Saturday, December 25, 2010

Precious Metals Propaganda Games

Jeff Nielson
December 22, 2010
It's never a waste of time to read the views of Canadian gold icon, John Embry, and a recent article he wrote is no exception. Much of his thoughts on how and why the precious metals markets are so strong are based upon "fundamentals" with which we're already familiar. There are no longer any surprises here.

In this instance, I was more interested in what Embry had to say about the other side of the gold market: the anti-gold cabal of bankers who have sought to suppress this market ever since they duped Western leaders (and most notably the U.S.) into dumping the gold standard, which allowed them to print infinite amounts of their worthless paper.

In this respect, I will beg to differ with Mr. Embry, somewhat. He observed that the U.S. propaganda machine had (finally) cut back on its plethora of "gold bubble" articles, and he had now been reading that the "reason" why the precious metals market won't keep going higher is because these markets are (supposedly) "overbought".

In fact, the propagandists haven't stopped one form of gold-bashing in favor of another. Rather, what has been exposed is one of the innate weaknesses in propaganda: once a saturation level of propaganda has already been reached, additional attempts at brainwashing will have a steadily diminishing impact - eventually numbing readers/listeners to the point where the propaganda is simply tuned-out.

This is especially true with respect to the precious metals market, where during this ten year bull market, investors have been exposed to ten, relentless years of anti-gold propaganda every bit of which was proven false. In a scenario such as this, the brainwashing of the propagandists is especially susceptible to over-use, since even the most dim-witted sheep will begin to notice when someone has been consistently wrong about a subject for ten years.

This is why we see sentiment in the general public toward precious metals slowly improving: the lies and "warnings" about the precious metals market are increasingly less able to deter the general public. Thus, when Embry talks about the propagandists "stopping" the gold-bubble nonsense, and "starting" the overbought-babble, what is really taking place is merely the alternation between one avenue of propaganda and another - so that the sheep don't become totally immune to all of the propaganda, permanently.

The other aspect of Embry's article which I found particularly thought-provoking was his observations about how the propaganda-machine is desperate for some "respectable voices" to utter their propaganda - as this tends to counter the repetition-effect I described previously.

Here, at the top of the list is sleazy George "Bubbles" Soros, who is seen to repeatedly use his mouth to utter the words "gold bubble" (over and over and over), while he's busily buying gold with both hands. Apparently even billionaires are not above the old "bash and buy".

Embry chose to focus upon the propaganda uttered by Warren Buffet, and his lieutenant, Charles Munger. I won't bother detailing their rhetoric, after Embry has already done so. Suffice it to say that the reason of both for their "I hate gold" attitudes is the tired, old line about gold having no intrinsic value. You can't eat it, you can't pour it into the tank of your car and drive around - so it has no value.

John Embry refers to this as "sophistry of the worst sort", and I fully echo that remark. Intelligent precious metals investors have known for years what is seemingly beyond the grasp of Buffett and Munger: that gold (and silver) is the best "money" ever devised by our species. Here we can expand on the empty "logic" of Buffett and Munger.

Without "money", a convenient medium of exchange for commerce, we are left with no alternative except "barter". Does any rational adult actually think that our modern economy could survive a week without a legitimate currency to use in all of our transactions?

Picture going to WalMart with a couple of chickens you've loaded onto your child's wagon. While there to exchange those chickens for some of WalMart's goods, you line-up behind someone holding a goat (along with their merchandise) and also see a bushel of wheat, several gallons of milk, and various other "hard assets" which people must exchange in order to do their shopping.

And what about WalMart? After concluding all of these transactions, are we to assume that WalMart will simply pack up this assortment of crops and livestock - and be able to exchange that with their suppliers for more manufactured goods?

Of course not. If one of the first things which our primitive societies did was to invent a convenient medium of exchange (i.e. "money"), then clearly for our modern world, "good money" is one of the most essential "commodities" of our species.

Obviously, when we look for some item with "no intrinsic value", the first place where any informed person would look is at the banker's worthless paper currencies. Has anyone tried to eat their paper currency? How about burning it in their cars as fuel? Indeed, if Mr. Buffett and Mr. Munger shun gold as something with no "value", why have these gentlemen spent their entire lives endeavouring to accumulate $billions of Bernanke's green confetti?

In fact, what we are really seeing here is obvious: Buffett is sitting on his own mountain of worthless Bernanke-bills - and can only enviously eye the tiny gold and silver markets: home of the world's only "good money", where there is no possibility for him to exchange even a significant portion of his worthless green, for eternal gold and silver.

Just as the U.S. government (and the bankers they serve) labour endlessly to put down gold, in order to elevate their debauched/diluted banker-paper, so too has the once highly-esteemed Warren Buffett chosen to tarnish his own image with such transparent theatrics. This is becoming a pattern. Not surprisingly, Buffett has been an increasingly outspoken "pumper" of the U.S. financial sector (where another large chunk of his net worth is located).

The same man who became world-famous for his philanthropy is now standing squarely behind the lying, cheating bankers - who are in the process of fraudulently throwing tens of millions of Americans out of their homes so they can seize their properties. This comes after their multi-trillion dollar mortgage scams left their own markets (and most of the global financial system) in ruin.

It was none other than George Bush Jr. who told the world that those who provide "sanctuary" for terrorists are equivalent to terrorists themselves. In this respect, how will history regard Warren Buffett, who (at the peak of Wall Street's economic terrorism) has been doing everything in his power to shield them from the consequences of their own malevolent acts?

People should buy gold and silver, for reasons summed-up most eloquently by a young, Alan Greespan. It is Warren Buffett, the infinite mountains of banker-paper, and the endless lies of the bankers which they should shun.

Jeff Nielson

Africa is The Prize - China says booming trade with Africa is transforming continent

From the UK Guardian:

China said yesterday its two-way trade with Africa had increased by nearly 45% in a year to hit a record $114.81bn (£75bn), highlighting a trend that could be helping transform the world's poorest continent.

Beijing said economic ties with Africa had recovered from a dip in 2009 due to the global financial crisis and would now grow even faster.

In 1992 two-way trade between China and Africa stood at just $1bn. But Chinese demand for oil, gas, iron ore and other raw materials for its rapidly growing economy has spurred trade and investments in Africa in recent on

The Christmas Spirit

For a overwhelmingly Buddhist country Thailand still has the Christmas spirit. I just went for a walk up to the shops from where I am staying in Bangkok to buy some after Christmas lunch snacks from the 7-11. Instead of getting as far a the 7-11 I ended up at a mobile street stall vendor selling banana roti. The vendor was Muslim judging by his dress (white long shirt over batik skirt) and cap although somewhat surprisingly I could see a "I love America" T shirt, complete with the stars and stripes showing through under his shirt.

I bought 5 of the dishes above, the vendor charged me for 4 and gave me the 5th free - at which time we shook hands and wished each other a Merry Christmas. If me as a Buddhist and a Muslim street vendor can wish each other a Merry Christmas there is hope for the world yet, pity other areas of the world and religions are not as tolerant of each other.

Phoneman says "Crash JP Morgan Buy Silver"

Silver Flash Crash?

Did we witness a "Flash Crash" in silver on 23 Dec during trading on the NY NYMEX?

I imagine many silver future traders (especially with long side trades) my have set stop loss positions at around $29/oz prior to the 23rd and then went on holidays or went to make preparations for Christmas safe in the thought "I don't have to watch the market today, it is a quiet time of year, anyway even if it tanks a $1 or so I have my profits locked in at $29/oz".

I wonder how many traders got sold out via stop losses and margin calls when silver mysteriously crashed below $29/oz for a few minutes before rebounding strongly?

JP Morgan Silver Manipulation Explained - Part II

No more White Christmas's - LOL

A great article from the UK Independent newspaper from 2000:

Snowfalls are now just a thing of the past
Monday, 20 March 2000

Britain's winter ends tomorrow with further indications of a striking environmental change: snow is starting to disappear from our lives.
Sledges, snowmen, snowballs and the excitement of waking to find that the stuff has settled outside are all a rapidly diminishing part of Britain's culture, as warmer winters - which scientists are attributing to global climate change - produce not only fewer white Christmases, but fewer white Januaries and Februaries.

and now that things didn't work out as planned......

Expect more extreme winters thanks to global warming, say scientists
Friday, 24 December 2010

Scientists have established a link between the cold, snowy winters in Britain and melting sea ice in the Arctic and have warned that long periods of freezing weather are likely to become more frequent in years to come.

An analysis of the ice-free regions of the Arctic Ocean has found that the higher temperatures there caused by global warming, which have melted the sea ice in the summer months, have paradoxically increased the chances of colder winters in Britain and the rest of northern Europe.

The findings are being assessed by British climate scientists, who have been asked by ministers for advice on whether the past two cold winters are part of a wider pattern of climate change that will cause further damaging disruption to the nation's creaking transport infrastructure.

Cancelled trains and icy roads stall the mass getaway

Friday, 24 December 2010

Freezing temperatures are forecast to continue for days, with Boxing Day blizzards likely in the West Country, Wales and Scotland.

Hyperinflation arrives with the end of price subsidies in Iran


The street-price of bread is reported to have doubled in Tehran this week as price subsidies were removed from energy and food. Taxi prices jumped 40 per cent in reaction to a 900 per cent hike in diesel prices. Electricity and water prices jumped 300 per cent and household cooking gas by 500 per cent.

Officials said that food and energy subsidies have been costing Iran $100 billion a year and can no longer be afforded. They cited recommendations from the IMF suggesting the subsidies should be on

Why silver is the top pick for 2011


Search back in the archives of ArabianMoney and you will find gold as our tip for 2010 (click here). Not bad, the yellow metal gained more than 26 per cent but it played second fiddle to silver as the best bet of the year up more than 70 per cent.

You do not need to be a Wall Street rocket science to know that silver outperforms gold when precious metals go up, and moves down faster in the opposite direction. Last year we listened a bit too much to the worries about silver as an industrial commodity and rather stupidly were put off by the 50 per cent price crash in late 2008, though we did tip silver in April (click here) on

Merry Christmas

Robert Kiyosaki on the value of Financial Education

Keiser Report: Cables, Crises & Cyber Currencies

End of Empire: Boy arrested for daring to write

From the

DECEMBER 22--A 13-year-old boy was arrested Friday for using a permanent marker while in class at his Oklahoma City middle school, a violation of an obscure city ordinance.

According to an Oklahoma City Police Department report, the boy was spotted “in possession of a permanent marker” by Roosevelt Middle School teacher DeLynn Woodside. The 50-year-old educator told cop Miguel Campos that the student was “writing on a piece of paper, which caused it to bleed over onto the desk.”

Woodside, pictured at right, reported that the child, whose name was redacted by police from the report, attempted to hide the marker when she asked him for it. Strangely, Woodside’s Facebook page reveals that her “likes and interests” include the official “Sharpie Permanent Markers” page on Facebook.

Campos reported that he allowed Woodside, a seventh grade math teacher, to “sign a citation” against the boy, who was then transported to the Community Intervention Center, a juvenile holding facility. A police sergeant subsequently “booked the marker into the property room.”

A police spokesman referred to the student’s bust as a “citizen’s arrest” effectuated by on