Is the World Really Stabilizing or Actually Falling Apart and Supporting Silver and Gold? – Did The G8 Just Dare to Contradict Both the Mainstream Financial Media and Wall Street with their Claims that Global Economics are Still Weak? – Will the Monetary Stimulus Exit Be Easy or Treacherous and What Does This Mean for Silver and Gold?
You have got to love the mainstream financial media! The cat is finally out of the proverbial bag in the worldwide stock markets. Yet they refuse to surrender! Take a look at the collective top headlines from CNBC.com on Friday morning as the U.S. equities market continued its three day meltdown:
- Is the Global Market Selloff Just an Overreaction?
- Can Stocks Find a Footing?
- Buy-and-Hold Billionaire: Turbulence Won’t Last
- Stock Drop an Overreaction: Morgan Stanley CEO
Clearly, there is nothing unbiased and objective about the mainstream media and the financial gurus. They know the markets are tanking, yet they continue to try to talk them back up! (Good luck with that one…someone who is “smart money” must not have sold off all of his positions yet).
Needless to say, when everyone is in panic and hits the “urgent sell button” on everything, it flushes commodities such as silver and gold down the drain some too. Silver took its share of hard knocks this week. The white metal gapped down from the prior Friday’s spot market close of $22.08 to open the week of June 17th at $21.84.
It swung wildly throughout the week but ended Friday June 21st spot market close at $20.12. This represented a nearly eight percent plunge during the week. Silver did manage to claw its way to close back above the psychologically important round number $20 (more than you can say for big brother gold that closed below $1,300 per ounce).
The reasons for the decline that the mainstream media presented to you were once again part of their elaborate fix. They told you the geopolitical world is stabilizing, that the economy of the world is improving, and that the U.S. Federal Reserve exit will be so easy that it will flush silver and gold down the drain.
Is the World Really Stabilizing or Actually Falling Apart and Supporting Silver and Gold?
With Turkey and Syria up in Flames, the U.S. Gets Involved in Syria and Iran launches a preemptive strike to Head Off the U.S. It never rains but it pours where international hotspots are concerned. The mainstream media have been busy telling you that the geopolitical situation of the world is rapidly improving.
They claim that the Arab spring is over, that the EU-Euro Zone breakup has been avoided, and that North Korea and Iran are contained. As usual, the mainstream media are either delusional or spinning you a fanciful yarn. On the one hand they are incompetent, while on the other they are conniving. You can be the judge of which it is…
Are Turkey, Syria, and Iran actually normal and stable geopolitical theaters these days? Turkey is in flames and is burning down! Night after night, there are riots even in Istanbul, once proud bastion of Turkey’s Western hopes to become a part of Europe and the EU.
How about Syria?
The U.S. announced that it will arm the rebels and may consider a no fly zone in the future just two weeks ago. It seems that the U.S.’s only reliable Arab ally Jordan is worried that Syria will attack it with chemical weapons in retaliation for King Abdullah of Jordan’s supporting the anti-Assad rebels.
Meanwhile, Iran steals its usual march on the U.S. and the West by announcing that it will send 4,000 of their crack Iranian Revolutionary Guard Corps troops to Syria to support the Assad regime! The Iranians are not about to back down from their puppet Arab regime state of Syria. They consider this to be vital national interests for their ancient identity as the Persian Empire.
Are we willing to put everything on the line over Syria as the Iranians are?
Whether the answer turns out to be a yes or a no, you can be sure it is a geopolitical nightmare that will not be ending happily anytime soon. Either we will have a bitter, brutal, bloody showdown with the Iranians (who are possibly only months away from a credible nuclear arsenal), or the tyrannical Assad regime of Syria will prevail and the Iranians position will be strengthened. This will allow them to continue their quest to conquer the world for Shiite Islam, their avowed goal.
To make matters worse, the Iranians have announced their intention to open a new front of the Syrian conflict in the Golan Heights on the border with Israel (almost makes you wonder what they are hoping to achieve with that dirty little move…). There is no way the geopolitical situation in the world is improving. Silver and gold will continue to maintain their critically needed safe haven role for the foreseeable future, especially where world instability is concerned.
Did The G8 Just Dare to Contradict Both the Mainstream Financial Media and Wall Street with their Claims that Global Economics are Still Weak?
Every once in a while the honest truth prevails. This happens despite the seemingly endless and senseless misdirection of the mainstream media and their allies, the smart money of Wall Street. The mainstream media has been working overtime to convince you and the working class people of the world that the global economy is actually on the mend. They have pounded out a steady drum beat that the Great Recession is over, things are getting better, and silver and gold are dinosaurs that need to be buried again. Please do not make me laugh!
Just last week before the bottom fell out of the global equities markets, money managers kept publically screaming buy, buy, buy! Goldman Sachs and Morgan Stanley both told investors in notes to clients and in interviews that stocks have so far left to run.
The eerily disturbing silence that you hear is because the Wall Street titans have left the building! They sold out their holdings over the last few months and weeks, and used the retail investor (fancy term for working man) to prop up the markets and to absorb their sell orders.
Last week at the much anticipated G-8 meeting where economic and political heavyweights the U.S., Japan, Germany, Great Britain, France, Italy, Canada, and Russia got together to socialize and gab about the state of the world economy and geopolitical messes, the truth accidentally came out! The G8 let slip that it is worried about the world economy.
What’s more, they stated that the world’s economic prospects are still weak! Obviously someone, somewhere did not read his or her teleprompter closely enough! The official line is supposed to be that the world economy is rapidly, or at least steadily, improving since the Great Recession began. This is the reason that you should run out and sell your silver and gold for the cheapest possible price you can get…
Will the Monetary Stimulus Exit Be Easy or Treacherous and What Does This Mean for Silver and Gold?
The Fed Always talks a good game. Let’s be honest here, they excel at it. Actions speak louder than words every time though. It remains to be seen if they will actually push the United States and other G8 Developed Western World economies off the economic cliff or not. Mainstream media keeps busy beating one tired subject to death.
This is the so called imminent Fed stimulus exit, or “tapering,” as they now affectionately refer to the multi-phased project. This week, Big Ben Bernanke announced that he will continue to print $85 billion new US dollar each month and purchase government debt and other assets with it. The shocking revelation was that he is almost ready to slow down these purchases. He may even one day stop them altogether, he hinted (say it isn’t so Helicopter Ben! Keep dropping billions of dollars all over the U.S. from your giant helicopter!).
Most of the Wall Street gurus and their mainstream media minions want you to believe that it is a small and easy thing for Big Ben Bernanke to withdraw his $3 trillion of stimulus so far (printed money out of thin air) from the American and global economies. They say that as the Fed will do this expertly and painlessly, it is yet another reason for silver and gold prices to decline.
Let’s examine their claims that the withdrawal will be oh so simple. The famed economist Nouriel Roubini has been black list labeled “Dr. Doom” by the mainstream media in their efforts to make him seem ridiculous and irrelevant. Yet, Roubini was one of the all too few well known figures who correctly predicted the economic collapse of 2007 to Date that we now live in called the Great Recession.
What is Roubini’s take on the Fed’s exit strategy?
He says that it will be “treacherous” and will bring the economy to financial instability. Besides that, Roubini coined a phrase “the new abnormal” in his accompanying Institutional Investor Magazine report. He said that you already know how the movie ended (badly) and there is likely to be a sequel. Roubini warned you that the true underlying global economic risks are being ignored. Market and political turbulence still have plenty of room left to run.
None of these correct assessments are bearish for silver and gold. Global turbulence and financial instability feed the precious metals’ rallies. Silver did not see a nearly eight percent sell off this week because the reasons to own hard assets are over or irrelevant. They saw their prices decline as panicked investors around the world were forced to raise cash while their other paper assets collapsed on them. This led them to take profits on silver and gold.
Will silver and gold prices decline to zero in the near future? Ask yourself if the world geopolitical and global economic situation is really improving! Listen to the conclusions drawn by Roubini’s co-authored report.
“Some believe that U.S. lawmakers can now afford to postpone tough choices, the Europeans will muddle through, China can smoothly rebalance its economy, and fires in the Middle East can simply burn themselves out. These are dangerous illusions.”
It is time to think carefully about what it means for worldwide precious metals prices and prospects both for today and for the future…