The Phaserl


Short Squeeze or Buying Panic?

by Bill Holter, Miles Franklin:

I wrote yesterday that when gold starts moving up (I believe the process has already started) that the movement will be viewed differently depending where in the world you are situated. I say “situated” because the view of gold is different between those in the West and those in the East.

In the West, gold is considered just another commodity to trade. You buy low and sell high or in the case of financial institutions you sell, high, low or wherever and hope to push the price down …and then cover at a profit. Gold is seen by very few as money and in fact because of years of “psy ops” it is seen as scary, conspiratorial or just plain useless.

The East on the other hand sees gold for what it is money. Gold is savings, it is better than money in the bank. I say “better than money in the bank” because paper money was invented in China. The Chinese have blown up more paper currencies over time than you have fingers and toes…

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3 comments to Short Squeeze or Buying Panic?

  • Ed_B

    In the hands of the people, gold fosters liberty because it helps free us from the shackles of an easily abused fiat money system. We all know from experience that “anything that CAN be abused, WILL be abused”. This is true of virtually everything, including fiat money. The urge to solve one problem by creating another even worse problem is strong among those who foist fiat money schemes onto the rest of us. The fact is that doing so is irresistible and happens every single time that a fiat money system is created. Not sometimes, not most of the time, but ALL of the time!

    The USA is an immensely strong country for many reasons but our greatest weakness is our utter dependence on an easily corrupted and degraded money system. And the US dollar IS degrading right before our very eyes. Some call this “inflation”, as if something about our money is getting larger. Well, that’s for sure not the buying power that our dollars have. How many of you fine folks reading this remember $1 a gallon gasoline? $0.50 a gallon gasoline? $0.25 a gallon gasoline? Well, people my age (64) remember all of those. Heck, as a kid, I remember my Dad filling the 18 gallon tank in our ’57 Chevy wagon with gas for $0.18 a gallon. And when we pulled into that station, 4 guys in gas station uniforms came running, not walking but running, out to greet us; one pumped the gas, one checked the tires, one checked under the hood, and one washed the windows. When that was done, Dad paid in cash because there were no credit cards and few stations would take a check unless you were a long-time customer. We either got S&H green stamps that could be saved, pasted into books, and then traded for “stuff” of various kinds or we got some nice looking drinking glasses for the home… “collect ’em all!” was the order of the day and many people did just that.

    So, what do we have today? Well, we have gas that costs $3.50 a gallon or more. In terms of the US dollar, gas going from $0.25 a gallon in 1960 to gas costing $3.50 a gallon today means that the dollar is now worth 25 / 350 or 1/14th of what it once was. This means that the buying power of a dollar in 1960 has shrunk by 93% in today’s dollar. So much for saving for retirement in dollars! Notice, however, that with silver at $19 these days, a silver quarter is worth about $3.50. In terms of gasoline purchased with silver, there has been no inflation in the past 50+ years and this is why precious metals are “stores of value” while un-backed by anything paper money is not.

    The real kicker in this fiat money scheme is that we can largely avoid it by largely avoiding fiat money. So, how do we do this? Rather easily, actually. All we need do is minimize the amount of money we hold as paper dollars and maximize the amount that we hold as physical gold and silver. Keep enough money in the bank to pay our short-term bills but no more than that. Keep some cash in a secure place other than a bank for emergencies.

    The banking system has not earned our trust lately with all of the financial shenanigans they have pulled recently, including bail-outs, bail-ins, LIBOR rigging, gold and silver naked shorting, outrageous fees of all kinds, and a whole host of other problems, many of which they have inflicted upon their depositors who, for some unknown reason, are now considered as “unsecured creditors”. This is a lie and a BIG one at that. We are NOT bank creditors or partners, we are clients, and banks have a fiduciary duty to act in our best financial interest and not in theirs insofar as OUR deposited money is concerned. In large part, they are ignoring this and continuing to handle client money in financially irresponsible ways. When this blows up in their faces, they run crying to Uncle Sam to bail their worthless butts out of trouble and, like an idiot, Uncle Sam continues to do just that. Since the Gov is not protecting us or our money, we have to do that for ourselves because if we don’t, no one else will.

    Convert your long-term savings into gold and / or silver and keep that in a secure place other than a bank. Keeping some money in the bank for bills that you we to pay routinely is good because we do not want to be forced to sell our silver or gold when prices dip. Gold and silver should be our long-term savings and not the savings that we are likely to need in the short to medium term for house and car payments, food, fuel, or any other routine bill paying. Although this varies from one person to another depending on their financial situation, I consider anything less than a year as short term, mid-term is 1-3 years, and long-term anything after 3 years. There is no standard time period for these that fits everyone, so think about this and then act in accordance with what is best for you. If you don’t get this right the 1st time around, modify it until it is.

    • Glitter 1

      Thanks for the trip down memory lane.I’ll be 60 next month and I remeber the same things as you.We are not in our parents country any longer,probably not to return.I believe that Keynesian Economics(Central Banking & Fiat Currency)are all creations in preparation/pursuit of a 250 year plan to establish a NWO.It hasn’t all happened by chance,but by design.I believe we are not far away from TPTB taking away our currency/cash and forcing an electronic cashless system.

  • Robert Johnsson

    “gold is traded like a currency but analyzed like a commodity”


    Lars Schall’s interview with Ronald Stöferle,
    “The True Importance of Gold Is Its Posession, Not Its Price”

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