Invest Intelligence When It Realy Matters
Debunking the Myth that China is Selling U.S. Treasury Securities
For a couple of years now, the extremists, gold bugs, perpetual doomers and others who know more about marketing than economics and investments have used numerous scare tactics as a manner by which to manipulate gold. These individuals like to mention gold manipulation by banks to explain the selloff, but never mention that the manipulation of gold by banks is a normal situation.
In contrast, they never admit that they are manipulation gold pricing through the use of propaganda, scare tactics, myths and even bold-faced lies. This later type of manipulation borders on securities fraud. It is an issue that the SEC must address.
Regardless which one of these prophets of doom you give your attention to, you are likely to hear 10% fact and 90% fiction; if you're lucky.
The key to manipulation is to discuss a few things that most people are aware of so as to gain the trust of your subjects. Next, you spin the facts, throw in scare tactics and manufacture your own brand of reality, all of which leads you to gold as the only solution to save you from the financial apocalypse.
One need not be an expert in criminal psychology in order to decipher these tactics. All it really takes is a basic understanding of reality plus a bit of common sense.
As I have discussed in the past, virtually every single one of the myths disseminated by these snake oil salesmen is completely wrong, from threats of hyperinflation and gold confiscation, to claims that gold hedges against inflation and that the Dow Jones Industrial Average is headed to 1000. I have laid out irrefutable support against these claims.
Once you investigate the training, track record and expertise of these individuals, you are likely to realize that they are nothing more than marketers lacking any credibility whatsoever. The list of these hacks is virtually endless and I have discussed several of them in the past.
Unfortunately, the vast majority of individuals who have chosen to pay attention to them trust what they say so they do not bother to investigate their credentials, agendas and track record.
Others lack the basic skills required to appreciate the erroneous nature of these hacks and their myths. This later case demonstrates just how unsophisticated most investors are.
Part of the problem is that humans by nature tend to believe anything that is repeated over and over. This basic principal of human behavior is utilized by the media every day. It is for that reason that many people have come to believe these ridiculously flawed myths propagated by gold bugs, without bothering to examine agendas and credibility. They feel that if something is repeated, especially by numerous individuals, it must be true, otherwise the media would not air them.
The flaw in this assumption is that the media sides only with those who pay for advertisements and it certainly isn’t their audience.
Among the myths that have been spread by radio talking heads like Alex Jones, Max Keiser and Glen Beck, as well as gold dealers and their associates is that China has been selling U.S. treasury securities.
Many of the gold bugs directly associated with gold dealers have also been preaching this myth. You know who they are. We have seen this myth in print and on television. It is of no coincidence that gold bugs associate with Jones, Keiser and Beck, for they are of the same breed of snake oil salesmen and profiteers.
This myth has been propagated in order to offer support for ridiculous claims that the U.S. dollar is headed to zero and Washington will be unable to finance its debt. This claim represents yet another factual error that has been designed to cause the sheep to flock to gold.
It remains a mystery to me how so many people could fall for these myths, all while not realizing that these hacks have agendas. I guess most people really are that naïve.
In past articles I have effectively debunked the numerous myths about gold, hyperinflation, the dollar and other related topics. The following represents a partial list of these critical reads.
To date there has not been a single critic from the financial community who has so much as attempted to counter my claims. The reason is simple. They can’t because I am right. And they won’t because it would draw attention to something the media lacks; someone with unbiased credibility.
The mechanism by which these manipulators operate is not by one of debate but through flooding their myths to the sheep. This is the primary reason why the media has banned me. The media represents lies and promotes sell-outs, all of which are focused on lining their pockets at the expense of their audience. This premise is well-documented.
These gold sites post nothing but delusional accounts of economic data and analysis linking it to reasons to buy gold. You won’t see any debate on these sites because the purpose is to manipulate gold prices through dissemination of false, twisted and one-sided information. Whenever you see a one-sided slant to any site that seeks to profit from pitching something, you had better run like hell.
You sure as hell won’t see any of the articles referenced above on any of these sites because it might cause viewers to actually think.
Even in cases when I have posted these articles on the same sites as those who I have addressed publish, they have stayed clear of any response. The reason for this lack of response is simple. When you are outmanned the best strategy is to retreat. The last thing these individuals would want to do is draw attention to an unbiased financial professional because it would spoil their party of deceit and lunacy.
Since the November 2008 financial crisis, we have continued to hear that China has been selling U.S. Treasury securities. We have been told this myth by the media (mainstream and alternative) as well as the gold hacks. I am here to tell you that they are either lying or else they are morons; perhaps both.
Here, I am going to definitively show you once and for all that the commonly discussed myth that China is selling U.S. Treasury securities is simply not true. In fact, you are going to see the exact opposite.
Before I do that, you must understand a few things about sovereign securities.