As mentioned in a Special Edition article, October 6, 2016…gold and silver got whacked. Except for an election result bounce…the slide continued. You may wonder whether it was natural market forces due to buyers and sellers subjective values…or a conspiracy of the Elite to beat down the price of precious metals.
Update: Since the beginning of the 2017…the trend has reversed. Subjective values change…the war on gold and silver will fail. As of Saturday, February 25, 2017 gold is $1257 per oz. and silver $18.34.
Federal Reserve System
Obviously, Federal Reserve Policy influences market phenomena. One of the negative consequences of their “Quack” monetary policies is the transfer of wealth from Main Street to Wall Street. Now, I can almost hear your mind say “Yes! This definitely seems to be a conspiracy to rip us off. Man, those Elites are some evil bastards.”
Are you beginning to notice…the Fed runs the most preposterous money scam in the history of mankind. It calls this swindle Quantitative Easing (QE). Here’s a excerpt of what it’s all about from Wikipedia encyclopedia. “Expansionary monetary policy to stimulate the economy typically involves the central bank buying short-term government bonds in order to lower short-term market interest rates. However, when short-term interest rates have reached or are close to reaching zero, this method can no longer work.”
Well, it isn’t working, unless of course you’re a member of the political or financial establishment…Soldiers of the Elite. Let’s create another term for this obvious nonsense—Quack Quantitative Easing (QQE). Yep, the Quacks clean up by forcing us to consume dangerous monetary drugs.
With the Fed creating “money” as quickly as a drunk buys another round of drinks…how is it possible gold and silver prices continue to plunge. We know this seems crazy to anyone who believes in a sound currency.
The conspiracy of the Elite seems quite effective at enriching these parasites. Makes you wonder if the “piper” will demand payment in the form of an economic collapse. Is it possible members of the Elite remain vulnerable to chaotic market forces?
Now finally, you’re going to be let in on a secret…and it’s an absolute fact.
Members of the Elite do everything in their power to discourage you from buying gold and silver. Why would they do this. Because the assholes want you to keep accepting their industrial strength BS. That way they get it all…while you play the part of a hopeless dupe.
Here’s the real kick in the groin. Members of the Elite are buying gold and placing it in safe non-bank storage. They’re moving it from banks such as Deutsche Bank to private vaults.
How treacherous can you get. The power Elite tries to convince you…their paper promises weigh more the gold and silver. Are you beginning to see the picture clearly? For your own sake…I hope so.
We could focus on the technical reasons for the drop in the “price” of these precious metals or we can discover some conspiracy theories that explain it all. Another factor we could point out is that the dollar looks like a power house compared to other paper currencies. However, I believe it’s better to discover one of the root causes of monetary phenomena—the theory of subjective value.
Theory of Subjective Value
Value is one of the a priori categories of human action. The theory of subjective value revolutionized the science of economics. Classical economists believed…value was inherent in the goods and services offered on the marketplace. These great thinkers failed to realize value resides in the minds of men. You exist as a unique individual. Obviously, you decide what you value and don’t value…by arranging your values on a scale from highest to lowest. During the day, your scale of values constantly shifts. Once you fulfill one value or desire you immediately attempt to fulfill what is next in line…hoping you receive the maximum satisfaction from your actions.
Some people prefer to satisfy the pleasures of the flesh over anything else. He or she concentrates on sex, food, stimulants and other myriad ways to gratify his or her most urgent desires. Others seek the “higher” pleasures such as art, music, literature or the joy of spiritual awareness. Value is an individual thing.
I’m sure you realize that a person can state that he values this more than he values that. He claims he prefers A to B and B to C. However, his actions often contradict his statement. He fails to walk the talk. In his behavior, he may display the fact that he prefers C to A or that he prefers D to any of the above. What a man or woman says is irrelevant. His or her actions reveal the true value system.
Gold, Silver and Conspiracy
You may wonder what this has to do with the rate of exchange for gold and silver. No doubt, you’ve read this far because you believe in a currency backed by the precious metals. Well, you must realize that along with establishment shenanigans…they are plunging because of peoples’ subjective values. After all, Keynesian economists will pull any rabbit out of the hat to convince the unwary that gold barely survives—that it should be removed from life support. Anyway, it’s a barbarous relic that is better off dead…and its weak sister silver isn’t getting any healthier.
History demonstrates that a government always debauches the currency. Eventually it resorts to schemes such as Quack Quantitative Easing (QQE) in order to continue it’s gluttonous ways. What’s amazing is the majority of the people live with the illusion that everything will turn out fine…or they escape into a haze of denial. In addition, the establishment supplies them diversions such as sports and reality television to keep them occupied. They also can get lost in social media events.
Illusions die hard, but eventually they expire—and unpleasant death indeed. Reality manifests in the difficult fact…the piper always demands payment. A fool’s paradise cannot defy Economic Law forever. That tough task master we call Mr. Objectivity gains the upper hand. So you can expect gold and silver to exert its supremacy…as a trip down the halls and corridors of history always demonstrates for your pleasure or displeasure…depending on how you subjectively feel about it. If I were you, I wouldn’t place any faith in long-term paper promises. You don’t want to be left holding a bag of confetti.
As you can see. The actions of individuals and members of the Elite are markets forces that affect how you feel about every day affairs. You will base your buying and investing decisions on the outcomes you see play out minute by minute.
Now let’s ask the important question. Is it conspiracy or subjective values that determine the price of gold and silver? We know…it’s the blending of the two. Plain and simple…it’s cause and effect.
RA Meyer – The Objectivist Warrior Masters the Social Maze