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3 Trends That Rule the Precious Metals Market, Part I

NEW YORK ( TheStreet) -- It is bad enough watching the talking heads of the mainstream media undermine the precious metals sector with their insipid and invariably flawed analysis. However, what is positively infuriating is when these drones manage to influence the market by parroting "fundamental" factors, which, at present, are simply irrelevant.

Understand that in normal markets (and normal market conditions), there would/should be a host of variables that influence the precious metals market -- as with any other market. However, what has been completely lost in all the white noise coming from the mainstream media is that conditions have literally never been less normal.

Specifically, not only our markets but our entire economies have been perversely warped through pursuing (or simply allowing) the most extreme policies and the most extreme behavior in our markets in all of history.

These extreme policies, and the extreme behavior they have spawned, now totally drown out all other factors, even many of the most basic elements of supply and demand. Indeed, the ultimate proof of the cluelessness of media drones (and the mainstream "experts" who feed those drones) is the fact that none of them have even the slightest awareness of how economic fundamentals have been skewed in such an extreme and flagrant manner.

The purpose of this piece is to identify the three policy/behavior trends in our economies and markets today that either subsume other factors or simply render them (at the moment) irrelevant with respect to gold and silver. Understand that because the second and third trends are derivatives/consequences of the first trend, there will be considerable overlap here, so readers are encouraged not to become side-tracked by issues of semantics. Those three trends are:

1. Excessive money-printing

2. Gross misallocation of capital

3. Long-term destruction of the supply chain

Excessive Money-Printing

There is simply no other single dynamic in the global economy today (and specifically Western economies) that comes anywhere close to the significance of the utterly insane monetary policies that Western governments have allowed to occur. Indeed, so dominant have these forces become that no one (not even our governments themselves) find it the slightest bit noteworthy that the Money-Printers (i.e. the privately owned cabal of central banks) now absolutely dictate economic policies to our (supposedly) sovereign democracies .

The most current and extreme example is Greece. Here the bankers (and their political servants) have made it clear that they are going to force one election after another unless/until the Greek people "elect" a government who will do exactly what the bankers tell them to do : inflict more savage/suicidal "austerity" on that economy so the Bond Parasites can continue to receive their interest payments.

Understand, there is no long-term economic "plan" of any kind for Greece, not even any theoretical hope for solvency. Instead, the entire purpose of forcing more austerity on the Greek people is to allow the bankers to print even more money -- which they will then lend to this totally insolvent economy . None of the media drones or their "experts" consider this at all unusual or inconsistent either.