In Gold, Silver, Diamonds, & Stock Markets, Controlling Perception is the Banker Weapon Du Jour
When it comes to building wealth, muddying the difference between perception and reality is the key manipulation tool that banksters use to goad people into wrong choices. For example, when European Central Bank (ECB) President Mario Draghi vowed to save the Euro from collapse last week, and people all over the world foolishly believed him, all the European stock markets along with US stock markets rallied quit significantly for a few days on this proclamation. Even though there is nothing Draghi can do to prevent the reality of the Euro’s continued painful demise, and even Draghi himself likely knows this, Draghi’s prominence allows him to temporarily alter the public’s perception of reality and thus, cause a stunning, albeit a very-likely short-lived stock market rally. Likewise, the Western banking cartel that knows soaring gold and silver prices will usher in a quicker funeral for the Euro and the USD also tried valiantly and quite successfully to create the perception, for the greater part of this summer, that gold was going to collapse to the $1,200 level and that silver was going to collapse to the $20 level or lower by creating massive volatility in their bogus gold and silver paper futures markets, though this perception greatly differed from the reality of tightening global physical PM supplies and increasing global physical PM demand (for investment purposes). Banksters have always resorted to manipulating perception regarding capital markets versus actually changing the reality of capital markets to successfully defraud the people, as they have learned that they can control our behavior simply by controlling our perception. Thus, there is no need to solve a problem. By pretending to solve a problem, banksters can create a short-term rise in assets that should be collapsing. Similarly, when crashing gold and silver fails due to the Chinese backstop, banksters discovered that they can prevent people from buying physical PMs by simply creating a perception that gold and silver are going to crash by increasing volatility.
In some cases, reality is impossible for the banksters to change, so in order to defraud people, banksters must change perception. Take the diamond market for example. Today, millions of love-struck men all over the world still pay exorbitantly artificially high prices for diamonds, 140 years after massive discoveries of tonnes of diamonds in the South Orange river in South Africa re-classified diamonds from a precious gem into a semi-precious gem. When bankers were faced with the problematic reality of sudden massive supplies of diamonds that would tank the diamond price and end their scheme of profitability, they merely changed the perception of diamond supply, as it was impossible to change the reality unless they were to take already discovered tonnes of diamonds, and re-bury them somewhere with the hope that no one would ever find them. To address this over supply problem, bankers formed a syndicate, the Diamond Trading Company, that would from that point forward, carefully control the annual supply of diamonds throughout the world and create a fake perception of a limited supply in a reality of abundant supply. In doing so, they “buried” the over supply of diamonds deep within their secretive vaults and promptly turned the reality of a global oversupply of diamonds into a global perception of a diamond shortage that still exists today, 140 years later! Out of solving the diamond conundrum, bankers learned the mastery of controlling public perception and consequently controlling public behavior. Successfully change public perception and the need to alter reality disappears. It’s the oldest trick in the book but one that banksters successfully used for the duration of nearly this entire summer to prevent the masses from buying physical gold and physical silver even as PM prices languished at huge sale prices for months on end. By creating a massive gap between perceived reality and actual reality, banksters continually are able to rewire people’s brains to match Knight Capital’s broken algorithms of “buy high, sell low!” when it comes to gold and silver.
Below, to explain the bankster con game of perception v. reality to you, I present to you an excerpt from my just released book, The Golden Gift, available at this link. If for some reason, this link does not work, please just visit www.lulu.com and search for The Golden Gift. For those of you that may have been among the 5,000 people that downloaded version of the Golden Gift that I made available for free on my website a couple of years ago, please note that the old version was a very short, 30-page reader. The one I have just released is a greatly expanded 173-page book, so even though they have the same title, they are not the same book by any means. The purpose of this book is to provide knowledge that will allow people to bridge the massive gap between perceived reality and actual reality that bankers have created in the world’s financial and monetary markets. I have discovered that you can tell someone the truth until you’re blue in the face about the massive corruption of the banking industry and urge them to take sensible actions to protect themselves but that they will still ignore you. Only when you help that person bridge the gap between the perceived and actual reality of financial markets will people finally move from inertia into action not only to protect themselves, but also to help free humanity from the immorality of banksters. This is one of the main missions of my book. Furthermore, please note that I will be donating 100% of all profits from first-year sales of The Golden Gift to three wonderful organizations that help child orphans and children with learning disabilities, Two Sisters, founded by the wonderful Patrick Chamusso (http://www.twosisters.org.za), the Mulligan Project(http://themulliganproject.org), and Future Light Kids, founded by the wonderful Jennifer Lo (http://www.futurelightkids.org). Thus, I hope that my book not only helps expose the widespread criminality of the global banking system but that in the process, we can spread a little bit of love around the world as well.
An excerpt from Chapter Two, The Golden Gift:
In the movie The Prestige, Michael Caine’s character, Christopher Priest, states:
“Every great magic trick consists of three parts or acts. The first part is called the Pledge. The magician shows you something ordinary: a deck of cards, a bird or a man. He shows you this object. Perhaps he asks you to inspect it to see if it is indeed real, unaltered, normal. But of course…it probably isn’t. The second act is called the Turn. The magician takes the ordinary something and makes it do something extraordinary. Now you’re looking for the secret…but you won’t find it, because of course you’re not really looking. You don’t really want to know. You want to be fooled. But you wouldn’t clap yet. Because making something disappear isn’t enough; you have to bring it back. That’s why every magic trick has a third act, the hardest part, the part we call the Prestige.”
Just like every great magician, the global banking cartel has fooled the people about monetary truth for centuries now. “The Pledge” happens when bankers show people a piece of cotton fiat currency such as the USD and tell you that it is “real” money and an asset. Of course, since it is a tangible piece of cloth, this seems like a rational, logical statement but it is not. Bankers introduce all USDs into the world as debt and ONLY a very tiny percentage of all money in circulation exists in the form of paper. Bankers actually create the majority of what we think of as tangible “money” in the form of intangible fictitious digital credits and debits.
It’s almost humorous today when people speak of the fact that one day all money will be digital because, though estimates vary due to the secrecy of Central Banks’ creation of new fiat currencies during this crisis, it is believed that 98% of the “money” used for all global financial transactions on a daily basis is already digital. Thus, for all intents and purposes, money is already digital. Though your bank account may show that you possess USD $250,000 on your paper statement or on the ATM screen, in reality, your bank only has perhaps 2%, or even less, of this $250,000 in cash in their vaults. If you went to the bank tomorrow and tried to withdraw this as cash unannounced, the bank would very likely be unable to provide you with this money for it would then have to ask its Central Bank to turn your digital money into printed money before handing it over to you. For those that might misinterpret this statement let me explain it to you further. This does not mean that a branch of Bank of America or Citigroup does not have $250,000 of cash in their vaults. Of course they do. What I am saying is that if you took the aggregate amount of ALL deposits from ALL clients at any given branch of any global bank today, they will likely barely have 2% of that aggregate amount in their bank vaults at that given branch, if at all.
The second phase of any good illusion is “the Turn”, when magicians make something that was once visible disappear. Bankers execute “the Turn” even better than illusionists because they make the people’s money disappear through three separate and distinct channels. Bankers take away the money that people earn through their incomes through (1) the silent mechanism of inflation; (2) a second overt mechanism of the income tax; and (3) initiating capital market crashes. Since most people have no idea that income taxes are a direct transfer of wealth from all citizens in a country to the private banking oligarchs that rule their country, they do not realize that the application of income taxes is a mechanism of theft. Yes, many people are shocked when they learn that income taxes are a direct transfer of wealth and theft by bankers from citizens to themselves, but this is an indisputable fact. If you wish to read the evidence that discloses that nearly 100% of your income taxes go directly into the coffers of the private bankers that run your country, please refer to the findings disclosed by Peter Grace in the Grace Report (Source: J. Peter Grace, The Grace Commission Report for US President Ronald Reagan, January 15, 1984, http://www.uhuh.com/taxstuff/gracecom.htm).
Bankers execute the third leg of “the Turn” by directly manipulating stock markets and real estate markets to deliberately create stock market and real estate market booms and collapses. When they cause trillions of equity to disappear and when they deliberately collapse stock markets and real estate markets, they know that people will invariably start digging and try to discover the mechanisms by which they “disappeared” their money. But all good illusionists will take extreme measures to protect all three phases of their illusion and bankers are no different. Though bankers are always appearing on TV and stating that “ordinary” people cannot understand the “complexity” of the financial system, this too, is just propaganda disseminated to ensure the success of “the Turn”. The motivation of bankers for always promoting propaganda like “financial derivatives are so complex that even Harvard PhDs have difficulty understanding them” is simple. Bankers know that if they can convince us that the financial system is much too “complex” for us to understand, that we will never start digging for the truth, and thus, never understand “the Turn”, the second part of their illusion when they make our money disappear. However, the bankers’ argument of “complexity” is pure unadulterated rubbish, just as is every other facet of their banking and monetary system. While the mechanisms of financial derivatives may be complex, the mechanisms of fraud are very easy to understand. Bankers funnel our attention to the wrong questions so that we fail to arrive at the right answers.
I can explain the mechanism by which bankers deliberately create artificial “booms” and “busts” in very simple terms in a couple of paragraphs. When bankers want to create booms, they artificially depress interest rates below interest rate levels that would exist in a free market absent of their persistent meddling. Low interest rates are the proverbial carrot on the stick that banksters use to goad the people into taking out huge loans that they cannot afford. Unfortunately, many of us always pursue the dangling carrot because we unfortunately suffer from a false-sense of confidence that we can game the system to easily earn a much higher rate of return than the interest rate we must pay back to the banksters. However, what most of us don’t realize is that the banksters, not us, are in control of this situation as they can call in our loans at any time when they decide it’s time to financially ruin us. During the “goading phase”, our excessive borrowing effectively floods capital markets with money that should not exist and would not exist in a free market and causes a flood of money to chase a limited amount of assets. If, for example, we choose to use this excess money to buy real estate, then the price of real estate soars. Banksters sell this as a “boom” in the media to goad even more of us that can’t afford loans to borrow more money. In reality, the deliberately-created “boom” is merely a massive upward and bankster-created “distortion” and “illusion” of rising prices that cannot last.
This false sense of confidence originates from a state of euphoria that banksters artificially create through distribution of massive propaganda in the mass media about endless times of economic prosperity. Compounding this sense of euphoria during times of “booms” is the fact that all agents of the State participate in this scam. For example, let us examine the very public proclamations of the most prominent and revered economists, bankers and politicians immediately prior to the US stock market crash of October 29, 1929 that ushered in a global Great Depression that lasted for more than a decade.
“We will not have any more crashes in our time.” – John Maynard Keynes, 1927.
“There may be a recession in stock prices, but not anything in the nature of a crash.” – Irving Fisher, leading U.S. economist, New York Times, September 5, 1929.
“There is no cause to worry. The high tide of prosperity will continue.” – Andrew W. Mellon, US Secretary of the Treasury. September 1929.
With ringing endorsements from the most prominent people in the country every year immediately prior to crashes, no wonder so many people every year are goaded into allowing banksters to wipe out all of their capital. And if you think the above was a one time, non-recurring event, merely Google the statements of the US President, US Federal Chairman Ben Bernanke and the most prominent Fortune 500 and Banking leaders in 2006 and 2007, and you will discover that the exact same pattern of propaganda immediately preceded the US housing crash in 2008. In fact, this propaganda pattern is not limited to just these two historical crashes, but they happen everywhere around the world before every single major economic crash. When patterns repeat themselves repeatedly throughout history, if we cannot learn that there is a concerted effort of the State to deliberately scam us, then we deserve the losses that are inflicted upon us when we place undeserved trust in leaders that wish nothing more than to defraud us and lead us into actions of financial ruin. After learning about this pattern of propaganda, either we must accept that people we have been taught to trust only wish to scam us, or somehow it is a huge coincidence, that all over the world, during dozens of economic crises, we the people, have elected the dumbest politicians possible in our country to a position of power, and they in turn, have made the mistake of appointing the dumbest people in the entire country to the most prominent positions in government and banking. In 1930, even after the US stock market crash had already occurred, there was still no shortage of continuing and relentless propaganda from the government-bankster-corporate machine.
“[1930 will be] a splendid employment year.” – U.S. Department of Labor, New Year’s Forecast, December 1929.
“I am convinced that through these measures, we have reestablished confidence.” – Herbert Hoover, US President, December 1929.
“While the crash only took place six months ago, I am convinced we have now passed through the worst – and with continued unity of effort we shall rapidly recover. There has been no significant bank or industrial failure. That danger, too, is safely behind us.”- Herbert Hoover, US President, May 1, 1930.
What we all need to learn from history is that when the banksters decide it’s time to pop the bubble and then want to earn money from a real estate market “bust” or “crash”, as we have since discovered was the exact case with many Wall Street banks in 2008, then there is no stopping them. If and when Central Banks merely decide to raise interest rates and call in loans during times of massively distorted market prices (note that politicians’ descriptions of “economic prosperity” is always a lie), they can easily create market panics and crashes. Raising interest rates significantly in a capital market causes all “excess” money to leave capital markets and the prices in that market to then crash. For example in the US, mortgage bankers ensured interest rates on mortgages would rise and cause hardship on people by selling them ARMs (Adustable Rate Mortgages) during the early 2000s that re-set at much higher interest rates in future years. Mortgage bankers were able to convince people that they would be able to sell their houses for large profits in the rising real estate market environment (at the time) before the ARMs would ever re-set at higher interest rates.
Of course, when the real estate market peaked after the bankers had sold millions of ARMs but before the ARMs owners were able to flip their property at huge profits as promised by the banksters, massive numbers of home owners were consequently forced to pay the much more punitive interest rates on their mortgages. In effect, this served the same purpose as banksters calling in their loans. In addition, banksters went wild in the early 2000s selling poor people sub-prime mortgages that they knew the poor would never be able to afford. For example, 90% of sub-prime mortgages that bankers sold to the poor in 2006 were ARMs (Source: Zandi, Mark (2009) Financial Shock. FT Press). Though I am simplifying the description of the process here, I am doing so to demystify the belief in the “complexity” of financial transactions that banksters wish to perpetuate. To create a boom, or more accurately, highly-distorted, non free-market prices, banksters merely lower interest rates and coax people into excessive borrowing scenarios. To create a bust, or more accurately, a collapse in highly-distorted market prices back to price levels that would exist without banker interference, bankers merely raise interest rates and call in their loans. It’s that simple. And the only one making loads of profits from both booms and busts are the banksters. There is also a secondary mechanism whereby banksters can create “busts” in the absence of a rising interest rate environment. In this secondary mechanism, a bust can happen simply due to existing conditions of extreme leverage in capital markets. I’ll explain how this mechanism works later in this book.
Finally, we arrive at the third act of the illusion, “the Prestige”. The Prestige is the mind-blowing finale that stumps people and leaves their jaws agape. As I stated earlier, whenever a crisis strikes, people have a psychological need to understand the reasons that precipitated a crisis. Since bankers are master manipulators and illusionists, no illusionist ever wants the mechanisms behind his “Turn” to be discovered. Otherwise, magic ceases being magic and the power of the Prestige will die. So when bankers raise the ire of an entire nation by executing “The Turn” and disappearing our wealth, they must necessarily return our “disappeared” wealth to us by executing their final act of their illusion, “the Prestige”. “The Prestige” is a necessary act in order to keep the order component of the “New World Order” intact. Execution of “the Prestige” is necessary to pacify the masses and to prevent us from realizing that we are but pawns in a massive global financial scam. This is why we often experience a cycle of rising real estate asset valuations immediately follow a stock market crash and a cycle of rising stock market valuations immediately follow a real estate market crash, but rarely ever both at the same time. If you only thought about this fact for a mere minute or so, you would immediately recognize the bankster scam being executed upon us. How can it be that great real-estate market rises often follow stock-market crashes and vice versa? After people have lost great wealth in a stock-market crash is it naturalm for people to speculate and risk tons of their money in another market right away, or do banksters create the conditions that goad people into investing great sums of their wealth into another capital market right away? Hmmmm, I bet you never pondered this question ever before. If the banksters created simultaneous real estate and stock market booms that crashed at the same time, then they would not leave themselves any room to execute “the Prestige”. And with no “Prestige”, everyone in the world would have already figured out their scam by now.
However, even the execution of “the Prestige” is truly ingenious. Most of us rarely realize that the bankers’ execution of the Turn and the Prestige in their worldwide scam relegates us to the proverbial hamster running on the hamster wheel on the fast track to nowhere. Bankers merely return to us through their artificially manufactured “booms” that follow their artificially manufactured “crashes” greater amounts of nominal money that they have already devalued in real terms, thus crippling our ability to gain the necessary financial resources to engineer our freedom from their perpetual tyranny. In other words, the “recovery” part of the boom/bust cycle that banksters sell us is just an illusion and not a recovery at all. In reality, even as we are “recovering” our losses, our “real returns” are still falling. For example, consider that after the banksters crashed the stock market in 2000, you lost $500,000 of your portfolio. After this crash, you swore off investing in the stock market and were lucky enough to ride the Central Bank artificially created real estate price distortion to a gain of $700,000 by 2008 and exited right before the real estate market crash. Well, for most of us, we would feel very good about that. After all, we recouped our entire loss of $500,000 and then made an additional $200,000 of profit, right? Yes, but in nominal terms only.
To correctly assess your financial situation, you would have to consider the first phase of the banksters’ “Turn”, that of inflation. From 2000 to 2008, the US dollar lost approximately 50% of its purchasing power. Thus, $700,000 2008-year dollars only had the same purchasing power of $350,000 2000-year dollars. But recall that you lost $500,000 2000-year dollars. Thus, to recoup your $500,000 of losses in 2000, you would actually have to make $1,000,000 2008-year dollars. But remember, you only made $700,000 2008-year dollars, so even though you ended up with a greater nominal amount of dollars in 2008 than the nominal amount you lost in 2000, you still would have been under-water. The real question is whether or not you would have realized this or not. And that is the beauty of the banksters’ “Prestige”. They can return money that they stole from us during the “Turn”, make us feel good about it, and actually continue to rob us of real wealth at the same time. This is why I repeatedly state that a complete understanding of the fraudulent nature of the global banking system is by far the most important knowledge that you will ever gain in your lifetime. Understand how the game works and you can strip yourself of the many illusions that you have thus far, falsely accepted as truth. But remain ignorant of the banksters’ illusions, and you will go to your grave wondering why you felt like a hamster running on a wheel even as your “wealth” continued to grow.
About the author: JS Kim is the Founder of SmartKnowledgeU and the author of The Golden Gift. Follow us on Twitter @smartknowledgeu. For those that wish to buy a paperback edition of The Golden Gift that live outside of the Americas and do not want an e-book version formatted for Kindle, Nook and the iPad, a paperback edition of this book will be available on Amazon.com and Barnes & Noble in a few more weeks. 100% of first-year sales of The Golden Gift will be donated to the Two Sisters, Future Light Kids and The Mulligan Project, charities that benefit orphaned and disabled children around the world.