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FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Everything Is Backed By “Nothing” Not Just GLD and SLV

Commodities / Gold and Silver 2010 Apr 12, 2010 - 03:42 AM GMT

By: Brian_M_Thiesen

Commodities Best Financial Markets Analysis ArticleTo those who have spent countless hours trying to “crack” mankind's greatest mystery… your reward is honors in the blogosphere and 200 extra subscriptions!

For those of who you found that ever elusive “manipulation” proof the world owes you all of its gold for your fine work. Truly, now, the world is a better place and all of our problems have been solved.

(Insert graph showing gold's $14 price drop at X time on X date here…) well after subscribers had zero chance on profiting and likely you did not either. If you did, you are part of the “scam” if not you are a “fool” for not hitting a few execution buttons in your platform to crank out profits and buy more gold.

Maybe you went down to your vault and told your gold it went down $14 as its buddy sat closely by wilting tears from the moon, the very place he was supposed to go.

For those of you using the word ponzi and bank in the same sentence after all these years or any year after 1700 ad, you have now grasped in your lifetime the knowledge that has reserved you a seat  right next to the guy upstairs… who of course is not dumb enough to invest in GLD/SLV and has all the gold you and your kin are looking for.

There is an ETF out there or an investment vehicle that is backed by nothing? WOW!

Couldn’t we say most of the world is backed only by a few small things, none of which are material? Let’s Think here for a few seconds before we ask god to crown us king of his castle… (made of gold of course)

THE DOLLAR/ANY CURRENCY…. Backed by…  the future WILLINGNESS of citizens to pay taxes/debts for the country in order for said country to, for all intents and purposes… exist.

So this paper or fiat is really not backed by anything… BUT THE FUTURE (maybe it was at a time, as in a long long long time ago) And maybe we could add up all the timber/wheat resources etc. and come up with a figure but  who is willing to bet it is anywhere near the amount of money that has been printed/debted by that nation in even the past 1-5 years? (maybe days)

So entire countries are essentially backed by two immaterial things CONFIDENCE in it by other nations and the nation itselfs ability to charge taxes or in some way (war annexation etc.) to pay debts. Also, the WILLINGNESS of said citizens to pay these taxes and fight these wars… or really do whatever to allow the country to exist. Willingness implies allowance. As it is the universe for the most part operates under a few basic laws 1.Intent 2. Freewill. 3.Allowance 4.Attraction Of which you will see are the foundation of the system and really all systems that comprise the market/mankind.

(INVESTOR NOTE I will be starting a new ETF called CONFIDENCE (CON: NYSE) and WILLINGNESS (WILL: NASDAQ) in a few days. My company is called EMOTIONAL TRADERS With FIAT  LLC or ETF for short

I may be missing a thing or two but I think this is generally the deal, as it has been for quite some time. These are the end of the funnel of all things like PATRIOTISM, UNITY etc. etc. that are what CONVINCE people to SUPPORT the SYSTEM broken or “backed by X” Using all manner of EMOTIONS etc. in order to gain this support at all COSTS.

(I hope by now the reader is beginning to see that the potential exists “EVERYTHING IS BACKED BY NOTHING”)

If we really look, everything is backed by a “promise to pay” mortgages etc. and yes of course gold is backed by a nice little board manipulated or not that says “GOLD IS $XXXX today”

It is also backed by the fact you could go to a bullion exchange and get that $XXXX for it…. In ways then backed by OH MY god>>>>> the DOLLAR!!! Or the faith therein of this dollar, or even without this dollar the faith therein of the exchangee of the items (gold) for (X) value and all previous above mentioned combined or the summation of such.

So if everyone is engaging in this promise to pay scenario from the beginning of times (we will call this 1700 ad) but more importantly now in this credit world, is using this promise to pay “system” what else should exist or be used but a promissory note?

This is a collective system ladies and gentleman not one of a small group of men, IT IS OUR SYSTEM and by virtue of its existence we want it. This is law of the universe not some guys in ivory towers controlling the masses. The earth does not escape the laws, nor do humans.

The “problem” is that a very small group of people benefit most from this system, as they have any system in the whole of humanities existence.  I will define most as total number of assets. If we defined as potential to any asset by % then really all benefit, which I will show.

Most of these systems, including now, have been by hand me down of 1. Blood/birthright or 2. the hard work of the individual regardless of system or physical work which does include mental work and or an idea to forward himself and his further bloodline within the human system or the human machine that is today and always was, by virtue of continuity and by virtue of its existence today and in all of the past.

As is such that throughout time immemorial systems will come and go and develop and winners and losers will naturally unfold within its confines. This is also universal law.

Now we move into a new area that is the human system itself. The human in himself is composed of a  few very easily “manipulated” systems. Emotions of GREED  and FEAR are the primary… and frankly only. These are at the top of the chain that the majority of man and therefore humanity and therefore THE MARKET ITSELF operates. A simple way to know this is that we actually measure this by the VIX, sentiment etc.

This is saying then that if there is some type of manipulation, it really is not, it is a reflection of the human machine itself. The collective of all humanity, so much as one man buys 1 share for his desired outcome at an unspecified time as a dark pool or whatever party buys 20 million blocks short right before resistance.

A very small portion of men do not operate under these “umbrellas” and these men for the most part care not of the machinations of these markets. But this is not the point. You as well as the “manipulators” operate under the same principles, for profit or to create a desired outcome in your life. Essentially you and they are really not much different at all for you do enjoy one tiny similarity… YOU ARE HUMANS!

You like they in so many ways operate your own manipulation of the markets. Consider this, what is your house or a very high percentage of peoples house backed by? Now even let's move that out into entire malls, companies etc?

Most of these again as mentioned are backed by “promises to pay” Are you starting to see the possible reasons good or bad that the “system” exists?

Do you really care that if you go to the bank in effect you are borrowing someone else’ money on really nothing but a promise to pay? SOUND LIKE ANYONE ELSE??? Sound like fiat? Might you be making a small contribution to such a system? As is nearly impossible not to for this system is comprised of the will of man? Which I hope you can understand you are a part of.

What did you or most people care when your house, gold, profits etc. went up X % XXX? Is it not nice to see a nice profit there for you? By means of this profit might it not allow you some more ability or CONTROL within the system? Might it mean that you now on your scale are operating under the same principles as “the man?”

For how could you not, you are a part of the same machine and if not you will be considered a worn part and replaced by one who chooses to work for such a machine.

So GLD/SLV are backed by nothing? What is your Credit Card debt backed by? If you do not have one, what was your fathers mortgage backed by? You will say %25 down payment. Still then what was it backed by, or further the next %75?

It was backed by……. NOTHING! It was leveraged! What sinners you/they were!

How dare they take part in such a system! We should round up everyone in the world with a loan and jail them until they understand their crimes. (if they are not already in some type of “walless” jail)

What was it backed by? What is anything backed by? What is your bank account backed by? (ok besides your tax dollars)… which guess what? We covered previous!

Let's just pick a random number like 3 to 1 lending. Let’s say this system operates like this You make a deposit of money backed by peoples faith that it is money.

Customer A and  B come and need to buy a house. You have given the bank $100 000

The bank says “Well you can borrow $50 000 each.”

The people say “Perfect we will.”

The bank says “How do we know you will pay”

They say “We don’t need to the taxpayers will” which would likely double the “value” of the loan even if they are part-time gas station attendants.

…..or they say “I have a job and make X/year I  really want this $150 000 house I have 2 more kids than I did 4 years ago, but I like the rest of them out there did not plan this correctly as per my earnings so now I look to you to BAIL ME OUT.”

 Ouch! sorry if that hurts folks but I’m not here for people to like me, besides most of you don’t already.

So the bank says “OK you sign here, this means YOU PROMISE TO PAY” (anyone notice a pattern here?) and the beat goes on. The system, however flawed moves forward.

What is it backed by? Guarantees that cannot be %100 sure to be met. So essentially You would have given the bank $100 000 for them to loan to people for loans of up to lets be conservative $300 000.

May I painfully ask who was in some tiny %0.000001 way responsible for money being printed out of thin air?

Man I know this might sting, It is the sting of responsibility for the problem and more importantly the solution, it is the sting of your share of all “that is bad in the world” it is the sting of being part of the machine more than you may have thought. It is the sting that we are all to blame.

Those that look to capitalize on GLD/SLV collapse causing %300 gains are not different than the ones who have leveraged gold/silver %10000 or whatever.

See also that I am not saying either is right or wrong, just there is really no difference, both want to profit on an event or situation to compile massive gains so then what is the difference? RIGHT OR WRONG?

The system is one giant promise to pay, one giant manipulation of beings as the market, one giant derivative.

Men are divided in themselves one day they are happy, next they are not, One day they love their spouse next day they fight… over the same expression. One day they are unphased by the guy on the highway, next day they fight him at the next light.

One day they wake up at 7 and the sun is shining and they are on top of the world the next the sun is even brighter but the day is full of clouds. In sense man is one giant derivative of himself.

Man is at war within, man is broken from within why is it we expect the exterior to look much different than the interior?

How often do we promise ourselves this or that and the bill is never paid?

PrPromise to quit smoking at 30 and die of lung cancer at 60? Promise to quit drinking and driving and get our license taken away after we total our car? Promise to pay more attention to our kids and still work 14 hours a day? Promise to go to the gym? Promise to be nice then scold the waitress for the kitchens mistake? Promise to get out of debt then take 4 vacations a year? It goes on and on. We live on promises and all the things above.

We for the most part are backed by nothing but these emotions, beliefs etc. This reflection into the outside world is unavoidable. If at war with ourselves… well… we will remain at war until the end of time… unless we change. In such a change it is likely all systems good or bad inside or out will change. Both “manipulators” and “comex busters” and man as a whole operate in this fashion, how dare anyone including myself when I do judge this man this or that when he himself is the same or has been guilty of same. What did a guy once say about casting stones?

At the end of such a piece you may ask “Brian, what does this have to do with markets?”

I am of the hope I don’t need to answer, but if I were to answer my reply would be

“This is the market, you and I are the market and nothing besides”

Brian M. Thiesen      

Authour “Time Filter,” “Egolution”

Guy who believes the system is the exact mirror of the real machine that claims it is in control up until the point it goes “wrong” then blames the other furthering its ability to be a victim in a system that is “truly” without. A true system that overrides the market although most would believe this impossible and it is they who care only for their ends and they who are so much like those they despise.

© 2010 Copyright  Brian M. Thiesen - 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.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

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