The Lies & Con-Artistry Continue

The ability to manipulate the public was discovered by Edward Bernays, a nephew of Sigmund Freud. His work was used by Hitler to program mass agreement in Nazi Germany as well as to scare Americans about the Communist threat. Applying the understanding of the unconscious mind derived from his uncle, Dr. Freud, he became the father of propaganda. And so masses of Americans now virtually think alike. Or as someone said, when everyone is thinking alike, no one is thinking. If you have any doubts that the dynamics of Edward Bernays is being applied to keep Americans programmed to be stupid and obedient to the state, I strongly suggest you watch this eight-minute documentary on this horrible man’s work. The dynamics discovered by Bernays is being used to lead America from the Declaration of Independence of Thomas Jefferson into a Hamiltonian tyranny. Learn how Bernays marketing deceit is leading America the west toward a road of death and destruction here:

I see this dynamic playing out big time right now in the political arena. No doubt Trump is an easy target, but with or without an easy target we have all been programmed by the mass media to know what is politically correct and what is politically incorrect. Bernays believed that people are stupid, evil, and irrational and as such have to be managed to keep the ruling elite in charge.

UnemploymentOf course, this newsletter is more directly concerned with economics and the markets. When people hear the same thing over and over again, even if it’s a lie, they come to believe it is true. And so the Fed continues to apply the same policies over and over and over again, and even though the policies fail, somehow the masses continue to consider the these guys know what they are talking about. And they continue to believe government economic statistics, too, which as economist John Williams documents, are big fat lies. The unemployment rate for example, if counted the same way as in the 1930s, would measure around 23% now, not the sub 5% fib we are currently given. The difference is of course that prior to 1980, the unemployed were no longer assumed to be disinterested in working.

So Friday we got a jobs number that suggests the labor market is strong. That’s just another big fat lie but the markets buy it, as they have been programmed to do. As John Williams put it in his letter to subscribers earlier today, “In Continued Misreporting, Payroll Activity Remained Massively Overstated; Monthly Unemployment Details Remained Not Comparable. Underlying reality for July 2016 U.S. labor conditions was in the realm of a 23.0% broad unemployment rate, with the actual monthly payroll-employment change likely on the downside of flat.” John goes on to explain in highly technical terms how and why he reaches his conclusions. But hey! Why would you believe John? He isn’t covered on CNBC or Bloomberg so he must just be an outlier nut case, right?

Foolishly, for the 100th time, talking heads on TV succeed in keeping Americans thinking the economy is strong enough to allow the Fed to raise rates. And with that the stock market rallies, the Bond market declines and gee, golly whiz, if everything is so good again, why in the world do we need gold?

But then when the market actually starts to face prospects for rising interest rates it throws a hissy fit and sure enough, all of a sudden Janet Yellen comes up with an “Oh, I guess the economy is weaker than we thought. I guess we will have to put that rate rise on hold once again.”

It is as predictable as day following night. If you follow John Williams’s objective work you will realize that the global economy is continuing to weaken and in fact it is virtually bankrupt. The entire global economy is enslaved to artificially low interest rates and even a modest rate rise of 1% or so in the U.S. Treasury markets will throw us into a global depression.

As they say, ultimately the proof is in the pudding. So the government can provide all manner of false statistics to manipulate the markets not only with respect to employment but also with respect to the cost of living through fancy schemes like hedonic pricing and substitute on. But you can’t fool Mother Nature. As a parasitic elite continue to siphon off wealth of the middle classes through Federal Reserve policy, the masses they are no longer so tranquil, which explains in part why people around the world are turning to reactionary politics.

IDW-Gold Just take a look at my IDW. Yes the government can lie about GDP, which has been by Williams’s account negative and has never recovered since the 2008-09 depression. If things are so good, why after trillions of dollars of money creation and all manner of market manipulation has my IDW been going nowhere? Not only have prices of stocks and commodities failed to reach highs reached with QE2, but it appears to be rolling over even with ZERO interest rates throughout much of the world now!

But never mind. You hear day in and day out on CNBC and Bloomberg that these PhD’s from Princeton, Harvard, and Yale know what they are doing. So hang in there.

By this time I know there isn’t much of anything I can do to change this miserable world of lies for the better, at least in any major, noticeable way. But what I can do is point out the truth and live my life accordingly, which means doing my best to truthfully report to you my views on what to expect in the markets as a result of continued fatally flawed policies. My view on gold now is that we are in a new bull market no matter what gyrations we may get from time to time from jawboning and manipulations at the Fed. I’m convinced of that because the Fed and the Treasury as well as all Western governments are running out of credibility. That said, gold and silver mining shares are, in my view, the place to be for the foreseeable future.


About Jay Taylor

Jay Taylor is editor of J Taylor's Gold, Energy & Tech Stocks newsletter. His interest in the role gold has played in U.S. monetary history led him to research gold and into analyzing and investing in junior gold shares. Currently he also hosts his own one-hour weekly radio show Turning Hard Times Into Good Times,” which features high profile guests who discuss leading economic issues of our day. The show also discusses investment opportunities primarily in the precious metals mining sector. He has been a guest on CNBC, Fox, Bloomberg and BNN and many mining conferences.