If you pay attention, you will realize that some of the “common knowledge” being reported by the mainstream media simply cannot all be true.
For instance, is it true that Americans, in total, are reducing debt and increasing savings? Or is it true that Americans are increasing spending on consumption goods?
Is JP Morgan Chase really safe holding a huge short position in the COMEX silver market as an offset to their large long positions in over-the-counter and London market contracts (as reported yesterday by London’s Financial Times)? Or is JP Morgan Chase at risk of default because the testimony at the Commodity Futures Trading Commission hearings on March 25, 2010 by both Jeffrey Christian and Adrian Douglas that the London vaults only have enough gold and silver to fulfill 1-3% of the London market long positions?
Is the Federal Open Market Committee telling the truth when it states that the increase in consumer prices is too low and that there is a need to inflate the money supply through quantitative easing? Or is the November 2010 Producer Price Index reported this morning showing price increases of 0.8% for the month (about 10% on an annual basis) really accurate?
Is the US government telling the truth when it announced that consumer price changes were so little changed from a year earlier that there would be no boost in Social Security benefits in 2011? Or is the nearly 15% increase in the 10-year Treasury debt interest rate in less than the last two weeks just a figment of peoples’ imaginations?
Is the US dollar really close to holding its purchasing power? Or is the decline of the value of a US dollar from December 31, 2010 of .000913 oz of gold to .0007125 oz of gold today, and from .059453 oz of silver to .0336 oz of silver over the same time period just statistical mumbo-jumbo?
It would be interesting to know how many people accept both parts of the above contradictory sets of “facts” as being true. I suspect the percentage of the populace would be dismayingly high. Further, I also fear that the gullibility of people who uncritically believe what politicians tell them makes it possible for the politicians to get away with so much dishonesty and chicanery.
Unfortunately for the politicians, the economic fat in the US economy has largely been consumed through government mismanagement over the past several decades. It will be much more difficult for the politicians to make contradictory statements, thinking that the truth will not come back to haunt them until long after they are gone. In the gold and silver markets, some of the lies and deceptions are coming unraveled within hours.
How long will it take for the US government to completely destroy the value of the dollar? Off the record, some major federal officials are willing to admit that the decline of the US dollar is past the “point of no return.” On the record, they won’t come close to acknowledging that truth.
One thing is true—an ounce of gold from several thousands of years ago is still worth an ounce of gold today. The same goes for silver. You can say that about politicians’ promises.
Patrick A. Heller owns Liberty Coin Service in Lansing, Michigan and writes “Liberty’s Outlook,” a monthly newsletter covering rare coins and precious metals. Past issues can be found online at http://www.libertycoinservice.com/ Pat Heller is also the gold market commentator for Numismatic News. Past columns online at http://numismaster.com/ under “News & Articles”. His bimonthly columns on collectibles can also be read at http://www.lansingbusinessmonthly.com under “Articles” and “Department Columns.”His radio show “Things You ‘Know’ That Just Aren’t So, And Important News You Need To Know” can be heard at 8:45 AM Wednesday mornings on 1320-AM WILS in Lansing (which streams live and becomes part of the audio and text archives posted at http://www.1320wils.com.