by Jeff Nielson, Bullion Bulls:
I debated whether or not to file this under Minor Gold Tid-Bits, since (once again) this is a topic which I also intend to flesh-out into a full commentary. But I also wanted to toss it out here on the Forum, so that it could be a discussion topic as well.
As I will be noting in my commentary, the mainstream media is rarely foolish enough to frame their propaganda in this manner: why is the price of gold (or the price of silver) NOT closer to a realistic price level?
It’s foolish, because it is much easier to pick apart the lies when framed in the negative, as we will see:
The “they” in this case is Macquarie Bank, but it could be coming from any corrupt Big Bank or charlatan economist, since these are the arguments that we alwayssee from the propaganda machine. Let’s pick apart the Big Three — one at a time.
1) “A stronger U.S. economy.” Right. It’s so “strong” that after “recovering” for nearly 8 years (lol), the Federal Reserve is still afraid to pull the trigger, and move the benchmark interest rate from an ultra-loose 0.25% to an ultra-loose 0.50%.
Readers who live in the real world already know that there was never any U.S. recovery, and thus never any “strength” in the U.S. economy.
2) “A strong dollar.” This is especially hilarious, given that there has never been aWEAKER major currency in human history than the 2016 U.S. dollar.
This is the Bernanke Helicopter Drop. It is a chart of dilution, the most-radical monetary dilution ever seen in a major currency. In the past, I have used the analogy of lemonade, since the concept of dilution applies in a virtually identical manner.
Imagine that the chart above was not a chart showing how fast B.S. Bernankediluted the value of the U.S. dollar with the ultra-extreme printing of funny-money. Imagine instead that this chart shows the rate at which water is being added to a pitcher of lemonade — an exponentially increasing rate of lemonade dilution.
By the time that one is finished adding all this water, do we end up with stronglemonade?
Of course not.
Do we end up with weak lemonade? No, still not accurate. Add water to lemonade at a rate so that you end up with (literally) 5 times as much lemonade, and by the time you’re finished, all you have is WATER. [Remember: in the Fed’s 100-year history, the U.S. dollar had already lost 98% of its value before the Bernanke Helicopter drop. It was already virtually nothing but water.] The drinker can no longer even taste any lemonade because of the extreme dilution.
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