Best of the Week
Most Popular
1.US Paving the Way for Massive First Strike on North Korea Nuclear and Missile Infrastructure - Nadeem_Walayat
2.Trump Reset: US War With China, North Korea Nuclear Flashpoint - Video - Nadeem_Walayat
3.Silver Junior Mining Stocks 2017 Q2 Fundamentals - Zeal_LLC
4.Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - Nadeem_Walayat
5.The Bitcoin Blueprint To Your Financial Freedom - Sean Keyes
6.North Korea 'Begging for War', 'Enough is Enough', is a US Nuclear Strike Imminent? - Nadeem_Walayat
7.Bitcoin Hits All-Time High and Smashes Through $5,000 As Gold Shows Continued Strength - Jeff_Berwick
8.2017 is NOT "Just Another Year" for the Stock Market: Here's Why - EWI
9.Gold : The Anatomy of the Bottoming Process - Rambus_Chartology
10.Bitcoin Falls 20% as Mobius and Chinese Regulators Warn - GoldCore
Last 7 days
Americans Don’t Grasp The Magnitude Of The Looming Pension Tsunami That May Hit Us Within 10 Years - 20th Sep 17
Stock Market Waiting Game... - 20th Sep 17
Precious Metals Sector is on Major Buy Signal - 20th Sep 17
US Equities Destined For Negative Returns In The Next 7 Years - 3 Assets To Invest In Instead - 20th Sep 17
Looking For the Next Big Stock? Look at Design - 20th Sep 17
Self Employed? Understanding Business Insurance - 19th Sep 17
Stock Market Bubble Fortunes - 19th Sep 17
USD/CHF – Verification of Breakout or Further Declines? - 19th Sep 17
Blockchain Tech: Don't Say You Didn't Know - 19th Sep 17
The Fed’s 2% Inflation Target Is Pointless - 19th Sep 17
How To Resolve the Korean Conundrum  - 19th Sep 17
A World Doomed to a Never Ending War - 19th Sep 17
What is Backtesting? And Why You Need Backtesting System? - 19th Sep 17
These Two Articles Debunk The Biggest Financial Nonsense I See In The Media - 18th Sep 17
Bitcoin Price Crash 40% In 3 Days Underlining Gold’s Safe Haven Credentials - 18th Sep 17
The Sum of Risks – Global, Strategic, Political, and Financial - 18th Sep 17
The Netflix Of Canada’s Cannabis Boom - 18th Sep 17
Stock Market Sentiment Speaks: Either You Learn From The Events Of The Past Week, Or You Are Hopeless - 18th Sep 17
SPX 2500 … At Last! - 18th Sep 17
Inflation Lies, Lies and OMG More Lies - 18th Sep 17
How to Choose right Forex Trader? - 18th Sep 17
Who Has Shaped the World the Most? The Dozen Greatest Achievers - 17th Sep 17
Riding the ‘Slide’: Is This What the Next Stocks Bear Market Looks Like? - 17th Sep 17
Gold Up, Markets Fatigued As War Talk Boils Over - 17th Sep 17
Predicting the Future of the U.S. and the World - 16th Sep 17
Deceit in the Financial Food Chain - 16th Sep 17
Gold GLD ETF Investment Resuming - 16th Sep 17
Extreme Weather & Energy Markets: What's Next? - Video - 15th Sep 17
Trump’s Path to IP Wars - 15th Sep 17
GBP USD Approaches Fibonacci Target - 15th Sep 17
Higher US Interest Rates May Force Higher Inflation Rates - 15th Sep 17
Stock Market Investors: Taking the Road "Less Traveled" Has Its Perks - 15th Sep 17
The 3 Best P2P Lending Platforms For Investors In 2017—Detailed Analysis - 15th Sep 17
The US Debt Bubble Will Soon Warrant Serious Measures - 15th Sep 17
Why it is Often Difficult to Sell a House Fast - 15th Sep 17
S&P 500 At New Record High, Will It Break Above 2,500? - 14th Sep 17
Capital Market Trends - 14th Sep 17
Mike Maloney: The Top 10 Reasons I Own Gold and Silver - 14th Sep 17
The Only Real Europe is Greece - 14th Sep 17
7 Security Tips for Online Traders - 14th Sep 17
5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities - 13th Sep 17
Massive Equifax Hack Shows Cyber Risk to Deposits and Investments Today - 13th Sep 17
Investment Advice for My Children & Grandchildren - 13th Sep 17
TRADE FOR A CHANGE - 13th Sep 17
The Stock Performance of Public Casino Companies in 2017 - 13th Sep 17
Soaring Inflation Plunges UK Economy Into Stagflation, Triggers Government Pay Cap Panic! - 13th Sep 17
Precious Metals Bull Analogs Update - 13th Sep 17
Tip: When “This” Happens, A Stock Price Goes Up… - 13th Sep 17

Market Oracle FREE Newsletter

5 Markets Ready to Move Before Year-End. Eexpert Analysis and New Trading Opportunities

Gold And Silver Are Money. Everything Else Is Debt. Globalist’s Biggest Scam

Commodities / Gold and Silver 2016 Sep 10, 2016 - 06:39 PM GMT

By: Michael_Noonan

Commodities

Last week, in “Fiat ‘Dollar’ Says Gold And Silver Will Struggle,” we said the following:
[See 4th paragraph]

Money does not exist in this country.  In fact, money does not exist anywhere in the world. What is money?  So few people know, and many who profess to know do not.  Money is a commodity with a recognized value.  Gold and silver remain the last known standard of real money.  Remember J P Morgan’s famous words:  “Gold is money.  Everything else is credit.”

The globalists, through their creation of the Federal Reserve, have sold the biggest lie ever to the world and continue to get away with it.  People everywhere believe the fiat-created Federal Reserve Note, falsely called the “dollar,” is actually a monetary dollar.  We have often stated how Federal Reserve Notes are evidences of debt issued by the Fed.  We also always add that debt is not and can never be money, yet almost every American wrongly believes debt is money because they believe the Fed “dollar” is money.


Only gold and silver are money!

Gold and silver each are a commodity.  They have universal recognition and acceptance.  Their value is determined by the market by what people choose to accept as payment for goods and services offered.  By contrast, the Fed “dollar” is not money.  It is a currency.  A currency represents the actual money.  In today’s world, there is no currency that represents actual money.  Fiat is imaginary.  It does not exist except in one’s mind.  Yet, around the world, everyone’s imagination believes their local currency is money.

Only gold and silver are money!

If you go to a restaurant and use valet parking, you receive a stub to reclaim your car by the valet at the end of dinner.  The ticket stub is not the car, it represents the car to be “redeemed” upon presentation.  There is no currency in the world that represents money, and no currency can be redeemed for money.  Always remember, Only gold and silver are money! 

This is a very simple truth, yet few accept it as truth.  Almost everyone is too willing to believe that imaginary currencies are real money.  For as long as most of the world is willing to accept this false premise, the globalists will always rule the masses much like sheep being led to financial slaughter.

How do most people measure the value of gold and silver?  By their imaginary currency.  Always remember, every currency is imaginary because it is backed by nothing.  Any currency’s “value” is dictated determined by the source, the central bank issuing the imaginary money currency.  When you understand the basic difference between money and currency, you will fully understand the globalist’s massive “money” Ponzi scheme which is aided and abetted by every government guilty of perpetrating the fraud, and make no mistake, the fraud is on you.

The only way to measure of the value of gold and silver is by the daily fluctuating number of fiats [of any country’s issuance] required to buy either metal.  The value of gold and silver do not go up and down.  It is the number of fiats that increases or decreases that determines how gold and silver are “priced” on any given day.

If people do not understand the basics, they will continue to believe that debt is money.  The two are not and can never be interchangeable.  In a Venn diagram, money and debt can never intersect for they have nothing in common.  By contrast, because currencies are actual debt, not only do they intersect, [as we show in this simple diagram], they are concurrent overlaying circles, one and the same.

If a currency is a promise to pay, what is the promise you receive?  None, zip, nada.  All you can get is more of the same in different denominations. Currencies are more akin to the car game, Old Maid, where one wants to avoid being the last holder of the queen card designated as the Old Maid.

The American public will be in for the financial shock of their lives when they wake up one day and discover what they own are nothing more than Old Maids that have been devalued by 30%, 40%, maybe even 50%.  The Old Maids will be the fiat Federal Reserve Note, falsely know as a “dollar,” but they will have declined in value relative to gold and silver, aka real money.

If it takes 1,300 fiat Federal Reserve Notes to purchase an ounce of gold, and one day, overnight, gold is revalued so that it takes 5,000 fiat Federal Reserve Notes to purchase the same one ounce of gold, it is not the ounce of gold that has changed.  Instead, the number of fiats has been devalued, worth much less than the Federal Reserve once said they were worth which is why more and more will be required to buy the unchanged ounce of gold, and silver.

If you own an ounce of gold, you can exchange to for 1,300 Federal Reserve fiat Notes by today’s measure.  When the fiat is devalued overnight, your ounce of gold will then be able to be exchanged to 5,000 fiat Notes.  In other words, your wealth effect will have been preserved.  This is why you want to buy and hold gold and silver.  All governments have sold out their citizens to the globalist’s fiat Ponzi scheme.

Earlier, we posted an article, “Anything & Everything Goes – The Corrupt and Deranged Governance of America,” because we like the George Orwell quote:

“The further a society drifts from the truth, the more it will hate those who speak it.”

The globalists hate the truth, and they do everything possible to keep the truth suppressed.
Knowing the difference between money and currency is a perfect example.  Remember, the  money currency you hold in any bank is even more “unreal” than the paper currency that you may still think is money, because anything digitalized is pure fiction.

If you have a family, they are real.  If you have a digitalized family, they do not exist, except in your mind, just like currency.

If you want money and want to survive the massive economic failure that is destined to come, buy and hold gold and silver.  The world has not been awash in debt more than it is now and that mushrooming debt cannot be sustained

What’s in your wallet?

For the moment, we are in the calm of the proverbial eye of the largest hurricane ever, and it is the calm before the inescapable storm that will be more financially destructive than the 2004 Indian Ocean tsunami.  If you fail to understand what money is vs what currency is, you remain at risk.

The trend in gold has turned up, and it is at the beginning of the next phase.  Timing has been difficult because it is impossible to apply reason to fiction, that which is unreasonable.  The only rational way to respond to the globalist fiction being peddled around the world is to be prepared.  The best way to be prepared, in terms of gold and silver, is to own it, for one day, the price will be off the charts, as it were.

What stands out in the daily chart is what appears to be obscured and that is the last two separate massive sell days of thousands of gold contracts by the BIS, trying to punish those who choose to take their own path and not be a lemming to be led over the financial cliff that lies ahead.  In the past, the massive manipulated sell days stood out on a chart.  Now, it is more like trying to find Waldo.  Truth and the price of gold will ultimately prevail.

 

The two up slanting lines, one for volume, the other for price, demonstrate how the market advertises its intent.  When the highest volume in a rally occurs at the high, it usually is a disguised show from sellers overtaking buyers, and a correction will follow.  Silver is seemingly bidding its time more than gold, but it still is outperforming gold, and we expect that will continue.

It will be interesting to see if the current bullish spacing will hold while silver seems to struggle out of its sideways bottoming process.  Bullish spacing occurs when the last swing low is above the high of the last swing high, an indication that buyers are not waiting to see how the market will retest that last swing high.  It is unusual to appear in what is considered a relatively weak market.

So far, there has been no sign that the current near-term decline has ended.

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.

© 2016 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

© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife