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Why 95% of Traders Fail

Gold And Silver – Most Widely Used Currency In Western World? Stupidity

Commodities / Gold and Silver Stocks 2015 Apr 04, 2015 - 11:13 AM GMT

By: Michael_Noonan

Commodities

The only thing that has experienced a worsening depreciation since the privately owned Federal Reserve unconstitutionally took over the Constitutionally mandated control of US money, willingly ceded by a vapidly inept Congress, has been common sense. There is none in his country, apparently none in all of Europe, and even less than those who deem themselves non-Europeans, the UKers.


There is no place at which to begin, for it all began a few centuries ago, although we seem to be closer to the end as the self-destruction of the simple life, desired by the masses, continues unabated, led by the psychotic, self-imagined grandeur of the so-called elite few. The Great Game continues to be played out, now led by proven incompetents from the war meisters using the military industrial complex of the US. The Game has been lost, but the US is a sore loser and refuses to give up, destroying rather than cooperating.

How do governments get away with what they do? Stupidity of the unquestioning and compliant masses. Just last week, the head of the corporate federal government, Barack Obama, told the everyone he has made the America and the rest of the world safer by getting Iran to stop its nuclear bomb-building program. The lies just never stop coming whenever he opens his mouth.

One of the federal government’s propaganda organs, the Wall Street Journal, had written an article, in 2012, that American intelligence analysts [what an oxymoron], believed there was no evidence Iran was building a nuclear bomb. The article stated this belief was consistent with a similar 2007 intelligence finding, and it reaffirmed a consensus from 2010 of 16 US intelligence agencies that Iran was not building a nuclear bomb. Never let the facts of reality get in the way of political expediency.

Last week, we wrote on how the war machine, aka the federal government, was backing Saudi Arabia’s attack on the Houthis in Yemen, despite there being no credible threat against the Saudis. This illegal intrusion into Yemen was made “legal” because both the Saudis and Obama said it was.

Obama is fond of saying, as he did at the height of the Snowden revelations about the massively pervasive spying on the world by the NSA, “Trust us, we know what we are doing.” Actually, that part is true. What Obama leaves out is the fact that what is being done is always against the interests of the people and favorable to the elites controlling him, and every other Western government.

Look at the European governmental parody, aka the EU, a fraud and hoax, but one not recognized as either by Europe’s common inhabitants, those Europeans who love to look down their not-to-be-trusted noses at Americans as brash, uncouth, not quite up to European standards. If only Europeans would look in a mirror and reflect upon their own “inimitable” standards, they would find Americans have no monopoly on the ways of stupidity.

We don’t need no [European] education nor mind control. They, Europeans, are just more bricks in the elite’s wall, ironically thinking they know better.

Each government that decided to give up their independent sovereignty in favor of a faux form of governing by a bunch of unelected [by the people], bought and paid for bureaucrats, is proof that stupidity goes well beyond US borders.

Which EU member was smart enough not to go along with the US-led sanctions against Russia? Those same sanctions that have backfired and caused economic hardship on the imposers and not the imposed? Germany, a de facto 51st State of the federal government, led by former East German, Angela Merkel, in addition to backing the failed sanctions which continue to damage the German economy, has just kissed more US federal government ass by agreeing to allow fracking in the “51st State.”

Apparently, Germans are totally unaware of the devastation oil fracking wreaks on land, especially the water supply. A few American companies will profit, [and nothing else matters], while the German economy, land, and people will get fracked in the end. The irony is, Germans consider themselves the leaders of Europe, even better than, but that is another story.

The future of Germany lies with Russia and China, not with the US, yet the decisions continue to be made in alliance with the federal US government, its ghost of the present aligned by chains of the past, fracking away its future.

Where does stupidity stop?

One cannot discuss common sense without thinking of Thomas Paine’s booklet, Common Sense. The irony is, when he wrote it, he insisted on anonymity due to the treasonable content. Were a similar book on the government be written today, the author would be considered a “terrorist” by the federal government. Oppression by governments never changes. A link is provided as a reminder of what the difference is between exercising common sense or replacing it with what can be called stupidity for abandoning it.

For those interested in precious metals as a form of protection against the ravages of their purportedly sovereign government, [insert your country here], a staunch core of stackers knows to never give up or lose faith. History is on our side, but not the certainty of timing, and in reality, it need not be. There has never been, with emphasis on the word never, a fiat currency that has not disappeared from circulation. The most widely accepted form of money continues to be that of gold, with silver to a lesser extent. It is impossible to gauge timing, a function of logic, where logic has been displaced by the illogical.

There has never been more worthless Federal Reserve fiat in circulation than there is today, most of it being digitized, existing only in the ether and minds of the mindless wrongly believing there is no alternative. Supply has never been greater.

Every available ounce of gold is being bought [never to see the light of day again in our lifetimes, and maybe the next few thereafter], by China, India, and Russia, amongst the main purchasers. The Westerners have divested themselves of the barbaric, useless metal, as the Western banker story goes. Even the relatively fewer of the masses are buying up all available gold and silver one ounce coins as are available. Demand has never been greater.

Common sense dictates that where supply is high, price will decline, and where demand is high, price will rise. Both cannot exist at the same time, at least not in theory. In the real world of false money, where the banker emperors are thought to be clothed in “money,” a dumbed down form of stupidity has replaced thinking.

What good are gold and silver? They are pieces of metal that pay no dividends, or so that argument went before the bankers decided that instead of paying people interest for depositing their paper fiat with them, it is now better to charge a fee to people who are stupid enough to deposit worthless fiat into a bank. “Four legs good, two legs better!”

For over a year, we are on record advocating the purchase of physical gold and silver, even in the face of declining prices. We saw the importance of having either or both metals in hand, physical possession being more important than price. We were wrong as to the extent in duration that the manipulators could control the price of both metals and force them to the lower levels of today. Our purpose was akin to having insurance. If you never used it, was it money wasted? No, because you never know when you will actually have to use it. This belief has not changed, and we continue to recommend the purchase of both.

In another irony of ironies, the false flag rally of the Federal Reserve’s fiat “dollar” is providing everyone with the opportunity to get more ounces per “dollar” before the end of this country as we have known it. Only stupidity will prevent people from taking advantage of this unique sale of a life time.

It is unlikely anything dramatic will occur for the balance of 2015, price wise. China is the primary consideration for the future of gold, moving forward. She wants her currency, the renminbi, to be a part of the newly adjusted SDR [Special Drawing Rights], basket of currencies. Christine Legarde has signaled the inclusion of China in the IMF’s SDR basket
when that decision is made this Fall, October, and implemented 1 January 2016. China does not want to see any disruption in the price of gold before that event. The charts agree.

The Quarterly price activity has been drawn in to show an even higher, more controlling time frame that few ever consider. The S/D [Supply overcoming Demand], line has not been challenged in a meaningful way for the past two years. The March close was barely higher than December’s 2014 year-end, and remains under the lows since the S/D line.

What this chart indicates is there can be several more Quarters before mounting a meaningful challenge. The monthly activity supports this view. The longer price hugs the 1200 area support, the more likely support will give way to lower prices. Any potential break lower could be brief, or it may just add to the malaise of sideways movement.

When price is in the middle of a declining TR, as gold is, little can be said for upward momentum because there is none. NMT. Needs More Time.

It is meaningless to try to make any meaningful assessment for gold given where it stands, currently, just struggling to stay above 1130+.

The Qrtly price activity is considerably weaker than its sister metal, gold. Still, the prospects for silver to the upside, eventually, may have silver well outperform gold, and the gold/silver ratio supports that idea as well. The ratio remains above 70:1, and it favors silver over gold to bring the ratio lower, irrespective of absolute price.

Price activity speaks for itself: in a down trend and going nowhere.

LOK = Level Of Knowledge

The reason why the performance in silver is mentioned relative to the 50% retracements is because they are general signs of strength or weakness. In a down trend, and the Qtrly shows just how weak silver is positioned, 50% retracements generally do not hold in rally reactions. They do hold well in rallies within a decline.

The fact that silver is holding relatively well, even in a TR environment, reminds us that changes in trend show up first in the lower time frame charts. This is not to suggest that the trend is changing on the daily, but just a point to keep in mind. More confirming activity is needed to support the observation.


By Michael Noonan

http://edgetraderplus.com

Michael Noonan, mn@edgetraderplus.com, is a Chicago-based trader with over 30 years in the business. His sole approach to analysis is derived from developing market pattern behavior, found in the form of Price, Volume, and Time, and it is generated from the best source possible, the market itself.

© 2015 Copyright Michael Noonan - All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

Michael Noonan Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


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