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Jeff Nielson is the writer/editor of Bullion Bulls Canada. He came to the precious metals sector as an investor in the middle of last decade, and quickly decided this was where he wanted to focus his career. Jeff's background includes four years of Economics at the University of British Columbia, before he went on to earn his law degree from that same institution.

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The Great Commodities Heist

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Originally published at BullionBullsCanada.com.

It is all so very simple when we view “the big picture”. Bankrupt and near-bankrupt Western governments are stealing billions of dollars worth of various commodities from commodity-producers around the world. The evidence goes well beyond merely suggestive – into the realm of absolutely conclusive.

What makes this scenario so unequivocal is that we have the equivalent of “signed confessions” of the crimes these governments are committing. Exhibit “A” is the monetary policy titled with the vile euphemism “competitive devaluation”. It is the deliberate attempt by governments to destroy the value of their currencies – as fast as possible (i.e. “competitively”).

Destroying the value of our currencies as rapidly as possible means exactly the same thing as raising prices as fast as possible. Which brings us to global commodity markets. If our governments (primarily Western governments) are deliberately trying to raise prices as fast as possible with their excessive money-printing, how can commodities prices have tumbled so far?

Arithmetic tells us there is only one possible answer. Global commodity markets have been fraudulently manipulated lower through the use of the primarily “paper” futures markets. Given the scope and magnitude of this commodities take-down, it can only be the result of coordinated actions by many governments and (of course) the multinational bankers who pull their strings.

The “prime suspects” are all of the Western deadbeat-debtors (who are nearly all large importers of commodities) and any/all major commodity importers – with Japan and now China being the obvious culprits. The arithmetic here is absolute: as long as our governments engage in competitive devaluation all prices of everything can only go higher.

There is but one exception to this simple equation: any good and/or service for which there is excessive supply. The obvious example here is the U.S. housing market. With the most grossly over-supplied housing market in human history (and in addition a market saturated with fraud), the downward price-pressure caused by this massive housing glut currently exceeds the upward inflationary pressures of competitive devaluation.

The situation in commodity markets is also unequivocal: stockpiles of virtually all commodities are either at historical averages, below historical averages, or already at critical levels. In other words, in terms of economic fundamentals there is no downward pressure on prices – only (additional) upward pressure. There can be no rational/economic explanation for the severe plunges in commodity prices other than the fraudulent manipulation of markets.

Sadly, fraud has become a way of life for Western governments since they were first seduced and then enslaved by the multinational bankers. “Competitive devaluation” itself is nothing but a massive sham, with absolutely no economic validity whatsoever.

To begin with, there has never been a period in history where the global economy (as a whole) has been able to “stimulate” itself with “rising exports”. However, this is the stated and only goal of competitive devaluation. The reason it is a complete fraud is because again as a matter of arithmetic trade is a “zero sum” game. For every “trade surplus” there must be a corresponding “trade deficit”.

Furthermore (also as a matter of simple arithmetic), you can never create an economic advantage in trade simply by devaluing your own currency. Mathematically, the gain in exports can never equal the collective reduction in our standards of living which is the obvious consequence of driving-up prices. Making everyone substantially poorer so that a small portion of the economy can be “stimulated” is just more economic suicide.

Economic health can only occur as a combination of two components: a robust domestic economy and responsible fiscal management. Our traitor-governments have given us the exact opposite: destroying the health of our domestic economies, while engaging in the most irresponsible fiscal management in human history. And now these despicable charlatans seek to hide their previous crimes by (simultaneously) cranking-up their printing presses.

Their fraud has now entered a new realm: blatantly stealing from those nations in the world which are still productive. It was bad enough when these bankrupt debtors were merely buying their products with their near-worthless paper. However, while Western deadbeats continue to (willfully) drive-down the value of their own paper (and thus the real value of their mountains of debts) they now want to steal commodities.

Western governments (most likely with aid or least consent of China and Japan) are fraudulently manipulating commodity markets so that they can make their paper worth less when it comes to paying off their debts, and (simultaneously) worth more when they are “buying” commodities with that same paper.

As with all of the other intellectually bankrupt schemes from this cabal of criminal governments, this one too is destined to fail. There are only two possible outcomes. The first (and more hopeful) scenario is that the commodity-producers mimic OPEC and broadly organize into their own cartel(s). There can be no justification for allowing “the market” to determine prices for their commodities now that the manipulation of those markets has reached a new order of magnitude in its brazen absurdity. Instead, commodity prices would be dictated to importing nations much like OPEC was able to do back in the 1970’s.

The other scenario is that the commodity-producing nations simply allow themselves to continue to be victimized. In that scenario, the fraudulent suppression of commodity prices curtails new supply/development in these critical sectors. This leads to critical shortages in numerous commodity markets – and even higher long-term prices as a direct result of the current, fraudulent manipulation of markets. It is precisely the scenario which occurred in the silver market, where driving the price of silver to a 600-year low (in real dollars) has led to the total destruction of global silver stockpiles, and a tenfold increase in the price of silver.

The final point to be made is to once again rebut the lies from governments and the media propaganda-machine which blame “speculators” for high commodities prices. This is absolutely and unequivocally false.

By definition, “speculation” involves gambling in something where the outcome is uncertain. Conversely, investing in commodities when it is the explicit economic policy of our governments to drive-up commodity prices as fast as possible is not “speculation”. In fact it is the exact opposite of speculation. It is savers who have been denied any other safe place to store their wealth who are attempting to protect that wealth by sheltering it in hard assets – which cannot be debauched by the printing presses of the banksters.

Any and every attack on so-called “speculators” is every bit as fraudulent as the current manipulation of commodities markets. The fact that the mainstream media is universal in its own bias against “speculators” and “hoarders” is conclusive proof that it is also complicit in this commodities manipulation scheme.

I previously devoted an entire commentary to the subject of how so-called “hoarding” preserves markets, much like animal “conservation” (or “hoarding” of animals) preservers endangered species. It is “shorting” which destroys markets, for the very reason I already provided: it sabotages supply by under-pricing – inevitably leading to shortages and higher prices. This is more simple arithmetic and tautologies.

Despite the outrageous crimes being committed in our commodity markets, ordinary investors have no choice in their own actions. The descent of our governments into such blatant criminality is proof of the severity of the economic problems which they try to hide from us – as well as demonstrating the magnitude of their desperation.

It would be genuine “speculation” (and risk) for commodity-holders to pull their wealth out of these sectors and convert it back into the same paper which are own governments have vowed to destroy. The laws of supply and demand can never be violated. They can only be perverted over the short term, before their inexorable fundamentals restore “balance” to a market. The more extreme the manipulation, the more severely the pendulum must swing back. The holders of commodities need only stand their ground – and watch the paper-holders complete their own economic suicide.

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