Gold Vs. The U.S. Dollar: The Big Lie

Under the gold standard, a free banking system stands as the protector of an economy’s stability and balanced growth. When gold is accepted as the medium of exchange by most or all nations, an unhampered free international gold standard serves to foster a world-wide division of labor and the broadest international trade. Even though the units of exchange (the dollar, the pound, the franc, etc.) differ from country to country, when all are defined in terms of gold the economies of the different countries act as one.  – Alan Greenspan, “Gold and Economic Freedom,” 1966

I don’t know if the Plunge Protection Team will be able to stabilize and bounce the market today.  I suspect they will get it done sometime in the next 24-48 hours – there’s real blood money at stake here.   By this I mean there’s still a lot of middle class wealth that has not been wiped off the table and into the pockets of the elitists.  Hell, Hillary Clinton is still standing – for now.

But at some point our system will collapse.  EVERYONE in this country has been living off the benefits of The Big Lie for too long.  It’s not just the upper .1% who have benefited, even the welfare programs have been levitated by the U.S. Government’s ability to bamboozle the rest of the world into buying our debt and accepting our currency.

When the rest of the world flinched at taking down more debt, the Fed printed trillions to buy U.S. Treasuries directly, and lent $100’s of millions to the Bank of Japan and the ECB to enable them indirectly to continue propping up the Big Lie.

But today gives us  a glimpse of The Truth.  Beneath the headlines of plunging stock markets, and not being reported by the U.S. financial muppets, is a stunning 1.5% plunge overnight in the U.S. dollar:


At the same time, the world’s oldest currency – the Wall Street Journal’s “Pet Rock” – has performed as the ultimate flight to safety today:


While the “Einsteins” out there offered only the obvious explanations for China’s move to devalue the yuan, I have maintained all along that it was first and foremost a means of tossing a “grenade” at the massively unprecedented U.S. dollar bubble. It only took a about 3% move to accomplish this.

Meanwhile, here’s what’s really happening in China:

Shanghai gold withdrawals for the week ending Aug 14th have been reported at 65.013 tonnes (previous week 56.015 tonnes). This brings the year to date total to 1,585 tonnes, 161 tonnes more than in the record 2013 year at the same time.  – John Brimlow’s “Gold Jottings”

The Fed kept insisting that it would raise rates in September. For anyone willing to look honestly at the underlying economic evidence, it was obvious – OBVIOUS – that the Fed would never raise rates. It was nothing but Orwellian smoke. Keep repeating a lie until almost everyone wants to believe it.

I heard a radio promo yesterday for a mortgage broker who insisted that “rates are definitely going higher later this year so you better take out as big of a mortgage as you can now and buy your dream house.”

Rates may go higher this year, but if they they do it’s because the dollar is collapsing – or even vanishing – as the rest of the world other than the Bank of Japan and the ECB rush for the exists with their Treasury holdings.

The Big Lie is that gold is a Pet Rock and the U.S. dollar is the global flight-to-safety currency of the world. If that’s the case, then how come China seems to be cornering the market in Pet Rocks while dumping the dollar through that exit door at the back of the movie theater?

10 thoughts on “Gold Vs. The U.S. Dollar: The Big Lie

  1. My lord what a contrived financial abortion. Closing in on noon CST and the Crimex crooks have sold 600,000,000 oz of silver already. Is there no limit to their manipulations. I think that’s over 3/4’s of world production sans China. No amount of paper will be spared to save the Bankster Empire.

    Have the Nasdaq back to near even…..LMAO what a farce

    Hammering gold down to negative for the Crimex close….may they all rot in HELL

    1. I hope they will rot in hell. One day they can’t stop the deluge and they whole thing will go down the toilet.

      I’m afraid that Dave will be right with his Mad Max scenario. They won’t even allow a market correction. So when you can’t even clean out the system from time to time the only outcome must be chaos. Because this will be the only feasible option to clean out the system. That reckless unresponsible behavior is simply beyond believe.

  2. Amazing isn’t it Dave? Dow was down 4 digits and came close to down single digits, now down over 390.
    With silver options expiration Wednesday, silver’s performance has been weaker than gold but still holding “important chart support” depending on your metrics. I view the volatility and opacity in the silver market right now as ideal barometers of a nascent bull market. Coupled with recent high futures volumes and large offtakes in global physical markets, one could almost, even rightly assume governments will announce silver holdings alongside their gold.
    “The Big Lie is that gold is a Pet Rock and the U.S. dollar is the global flight-to-safety currency of the world. If that’s the case, then how come China seems to be cornering the market in Pet Rocks while dumping the dollar through that exit door at the back of the movie theater?”

    Given the amount of obfuscation, desparagement and financial leverage thrown at silver, especially during an options expiration week, what is really expiring are illusory notions of “wealth” and pet rock paradigms that prevent real capital formation, savings and investment. Gold and silver may be hard medicinal assets to swallow for those caught in the grip of soft sofa cushions and lavish, pampered lifestyles.

  3. Dave,
    I agree with everything you’ve said in this op ed, except I think the whole purpose of this market melt down is to take air out of $US The ppt’s have been notably absent in all this. These fools’ still think it is about competitive currency, i.e. undercutting the oposition. This is going to get out of hand.

  4. Bad sell off. I agree with you tho Dave in what you’ve said today. This just doesn’t seem like the end, I believe greece will be the end game. I was watching Sky news earlier today after talking about the sell off they were saying that gold was the best option, but that lost a little shine today. Let’s see what tomorrow brings.

  5. After reading some of the comments here today. Yellen will blink, QE before close friday. followed by take off position in gold. Only fools are not buying gold now.

  6. Krans’ articles always a breath of fresh air. Based on what I’ve read the silver market has been rigged from at least 1857 , a 150 years or so. These bad guys plan so far out they have got to have what they consider a fool proof plan to manipulate silver down for another 150 years. Uncoupling silver from the grasp of the bad guys will be a truly momentous day. My guess is the bad guys are counting on a massive slow down in business activity which will drastically curb the demand for silver so they can continue to rig its price down forever. Hopefully this is one calculation the bad guys get wrong, silver physical demand exceeds supply and there is a snap heard round the world.

  7. Amazing! Isn’t it? Counterfeit money is sanctified and real money is vilified. Greenspan’s words of wit at the top are priceless and spot-on and more relevant today than when he said it.

    The ultimate reality is that Gold and Silver Reigns Supreme As Non-Inflatable Money. Without it, Hitler could not have created the carnage that WW2 brought because he knew that as soon as he started his campaign of aggression, nobody would deal with Germany and certainly, they would not accept Reischmarks.

    But his Reischbank President, Hjalmar Schact told him, “Don’t Worry Adolph, Everybody ALWAYS Accepts GOLD”. And how correct he was.

    Switzerland was complicit in laundering much of that gold that was stolen from the rest of Europe, to finance the Vermacht and his 1000 Year Reich. It is unbelievable how the Nazis managed to steal most of the gold in Europe but he stole around 800 tons.

    If it worked for Hitler, we must continue to have faith in that premise also because one day, the monetary system, as we know it today, WILL fail.

    When that happens, Gold and Silver will be vindicated and will suddenly become the headlines of the newspapers, even the presstitute, whore newspapers who are today’s prime obfuscators, will be expounding the virtues of GOLD and SILVER.

    The ponzi scam will be over, the markets will lay in ruins, the mighty US Dollar will lie smouldering everywhere, as people actually burn it for heat, all the while wishing that they had listened to us stupid gold-bugs.

    It will not be pretty. The only logical currency will be precious metals and valuable commodities with which we can barter. It has happened so many times throughout history. Why should anyone suppose that it will be different this time.

    Everyone ALWAYS accepts GOLD. Even the gold-haters of today will kill you for it tomorrow. No matter how long it takes, it is incumbent upon us to continue to stack and NEVER sell. It may take another 5 years but the day will come. Until then, never forget that Gold and Silver Reigns Supreme As Non-Inflatable Money.

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