In recent weeks, now with gold and silver continuing its upward march, I’ve observed a lot of gold disinformation in mass media articles that have stated the reason for gold price’s continuing march higher as attributable to future expectations of US inflation rates rising above its current annualized “official” 0.1% rate. The attribution to this reason being the main impetus for future higher gold prices is comical and my advice to anyone that encounters such articles that rely on “official” reported inflation rates, whether monthly, annualized, or multi-year inflation rates, is to immediately delete that news source off your list as a credible news outlet if you desire a modicum of truth in the news you access. At the current time, shadowstats reports the May annualized US inflation rate as 7.5%, when using the US government inflation for formula used prior to 1980. I rely on shadowstats for a much more honest reporting of US inflation data because the US government has systemically stripped out the biggest contributors of the inflation statistic for decades to perpetually underreport real inflation by multiple times. Shadowstats actually calculates two data points for US inflation, one that relies on the US inflation formula in effect prior to 1990, and one used prior to 1980. I lean toward the one used prior to 1980 as the more accurate one because between 1980 and 1990, the US government made more amendments to the inflation formula to strip out further core contributors to the inflation rate.
Consequently, the current inflation rate is so outrageously inaccurate that it underreports real inflation in the US by not 10Xs, not 30Xs, but by 75Xs. So anyone that relies on inflation statistics that underreport real inflation by 75Xs does not deserve a platform to discuss reasons why gold prices are currently marching higher, though these dispensers of disinformation is precisely the type of person to whom the parasitic mass media apparatus grants the largest platforms. Of course, rising inflation will provide upwinds to stronger gold and silver prices, but the point is that strong inflation already exists. Furthermore, the real reason gold and silver prices will continue their upward march in prices is due to the spiraling death of the dollar, another topic that frequently is misreported by the mass media as well, who love to perpetually and disingenuously refer to the dollar as the “strong dollar”. If you are someone that follows financial news closely, you may recall that for years, the mass media loved to report the principle reason for many gold price declines as a “strong” and “rising” dollar.
However, any time this pattern was broken, as it has been multiple times in recent years with the US dollar index and gold prices rising together, the media ignores these events because they do not fit the narrative they’ve been groomed to sell the world. The relationship between the US dollar index and gold prices has never been an inversely linear one, though you may have believed this if you listen to the mass financial media. Furthermore, a rising US dollar index does not even translate into a “strong” dollar as is most often reported by the mass financial media, because the US dollar index is a relative strength index in which strength and weakness is directly tied to the performance of a basket of other currencies against which it is measured, which breaks down as follows: Euro (EUR), 57.6%, Yen (JPY) 13.6%, pound sterling (GBP), 11.9%, Canadian dollar (CAD), 9.1%, Swedish krona (SEK), 4.2% and Swiss franc (CHF) 3.6% weight. Furthermore, we know that since the 2008 global financial crisis, Central Bankers have deliberately destroyed the foundation of some of these currencies like the Swiss franc.
Though the Swiss Constitution required the Swiss franc to be backed by a minimum of 40% of gold, Central Bankers destroyed this Constitutional protection granted Swiss citizens of their national currency in May 2000 because Europeans were increasingly hoarding the Swiss franc over other currencies due to its solitary status in the world as a currency still backed by gold reserves (though only partially). Even though ties of the Swiss franc to gold historically dated back to 1865 and had endured numerous Central Banker attempts to ban its gold backing and supersede Swiss constitutional law, in 2005, the Swiss National Bank (SNB) expedited its attack on the Swiss franc by selling off national gold reserves, further destroying its gold backing. And in 2011, despite the prior measures taken by Central Bankers to artificially destroy the purchasing power of the Swiss Franc, the Swiss franc still nearly reached parity with the Euro, an unacceptable outcome to the parasitic banking class as they could not allow another currency to challenge the supremacy of the Euro in the EU. Consequently, on 6 September 2011, the parasitic SNB bankers arbitrarily stated that the exchange rate of Swiss Franc to the Euro would, from that date forward, no longer be no less than 1.2:1, thereby causing the Swiss franc to crash by nearly 10% against the Euro in just a few minutes to the horror of Europeans that had bought Swiss francs as a safe haven currency.
Consequently, when a currency is measured against other weaker currencies, such an index does not measure absolute strength as it is often misrepresented by the financial media, but just relative strength, which is often a useless indicator in protecting and preserving purchasing power over time. In conclusion, the mass media is the absolute worst place to source news when it comes to gold, silver, precious metals, stock markets, bond markets and just about any other financial topic as their sole mission is to protect the wealth of their parasitic masters by any means necessary, even through deliberate dissemination of disinformation.
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