Absolute Distortion Continues—From Gold Manipulation to DC’s Latest Lies

On the heels of the recent takedown in the gold and silver markets, as rational people marvel at the irrational trading in major markets, the absolute distortion continues–from gold manipulation to DC’s latest lies.

Absolute Distortion Continues—From Gold Manipulation to DC’s Latest Lies
November 24 (King World News) – Matthew Piepenburg at Matterhorn Asset Management (based in Switzerland):  Below we look at the latest official fantasies from DC as well as the same ol’ big-boy gold manipulation tricks meant to keep markets anything but free or natural.

From Dumb to Dumber: DC’s Latest Inflation Solution, More Spending…
In a recent report from The Hill, we discover that the Biden advisory team is now accepting that inflation is not only a financial reality (rather than “transitory blip”), but far more importantly (to them), a political problem.

It will come as no surprise to many that politics and politicians are driven by re-election not candid honesty, and certainly not economic expertise or even a rudimentary grasp of financial (or even grade school) history.

Unfortunately for the self-preservation-driven dunces helming our financial ship, the math of inflation can no longer be masked with more words.

In short, and given rapidly falling poll numbers, the White House has to rev up its “inflation strategy.”

D.C.’s Inflation Strategy?
And if you are hoping it’s going to be an effective strategy, well…please: Don’t hold your breath. 

In fact–and we promise that we are not making this up–the Biden administration’s answer to the inflation problem (which is driven and defined by too much money in the system) boils down to this: Spending and creating more money.

Really?

Yes. Really

The economic advisors actually maintain that the new Biden spending package will, and I quote, “not add to inflationary pressures,” and effectively “pay for itself.”

As I like to say: That’s rich…

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If anyone on the White House staff took economics in high school or read a single case-study on prior inflationary cycles, they would know better; but for now, the lords are hoping that the serfs won’t know any better either.

But folks, here’s a spoiler alert: Expanding spending with expanded money creation is the very essence of inflation.

Then again, and as we’ve warned for months, politicians say one thing and mean another. 

No shocker there.

And as we’ve also warned for months, inflation is what these desperate policy makers are after, despite public signaling to combat the same. 

To repeat (and worth repeating): Inflating away debt is and was their real (and only) plan all along.

DC’s History of Putting Political Lipstick on Financial Pigs
But in case you think lying to cover up a bad plan is something unthinkable in the corridors of DC, let us harken back to that other political and financial disaster otherwise known as the Iraq War as a simple lesson (and additional case study) in DC fantasy over facts.

As early as 2002 and well into 2003, the following list of “advisory” double-speakers repeatedly told the world and the White House that a war in Iraq, with its oil-rich resources, would “pay for itself.”

This list includes such well-known luminaries of deliberate dishonesty as Richard Perle, Glenn Hubbard, Lawrence Lindsey, Ari Fleischer, Paul Wolfiwitz, Ken Pollack, Don Rumsfeld, and Dick Cheney.

As for “paying for itself,” the war in Iraq cost the U.S. well over $7T, and that’s being conservative. 

And as for who paid for this, if you are a U.S. tax-payer, then the answer is you, not Iraq.

But as Cheney defended, hey, at least we got $14B in international “assistance,” which would be like me tossing you a penny to “assist” in your purchase of a luxury yacht.

But as all students of failed regimes have learned in history class, the extreme cost of extended wars, unless paid for with taxes (think Truman in Korea), are the first inflationary domino to fall before those same nations and their currencies implode further down the road…….More Here

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