Gold bears are exuberant these days. Their mood is epitomized by a recent Bloomberg headline: “Gold Erases Year’s Gain as Europe Concern Boosts Dollar” – which was then dutifully parroted by thousands of mainstream drones. The implication was clear: gold was on its way down and the dollar is on its way “up”, so everyone should sell their gold.
Such confidence (depending on the source) is a reflection of either serial dishonesty or extreme delusion. The dollar-shills at Bloomberg explained what was happening:
…concern that Europe’s debt-crisis is deepening strengthened the dollar [emphasis mine].
Let’s examine that short statement. Let’s totally put aside the fact that Europe’s debt-crisis was caused by the economic terrorism of Wall Street bankers. Again it is clear what Bloomberg is implying: the euro is weakening and the dollar is strengthening.
I’ve dealt with this inherently and deliberately dishonest statement by the mainstream media on multiple occasions in the past. In the past 100 years (i.e. ever since the Federal Reserve was given the responsibility of “protecting the dollar”) the U.S. dollar has lost 98% of its value. That rate of collapse has increased significantly in the past 40 years (i.e. ever since Nixon eliminated the last vestige of a gold standard).
The dollar is not “strengthening” – that is an outright lie. It is simply plummeting a little less slowly than the other (worthless) paper. Example: two people jump off a 100-storey building at the same time. While falling, one of the individuals climbs on top of the shoulders of the other one.
Has that individual “strengthened” himself? Obviously not. He will simply go “splat” a millisecond later.
(Legitimate) gold commentators have explained this basic fact again and again, yet had little success in penetrating the media’s brainwashing. So let me try a personal anecdote which might be more successful in reaching the gastrically-inclined mind of the average North American.
Having an unusually hot May day on the West Coast yesterday, I decided to opt for a cool submarine sandwich for dinner, and headed to Subway for the first time in several years. I ordered my favorite foot-long sandwich, and had it prepared exactly as I had done when I used to purchase sub’s on a more regular basis.