Darryl Robert Schoon | May 08, 2013 07:51AM ET
The decision of the paper money cabal to force down the price of gold is akin to Japan’s decision to attack Pearl Harbor. Although the attack was successful, the eventual consequences were not what Japan had envisioned.
Recently, an article, The Gold Correction: What’s the Big Deal?, posted the following chart. However, measured from its September 2011 high of $1901.35, gold’s fall is 28 %, a drop remarkable similar to its 2008 correction of 27.7 %.
The 2008 correction of gold occurred during a period of extreme financial and systemic distress. Global markets were in disarray, Wall Street banks were collapsing and trillions of dollars of Fed money was necessary to protect the bonuses of investment bankers whose bad bets had caused the collapse—just the environment when gold would be expected to rise.
Instead, gold fell. In 2008, as today, the same hands were on the scale forcing the price of gold lower. In the fall of 2007, gold had rise from $680 to $1,033, An astounding 51.9 % increase. This is exactly what the paper money cabal feared most, a concomitant rise in the price of gold during a period of extreme financial stress.
If gold quickly rose during a period of heightened investor fear, it would signal to fearful investors that although paper assets were at risk, gold offered not only a safe haven but outsized gains as well; and the investors’ subsequent fear-fueled greed would easily dismiss any resistance the paper money cabal might offer.
To counter the allure of gold in such heightened circumstances, in my article, The Economic Crisis: Then and Now , I discuss the on-going economic collapse. It isn’t over yet. When it is, then and only then, will we be free of the bankers’ dream of eternal debt.
Buy gold, buy silver, have faith.
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