Written by Jeff Nielson Monday, 17 June 2013 12:15
In wading through the mainstream drivel written on the gold and silver markets; it becomes increasingly difficult to reply to such material without the word “desperation” creeping in again and again. Indeed, the quantity of gold-bashing itself is simply overwhelming.
In the years I have covered this market, I have never seen as many mainstream articles written about the (supposed) “bear market” today as were written during the 12 years in which the mainstream (grudgingly) acknowledged the bull market in precious metals.
This, of course, is entirely atypical behavior for a propaganda machine notorious for worshipping “winners” and shunning “losers”. When a particular company/sector falls from favor as a hot place for financial gambling, there is a brief frenzy of dancing-on-the-grave of the former darling – and then it is forgotten forever.
Not so with precious metals. Indeed, the more rabidly the mainstream propagandists insist that the precious metals sector has entered a “bear market”; the more obsessed they become in “covering” the sector. The lady doth protest too much, methinks.
This perverse behavior of the mainstream media is only one utterly obvious indicator giving lie to claims of a “bear market”. Global demand for physical gold bullion spiked to an all-time high around the world following the Great Paper Liquidation, which drove down prices in the phony paper-fraud markets for bullion in New York, London, and Shanghai.
The propaganda machine has never attempted to “explain” how/why you can have record demand in a “bear market” – because it can’t. High demand is the definition of a “bull market” in the real world. Bulls stampede. Bears hibernate.
Once upon a time the Drones in the mainstream media could understand at least this simple truth of market fundamentals, but apparently no longer. The lie of a “bear market” is fundamental to all the other gold-bashing mythology, and so it remains in their shrill rhetoric – despite its perverse absurdity.
Because of this mythological bear market; we have a growing herd within the mainstream media “predicting” another wave of gold-hedging from the world’s largest miners. Prices are low; so why doesn’t everyone lock-in (and forward-sell) years of their production at these give-away prices?
In any other sector, forward-selling years worth of production with prices at the lows of a “bear market” would be met with howls of laughter, but this is the gold sector. As noted in recent commentaries; the world’s largest gold miners are nothing but a collection of banker sycophants. Their banker Masters command, and they obey.
Currently those Sycophants are in India, trying to persuade the world’s largest buyers of gold to buy less gold – at the request of their Masters. So getting the management of these miners to engage in more forward-selling of their gold is about as difficult as twisting the arm of Gumby. The problem for the bankers trying to induce another wave of hedging is in getting the shareholders of these Sycophant Miners to embrace another, massive gold give-away – and thus the waves of propaganda predicting such a trend.
Of course to even partially justify “hedging” at rock-bottom prices, it’s necessary to add additional mythology: that this “bear market” will persist for an extended period of time. And so we come to the next, major propaganda initiative aimed at the gold market: yet more talk of a B.S. Bernanke “exit strategy” for the Federal Reserve.
How ridiculous is this propaganda? We’ve been promised an Exit Strategy by Bernanke every six months since the imaginary U.S. Recovery began. This particular lie has worn so thin that no one in the Federal Reserve or mainstream media or U.S. government will even use the words “exit strategy” – for fear of immediately setting off a chorus of laughter. And so they say exactly the same thing, but now use the word “tapering” instead.
Written by Jeff Nielson Thursday, 13 June 2013 13:19
When I labeled the World Gold Council as the “World Paper Council” in a recent commentary; who knew that the WGC was about to add its own exclamation point to that title? But that is precisely what this sham-organization has done.
As a reminder (since it’s so easy to forget): the WGC is an industry trade-group representing the world’s gold-mining industry, or more specifically, most of its large gold-mining companies. In turn, these gold mining companies (and gold-mining executives) have a direct, fiduciary interest in promoting (and protecting) the interests of their shareholders.
What this means is that while the WGC itself has no direct fiduciary duty to the shareholders of these mining companies; the WGC members do have such a legal duty. This in turn means that in order for any action (or statement) by the WGC to be legitimate it must at least be neutral toward the interests of those shareholders – and preferably in their best interests.
This is not what we see today with the shameless pandering in which the WGC is engaged in India. Why is the WGC in India at all, engaged in openly cooperating with the Indian government about its supposed “current account deficit”? It went to the world’s largest gold market to try to trick its best customers into buying paper-called-gold instead of real gold.
There is no possible, legitimate basis for the WGC’s recent activities in India at all. It claims it is in India to provide some short-term economic assistance to the government of India. What possible valid function could the World Gold Council (a gold-mining trade group) be performing in India – a nation without any gold-mining industry of its own? What possible expertise could it have to offer?
Further proof of the illegitimacy of the WGC’s conduct is that this entire “issue” here is a fraud. There is no “current account deficit” in India; it is nothing but an accounting sham. For those lacking a background in economics; a current account deficit is ultimately a currency deficit. And this is what proves the issue is a fraud.
Supposedly, India is incurring a huge currency deficit in swapping the bankers’ paper “money” (one form of currency) for gold (another currency). This is literally like Indians engaging in swapping apples for oranges – and then the propaganda machine begins writing about India’s supposed “fruit deficit.” It is logically perverse.
It is the bankers who are claiming that India has a current account deficit. These are the same bankers who have always treated gold as a currency with all of their own rules/regulations. This was true even during all the years when the bankers were lying to the public and referring to gold as “a barbarous relic.” Thus it is impossible for the bankers themselves to actually believe that India has a “current account deficit.”
When bankers talk about gold; we expect them to lie. At the same time that the bankers try to dupe Victims into buying/holding paper instead of gold; the central banks themselves are swapping their paper for gold at the fastest rate in history.
Yet here we have the WGC prostituting itself in India to serve not the interests of the shareholders of gold-mining companies; but to serve the interests of their real Masters – the bankers. As I noted in my prior commentary; all one needs to do is to look around the WGC website to see who it really serves: there is only two years of data on gold-mining and the gold market; but more than 15 years of bankers’ essays telling us how they want to use our gold.
Now we have the WGC declaring it wants to “work with” the central bank of India – to con Indians into buying less gold. Naturally, the propaganda machine lacks the integrity to state this openly. Instead we get the usual Weasel Words:
Mumbai: World Gold Council (WGC), the premier organization that promotes the use of gold globally, has approached the Reserve Bank of India to work with it so that yellow metal could be promoted as a financial asset, rather than just a physical asset… [emphasis mine]