Gold today is no longer related to the normal economic cycle of supply and demand, jewelry, Indian wedding seasons, rain in the Middle East. All those things are passé, forget about them. Gold is driven today by one overriding and I am afraid, at least in my opinion, an irresistible and irreversible trend. A fundamental, global and growing insecurity… A fundamental, global and growing lack of confidence of the world in everything they were brought up to believe. Institutions, insurance companies, banks, issuers of mortgages, ratings agencies, equities, sovereign debt, Federal Reserve Banks. Portugal and Iceland. Greece and Spain. Currencies. What is left? What is left?
– Peter Munk, Chairman of Barrick Gold
Bureaucracy defends the status quo long past the time when the quo has lost its status.
– Laurence J. Peter
The Big Lie
I feel completely blessed to be alive right now. To be a witness and participant in a moment in human history that will be written about and passed down in tales for as long as humanity remains on this planet. We are currently observing the evaporation of what Nazis referred to as “The Big Lie.” In very basic terms the concept of The Big Lie is that if you are going to lie you may as well lie big. So big in fact that the majority of well meaning citizenry could never imagine anyone lying on such a grand scale (particularly not their government “officials”) so that they don’t even question the basis of their own reality. In the case of the United States the Big Lie is that we have a free market capitalist economy. Instead we have a corporatist/fascist economy that enriches three main groups. Wall street financiers, the military industrial complex and large multi-national corporations that don’t pay taxes. So that begs the question, how can the American people be so brainwashed into thinking they live in this false reality? It’s very easy. It’s all about the money.
Up until recently (and by that I mean the last three years) how many people asked what is a dollar? How is it created and who controls the creation? Essentially no one did. The financial crisis changed everything because as the false reality finally cratered under its own weight the super elite that robs and rapes the rest of us saw their world crumbling and they panicked. In order to save themselves, their reputations and most importantly their wealth they responded in such an absurd and selfish manner it shook millions of Americans from their slumber. People started asking basic questions they never even thought to ask before. One of those people was me. When I discovered how completely fooled I had been my whole life and figured out how the scam works I started writing about it. I relied on those great men that have been writing about it for decades in relative obscurity to educate me on monetary and financial history. I then shared what I learned with anyone that would listen. I am pleased to report that it has been a tremendous success and enough people are now awake for the system to be overthrown. That is what is in the process of happening now. Yet as I have said many times before, the super elite has all the tools of control still and will not go down easy. Think about what despotic leaders have done to people in times past. The torture, the exterminations, anything to have power. I believe many at the helm within the financial system and military-industrial complex in the U.S. are just as evil as those from the past. That said, in the age of the internet their methods of control have changed and the war going on between truth and lies playing out right now has two main battlefields. There is the information war being waged by the alternative media vs. the dinosaur propaganda media. The second battlefield is the financial markets where honest money (gold and silver) is battling fraud fiat money controlled by the banksters who give The Bernank his marching orders. These orders are not designed to help the economy (which is why the economy remains horrible) they are designed to preserve the status quo and protect their ill gotten gains. The establishment is getting wiped out on both battlefields. It is an amazing sight to see.
The Bernank Has No Clothes
The Bernank’s inaugural press conference last week was nothing short of a disaster. The Wizard of Disneyland came out from behind his curtain and despite softball questions from “journalists” couldn’t make any sense whatsoever. I just listened to it again a few minutes ago. His answers were full of contradictions and backwards logic. The first time the word “inflation” came out of his mouth in response to a question he started stuttering. When asked about the dollar he said “the treasury is the spokesperson for the dollar.” Come again Bernank? They are FEDERAL RESERVE NOTES and you create them out of thin air. And lots of em. The Big Lie.
When talking about gasoline prices rising and the inflation in commodity costs in general he claims the Fed isn’t responsible, yet then he claims that if they keep going up and feed into core (which they are big time already and wait until you see Wal-Marts price hikes in June) the Fed would have to respond. Huh? If you aren’t responsible for the increase then how can you act to stop them and why would you act if you didn’t cause it in the first place?
Nothing though exposed this fraud of a man more than when he talked about Carmen M. Reinhart and Kenneth Rogoff’s book “This Time is Different.” The Bernank offers his view that the reason why prior financial periods of crisis took so long to recover from was because officials didn’t act properly. There you go! This exposed the man and his absurd statist mind for all to see. He thinks he is the superman that the world has been waiting for. He seems to think that in his brilliance and money printing he can just make the prior bubbles go away and we can get going again. Let’s think about human nature for a second. We have had government’s in charge of civilizations since the beginning of time. Do you really think the majority of those governments really just stood by and watched after a financial crisis? Hardly. Furthermore, looking at the 1930’s it is very clear the government did anything BUT stand by idly (another lie). They interfered like crazy. That is why the U.S. economy NEVER recovered naturally from the 1930’s. Never.
I have said for years that there is no stopping the mega cycle and that is what we are in. I also said that things also never play out the same way. You have to look at the players involved. The Bernank is haunted by his mythical view of the Great Depression and deflation. He also thinks he can outsmart natural cycles. So when Von Mises says there is no end to a credit bubble other than deflationary bust or a collapse in the currency you have to ask yourself which one it will be? I have said for years it will be a destruction of the currency system and that what has been happening but what we have seen so far is merely an appetizer.
The Markets, Gold and Silver
It is very timely that I get to write today for the first time in a month. Last week, the entire Big Lie was collapsing left and right. When the Bernank spoke, gold soared. Obama came out with his latest reality tv show episode called “The Birth Certificate.” Still his approval ratings plunged. Gasoline was spiking. Confidence in Disneyland was circling the toilet bowl. Nothing was working for the establishment. So what did you think would happen this week?
Well, exactly what is happening. A monster PR campaign to get confidence back. Let’s go back to Sunday night. We got Bin Laden! (watch this interview PLEASE http://www.youtube.com/watch?v=UXPg4yblXM0) Silver plunges 13% in Asia! Brain dead sheep outside the White House waving flags yelling USA, USA! It was eerily reminiscent of people in the Arab world celebrating after 9/11.
As many of you know, I believe the markets are heavily manipulated to paint a picture. However, I also believe that markets always win in the end. This is a war in which the super elite will not give up or reform the system on their own accord. This is not just a battle for money it is a part of a much larger battle for souls. Therefore, they will employ as aggressive and deadly tactics in markets as they do overseas when they launch wars every other week. That is what I think has happened this week. So is it over? I have no idea but I like buying physical silver again at these levels and I also love the mining shares here. I have NEVER been more bullish on physical gold and silver right now. Everyone has an opinion now and that is fine. But I told people to short oil in 2008 and buy it back in the $40s on the record and I also recommended buying silver at $10/oz. This is no bubble. We are in the midst of a major counterattack. The sheep will sell or even short. The wolves always eat the sheep. That is all this is.
Remember, this is a war between truth and lies but the truth is winning and will win. You can see the extent of their fear by what is happening this week. Stay calm, cool and add to your physical.
A Splintering in the Establishment
One of the things I have been waiting to see was when people in the “establishment” start to speak out more and refuse to cooperate with the more psychopathic elements with the government, Wall Street and the military/industrial complex. I am now starting to see increased signs of this. This is still under the radar but it is happening and accelerating. Sides are being taken. This is going to be very interesting to watch. Just remember, the system is coming down and there is nothing they can do to stop it. They can only separate you from your real money (gold and silver) before it becomes clear to all. The action this week is a last ditch attempt. The game is already over.
Finally, please take the time to watch this. It is long but one of the most important documentaries I have even seen.
All the best,