-- Posted Friday, 13 August 2010 | | Source: GoldSeek.com
By Michael "Woody" O'Brien ChFC
People who manufacture propaganda for a living have no better hammer in their tool box than fear. This is because we are hardwired to fear, with fight or flight impulses that are not easy to suppress with rational thought.
FDR had it right about the power of fear to inhibit people from doing things that should be done.
However, fear can be both rational and irrational.
The GATA folks have well documented that a cabal of evil central banksters use very dangerous schemes to suppress precious metals prices. We assume banksters do so in fear that, if metals soared, economic collapse will be universal. However, is this fear rational?
Let's assume for a second that our central bankster puppet president follows new orders given him to reestablish an official dollar-to-gold conversion that President Nixon broke 39 years ago.
The president goes on national TV one Sunday night soon and declares he finally “gets it” and will now fix the broken US economy using gold and silver. The president declares that starting on Monday morning the US treasury offices and banks will pay cash for any gold and silver surrendered to it for $50,000 per ounce and $5,000 per ounce respectively. Additionally, the treasury will pay gold or silver legal tender coin face valued at the 50k and 5k official metals prices for any dollars tendered.
Obviously, it would be a VERY happy day for the savvy and tiny minority who own lots of precious metals. There would be no reason for sales of other assets like stocks to chase gold because the official price would limit the overnight profit windfall to those who already owned precious metals and lock down metals prices.
Such a reconnect of the dollar to a surrender value in metals would be a back door official devaluation that economic geeks scream will cause other prices to soar.
However, such a reconnection of the dollar to gold and silver would not really change the amount of money in circulation much and would arrest future fiat money creation. So where is the big price inflation risk?
With prices of food, fuel and all consumer goods now totally disconnected to precious metals prices, it's laughable to presume new much higher official surrender prices for gold and silver would change much of anything.
The average American is so clueless now about the price of gold and silver, why is it rational to fear that would change with a much higher metals prices redeemable in precious metals backed dollars?
The only change I can see is a lot of smart people who held gold and silver would cash it in to engage in healthy economic transactions, like buying still depressed real estate, or paying off their existing mortgages or other debts.
There can be no doubt that redeemed gold and silver would also capitalize new debt-free entrepreneurial ventures that would create new jobs.
Central banksters irrational fear of precious metals is like a silly child’s fear of the dark. Gold and silver price suppression schemes are just an absurd night light to keep the banksters boogie man away.
The four fold price increases of precious metals of the past 10 years has changed almost nothing because precious metals markets are such a tiny part of the world economy. Price suppression of metals is just a pointless failure their irrational fear and massive ego’s won’t let them toss overboard.
One can almost believe that one reason banksters don’t want gold and silver prices to officially soar is because they hate the idea that hard money folks will finally be proven right on Nixon’s horrific 1971 mistake.
My advice to elite banksters whose fear causes gold suppression schemes: Wake up and smell the coffee. An overnight adjustment to an official price of gold to 50k per ounce and silver to 5k per ounce won’t hurt anything but your ego - and that will pass in days.
Banksters need to stop being scared little girls in frilly pink dresses who fear the dark. They need to cowboy up and reconnect the dollar to gold and silver. If bankster boneheads cover their numskull suppression scheme shorts first, I promise it won’t hurt a bit. Yippee Ki yea!
Michael "Woody" O'Brien ChFC
mwoodyo@hushmail.com
-- Posted Friday, 13 August 2010 | Digg This Article
| Source: GoldSeek.com
