jt

Gold: The Next Reserve Currency Player

What perfect timing. I'm going to reprint a note to Midas (Bill Murphy) at LemetropoleCafe today, sent him by someone known to all who subscribe to the site as MexicoMike. Most apropos to the above discussion, and esp what I just wrote. (BTW...I meant to write "skyrocketing"):

Hi Bill!
I have been trying to understand why there is no great sense of outrage among the general public over what has been ongoing for so long. The lifestyles for all of us are subject to decline as a result \of the actions of a few. Why have so many chosen to respond like sheep to the slaughter?

I now believe it is a question of mass denial. People understand that things are not good in the overall economy. But so far it is the other guy that has been hurt. Most people still have their jobs. Most people are still paying their mortgages. Credit card balances are high for the average person, but most bills are still getting paid. Our highways are still choked with SUVs. Overall, things are still pretty good on the surface. And even while the government announces one massive bailout plan after another, and the printing presses are running around the clock to pump money into the system, people are still not seeing any of the consequences from that. Yet... People still choose to believe the lies that are the official inflation numbers. It is easy to pretend that all of that debt that has been created on the national level will not have to be repaid, will not have a direct impact on individual lifestyles. Today, as the great annual treck to the mall is underway, I wonder how many people have begun to question how much longer this sort of thing can go on for?

The mainstream media have been telling us exactly what we want to hear, and we all really want to believe them. How many times have we been told that the problems are going to be contained? How many times were we advised that the markets had found a bottom? How many senior people from individual companies have appeared on TV to tell us their companies were in great shape? No matter how many times we hear all of these lies, we want to believe them and so no one is going to be too concerned. A new president has been elected on the basis of telling people exactly what they want to hear. He sold change, and somehow implied that the good times would be preserved without any cost. People loved it and really want to believe.

Sooner or later however the fallout is going to start hitting closer to home. Eventually, every one of us is going to be negatively affected by all that is going on, whether we are told the truth or not. No matter how much we all want to believe the lies, the consequences are the elephant in the room that cannot be ignored forever. And then, I think all that outrage is going to be expressed.

As long as it is only the minority that is facing the loss of their jobs, their homes, bankruptcy, etc. then its easier for the rest of us to pretend that things will be okay. When things have degraded to the point where the majority of us are tightening belts and facing serious financial problems; when inflation is forcing the average person to make difficult choices on what they can afford; when unemployment is running at double-digits; when the compounded interest of an ocean of debt has pushed people to the point where they can no longer make payments on their bills; when it finally dawns on the average person that all of that bailout money injected into the system did not make the big problems go away... THEN, we will see a collective sense of outrage that has been sadly lacking all the way through this mess. Unfortunately, I suspect it will be too late.

So here we are today. I cannot count the number of times that the gold spot market tried to rally above $815 and was severely pushed back down over the last 2 days. When a serious terrorist event occurs in the largest gold-friendly country in the world, one would expect that gold prices would surge. And that is exactly why gold has been so obviously and firmly capped. And since so few of us are willing to rise up and denounce the market rigging right now, and no one wants to see what is happening in real time in full view, and we all want so badly to believe the lies that they are telling us on TV, then nothing is going to change.

Now people like Dennis Gartman want to chuckle and suggest that goldbugs want to see bad things happen. What he fails to understand is that things are going to happen whether we want them to or not. We can choose to run with the herd and pretend that everything will be just fine. Or we can assess the situation and take appropriate steps now while there is still an opportunity to buy a degree of protection. The outrage is coming. Drawing a line in the sand and capping gold may keep the sheep in denial for a while longer but it will not halt the fallout from a decade of economic and financial stupidity on an unprecedented scale.

It is refreshing to see that Peter Schiff is now getting some measure of respect for having called the market correctly. Remember how they laughed at him early on when he tried to warn people what was coming? Now there is a video on YouTube where his comments have been highlighted along with the rebuttal from the bozos on CNBC and they are not laughing now. The denial phase is coming to an end soon Bill, and I hope then you may also get a measure of respect for your work to expose the gold manipulation scam. Gartman and Co. will eventually find that the smug arrogance they directed towards the goldbugs was misplaced. For now, its just groundhog day again.
cheers!

MexicoMike

Gold: The Next Reserve Currency Player

I think you're mistaken about Mr Lathrops...and it came with the 8th word in your comment. There are many out there, and the US contains way more than its proportional share, of ignorantly arrogant and arrogantly ignorant sheeple people like him who don't see the need to think or know anything except what they're fed by the MSM. What a waste of time...to think and become informed...when there is so much beer to drink and good times to be had.

Most truly seem to believe the lie that "it can never happen here"...this is the YOOOnited States of America, after all!! And oh, BTW, there never was a Great Depression either...nor hyperinflation in Venezuela or Germany within the last century. Those were just myths to these people, conspiracy theories thot up and stuck into textbooks by the "nuts" to scare people...or if they were real, it's only b/c they were stoopid furreners and not us smart Amuricans. I say give him another beer...let ignorance be bliss as long as possible for him and them...b/c as much as they are ignorant blowhards before the fact, they are even bigger whiners and complainers after...so keep them happy blowhards for as long as possible.

And I can only agree about the ETFs being useful in terms of VERY short term investment vehicles...almost akin to futures trading. Who knows how fast the dollar will drop over the cliff when it does, or how fast the global devaluation or revaluation of the dollar could happen, or when force majeure could be declared on the COMEX. If those things happen fairly closely together, there's a chance those in the ETFs would get back only paper money that is very rapidly devaluing at the same time the prices of silver and gold are skyingrocketing. Best have a good hoard of real money first...physical silver and gold...before putting needed funds, for now or the future, into the ETFs...or really paper equities of ANY kind. jt


On Nov 30 12:59 PM Georealist wrote:

> Interesting comments..especially Mr. Lathrops..apparently he thinks
> we should stupidly stare at trillions in potential liquidity andmay..well..go
> play golf. The Gulf States taking steps to protect themselves sounds
> very reasonable to me...their geographic location is enviable and
> they have the monetary heft to carefully pull it off.
> Nothing wrong with the ETF metals funds...a physical position is
> always the best foundation but sometimes not the easiest to trade.
> If any of this gets further than speculation..and it has a very good
> chance of doing so...silver could e the biggest winner yet.

A Gold Bull Stops Running

ussmls7...you're dead on right about Gartman, and 01GT, absolutely right also that he's a shill. Despite GATA's massive PUBLIC proof of its claims, Gartman has done NOTHING but make fun of them.

But on the news being "rigged"...ya think??...I say only if Pravda was rigged...ya think?? Ask journalists around the world. As of the past 5 years or so, the US press has been ranked as one of the absolute WORST in the WORLD for trying to get real eyewitness news printed...worse than a number of countries with absolute dictators!! It is controlled to the max...and it is owned and controlled by the very ones that own and control this country's money supply.

If you want to know who the MSM is now...go read George Orwell's 1984--they are the purveyors of "governmentspeak." And they will tell you EVERYthing they want you to know and to think. Count on it. jt