by Jeff Nielson, Bullion Bulls:
The latest inane drivel from the mainstream media on the gold market is the talking heads TELLING US “who is best for gold” between the U.S.’s two puppet candidates for the presidential election.
While normally I shun the mainstream media’s inane drivel, it is worthwhile to cover this inane drivel, in order to show why it is being produced.
1) To distract people from the real fundamentals for the precious metals market, primarily the rampant/extreme dilution of our fiat paper currencies.
2) To create the mythology that precious metals markets depend upon ridiculous trivialities, like which Puppet in the White House would be “better for gold”.
Of course (1) is a constant theme in much of the propaganda/disinformation about the gold market. The Corporate media can’t rebut the real fundamentals for the gold (and silver market). So, instead, they completely ignore the real fundamentals, INVENT their own pseudo-fundamentals, and then tell us (again and again) that precious metals depend upon these pseudo-fundamentals
Does it have ANY (real) impact on the gold market if the Federal Reserve raises its interest rate from 0.25% to 0.50%? Of course not.
U.S. interest rates would have to rise to at least 2 – 3% just to reach a meaningful/legitimate level. Only then would interest rates actually become relevant to precious metals prices. Does anyone in the mainstream media evenREMEMBER what a legitimate interest rate is? If not, they should look around the Rest of the World, which does have legitimate, non-fraudulent interest rates.
Similarly, does it make the slightest difference (to precious metals) whether a puppet from the Red House or a puppet from the Blue House is taking its orders from the One Bank? Of course not.
Was there any “difference” between the presidency of George Bush Jr. and Barack Obama? Only one. Obama didn’t continually sound like a complete idiot as he followed his orders.
Equally we are continuously brainwashed with propaganda that tries to imprint the mythology that the VALUE of an ounce or gold or an ounce of silver is primarily dependent on the vacuous rhetoric of the Compulsive Liars of the Federal Reserve, or how many phantom “jobs” the BLS pretends were created in the U.S. in the previous month.
Gold and silver are “monetary metals”. Most people are familiar with this fact; few understand it. A monetary metal (or any monetary good) will have its value driven primarily by ONE fundamental: inflation.
Here I am talking about real inflation, meaning an increase in the money supply. Not the nebulous, mythological concept of “inflation” we get from the mainstream media, where (supposedly) “inflation” is some mysterious, exogenous, capricious force.
This is inflation:
When B.S. Bernanke perpetrated his infamous “helicopter drop” of funny-money, and QUADRUPLED the U.S. monetary base, the price of gold and the price of silver had to duplicate that rise. This is the definition of “a monetary metal”
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