Rise of Gold and Silver Signaling the End of Fiat Currencies, Bad Government, Fake News

Lately, Money Daily has been intriguing readers with mentions of signal to noise ratio as a fitting analogy to stocks, currencies, and societies.

While there's no hard numbers to verify the contention that most of what's been happening on the stock markets and in the general news has been noise, there are actually a number of good reasons to believe that most of what's presented for public consumption is more hype than reality, thus, noise has triumphed over signal since the beginning of the pandemic at least, and probably even further back in time than that.

Paramount to the noise argument is the recent rally in stocks. While the world was gripped with fear and uncertainty over the coronavirus, the stock market sank and then quickly rebounded, erasing most of the losses incurred during the rapid decline of February and March. The level of indifference to reality was nowhere more pronounced than on the NASDAQ, which not only rebounded, but launched itself to all-time highs, all of it happening while many US states and countries were shuttered, flummoxed over the pandemic and at less than full operational capacity. The NASDAQ is one of a few prime examples of the noisy nature of our times.

In terms of currencies, nothing hits home as hard as the Fed's balance sheet, which has exploded from under four trill to over seven in a matter of months. Intent on smashing the business cycle, something they've managed to somewhat handle over the past decade, as a response to deteriorating financial conditions, the Federal Reserve embarked upon a path of insane resistance to reality, buying up all manner of assets, from high-grade bonds to junk to munis and ETFs, with assistance from the Treasury and its Exchange Stabilization Fund.

Most of the programs the Fed has been and is currently entertaining are nothing more than stop-gap measures, highlighted by currency creation out of thin air to an extreme level of irresponsibility. The Fed has managed to pervert and distort the global economy to a point at which it - thanks to the Cantillon Effect - continually rewards those at the top of the economic heap while adding distress to the lower rungs of society, exacerbating the wealth gap to a point that not only rivals that of the Robber Baron era of the late 19th and early 20th centuries, but has greatly exceeded it.

The Fed's machinations, near-zero interest rates, meandering mouthings on Modern Monetary Theory (MMT) (which is complete and utter trash in a classical economic sense), and continuing interventions into the formerly-free markets is about as noisy as it can get without fully drowning out the signal of reality, which, of course, is the intent. They, like all central banks in the global fiat era, push the falsity of paper money without intrinsic backing or value.

All major and minor currencies are based on nothing but faith in central bank authority. That condition - which has never before existed in the history of the world - eventually leads to ruination and it is proceeding apace.

On top of it all are the fakery of a pandemic which kills older, obese people with existing medical conditions to a degree that 95% of all deaths attributed to the disease are of this order, various ill-informed government responses, lockdowns, riots, looting, calls for social change, and scare-mongering led by a pompous media devoid of journalistic integrity. All of the media coddling, jawboning, and incessant warning is fake, completely and unequivocally. Nothing about the rising number of positive cases or the potential for serious complications from the virus affecting any more than a small consort of the general population is mind-numbingly true.

All of it is fake, false, a purposeful lie perpetuated by the mainstream media to put the entire planet under a trance and replace good government with tyranny and false dictates. It's a scam and it's nothing but noise, lots and lots of noise, significant of nothing meaningful.

At last, like the calvary charging into battle to save the day as in old Western movies, come gold and silver, real money for the past 5000 years. Despite decades of bad-mouthing, manipulation, and degradation by central bankers and financial media, the twin pillars of economic freedom are rising to the rescue of civilization, though for many, the time is too late.

Because gold and silver have been so universally shunned and banished to "ancient relic" status by the Keynesians of the day, most middle and lower class citizens will not be saved. Some reckon that 95% of the world's population has little to no gold or silver. Even though gold, in particular, has been kept on the balance sheets of central banks as a tier-one asset for time immemorial, these same central banks and their cohorts have repeatedly lied and cajoled the minions into believing that it is inconsequential.

Were that true, why then has gold risen dramatically over the past year, reaching all-time highs against all currencies and approaching an all-time high against the world's reserve currency, the dollar? It is because gold is money. Silver is money. All else is currency or derivatives of paper currencies.

Gold and silver are the real signal that will drown out the noise of phony markets, counterfeit currencies, bad governance, social division, and media overreach. They are saying that now is the time for change. That now is the time to end the madness and the lies and the corruption that is enslaving the people of the world.

There is little doubt that gold will exceed $1900 an ounce this year. It just broke through the $1800 barrier on Wednesday and there is nothing to stop its progress. In fact, central bank pandering and counterfeiting is fueling its growth. Silver, as usual, is tagging along, but will eventually become its own pillar of strength for the middle classes as it is more affordable and more easily transferrable than gold.

Gold and silver are sending a clear signal. Get out of fiat currencies and take up the mantle of real money. Anybody who does not heed this call will suffer consequences befitting of fools.

At the Close, Wednesday, July 8, 2020:
Dow: 26,067.28, +177.10 (+0.68%)
NASDAQ: 10,492.50, +148.61 (+1.44%)
S&P 500: 3,169.94, +24.62 (+0.78%)
NYSE: 12,086.39, +96.26 (+0.80%)