Gold bugs are quite simply “bugged” by the recent drop in the price of gold and silver!  Hopefully none of you capitulated and started selling.  If you did you will soon realize that you were hood winked.  You see the value of gold and silver has not dropped, only the price of the shiny metals.  This is a buying opportunity to get in for anyone who hasn’t already started to collect metals for protection.  You see the ultimate movement, by the world’s nations, out of dollars has begun all around the globe.  The trickle of dollars, back to the U.S., is but a stream and will ultimately churn into a torrential river overflowing its banks.  Soon the U.S. dollar’s exchange value will plummet.  Prices on imports will go up as too many dollars chase too few goods. Our domestic inflation will go into the stratosphere and destroy the Federal Reserve’s control over interest rates.  So what has the ultimate deception been the past few years?   One could assume that the Federal Reserve has been shorting gold and silver in the paper bullion market in order to protect its policy of Quantitative Easing.

Yes, I agree that gold prices’ saw their biggest drop in 30 years.  The odds are 20 trillion to one that an occurrence of this magnitude could have happened.  Yet it did!   Now are you thinking conspiracy and manipulation?   The actual price of gold (value) is quite simply significantly higher than the gold price reported by the COMEX.  Has anyone noticed that the real demand for gold around the globe is enormous and shows no signs of slowing?

Those evil stock traders who are shorting COMEX contracts have seen the response of the engineered fall in the gold price and must be considering there mindset for being short on the obligation to deliver gold that is in high demand all over the world.  I see central banks from all around the world, from Korea to Australia, see this as an opportunity to stack and you should too!  I find it tremendously puzzling why our western banks don’t recognize the opportunity as well and get on board.  Do you think they do but they just aren’t saying it or “doth protest too much” and are buying it too under the guise of disguise?  What would happen?  Would they be exposed if we all pulled our worthless dollars out of our bank accounts, 401k’s, Roth’s, mutual funds and other nonsense?  It would feasibly sink their propped up house of cards “hologram” stock market.

Makes you wonder doesn’t it? ‘Cui bono’ who has the most to gain?  A Latin term which means “To who’s advantage or benefit”?  You see, the likely party to gain from this act is the Federal Reserve’s owners, the power elite .001%.    Didn’t “Dumb berg” (Bloomberg) say, “The drop in gold prices have handed central bankers more reasons to pursue the easy monetary policy that helped drive up gold’s prices in the first place.” I have said it before but I will say it again, Bernanke will never stop printing dollars in a fatal attempt to jump start the economy and now he has the ammunition to continue!!

I have written before, the reason for the destruction of America has been GLOBALSIM and the off shoring of manufacturing and professional service jobs in the past twenty years.  Our great politicians and public servants will never admit that they made a mistake when they approved N.A.F.T.A. (Numbskulls Attempting to FOOL Today’s Americans).   This corporate mechanism, which made them even more money, has deprived the U.S. economy of consumer income and God forbid state, local and federal government’s tax base.  Then when the off shore production comes back to the U.S. to be marketed, the trade deficit rises even further.  The result is larger surpluses in the hands of foreigners, who use the dollars to purchase income-earning U.S. assets.  Consequently, this income also flows out of American hands into foreign hands.  The U.S. economy has faltered because we have lost our purchasing power.  So the Federal Reserve decided to substitute an increase in consumer debt for the missing growth in consumer income in order to keep our consumption-driven economy alive.

Next interest rates were lowered to unrealistic low levels to ignite the real estate market.  Rising housing prices produced equity in debt-financed homes.  Homeowners refinanced their mortgages, taking out the equity and spent which kept the market economy alive with growth.

One might even call what happened next the “perfect storm”.  The Clinton administration repealed the great and sensible Glass-Steagall Act, put in place during the Great Depression, and the deregulation of the banks was unfolded.  This repeal allowed commercial and investment banking to be under one branch and allowed the use of bank deposits for unregulated speculative purposes. They could lend and borrow at will.  The more loans they could approve the more money they made.  There were no rules as the money rolled in and out and availability of dollars compounded exponentially based on a bank’s lending “promiscuity”.

Their simply was no limit placed on speculators and the speculators dominated the commodity markets as well as the building booms.  Debt leverage was extremely liberal, allowing irresponsible debt leverage ratios.  They fed the public the line that “markets are self-regulating” and we swallowed the bait hook, line and sinker.  This incredible stupidity and incompetence produced the “perfect storm” for a financial disaster in an economy already weakened by off shoring its GDP to other countries.  The capital gains for shareholders and performance bonuses for executives simply skyrocketed to unbelievable dollars for the masters of manipulation.

At some point, in the not too far off future, the dollar will drop to nothing and the Federal Reserve will lose control over interest rates.  When that happens, entitlements will be dwarfed by interest payments on new debt issued to finance the federal budget deficit.  This slow motion train wreck we have been watching will come to a screeching halt and the resulting damage will be sprawled everywhere we look across our once great nation.  I will then remind you about my article from last year, “Iceland’s Banks Were ‘Not Too Big to Fail’, We Were Swindled!”    Our administration’s policy of not letting the “banks too-big-to-fail” fail and the policy of sending American jobs abroad in order to maximize short-run corporate profits has ultimately resulted in the destruction of the American economy.  This train wreck is closer than most people care to realize.

There will come a point when the U.S., Japanese and euro zone stimulus pumps have so debased their currencies that further pumping would prove futile.  Then you will see gold, silver, platinum and palladium returned to the lofty title of “safe haven assets”.  The fruitless attempts by central banks and high stake speculators to manipulate the precious metals markets have produced only temporary violent price fluctuations.  If you were smart you dove in for your share and in the long term you, the precious metals investor will be rewarded.  In the future manipulations will fail to drive down prices or tarnish precious metals safe haven luster.