Gold bears are exuberant these days. Their mood is epitomized by a recent Bloomberg headline:  “Gold Erases Year’s Gain as Europe Concern Boosts Dollar” – which was then dutifully parroted by thousands of mainstream drones. The implication was clear: gold was on its way down and the dollar is on its way “up”, so everyone should sell their gold.

Such confidence (depending on the source) is a reflection of either serial dishonesty or extreme delusion. The dollar-shills at Bloomberg explained what was happening:

…concern that Europe’s debt-crisis is deepening strengthened the dollar [emphasis mine].

Let’s examine that short statement. Let’s totally put aside the fact that Europe’s debt-crisis was caused by the economic terrorism of Wall Street bankers. Again it is clear what Bloomberg is implying: the euro is weakening and the dollar is strengthening.

I’ve dealt with this inherently and deliberately dishonest statement by the mainstream media on multiple occasions in the past. In the past 100 years (i.e. ever since the Federal Reserve was given the responsibility of “protecting the dollar”) the U.S. dollar has lost 98% of its value. That rate of collapse has increased significantly in the past 40 years (i.e. ever since Nixon eliminated the last vestige of a gold standard).

The dollar is not “strengthening” – that is an outright lie. It is simply plummeting a little less slowly than the other (worthless) paper. Example: two people jump off a 100-storey building at the same time. While falling, one of the individuals climbs on top of the shoulders of the other one.

Has that individual “strengthened” himself? Obviously not. He will simply go “splat” a millisecond later.

(Legitimate) gold commentators have explained this basic fact again and again, yet had little success in penetrating the media’s brainwashing. So let me try a personal anecdote which might be more successful in reaching the gastrically-inclined mind of the average North American.

Having an unusually hot May day on the West Coast yesterday, I decided to opt for a cool submarine sandwich for dinner, and headed to Subway for the first time in several years. I ordered my favorite foot-long sandwich, and had it prepared exactly as I had done when I used to purchase sub’s on a more regular basis.

However where my memory clashed with reality was when I went to pay for my sub. The cashier asked for $8.50. I politely informed her that she had quoted the wrong price – and pointed to the $4.50 posted on the wall, the price I used to pay for my favorite sub.

She politely corrected me that I had (carelessly) quoted the price for a six-inch sandwich, not the foot-long. I had yet another experience with 21^st century “sticker shock”: in just a few years my paper had (literally) lost half its value.

Then there is gold. A hundred years ago, a man could purchase a fine suit for an ounce of gold. Two thousand years ago, stylish Romans could purchase the finest toga for an ounce of gold. And today, despite the fact that gold has been pushed more than 20% below its recent high, one could still buy a more-than-adequate suit for the $1550 currently quoted for an ounce of gold.

Yet for 100 years, as the U.S. dollar has been relentlessly losing virtually all of its value, while gold has virtually perfectly preserved its entire value we have been hearing a consistent message from the mainstream media: the U.S. dollar is a “safe haven”, while gold is a “barbarous relic”.

How can the media tell us that the bankers’ paper, which has already lost almost all of its value is “safe”? How can the media tell us that gold, which perfectly protects the wealth of the holder century after century is “too risky”? The media lies.

Read more: Gold Losing Battle Versus U.S. Dollar in 2012