Bagholder believes we live in a world where justice, more often than not, is served. The universe, as a whole, has and requires balance. Those who choose to close their eyes to both history and reality are punished, while those who SEE reality as it is (not as you are told) are rewarded. If you can see through the fog of lies foisted upon us by the financial media - then success in the financial markets is easy. Understanding the motives of those who control markets is key to believing what you see, instead of falling prey to what you hear.
What follows are 9 themes sold to us on a daily basis by the mainstream financial media. The visual evidence all these things are lies is overwhelming, and yet, people still believe. Then again, like the proverb says - there are none so blind as those who will not see.
Bonds are a safe. Right now 10 year treasuries return less than 2%. At that rate your money doubles in roughly 36 years. Who in their right mind would lend Gman a $1,000 today for $2,000 in the year 2047. Any sentient being can see inflation would erode the purchasing power of your bonds, for which the paltry return does not cover. In otherwords, bondholders are losing purchasing power. Does that sound "safe" to you?
No inflation in consumer prices - says Gman. Do you believe what you are told or do you believe your own eyes when you walk thru the grocery store? Bernanke & his minions get on TV and tell the people how inflation is only 1 percent per year. With 1 percent per year increase in prices it would take 70 years for that box of cheerios to double in price. In Bagholders reality, when he considers the rates of which box sizes are going down AND prices going up, Inflation is 5-10 times what Gman claims. Their motives for understating inflation are obvious, the lower the inflation rate - the less Gman has to pay those suckling on the government teat.
Gold is risky. How many times have you heard that? Where exactly could you have bought gold in the last decade - and been at risk? With no counter-party risk, Gold is the safest asset on the planet. There is no risk in owning something, the value of which is immune from theft via counterfeiting. The same cannot be said of your beloved paper dollars/stocks/bonds. Again the motives are obvious, labeling gold as risky keeps people OUT of Gold and IN the more controllable paper markets.
Diversification is key to success in the financial markets. This is a losers mentality. Losers divide their monetary soldiers into multiple areas, so they don't go broke. Notice how those who buy into the diversification mantra are focused on not losing instead of winning. While those who see reality as it is identify the right side of a SINGLE market using our eyes - and then concentrate resources accordingly. That is how winners play.
Gold is Volatile, they say. Psychologically speaking, most folks can't handle volatility. The extremes can be crushing. That is exactly why they try to associate gold with volatility. While we are told gold is volatile, we use our eyes to see Gold has been up 11 years in a row. Is that volatility, or is it something going up in value. As usual, we are told one thing, and reality is another.
Unemployment is 9%. What a crock of shit. John Williams at Shadowstats claims actual unemployment (if measured the same as in the 1970's) right now is over 22%. Rigging numbers lower than they actually are is something of a specialty of Gman. This helps make the lies more believable. What is most disturbing about the staggeringly high actual unemployment is it won't get any better until real wages paid in this country come down. This fact is never talked about, anywhere.
Housing prices have stabilized….or so we are told. With our eyes we see massive backlog of inventory. Little or no demand. Asking prices falling. Interest rates with nowhere to go except up. Fewer qualified buyers. There is no visual evidence housing prices have bottomed. In fact , Bagholder is on the record stating housing prices will continue to fall in real terms until your average middle class home trades for 5 ounces of Gold - or 100 ounces of silver.
Gold is in a bubble. This one cracks me up the most. The temerity of the lie is breath taking. They have been telling us for YEARS now about the gold bubble, yet bubbles exhibit certain elements our eyes do not see. Where is the widespread public participation, or the people leveraging their way in, or parabolic advances in price? There cannot be a bubble without these things. Again we hear one thing and see another.
QE3 is needed. If a man invents a thermometer that reads cold in July & hot in January, he is deemed a failure. For some reason this doesn't apply to bankers. QE1 was implemented & failed, QE2 was implemented & failed. Is this not the thermometer which reads cold in July? We look around and see failure, yet are told we need more of it. The motivation behind QE3 is to enrich the suits on wall street. Just like QE1 & QE2, the end result will be to impoverish the working class even further.
In all these cases, the powers that be have a reason to perpetuate the lies. Propoganda is nothing new. It has been so for centuries. So it will be today. History does indeed, repeat. Our leaders will continue to preach the above lies, all the while printing the dollar into oblivion. The simplest way to stop the suits from robbing your purchasing power is to buy Gold. End of story.
No comments:
Post a Comment