Tag Archives: propaganda

Central Bank Intervention Slams Paper Gold

This isn’t some trader’s “fat finger” accidentally overloading the sell button and pressing “sell.” This is unadulterated BIS/ECB/BoE/Fed sponsored market intervention:

At 4:01 EST, a paper gold nuclear bomb was detonated in the Comex Globex computer system. The graph above is just the August “front month” paper gold contract on the Comex. In that contract 1.49 million ozs of paper gold were dumped into the Comex electronic trading system. Zerohedge is attributing 1.88 million ozs. That would include the selling in all of the paper gold contract months.

But that’s not the entire amount of the paper hit. There would have been a large amount of LBMA gold forward paper gold contracts dumped in correlation with the Comex paper avalanche. ZH attributes $2.2 billion in paper gold dumped.  But the real number including LBMA forwards dumped was much larger.

“The mysterious plunge has the market spooked,” says some idiot named Bob Habercorn from RJO. This was not “mysterious.” It was intentional – a shock and awe market intervention that was intended to “spook” the market. That quote is from a Bloomberg report full of fake news (caution, this article contains fake news:  LINK).

The article claims that China bought less from Hong Kong in May. In fact, the amount of gold exported from Switzerland to India and Hong Kong was up 39% from April, according to Platts. Furthermore, we have no clue how much gold moves into China through Beijing and Shanghai, numbers which are intentionally hidden from the world.

Here’s the reason that today was selected by the BIS et al to attack gold in the paper market in an effort to scare the crap out of the market:

the day was well chosen as the Muslim world including Turkey was closed for the end of Ramadan as was India which has the amiable habit of observing the holidays of religious minorities. – from John Brimelow’s Gold Jottings

Two of the largest buyers of physical gold in the world right now, India + Turkey, were closed for the observance of a religious holiday. And Shanghai closed for the day 31 minutes before the paper dump.

4:00 a.m. EST is one of the slowest, lowest volume trading periods during any 24 hour period. Why would a seller of a large number of contracts sell at that time of day, when the largest buyers of what is being sold are not in the market at the time of the sale?

If it were merely a “fat finger” – the fake news narrative – then the mistake would have been immediately corrected and the price would have quickly recovered.  Anyone who buys the “fat finger” story is either tragically ignorant or hopelessly naive.

When India returns tonight to the market, I would expect gold to get a strong bid.  Indians have a habit of buying a lot more physically deliverable gold than they might have otherwise when the western Central Banks put gold “on sale” by lowering the price in the paper market.  I suspect Turkey and China will increase their appetite as well.

The mining stocks per the HUI barely acknowledge the artificial price take-down.  The HUI is down less that 1%.  In the past, on a day when gold was taken down to this degree, the HUI would have dropped at least 4-5%.   It’s almost as if mining stock traders are laughing at the latest Central Bank antics.  I know I am…

Fake News And Real Money

But the most brilliant propagandist technique will yield no success unless one fundamental principle is borne in mind constantly and with unflagging attention. It must confine itself to a few points and repeat them over and over. Here, as so often in this world, persistence is the first and most important requirement for success. – Adolf Hitler

Propaganda, also known as “fake news,” has become the norm in mainstream media reporting. Somehow the idea of Russia hacking the DNC computers morphed into the generic, “Russia hacked the election.” Per Hitler’s formula, Hillary Clinton introduced the idea during one of the presidential debates and kept repeating it until the press seized it and ran all the way with to the end zone with “Trump is a Russian ally.” Now Congress is pre-occupied with the fraudulent charge that Russia is controlling U.S. politics. The whole spectacle is beyond idiotic.

In a similar manner, the reporting of economic statistics has become another tool of propaganda. The Government, as we all well know by now, spits out economic reports based on shoddy statistical samples that are seasonally adjusted. Then the data that is cooked for any specific month is annualized. While the result might not be too far off base for any specific month, the errors aggregate over time so that some statistics, like the GDP report, bear no resemblance to reality.

A great example of using propaganda to promote an idea is the continuous mantra coming from the National Association of Realtors that “low inventory” is hampering home sales. It’s an effective device to make the public think that a lack of homes for sale is the explanation for declining sales. It’s also a lie. Homebuilders are sitting on a record level of inventory. Flippers and investors bought 37% of all existing homes that traded in 2016. Many are sitting on homes they can’t sell for enough to cover their rehab expenses. The over $750,000 segment of the market is flooded with inventory.

The truth is that, if you examine the historical data in order to question the NAR’s assertions, the facts show that since 1999 – which is when the Fed began tracking existing home sales – relative inventory levels do not drive home sales:

In fact – if anything – there is an inverse correlation between inventory levels and home sales. In other words, since 1999, homes sales rise when inventories are low!

Thus propaganda is a tool used to manage public perception.  Unfortunately, a high percentage of the population only consumes headlines and sound-bytes.  It’s the perfect set-up for politicians to employ Hitler’s advice on administering propaganda.  The commonly accepted idea is, in fact, the opposite of the truth.

The commandeering of a country by elitists begins by eliminating real money and replacing it with a fraudulent fiat currency.  But the eastern hemisphere is moving in an opposite direction as the west.  As reproduced in The Daily Coin, Russia and China have quietly struck an agreement laying the groundwork to replace the U.S. dollar’s reserve status with a gold-backed currency system:   Moscow and Beijing join forces to bypass US dollar in world money market.    In today’s episode of the Shadow of Truth we discuss the decline of the United States and the advancement of the new superpower bloc emerging in the east.

Big Brother In America Is The Media

Journalism and a free, open media is another “check and balance on the three branches of Government and we don’t have that check and balance anymore.” – Shadow of Truth

One of the hallmarks of a totalitarian political regime is control of the media. In 1996 president Bill Clinton signed into law the Telecommunications Act of 1996. This law, which was bought and paid for by corporate media lobbies, allowed big corporations to acquire and consolidate media outlets nationwide.

The 1996 law lifted the limit on the number of television and radio stations any one corporation could own. In 2003, the FCC voted to lift the ban on cross-ownership of newspapers and full-power broadcast stations that serviced the same community. This was the final nail in the coffin of free and competitive media and news-reporting in the U.S.

The 1996 Clinton law followed by the lifting of the cross-ownership ban enabled Corporate America to increase their monopoly on the flow of information in the U.S. and around the world. Now six corporations control well over 90% of all media in the U.S.: NewsCorp, Disney, Viacom, Time Warner, CBS and Comcast.

“Wall Street slips on and geopolitical worries” (Reuters headline).   What does the Trump/Obama wiretapping squabble have to do with whether the stock market goes up or down? It has nothing to do with whether or not corporations can produce goods and services profitably. Too be sure the accusation of wiretapping and the possibility that the accusation is accurate is troublesome in and of itself.  But it has nothing to do with the fact that the stock market is currently the most overvalued in U.S. history.

The headlines, however  reflect the degree to which all media reporting in the U.S. is now under the control of Corporate America – a Corporate America that has assumed control of the political process and has become Orwell’s  Big Brother .

Most people associate the term “fascism” with an authoritarian and nationalistic political system. But it’s much more than that. Mussolini described “fascism” as the merger between Corporations and Government. The political system in the U.S. can easily be considered “fascist,” as Corporate America and Wall Street have used billions of dollars to take over the entire political process including all of the mainstream outlets of communication and news reporting.

The result is directly reflected in the nature of the 2016 presidential and congressional elections. The content of any news reporting is now a product of the material fed through the broadcast and print communication outlets controlled by six corporate monoliths and the Too Big To Fail banks that finance the system.

A good friend and colleague of the Shadow of Truth, John Titus, once quipped with regard to the public’s consumption and acceptance of anything reported as news, “put it on CNN and it’s true.” This statement succinctly summarizes the propaganda which supports the process by which the Government seeks to control the views and perceptions of the public at large.  In today’s Shadow of Truth podcast, we toss around that fact that the United States has become a Goebellsian “playground” and George Orwell’s nightmare:

No Really, The Russians Hacked Us

Hillary and her supporters have vehemently asserted that “seventeen intelligence agencies” agree with the assessment that Russia hacked the election. It might be greater news to the American people to hear that there actually are seventeen such agencies out there. Perhaps Mrs. Clinton or Mr. Obama might explain exactly what they are beyond the CIA, the FBI, the DIA, the NSA, and DHS. Personally, I feel less secure knowing that there are so many additional surveillance services sifting through everybody’s digital debris trail.  – James Kunstler, “Deep State Blues

The public voted with its wallet and truthseeking data reveals that in any election in which the growth in average household real disposable income is less than 3.1%, the incumbent party loses the White House.  The study goes back to the 1932 election.  Real disposable income growth was well below 3.1% in 2016 and the Democrats lost the White House.  It’s really as simple as that, for the most part.

In addition, enough of the voting public determined that, with the help of the Wikileak emails, Hillary Clinton could not be trusted.  In fact, the Wikileak oeuvre revealed that the entire Democratic Party was indefatigably corrupt.  At the root of this corruption is the Clinton Foundation.  But beyond that it was discovered that, among other atrocities, the DNC conspired to rig the Democratic Primary against Bernie Sanders and the current DNC Chairman, Donna Brazile, slipped debate questions to Hillary ahead of the debates.

The reaction to this by the mainstream media, largely conduits of pro-Clinton propaganda, the DNC and Hillary is to blame the Wikileak truth revelations on the Russians.  As a result, the generic fake news meme regarding the election results has turned into “the Russians hacked us.”

All this mind you in an utterly complete void of proof.  Where’s the proof?  None of Hillary’s supposed intelligence agencies can produce one shred of evidence that points to Russian email hacking.   Show us the money.  Please.   Lost in this entire Orwellian fog of lies is the bare truth, for all to see.  If the Wikileak emails revealed that the Democratic Party – led by Hillary Clinton – is profoundly corrupt to the core, what difference does it make from where the source of truth, the source of holy light, appeared?   

The truth is the enemy now.  Rather than fearing Russia, the public should be looking for reasons to not live in fear of the U.S. Government.

The same Orwellian fog has enveloped the gold and silver markets, especially as the facts apply to the massive demand for gold in the eastern hemisphere.  Mainstream western financial media has become flooded with highly misleading and outright fraudulent news stories about the precious metals markets.  In this latest episode of the Shadow of Truth, we dissect through we pull away the wizard’s curtain to shed light on the facts:

Fake News, Propaganda And False Flags

The Fake News conspiracy is starting to lose steam.  It’s time to bury it completely. But this won’t happen because the “Fake News” narrative is another propaganda tool that is being used to distract the public’s attention from a collapsing economy and political system.

Paul Craig Roberts sent around an article that cites a former top NSA official who states explicitly that the NSA would have evidence of Russian influence on the election.  Apparently it has none:

If the idiots in the intelligence community expect us to believe them after all the crap they have told us (like WMD’s in Iraq and “no we don’t collect data on millions or hundreds of millions of Americans”) then they need to give clear proof of what they say. So far, they have failed to prove anything.

Which suggests they don’t have proof and just want to war monger the US public into a second cold war with the Russians.

After all, there’s lots and lots of money in that for the military-industrial-intelligence-governmental complex of incestuous relationships

This article is a must-read:   No Evidence Russia Hacked The Election.

The Russian/Fake News narrative is designed to foment Cold War 2.0 with Russia.  Russia and China are working – understandably – to remove the dollar as the world’s sole reserve currency.   The only means by which the U.S. can try to stop this is military.   It’s beginning to escalate into a dangerous game.  Trump seems to be perpetuating it by rhetorically fanning the flames with China in the South China Sea.

When an Empire is collapsing, history tells us that the Government foments “patriotism” through the heavy application of propaganda that is used to support rampant imperialism.  This is where the U.S. is right now.

Of course, Trump’s motive for enabling the Fake News narrative to perpetuate is to distract attention from his cabinet appointments, which have a decided Big Oil and Big Bank flavor to them.  So much for draining the Swamp.

This chart from William Banzai is priceless:

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Guest Post: Here’s Why The Banksters Are In Trouble

If the Fed were to reverse the portion of its QE in which it injected trillions onto big bank balance sheets as well as fomented a mortgage/housing bubble, the Too Big To Fails – including Goldman Sachs – would collapse.  Make no mistake, it would ultimately prove to be a good thing.

However, there’s also a growing groundswell of grassroot Americans who have “woken up.”  Perhaps the only good attribute of the last election is that it hastened the rate of enlightenment.   Too be sure, the number of Americans who understand the difference between Truth and Propaganda has vastly increased.

A reader of this blog and subscriber to the Mining Stock and Short Seller Journals submitted this narrative of a recent “enlightenment” experience that occurred while on a routine visit to the local barber shop.  It’s worth perusing:

I’m almost speechless as a result of the experience I just had. I have just returned from getting a haircut at the local barbershop downtown. I was there along with the barber, a semi-retired gentleman who now drives a school bus part-time, and a local hay farmer. Our conversation was an absolute stunner, and provides very compelling (albeit admittedly anecdotal) evidence that the bankster elite are in BIG trouble.

Why?

Well, first of all, the barber (in his late 30s) was explaining for all of us how the big banks are in MAJOR trouble on account of (and I am quoting verbatim) “the trillions of dollars of complex derivatives they are holding that are going to implode as a result of the rapid rise in US treasury bond yields.”

The bus driver then explained to everyone how he is no longer keeping any more money in his checking account than he needs to cover outstanding checks; that otherwise he holds all of his money in cash at home. Why? Because he is afraid that, at some point in the very near future, “we’ll all wake up on a Monday morning to discover that a bank holiday has been declared, and none of us will be able to access our funds.”

Finally, the hay farmer told us all how, as a result of having an excellent harvest this year, he had opted to pay off, two years early, the loan on his new tractor. He explained how he had received a call from the bank holding the loan, and the loan officer had attempted to convince him to NOT pay off the loan yet, and even offered to refund twelve months of interest payments if he would simply carry the loan to full term. The farmer adamantly refused. His response to the bank officer? “I understand perfectly well why you want to keep this loan on your books for two more years: you are using my loan as collateral to borrow short and lend long to the tune of at least ten times my original loan balance, and if I pay off my loan early, my debt and your collateral will be extinguished at the same time, and you’ll have to come up with more collateral to back up loans you never should have made in the first place.”

I was stunned!

“… borrow short and lend long … if I pay off my loan early, my debt and your collateral will be extinguished … loans you never should have made in the first place.” WOW!

I sat there absolutely amazed at the relatively high level of understanding manifest by these “salt of the earth” types — and I realized the extent to which the global elite have grossly underestimated the common folk of this world. I am, at this moment, as hopeful for the future of America as I have been in many years.

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Party Like It’s 1999: The Stock Market Is A Propaganda Tool

The degree and level of propaganda now flowing from the Establishment and the Establishment-controlled mainstream media is on par with that of the old Soviet Politburo or German Third Reich.   In fact, I’d confidently propose that this point is incontestable.

With modern technology and regulations which have made Fed operations and accountability tragically opaque, I have zero doubt that the Fed and the Government have managed to turn the stock market into another propaganda tool.  Studies have shown that, over the short term, the direction of the stock market and consumer sentiment measures are highly correlated.

Thus, pushing the stock market a lot higher is a mechanism that can be used to influence the public’s sentiment and willingness to spend.  This is critical after an election in which the political party controlling Capitol Hill changes and – more important – during the holiday shopping season.

Without question the U.S. economy is beginning to quickly crumble.  If you “peel away” the manipulative techniques applied to the economic reporting it reveals that every segment of the economy is now contracting.  Even the factory orders report for October released  yesterday – which showed a 2.7% gain over September – is still down 2.3% YTD vs the same YTD period in 2015.  Strip away the transportation component and it’s down 2.7%.

With interest rates on the long end up over 100 basis points in a very short period of time, the Fed’s balance sheet has taken a big hit. It currently owns over $4 trillion in Treasuries and mortgage securities. Assuming an average duration of 10 years on its holdings, the market value of the Fed’s balance sheet has dropped 8.4%, or approximately $320 billion. As of this past Thursday, the Fed’s balance sheet showed $46 billion in book equity. If the Fed were forced to mark-to-market its fixed income holdings, the Fed’s net worth would be significantly negative – close to $300 billion negative. Think about that: the only thing backing the value of the U.S. dollar right now is the U.S. military and a Central Bank with a massive negative net worth.  – excerpt from IRD’s latest Short Seller’s Journal

Market intervention in this manner is an attempt to convince the public that the economic system is healthy and will be even healthier in the future.  As such it’s another subtle propaganda tool – a perception management device.   If the Fed were step away from the market, the stock market would rapidly re-price to reflect the true underlying economic reality.  In short, stocks would crash and concomitantly gold and silver would soar.

The Fed injected billions into the system in late 1999 ahead of Greenspan’s Y2k scare. It led to the biggest stock market blow-off top of all-time.The current market is quite similar, only the economic and financial fundamentals underlying both the public and private sectors of the system are far worse than they were in 1999.

The ONLY thing that can explain the move in the stock market since around 2:00 a.m. EST after the election is massive Fed stimulus in some form – either direct cash injections done in a format that won’t show up on the Fed’s balance sheet or a massive spike up in the availability of short term credit lines made available to banks and extended to hedge funds. There is no other explanation.

Today for example, the stock market is spiking higher AND bond prices are higher/yields lower. This makes absolutely no sense and can only be explained by official intervention of some sort.

Gold and silver will “sniff” this out and at some point I expect to see gold begin to move a lot higher and the dollar sell-off precipitously. I also expect that the Chinese are going to send their response to Trump’s inimical overtures on Twitter by accelerating their sale of U.S. Treasuries.

lf the same GAAP accounting standards used in 1999 to measure corporate earnings – the standards having been relaxed more almost every year since 2000 to enable companies to report higher GAAP earnings – were applied to today’s earnings numbers, we would see that the current stock market is by far the most overvalued in history.

This will not end well.

NATO, The Obama Government And Fake News

Here’s the identity of the entities behind PropOrNot:

Launched by a resounding article in the Washington Post, on 24 Novembre 2016 [11], a mysterious group entitled Propaganda or Not? established a list of de 200 Internet sites – including Voltairenet.org – who were allegedly tasked by the Kremlin with relaying Russian propaganda and intoxicating US public opinion to the point where they elected Donald Trump.

While Propaganda or Not? does not publish the names of its directors, it does indicate that it unites four organisations – Polygraph, The Interpreter, the Center for European Policy Analysis and the Digital Forensic Research Lab.

– Polygraph is one of the sites of Voice of America, the US public radio and television organisation controlled by the Broadcasting Board of Governors.
– The Interpreter is a magazine of the Institute of Modern Russia, now broadcast by Voice of America.
– The Center for European Policy Analysis is a pseudopod of the National Endowment for Democracy (NED) directed by Zbigniew Brzeziński and Madeleine Albright.
– And finally, the Digital Forensic Research Lab is a programme of the Atlantic Council.

In a document distributed by Propaganda or Not?, this pseudo-NGO, born of associations financed by the Obama administration, clearly names its enemy – Russia. It accuses Russia of having been the origin of the 9/11 Truth Movement and the Internet sites supporting Syria and Crimea.

On 2 December 2016, the United States Congress voted a law forbidding all military co-operation between Washington and Moscow. In the space of a few years, NATO has re-activated MacCarthyism.

You can read this entire article here:  NATO, The Obama Government And “Fake News”

I did a podcast with Elijah Johnson of Finance and Liberty/Silver Doctors in which we discussed the use of fake news and manipulated Government economic reports as totalitarian propaganda tools:  Orwell’s Thought Police In Real-Time.

Gold Manipulation, Propaganda And Totalitarianism

“I read Atlas Shrugged, Brave New World (+ Brave New World Revisited) and 1984 every ten years or so. Each time they are closer to reality.”  That comment was emailed in from a listener who offered the suggestion that the websites identified by Jeff Bezos’ “Washington Post” are Russian propaganda conduits should combine resources and sue the WashPo.  Apparently the proprietor of Nakedcapitalism.com, Yves Smith, has threatened the WashPo with a defamation lawsuit and has demanded a public retraction of the accusations put forth by Deep State insider, Jeff Bezos (see this for details on Bezo’s connection to the Deep State:  McCarthy’s Red Scare Redux).

The problem is that lawsuits of that nature do no good anymore.  We’re in the latter stages of “Atlas Shrugged.”  If you’re not part of the insider Government’s elitist circle, there is no Rule of Law.  If Yves takes up a collection to help fund her fight, we will gladly contribute but we don’t think fighting the trend is going to do anything other than pander to our ego. It’s false gratification that is embedded in the illusion that citizens can effect change.  Ask the people who are being honest with themselves if their vote for “change” worked in 2008…

In other words, there’s a movement toward totalitarianism set in motion now that can’t be stopped until it blows itself up.   History is pretty clear on this dynamic.   Look at the Bill being passed by the House that contains a section which opens the door for internet censorship.  If that Bill becomes a law, it will remove any legal standing to file suits like the one threatened by Yves. If she’s serious about filing a suit, she needs to file it before the Senate passes that legislation and before it’s signed by either Obama or Trump.

The movement toward Governmental totalitarian control gained traction when nobody put up any resistance to the increasing use of presidential Executive Orders.  Congress should have been livid but rolled over under a shower of special interest money.   The use of the Executive Order usurps Congressional and Judicial power and transfers it to the Executive Branch of Government and, specifically, to the Oval Office. It’s Rule of Man.

Just like the totalitarian creep, the use of propaganda by the Government is intended to assert control over the public’s perception.  The phony economic reports and the manipulation of the markets – especially the intervention in the stock  gold markets – are various forms of propaganda.  The economic fundamentals continue to deteriorate.  By just about every privately source economic data series the U.S. economy is contracting – i.e. in a recession.

If the Dow and the S&P 500 keep going higher and the price of gold is prevented from moving higher – and even though the economic fundamentals would suggest that stocks should be tanking and gold should be soaring – it sends the “message” that “maybe everything is better than it seems to me.”  Pure. Unadulterated. Propaganda.

In today’s episode of the Shadow of Truth, we discuss the use of propaganda and market manipulation as tools used by the Government to help it advance the movement toward to a totalitarian system as prophesied by visionaries like Orwell, Huxley and Rand:

Operation Mockingbird And The Mainstream Media

Notice how EVERYTHING – even the most trivial of events – on Fox News/Business, Bloomberg, CNBC, CNN and MSNBC is “BREAKING NEWS?” The presentation of the news and the exploitation of sensationalism has itself become an insidious form of propaganda.

Operation Mockingbird was implemented by the CIA in the early 1950’s as operation to influence the media.  The idea is that, regardless of the truth, the first headline read by the public in the media was the version of the news that would stick with the public.  As an example, whenever a bomb explodes somewhere in the U.S., the first headlines that hit the newswires blame it on ISIS.

The genesis of this propaganda tool was Edward Bernays (nephew of Sigmund Freud), who is credited with being “the guy” behind Joseph Goebbels and the father of the “Virginia Slims Girl,” among another nefarious accolades.

In this latest episode of the Shadow of Truth, we discuss the reasons why that, for almost anything connected with politics and economics, the opposite of anything reported by the mainstream media likely the truth.

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