Saturday, 9 April 2011

The SLA is making its Presence Known!

This brings us to Rigged Markets. 

The bond market – is experiencing something called QE (Quantitative Easing); by definition market rigging. The price for bonds is not set by the supply and demand forces of the free market but by government bureaucrats expanding their balance sheet enough to buy the very same bonds they are selling. 

Finally we get to precious metals; gold and silver. In the absence of bond vigilantes, we now have gold and silver vigilantes like the SLA, Eric Sprott, James Turk and others who are simply throwing bad money (fiat currencies) at good (gold and silver) with the predictable result of fiat money losing value and real money gaining value. 

To right this odd messaging from the Fed that deflation is a bigger threat than inflation based on their skewed view of price action that only looks at house prices, wages and computer chips – the gold and silver vigilantes aim to restore balance with gold and silver prices regaining all of their inflation adjusted price levels ($2500 for gold and $160 for Silver) – simply by taking it off the market and forcing a run on corrupt exchanges like the COMEX. 

Then what? 

To attempt to reign in the actions of the gold and silver vigilantes, governments around the world will attempt a new Bretton Woods agreement and usher in a new world bank with 100 trillion or so of a new global currency. This will be met by the Gold and Silver vigilantes with a wall of buy orders like the world has never seen and prices for PM’s will go off the charts.

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