Written by Jeff Nielson Sunday, 20 July 2014 14:10
We live in an insane world. This isn’t an assertion, merely an obvious statement of fact. My own commentaries have dubbed this insane world “the Wonderland Matrix”. The Corporate media has deviously given it the euphemism “the New Normal”.
Neither “world” makes any sense whatsoever. The essential difference between the Wonderland Matrix and the New Normal is that the analysis which accompanies my work on the Wonderland Matrix provides us with the only explanation of why we live in a world which makes no sense. Conversely, the New Normal simply/inanely postulates the totally discredited cliché that “this time it’s different”.
In both the Wonderland Matrix and New Normal we have total perversity; black is “white”, down is “up”, and bad is “good”. In the New Normal; the fiction-writers of the mainstream media tell us that the U.S. economy is once again the envy of the world, thanks to what they call a 5+ year “economic recovery”, which is already much longer than any normal economic recovery (back when the world was sane).
The fiction-writers tell us that lots and lots of “new jobs” have been created during this (supposed) economic recovery, more than 5 million, to be precise. Yet the percentage of Americans who actually have jobs has fallen from 66% to 63.5%, and there haven’t been so few Americans working in that economy (on a percentage basis) in more than thirty years. It makes no sense.
The U.S. cars-and-highways economy is notorious for being the most rapacious gasoline-guzzler the world has ever seen. Yet official U.S. “gasoline consumption” numbers from the U.S. government report the U.S. economy is now only consuming 1/3rd as much gasoline as when this “recovery” began. It makes no sense. One could go on and on and on (as has been done in previous commentaries), but the (real) picture is clear: a world of insanity.
In general terms, the mission of writers such as myself is then also clear: to attempt to restore some degree of sanity to the world in which readers live. On a practical basis, my own strategy has been consistent since first beginning to publish economics-based commentaries: expose/debunk the Wonderland Matrix, and provide readers with analytical glimpses of what a “sane” world should look like – in many cases by simply reminding people of what our own “world” did look like, when it used to be sane.
In this respect, my “mission” has recently been aided by a question from an inquisitive reader: what if we had never left the gold standard? Exploring hypothetical scenarios is often a trivial (if not tedious) exercise, but not when we hypothesize sanity in the world. In that case; clearly the exercise is elevated to providing a realistic (if not superior) alternative to the current insanity.
The fiction-writers (and the “expert” economists who prostitute themselves on their behalf) tell us that a return to a true gold standard is absolutely impossible. Why? Because it would require our governments to manage our economies in a responsible and sustainable manner.
In the New Normal, this is not possible. It’s only “possible” for our (corrupt) governments to manage our economies in a (totally) reckless and (hopelessly) unsustainable manner, which has now brought every major Western economy to the literal brink of inevitable bankruptcy.
Clearly leaving the gold standard has not brought us the economic “nirvana” promised by the bankers (and their expert economists). Ceasing to manage our economies in a responsible/sustainable manner, and choosing to manage our economies in a reckless/unsustainable manner for the last forty years has rendered all of these economies insolvent. Who could have predicted that? Certainly not the economists.
Written by Jeff Nielson Tuesday, 15 July 2014 12:41
An important subject in precious metals markets which does not draw enough attention from commentators in this sector are the inherently fraudulent paper-called-gold (and paper-called-silver) “products” which the bankers peddle to the foolish. Numerous, previous commentaries have drawn attention to various facets of this fraud.
However, my own reporting on this subject changed dramatically, beginning in the spring of 2013. Astute readers will recall that this marked the beginning of an extraordinary series of events. First the One Bank (and its lackey politicians) introduced the world to its newest form of serial stealing : the “bail-in”.
This had both tremendous direct and indirect relevance to precious metals. Indirectly, big-money investors (often dubbed “the Smart Money”) had now been alerted to the fact that (as stated in the title of a commentary) “no paper [asset] is safe from a bail-in”. Instantly, this elevated both the status of gold and silver as safe-havens, as well as igniting additional demand for these metals.
But there was also a direct effect on the precious metals sector: awareness that the bankers’ paper-called-gold “products” (primarily the notorious bullion-ETF’s) were now themselves potential targets in one of the One Bank’s future, bail-in mega-thefts. This awareness sparked a massive exodus out of these fraudulent bullion-ETF’s, an exodus which nearly turned into a (terminal) stampede.
Such a stampede was only averted through the bankers themselves soaking-up millions of units of their own, bullion-ETF’s – in order to create the illusion of some degree of stability in these funds. They soaked-up so much of their own, fraudulent paper that these permanent mega-shorts actually became “net long” in the gold market at one point.
Even with the bankers buying millions and millions of units of their own bullion-ETF’s, the carnage was unprecedented. The largest (and most-fraudulent) of the gold bullion-ETF’s, the SPDR Gold Trust (more commonly known by its trading symbol “GLD”) saw its holdings collapse from over 1350 tons in the early part of 2013 to less than 800 tons by the beginning of 2014, a total plunge of more than 40%.
This massive liquidation of paper-called-gold (in a world where the “paper gold market” is at least 100 times larger than the real gold market) caused an inevitable plunge in the price of (paper) gold. This sudden drop in price, in turn, triggered the most-dramatic global stampede into real, physical gold ever seen in the world.
At one point, China and India alone were importing gold at an annualized rate of 4,000 tonnes per year, despite the fact that China itself is the world’s largest gold-producer (and little if any of that gold ever leaves the country). Subtracting China’s own production; these two nations alone were importing roughly double the total, annual, global mine-supply.
This unprecedented spike in the buying of real, physical bullion (in markets which the bankers couldn’t corrupt with their paper-called-gold fraud) so terrified the One Bank that it was forced to engage in the heavy-handed blackmail of the government of India. It coerced that government into a near-total embargo on gold imports through a savage attack on India’s currency in global FX markets.
Yet despite torrid global demand for gold throughout most of 2013, there was no recovery at all in demand (and holdings) of the bankers’ fraudulent paper-called-gold. Despite the shills in the Corporate media calling “bottoms” in this market like it was the U.S. housing sector, nothing has been able to entice chumps back into these paper-fraud funds.