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Sunday, December 21, 2014

Gold: It's all about the Media Narrative

There's only one media in the United States: it's all mainstream in that it's all owned by billionaires who all have the exact same motivation which is to protect their billions.

NBC, FOX, BLOOMBERG, CBS, NEW YORK TIMES, HERITAGE FOUNDATION, PROGRESSIVE POLICY INSTITUTE, SIRIUS, CNN, ETC: all owned or funded by billionaires, all perpetuate the same narrative: The US banking system is basically and fundamentally sound, profitable, deep, and safe.

This is the narrative that was shaken and almost crumbled in 2008.  It was saved by the most massive transfer of wealth from the citizenry to the banking elite in the history of the world.

The narrative, now, is that the banking system is stronger than ever, that it didn't really even need the bailouts which were forced upon them and that they've paid it all back plus interest.  And the economy is healing and quickly returning to full strength.

Who reported on the destruction of the Volker rule?  The story was annihilated by the "story" that Sony Pictures didn't open a slapstick comedy on time because of "hackers."  Wow.  That's so much more important than the fact that banks again have been licensed to be gambling parlors.

Meanwhile the banks have dismantled Dodd Frank, jetisoned the Volker Rule and are piling up bets in derivatives that leverage their balance sheets by 50-1.  The Fed is in worse shape with over 3 Trillion dollars of bad debt on their balance sheet.

As long is the "Strong Bank" narrative  is believed by most of the people, Gold will languish.  It may fall to 1000 or even 900 dollars an ounce.  Which is still 300 percent above where it started to move when people began to doubt the efficacy of the banking system back in 2000.

But the very second the narrative cracks and doubt spreads through the mass consciousness gold will move at the speed of thought.

And it won't have anything to do with COT reports or calls for delivery on the Comex, or Diwali, or Chinese New Year.

It will be 400,000,000 Americans and 4 Billion other world citizens suddenly realizing all at once that their dollars and their euros and their yen in their Bank Accounts are not a safe store of value.

And then the move will be fast and furious.

It might be a good idea to get in ahead of it.

Because there's no telling when it will happen.

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