An empty head is not really empty; it is stuffed with rubbish. Hence the difficulty of forcing anything into an empty head. Eric Hoffer
Gold Market Manipulation: Central Bankers Secret Schemes
Updated July 2023
We will delve into this topic within the context of history, emphasizing the invaluable lessons history offers in avoiding repeated mistakes. Moreover, it provides real-time insights into our actions, aligning with our stance at the time. Originally authored in 2016, this article has been revisited and updated in July 2023.
They might lose a battle or two, but the war is a composition of battles, and when it comes to the gold market manipulation war, these guys never lose. Their principle is simple: take no prisoners, shoot to kill, and ask questions only if the enemy survives the onslaught of bullets. This would be an opportune moment to delve into the book “The Art of War” by Sun Tzu.
We’ve emphasized that the world is currently embroiled in a full-blown currency war, with Japan recently escalating the conflict by venturing into negative interest rate territory. On the other hand, Sweden has driven the knife even deeper by pushing negative rates to new lows. Sweden has publicly declared its readiness to persist with these measures until inflation reaches the elusive 2% target. Presently, interest rates stand at -0.5%, leaving us to ponder how much further rates will plummet in pursuit of this lofty 2% inflation goal.
Unmasking Gold Market Manipulation: Central Bankers’ Game of Deception
In the complex web of global finance, central bankers wield enormous power, often hidden from the public eye. The gold market, too, has not been immune to their influence, as they employ various strategies to manipulate the game. This article delves into the intricate world of gold market manipulation, shedding light on the tactics employed by central bankers and their impact on the precious metal’s value.
The era of currency wars is upon us, with nations like China feeling pressured to devalue their currencies to remain competitive. This “devalue or die” game has intensified, prompting speculation about the Federal Reserve’s potential involvement. It’s essential to stay vigilant and watch for signs of central bankers backtracking on their claims of a robust economy. As the velocity of this currency war increases, we can expect more surprises.
While some pundits argue that central bankers are running out of room to manoeuvre, the reality may differ. Recent events like the Bank of Japan’s aggressive actions demonstrate that central bankers can still impact markets significantly. The remarkable market rally following BOJ’s latest moves serves as a testament to their influence.
The truth is that central bankers have a wide array of tools at their disposal, not limited to continuously lowering interest rates. They can inject massive amounts of liquidity into the markets, maintaining an ultra-low rate environment while propping up various assets. The day central bankers run out of ammunition will only arrive when the masses awaken to their manipulative tactics, and that day remains on the distant horizon.
This article explores the nuances of gold market manipulation, central bankers’ strategies, and the factors contributing to the ongoing currency war. Understanding these dynamics is crucial for investors seeking to navigate the complex world of global finance and make informed decisions in a landscape where deception often masquerades as stability.
The Impact of Gold Market Manipulation on the Economy: A Look at Recent Data
In recent years, gold market manipulation has continued to shape the global economy. As of 2023, manipulating gold prices has had significant implications for various economic factors. Let’s explore the latest data and trends related to gold market manipulation.
The United States’ national debt has surpassed $31 trillion, and the impact of gold market manipulation on this debt has been a cause for concern. Since 2000, the debt has steadily increased, with an additional $17.6 trillion added since the 1980s. This manipulation has not only affected the economy but has also had a profound impact on individuals’ financial well-being.
Despite the apparent growth in the economy, many families continue to struggle financially. Approximately 76% of families live from paycheck to paycheck, indicating the challenges individuals face in an economy influenced by gold market manipulation. This phenomenon is not limited to lower-income households, as even families earning $75,000 per year are experiencing financial strain, with 33% living paycheck to paycheck.
The erosion of purchasing power due to inflation is another consequence of gold market manipulation. Today, the average hourly salary is around $25.00, but the buying power of this amount is equivalent to less than $5.00 in 1973. This significant decrease in purchasing power has contributed to the financial hardships individuals and families face.
Understanding the concept of inflation and its connection to gold market manipulation is crucial to addressing these economic challenges effectively. Unfortunately, many individuals remain unaware of the underlying causes and are caught in a cycle of financial struggle, similar to Plato’s allegory of the cave.
By staying informed about the latest developments in the gold market and its impact on the economy, individuals can better navigate the challenges posed by gold market manipulation and work towards financial stability.
The Fed Appears To Be Omnipotent
Against this backdrop, we can safely state that the Fed is omnipotent and that those gold bugs and hard money experts are smoking some strong medicine that they need to get off immediately when they falsely assume that Gold will surge to the moon simply because the Fed has the pedal to the metal.
We believe in hard money and think the world would be better if central bankers followed such rules. It’s crucial to acknowledge that while some advocate for rigid money principles, the prevailing sentiment often leans toward trust in central bankers and government interventions. Even though the belief in hard money principles is justified, market dynamics are more complex. Success in the financial world isn’t solely about being right; it also hinges on understanding the collective psychology of the masses.
The general consensus among the masses is that the Fed and the government possess the solutions to economic challenges. As long as this sentiment persists, gold bugs and hard money proponents may encounter intermittent victories followed by prolonged periods of adversity. This explains the rollercoaster ride experienced by gold and the precious metals sector since 2011.
However, it’s essential to remember that market dynamics are cyclical. Gold, like any other asset, will have its resurgence given enough time. While the Fed’s perceived omnipotence plays a significant role in shaping market sentiment, the interplay of various factors and investor psychology ultimately determines the fate of assets in the modern financial landscape. Understanding this intricate balance is critical to navigating the complexities of the 2023 economic environment.
The Peril of Being a Gold Bug: Understanding the Limits of Precious Metals
A critical point to remember is the danger associated with being a Gold bug. Those who subscribe to this belief often assume that precious metals can perpetually soar in value, a fallacy that tends to repeat itself during every Bull Run in the metals market. It’s essential to recognize that no market can sustain an eternal upward trajectory, with the sole exception being stupidity—a relentless force that continues to defy logic.
Central bankers, in contrast, remain far from running out of ammunition. Their confidence has swelled, and they’ve only just begun to deploy their arsenal. Thus far, they’ve utilized pistols and rifles, but the shift to more potent firepower, akin to machine guns, is imminent. The masses, meanwhile, remain largely complacent, which means that this process of extracting wealth from the populace will persist for an extended duration. This implies that substantial market corrections or, as sceptics may call them, “market crashes” should be viewed as prime buying opportunities. Understanding these dynamics is essential for navigating the complex landscape of financial markets.
Strategic Approach to Precious Metals
While we don’t dismiss the potential for Gold and Silver to experience significant gains, with Gold potentially reaching $5,000 and Silver soaring to $200, it’s crucial to remember that no market can sustain an uninterrupted upward trajectory indefinitely. Notably, we have yet to witness the frenzy stage, where the masses eagerly join a Bull Run, as was the case in 2011.
In the current climate, allocating some funds to Bullion is prudent. However, it’s advisable to exercise caution when considering investments in Gold stocks until clear signs indicate that a bottom has been established. This strategy ensures a balanced and calculated approach to precious metals investments.