Manipulation: gold, silver, brains

Today's lesson: manipulation of stocks and metals is a daily event.  It works as people do not actually know why they buy or sell other than other people are buying or selling.  I used to pay attention to talking heads and, sometimes, they are in the stream and can predict its direction.  Usually, opinion is generated by big houses and the markets themselves, then press releases to to media and you have a new environment.

We are told gold is dead.  Why?  Because others say gold is dead.  This is a fun way to bet, but it doesn't mean anything.  Read below and "bet" accordingly, which to me means buy silver and peanut butter. But, I repeat myself.

Large institutions have driven down prices in order to keep away from insolvency.  If silver takes off, for example, Morgan Stanley is looking at a failure. In drops like this, it can clean up the mess it inherited after the last economic collapse.  However, it is still in a precarious position.

From Anglo-Far East gold guru:

Capitulation - Part 2

The price of gold is currently trading more than 4.5 standard deviations below its 50-day moving average.

 I have previously made reference to the fact that many analysts who live and die by their charts are saying gold's story is all over. In honour of their opinion let's consider a couple of contrary charts.

The chart above shows the daily overbought/oversold reading for gold based on the number of standard deviations it traded above or below its 50-day moving average.  Last week I detailed the events around the 1975 sell off where real gold was dropped into the market and indeed here we are in 2013 with an even deeper low than back then albeit by a whisker and accomplished amazingly with no actual metal getting dumped if that makes any sense. We now have a reading that shows gold is the most oversold since 1975.

Given the other end of the spectrum at positive 4 or higher which is an area where gold's price resides much of the time, you do the maths on where gold's price would be when it eventually slingshots the other way. I repeat my question "have the fundamentals of the world's financial system been fixed such that currency, the banking system and governments be trusted and gold dispensed with or do we need to remain vigilant to events still unfolding?" 

The slingshot in 1975 was breath-taking and quite aside from the correction from $200 odd to $119.00 and then its bounce to $850.00 plus, it's standard deviation measure spent the last half of the decade firmly in positive territory. The current price of gold is in the high $1300.00's and negative 4.5 on standard deviations below the 50 day moving average. Consider that carefully and this moment in time when you look back in a few years as to what you were doing and deciding regards being led by the crowd or seeing the big picture?

A good friend and astute banker sends me an email last week asking would I like to go halves in a short position in gold as in a big one. He cites the risk of further downside over the next 3-6 months as justification so let's consider the current position in the trader's camp

In the latest CFTC Commitmentof Traders report it's been noted that Comex gold short positions have grown to a newall-time high of 79,416 shorts. In fact short positions in gold have risen 25% over in the last three weeks. Now with the greatest of respect to all those astute analysts that may or may not be correct to a further capitulation, my question to my good friend was why would you want to chase a falling knife after its already dropped so far and risk getting cut? I watch my kids fight over the baking bowl as to who gets "licking the spoon rights". Frankly as a mature adult I would rather just wait for the cake to bake and have a nice big piece thank you! What would you prefer- lick the spoon or eat the cake as to buying or adding more?

Why anyone would want to go short or look at their current holdings in gold/silver as a glass half empty is amazing and testament to the power of human emotion to make decisions and judgments on sight versus fact.

I may wince at the way metals and shares are getting hammered but I am encouraged when I look at the facts, consider history, review the way governments have and are behaving and I make my decisions based on that. As the late Bob Chapman would say "you go long and stay long". That is the way to really cash in on a long term secular gold bull market. Leave the traders to slaughterthemselves!

Duncan Cameron
Senior Relationship Manager
Anglo Far-East 

Dialectic analysis: relativist dyslexia on the march

Greg has been bitten by the Hegel bug. Below is a short essay he sent me. Read that if you can't deal with my prose.

The dialectical analysis, discussed below, is used by social engineers to manipulate you.  This is old hat that we are finally understanding in the U.S.  The NAZI's, socialists, communists and so on, existed by applying this model as a tool, though originally used to describe how ideas evolve. The "right," for want of a better word, in the U.S. sort of applies good-old PR, but we are dealing here with a far more subtle con game.

Americans are pretty sophisticated in the face of advertising, puffing, and spin. That is because we remain a competitive, mercantile society. Over time "caveat emptor" builds a sophisticated populace (one not needing the government to shop for us.)

We are morons when confronted by the use of manipulation of our basic beliefs, down to the glue that holds the family together.  If you think there is something weird going on about "political incorrectness" you have a good instinct.  It is a good exercise to see how the Hitler Youth were created and used to alter the basic nature of a Christian nation.  I say this as Mr. Obama is working on creating his own youth army. Had the ACORN criminals not been outed, we would be well on the way to having polling stations populated by cadres of toughs, but that battle has only been stalled.

The shifting arguments that you see on TV every night are not the result of stupid people talking past each other.  Sure you get frustrated by the "political" talk, the apparent avoidance of answering, but most talking heads know exactly what is being asked and what the answer is.  They just have no interest in that conversation. If you think so, you are a sucker. Indeed, even the questions asked, and how they are asked, skew conversation.

No, "liberals," as Marxists and Statists are not stupid.  Yes, they are lying, but to them it is not a lie in the traditional sense of, for example,  denying you took a lunch out of the communal refrigerator.  The manipulators are merely providing disinformation or irrelevant information necessary to affect your mind; everything is spin to trick the listener - there is not even a consideration of having a rational discussion of facts and beliefs.

The Marxists have zero interest in a sensible budget or paying down our debt. You think so because that is your frame-of-reference. Now, see it from the point of view of one attempting to destroy the system.  What do they care if they obliterate an enemy to the whatever this new world order is.  (Seems to me to be the very rich organizing things for business by "using" activists of all sorts.)

Now, a strong Judeo-Christian-Buddhist philosophy will see intentional lying, but, as the new argument is everything is relative, there is no lying.  Indeed, talking heads still back off from the question: "Isn't he lying?"  (This week about the President.) The interviewee will smile an "aw shuck" grin and mumble about people just being political. That is the substance of the relativist logic:  other people do it, there is no standard to apply, so "aw shucks" boys will be boys, unless they attempt to sign a bill under the Constitution of Wisconsin that the relativists don't like.  Can't have a legalistic spin, just not cricket.

The Marxists present themselves as "liberals" and assume real liberals are with them. The "media" and our schools push this understanding. Eventually, a perfectly nice, traditional liberal, a person who believes in individual rights and that government should help individuals, finds himself voting for fascists and Marxists. They do so out of a social connection to the traditional liberal community, not knowing that has long been corrupted.

The Hegelian principles at work have changed the argument of the, well, weak minded.  (I don't know a nice euphemism, but no slur intended. Perhaps, naive is nicer, but a naive person is not automatically gullible.)

Please read the simple, short essay below (the publisher is ticked about people using it for commercial reasons and not paying, so think about buying - click on headline).  It will explain most of what you find confusing in today's non-intellectual discussions.

My point, here, is this: when you read about how social engineers accomplish their tasks so well, consider why they are now having success in the U.S.  They did great in Europe seventy five years ago and managed to have a fine war, but why now in the U.S.?  The answer is simple and it has been understood by leftists for a hundred years:  Americans have had strong religious, family, and community beliefs.  They had the affrontery to believe they were superior to the government.

Thus, no fancy mind games worked.  If you lied, you lied.  If you killed, you killed. One got married before having children. People were responsible for their family and for themselves.  People wanted to raise families in a nurturing community governed my morality.  These firm beliefs were a firm barrier to any insidious corruption of manipulators.

If one has a clear morality, then Hegel is just an interesting exercise, not a useful weapon.  If one has no beliefs, i.e. "relativism," then one is sucked into the prattle of Hegelian dialect.  Political correctness makes sense to those with no moral or philosophical center.  "Tolerance" becomes a virtue rather than a withholding of prejudice.

It is not a virtue to tolerate another, that is arrogance modified by a smug air of superiority, which superiority is readily removed to destroy those who disagree on threatening matters.  To tolerate another means:  I have the correct notions and judge yours not within my values, but will permit you to believe in yours, as the group thinks that is a good thing. (Can't have any set values!) Thus, the group has taken control over individual morality.  Group think changes with the wind, so suddenly it is fine for "liberal" and "tolerant" people to kill Jews.

The KGB, long ago, outlined how to attack our culture indirectly.  They say this, I am not making it up. They knew that America was impervious to direct attack. They were right and their new efforts of subversion are effective, picked up by all manner of statists such as the Frankfurt group (Columbia U became their home, you know the place Mr. Obama is said to have attended.)

There remains a methodical assault on religious beliefs, the Constitution, sexual role clarity, marriage, modesty, and individual rights.  If you think this is just Hegelian evolution toward a new synthesis, it is not really as it was a direct attack on the "thesis."  Our main theses have been mocked, denuded, often undercut by law, and rendered politically incorrect.

Now, our "thesis" is a weak-minded set of platitudes. If you think this is not the result of focused and funded activity, you are lost.

Apply the skepticism you have acquired from watching TV commercials.  Nothing is as it seems.




What Is The Hegelian Dialectic?

by Niki F. Raapana and Nordica M. Friedrich 

This article was originally published online in December 2002. For years it has been available to the public for free, as an educational resource. As a result it has been widely distributed with and without our permission. Now we would like to ask that you do not reproduce this work, as it is copyrighted. 

The entire text of What Is The Hegelian Dialectic? has a permanent home in our new book,2020: Our Common Destiny/The Anti Communitarian Manifesto (two books in one), available in mass-market paperback or an affordable, downloadable e-book. 

The introduction entitled Why study Hegel? is still available here to read for free, for educational purposes. 

Introduction: Why study Hegel?

Pay no attention to the man behind the curtain... 

"... the State 'has the supreme right against the individual, whose supreme duty is to be a member of the State... for the right of the world spirit is above all special priveleges.'" -- Author/historian William Shirer, quoting Hegel in The Rise and Fall of the Third Reich (1959) 

Georg Wilhelm Friedrich Hegel (1770-1831) was a 19th century German philosopher and theologist who wrote The Science of Logic in 1812. For many historians, Hegel is "perhaps the greatest of the German idealist philosophers." 

In 1847 the London Communist League (Karl Marx and Friedrich Engels) used Hegel's theory of the dialectic to back up their economic theory of communism. Now, in the 21st century, Hegelian-Marxist thinking affects our entire social and political structure. 

The Hegelian dialectic is the framework for guiding our thoughts and actions into conflicts that lead us to a predetermined solution. If we do not understand how the Hegelian dialectic shapes our perceptions of the world, then we do not know how we are helping to implement the vision for the future. 

Hegel's dialectic is the tool which manipulates us into a frenzied circular pattern of thought and action. Every time we fight for or defend against an ideology we are playing a necessary role in Marx and Engels' grand design to advance humanity into a dictatorship of the proletariat. The synthetic Hegelian solution to all these conflicts can't be introduced unless we all take a side that will advance the agenda. 

The Marxist's global agenda is moving along at breakneck speed. The only way to stop land grabs, privacy invasions, expanded domestic police powers, insane wars against inanimate objects (and transient verbs), covert actions, and outright assaults on individual liberty, is to step outside the dialectic. Only then can we be released from the limitations of controlled and guided thought. 

When we understand what motivated Hegel, we can see his influence on all of our destinies. Then we become real players in the very real game that has been going on for at least 224 years. 

Hegelian conflicts steer every political arena on the planet, from the United Nations to the major American politicalparties, all the way down to local school boards and community councils. Dialogues and consensus-building are primary tools of the dialectic, and terror and intimidation are also acceptable formats for obtaining the goal. 

The ultimate Third Way agenda is world government. Once we get what's really going on, we can cut the strings and move our lives in original directions outside the confines of the dialectical madness. Focusing on Hegel's and Engel's ultimate agenda, and avoiding getting caught up in their impenetrable theories of social evolution, gives us the opportunity to think and act our way toward freedom, justice, and genuine liberty for all. 

Today the dialectic is active in every political issue that encourages taking sides. We can see it in environmentalists instigating conflicts against private property owners, in democrats against republicans, in greens against libertarians, in communists against socialists, in neo-cons against traditional conservatives, in community activists against individuals, in pro-choice versus pro-life, in Christians against Muslims, in isolationists versus interventionists, in peace activists against war hawks. 

No matter what the issue, the invisible dialectic aims to control both the conflict and the resolution of differences, and leads everyone involved into a new cycle of conflicts. We're definitely not in Kansas anymore. 







"Hegel's Absolute Idea" chart courtesy of The Calverton School




To read the rest of What Is The Hegelian Dialectic?, get 2020: Our Common Destiny/The Anti Communitarian Manifesto. Two great books combined into one mass-market paperback! It is also available as an affordable, downloadable e-book. 

You will learn....

1. The origins of deductive and inductive reasoning
2. Webster's definition of the Hegelian dialectic
3. How the Hegelian dialectic changed the formula for deductive reasoning
4. Why it is almost impossible for a layman to understand the dialectic
5. The communitarian purpose for the Hegelian dialectic
6. How we interpret the history of the Hegelian dialectic
7. The Anti Communitarian League's conclusion
8. Four examples of the power of the semantics in the dialectic
9. Four different impressions of the modern Hegelian dialectic theory 

AIG

I just wrote a long response to email comments upon an article in the Business Review, which I add below. Actually, the response is to mass stupidity as demonstrated by the article and one comment in particular. I don't think you need to read the piece, but if you are interested: here

I really need to stop all this activity, but it there is no longer any place to hide. I will get back to what to do to prepare, as a topic. Right now, I am making maple syrup.

Oh, on that note that gun manufacturer' are out of inventory. There is a hot used gun market. If you want to see a crowd, this weekend in Saratoga Springs is the gun show. Apparently, some people are paying attention. (It is a fascinating show.)

Also, I don't think people understand the what is going on. They are playing one game, not aware of blatant disinformation and subversion all around, which is a nice trait in a safe world. This is not a safe world.

Finally, I just like the picture above. Let us say it represents the coming mega tsunami. Yeah, that's the story.

I read the comments to the above and am moved to respond to the rampant stupidity being given voice today. Mr. Campo says the government - we - own AIG, so "we" should be able to do whatever we want. A thought so simplistic and erroneous defies explanation in a country more than 200 years old built upon Anglo-American law, especially after two millenia of the study of logic.

Socialism requires an ignorant, or in our case dumbed-down, populace. The Obama/Cuomo game about being peeved at bonuses is childish and they know it; this is callous posturing for the unsophisticated voters who give them power.

Don't you recall Cuomo senior?

If you are grunting: "Yeah, what the hell are they getting bonuses for?" Then you are among the manipulated drones.

The inmates run the institution.

Here is the reality: AIG screwed up and in our system should have been allowed to die. The shareholders are not innocent - they are the owners who dind't stop the recklessnes because they were greedy. Just about everyone was greedy. In a sense that is normal. see Federalist Papers #10.

In our mommy culture, no one is supposed to suffer the consequences of their actions. If you can't pay for the lunch you thought was free, then attack the store owner.

When a company goes bad it is the fault of the owners who vote for the Board.
However, AIG was so large and so involved with government-related back-room stuff, like Congress' pension, the government in its gutless, self-serving manner, decided to save it.

The current Treasurer of the U.S. under Obama worked the deal and WITHOUT STRINGS sent AIG money to CONTINUE business. "We" didn't buy it. That action is fine if your goal is to just save the company - there was no buy in and no hooks, like any low-level investment banker would require. The government is run by dilattante amateurs.

To now pretend to be amazed by AIG continuing to run and follow the law, would be laughable except so many people cheer the false outrage.

Mr. Obama should come to the front of the stage and nationalize businesses, as he wants, and not play a coward's game of subversion. Be an honest Marxist, like Bernie Sanders of Vermont. This subversive attitude is enough to reject anyone in any business, unless you are part of the subversion.

So, AIG had a contract with people who made it money. The company is providing them with their contractual compensation, from what the CEO says. Is this hard to fathom?

If Geithner did not want this to happen, he could have let the company go bankrupt, have a court vitiate contracts, then move in. He didn't. Either on purpose or he is stupid. If he were executing Mr. Bush's directive, just say so.

Duh.

Why don't we tell Rodriquez he is making too much money at third base (I agree, but its not my business) and cap his salary at, say, $500,000, the magic amount according to the socialists.

Julia Roberts certainly doesn't deserve $20 million per picture. How about $500,000? If you are shocked - why?

You inherently know we are a society held together by mutual respect for contracts. This is not what Mr. Obama wants, if you believe his outrage. Your Anglo-American respect for work and contract is being destroyed by government which is pointing at a part of society and inciting socialist/fascist outrage.

As to AIG, it became the largest insurer because of Hank Greenberg, who built it from ground up. (He is pissed at the bonuses, too.)

Anyway, Greenberg was replaced by the Board of Directors because NY Attorney General Spitzer went to the media and claimed he was going after AIG and Greenberg. He didn't, when Greenberg called his bluff and would not pay extortion money, but it appears the new CEO ultimately permitted the bonuses be signed. So, whose fault is this? Why is government always given a pass for its, frankly, evil?

Now, NY's mouth, the man who installed the people and philosophy that crippled Fannie MAe and Freddie Mac, says he demands the names of those who earned the bonuses. If that doesn't scare the hell out of the vast majority of us, then it is time for rational people to investigate New Zealand.

What right does he have? For what end other than getting idiots worked up? What is he going to do, take it away from the employees who earned it? Confiscation? There is no logic to it other than he is either inciting people to socialism or playing the lowest form of demagoguery.

This is exactly the same as saying teachers get too much, so let's take it away. He won't do that because teachers vote socialist, as they are voting for their own salaries. There is no longer any pretense that the Democratic party is now America's socialist party.

What we are seeing is class warfare - tell the vast majority of people that you are going to take money from those who earn a great deal and give it to the masses, as controlled by Big Brother. Sounds good to the low-brow, but anyone who managed to avoid a public school education and avoid mass media sees this game for what it is. See - Grachii brothers in ancient Rome. Terence said, "There is nothing new under the sun," in Latin, of course.

I hope some readers can come to understand how their unsophisticated anger is being used to strip them of their rights.It is as simple as that.

However, I think we have gone over the cliff and the "masses," as we have become, will just vote themselves money by taking it from those they don't like (i.e. can't compete with.) This is true "democracy" as the Greeks called mob rule. They feared it.

By the way, can you name anyone in control of our country who ever worked in a real business or met a real payroll?

If you want to understand how socialistic group think destroyed Europe read Hayeck (http://hayekcenter.org/) and Hoffer (http://www.quotationspage.com/quotes/Eric_Hoffer).

Europe only recently has realized, as the Supreme Court Chief Justice in Canada recently said, that equal access to care does not mean equal access to a list.
Get their lead books, if you recall what books are, as they are among the most important thoughts you will read - at any time.

Otherwise, you will vote for someone who promises no tax increase for 95% of us while removing things like a mortgage deduction, as is propsed now.

Once lost, freedom is seldom regained. This will be especially true where we have an huge Big Brother tracking everyone and taxing everything.