The Two Sides of Precious Metals Propaganda

Originally posted at BullionBullsCanada.com

As we witness another “sudden”, “unexpected”, and temporary reversal in the prices of gold and silver, no doubt most precious metals bulls are surprised  by this lurch lower in prices. In this respect, I will claim to be less surprised than most of my peers – as I had been noting the “clues” as to how and when the next “sell-off” (i.e. ambush) of gold and silver would occur.

Sophisticated gold and silver bulls are attuned to the bearish/negative propaganda released by the anti-gold banking cabal (through their “emissaries” in the mainstream media). While we are not influenced by it, we take note of it in order to determine how gold and silver are being manipulated lower, and when gold and silver will turn higher (or rather what condition will trigger that move).

What most in the sector are not aware of, however, is that these propagandists put in almost as much time and effort on their “message” on days when gold and silver are surging higher – and no anti-gold/anti-silver propaganda is plausible. The reason is simple. Propaganda is a form of control. To maximize that “control” it is just as important to dominate the bullish commentary on precious metals as it is to “lead the choir” on the bearish side. Thus the propagandists are highly motivated to get you to believe them about what is “causing” gold and/or silver to go higher on days the metals are rallying.

The particular case in point is highly illustrative. Any reasonably knowledgeable precious metals bull understands the primary “driver” of gold and silver prices: the out-of-control (and soon hyperinflationary) money-printing of global central banks. It is the simplest arithmetic to observe that if most/all of the paper “money” is being diluted at a rate of 10% (or more) per year, while the supply of “good money” (i.e. gold and silver) is only rising by roughly 2% per year that you only want to hold gold and silver.

As I have explained in the past the concept of diluting currencies through money-printing is identical to the dilution of a company’s share structure when it prints-up a lot of new shares. Only an idiot would hold shares in a company which recklessly/continuously reduces the value of those shares through serial-dilution.

Because this is the most important driver of gold and silver prices, and because the banksters will never reduce the rate of their money-printing (since that is how they steal from us), one of the most important functions of the anti-gold propagandists is to never connect rising gold/silver prices to excessive money-printing. If the average investor ever understood the simple “equation” of the rapid dilution of fiat-paper versus the minimal dilution of gold and silver, the precious metals juggernaut would immediately become unstoppable – and the collapse of the fiat currencies to their true value (zero) would occur much sooner. Since that event also coincides with the annihilation of the banksters and the eradication of their paper “empires”, this gives us a glimpse into their desperation.

It is important to understand, however, that there is a second equally important purpose behind the efforts of the propagandists to control the bullish “message” about gold and silver: to set-up the market for their next “ambush”. In this respect their tactics are totally transparent. Whenever possible, the fiction they invent to “explain” the rise in gold and silver prices will be a temporary event. Obviously if the propagandists can get the sheep to believe their “temporary” explanation of rising gold and silver prices, then when that temporary event subsides, the sheep are now perfectly set-up to follow these Pied Pipers as they lead gold and silver prices lower.

In the latest example, day-after-day as gold and silver prices surged higher, the propagandists remained perfectly “on message” every day: gold and silver prices were rising because of “fear” over the Euro debt-crisis, and the ridiculous debt-ceiling tango being acted-out by Republicans and Democrats. Paying close attention to this propaganda, I knew precisely how/when the latest rally in gold and silver would end, and what would be the pretext for the price-reversal: announcing some “solution” to either the Euro debt-crisis or the U.S. debt-ceiling farce.

It is here we can (again) note the desperation of the banksters and their minions in the mainstream media. Not only did they find it necessary to “solve” both of these crises simultaneously (in order to provide them with the maximum leverage to push gold and silver prices lower), but when we actually read about these “solutions” we realize that absolutely nothing has changed. In fact there has been no “solution” at all (on either side of the Atlantic) – merely “optimism” that some deal is imminent.

In the case of the Euro debt-crisis, the banksters are clearly gripping a two-edged sword – by the blade. Because the U.S.’s economic terrorism against Europe is sabotaging those economies faster than the EU can cobble-together economic “band-aids”, the EU has literally announced dozens of “solutions” for the various economic crises plaguing the debt-sinners.

Each of these “solutions” is more precarious/dubious than the last – and thus each has a shorter and shorter shelf-life. This means that the big problem in using a “solution” of the Euro debt-crisis as a “weapon” against gold and silver is that the periods of time where the sheep consider the problem solved grow ever shorter, while the chaotic intervals where “Chicken Littles” run amok (and gold and silver soar) grow ever longer.

Obviously this is a weapon which can be used against the anti-gold cabal more often than it can be used by them. The fact that the propagandists cannot find a better propaganda-weapon to wield against gold and silver is another clear indication of the futility/desperation of their position.

With respect to the U.S.’s debt-ceiling tango, the theatrics are even more absurd. As the world’s biggest deadbeat, with the world’s biggest structural deficits, the United States has two “choices”. It can raise its debt-ceiling substantially, or it can put a gun to its head and pull the trigger. You don’t have to be a “psychic” to figure out how this is going to end.

What is far, far more ridiculous however is that once Republicans and Democrats have finished their posturing for the cameras and actually announce a done-deal this will be proclaimed as somehow having “fixed” the U.S. economy. Back in the real world however, any “solution” will be no different than how an alcoholic “solves” his own “problem” when he finds the key to his liquor cabinet.

More debt (for the largest deadbeat the world has ever seen) means imminent bankruptcy just as surely as more booze for a hardcore alcoholic means an early grave. Even more absurd, authorizing more debt means B.S. Bernanke will immediately crank-up his printing press and churn-out Bernanke-bills at an even more reckless rate.

In short, any rational analysis of these economic parameters means that it is utterly impossible to construe any bearish implications for either gold or silver. Instead, the opposite is true. In keeping with their addictive behavior, any/all “solutions” of these debt-addicts always involve more debt. Since none of these deadbeats (on either side of the Atlantic) can actually finance more debt, each and every incremental increase in debt corresponds to an identical ratcheting-up of their reckless money-printing.

In other words, every “solution” proclaimed by these charlatans directly makes gold and silver more valuable. This means that when we see gold get knocked back by $30/oz, and silver get pushed-down by roughly $2/oz in this scenario (both of which are now small moves in percentage terms) we again have conclusive proof of “manipulation”. The actions of U.S. and European officials have unequivocally made gold and silver more valuable – and yet the paper-pirates in New York have been able to push bullion prices lower.

The “last laugh” will always belong to the gold and silver bulls. With the banking cabal running out of plausible anti-gold/anti-silver propaganda just as quickly as they are running out of actual bullion, their capacity to manipulate the market through “jawboning” alone continues to diminish. Simultaneously, their leverage and vulnerability (on the short side) is exploding exponentially as their minimal reserves of bullion continue to dwindle.

Standing against this (paper) house-of-cards is an ever-swelling army of bullion-buyers – ironically now led by the central banks themselves. When the “gamblers” start to bet against themselves, you know the “game” is almost over.