Michael Noonan: The most reliable information is still found in the charts.
Last week, we said to look at Bitcoin as an example of what to expect for silver, in terms of a market moving higher with impunity in a very short period of time, See A Rigged Market Coming To An End, 18th paragraph. Ironically, reference to Bitcoin for its unfettered rise from just a few dollars to over $1,200, then just a few days later, the U S Treasury’s Financial Crimes Enforcement Network decided to send notice to businesses that transact in Bitcoin that such activity may be considered in the arena of money laundering and that businesses “may have to comply with federal law and regulation as money transmitters, a Treasury spokesman said,” and Bitcoin fell hard.
Nothing official, mind you, and no laws have been broken, but this central government operates on threat, imagined or otherwise, in order to have all underlings fall into line, and obey or else. Just like all the computer tech companies compliantly bent over for the NSA and provided any and all information, and more upon “request,” businesses are doing the same government two-step and shutting down Bitcoin use.
Next day, China announces a ban on Bitcoin. The Peoples Republic of China makes no bones about squashing anything that may compete with its currency, and Bitcoin has dropped from the $1240 level to $455, recovering somewhat since.
Bitcoin still serves as an example of what can happen to silver once the central banker constraints lose their grip. The crypto-currency has no history as does silver and gold, yet it captured the world’s willingness and hunger to use something other than existing fiat as a means of escaping from the elitist-controlled tentacles of Western central bankers.
The fact that the U S Treasury stepped in, unofficially but with equal effect, demonstrates what we have been saying about the elephant in the room few are addressing: central governments and their active suppression of precious metals. We maintain that their grip remains as tight as ever. It may be close to ending, at some unknown point, but it does not appear to be anytime soon.
Therein lies the problem for silver and gold. Look at how quickly businesses folded at the mere “suggestion” that they “”may have to comply with federal law and regulation as money transmitters. Did any of the businesses tell the Feds to get a court order, first? Hell no. Tyranny is alive and well in the Obama administration, as it was in the Bush administration, and as it will continue with the next administration, getting progressively worse each and every year. The revelation by Snowden was a shock to the entire world as everyone got a huge peek behind the elitist’s federally controlled government.
Americans have no backbone when it comes to making a stand against its Orwellian government. None. This country was founded on a revolution against tyranny, but the forces of evil never stopped, and 200 years later, the same genesis of tyrannical control have won. They just took a different path, and no once noticed or stood in their way.
The point to be made is to demonstrate how powerful these hidden controlling forces are. It is these same forces that have put the silver market back in its place, as it were, by any and every means necessary. Sure, the manipulation game has been exposed, but who on Wall Street or in the federal government has suffered any consequences?
This past week, we have read more and more information about how the supply of silver on every level, from mining to almost-empty COMEX warehouses, at all time lows. Some of the articles are quite impressive. Most are still calling for much higher prices, eminently, anytime from a year ago to next week, month, or year. Despite the dismal record for timing and direction, article writers repeat the same message until eventually, they will get it right.
The elitists and their central controlling governments simply do not care what the numbers are, do not care what you or any articles say or think. What they care about is control and maintaining that control, and we know of no single force that will eliminate that control, except one: self-destruction.
We have said repeatedly, history is on the side an uninterrupted line of fiat failures and the ultimate reversion back to silver and gold. The problem is that all of the fiat failures took more time than most thought possible and did more damage than most feared before financial stability returned.
This is why we keep referencing the charts, and we know there are several smart people who have no use for a chart depicting paper manipulation. Unless and until we see someone present a better alternative, it is all that is available. So what if there is a premium of some physical gold transactions over paper?