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QUESTION: If Gold is a hedge against the Governments, and the markets are never wrong, given that its in a downtrend since 2011, can question that the Governments (especially the West) have been doing the proper things this time frame / or following an evolution path?”
ANSWER: It depends on what you call “proper”. Everything has been moving in the direction that is leading as far away from liberty as one can get. There is no long-term planning. Governments act only instantly concerned about the immediate outcome. They called in troops in Boston as searched house by house while on the streets demanding “papers please”. Those very action are what produced the American Revolution (see Boyd v US). Today, the people cheer losing those rights and use slogans “BOSTON STRONG”. The American people as a whole are willing to surrender all rights because they are told it is necessary - Stanley Milgram’s Obedience to Authority.
Governments are not doing what is “proper” but what is necessary to fulfill that cycle. I have always been behind the curtain. I was introduced around the hill as “this is the guy with the model they (executive) have been trying to suppress.” Despite my access, which has been very extensive, I cannot turn the tide. It takes the crisis. So from that perspective, it has to be this way. Government responds only when it must.
We do not live in a government by the people or for the people. Obama lost the gun issue, so what does he do? He uses an Executive Order to defeat the democratic process exposing the truth that it is a dictatorship by the executive branch. Obama has imposed a import ban of all parts kits and hi cap mags regarding guns besides buying ammunition. In his 2014 Budget, he is reducing CPI to cut spending again further distorting the inflationary picture knowing full well the Press will merely report further success in defeating inflation.
What will be – will be. It is inevitable. We must crash and burn.
Gold Rise in Coin Demand – Crisis Still in Trading
The rise in gold coin demand at the Australian Perth Mint and the US Mint as well as in Canada demonstrates the underlying long-term bull market should remain intact. It is coin rather than bullion you should stick to when you are talking about physical purchases.
Nevertheless, from a market perspective, the gold bounce is still not impressive. The first layer of technical resistance begins at 1475 up to 1545. However, we need to see a daily closing above 1592 just to relieve the broader selling pressure.
Ideally, the high in 2011 should be followed by a low in 2013 with a rally thereafter into 2017 that will not become a phase transition until AFTER the ECM turns in 2015.75. Keep in mind that as the pendulum swings back and forth, each time the momentum is building producing greater volatility. The weather is doing the same thing as we move into the peak of this NATURAL global warming cycle. This means when the ECM turns down again, this will produce even higher volatility than what we saw in 2007-2009 period. Also, that decline was focused in the real estate and banking. This turn will be governments. That is the entire purpose of gold – the hedge against government – not inflation.