning to crumble. But they will not go without a bloody fight.”-ZERO HEDGE 9/21/14
The message speaks for itself. Keep stacking and keep fighting the good fight, everyone.
"Personally, I never sweat a lower gold price because unlike a stock, gold, a measure of pure wealth, cannot go bankrupt.” Richard Russell