by John Galt
February 21, 2013 05:00 ET
The most dangerous gun in the world was not created by the Chinese Communist Party.
It is not the Barrett .50 caliber sniper rifle.
Governments do not fear the AK-47 or the now much ballyhooed AR-15 as many might think.
The most dangerous gun which can bring down a government is in fact the oldest weapon of its kind in human history.
That is why governments, central bankers, and mercantile professionals are terrified of it falling into the hands of the masses.
What is this weapon that is so deadly to civilizations which need the submission to the rule of the elites?
First, let’s review a little history in the United States over the past fourteen years.
In the prior article below about the .com stock market of 1999, the following chart of the S&P 500 really summed up what happened to American economic reality at that moment in history:
The sharp rise and crash which followed caught many off guard (including yours truly) and the expectation was that by 2001 the weak hands would be shaken out of the market and the manic bubble was burst. Unfortunately for the Bubblevisionistas, the crash was accelerated by the events of 9/11 and our economy was changed forever. The United States went from a viable economic power to a speculative economy based not on productivity and creativity via capitalism, but on bubbles inflated by the government and the Federal Reserve.
The crash almost destroyed approximately one hundred years of the greatest progressive Ponzi scheme and con game created by centralized government and the world’s central banks resulting in a schism which would have led to the rule of law returning to the power of the people and of course, helping to remind the powers that be of the most dangerous gun an American citizen can own and initiating efforts which continue to this day to distort it’s power, its ability to topple fiat nations, and the freedom it gives the individual from the rule of tyrants.
What weapon, what gun, is this?
Governments and tyrants fear the power of the “golden gun” because gold and silver provide independence from their designs on manipulating capital, controlling freedom, and restricting trade between free men. This power is why every effort has been made throughout history to shift the psychology of mankind away from the power of gold and into the convenience of fiat funny money or as is the case today, a digital fantasy world where banksters create and destroy money for their own benefit at will.
While most people might laugh at this concept that gold, and to some extent silver, is “real money” the reality of today’s markets decline provides another opportunity for the pushers of paper heroin to proclaim the superiority of the fiat system, even though recent history illustrates the fallacy of their proclamations. In the period before the 1999 .com crash, gold performed its traditional duty of warning about a bout of deflationary contraction as the stock market soared and the warnings were ignored:
(charts from StockCharts.com)
The weapon warned of the implosion that was to come as real money was converted to fiat funny money in anticipation of the crash. Less than three months later, the gun was reloaded because investors realized the crisis was far worse than originally anticipated and hard assets were the only common sense shield against the bubble bursting. As markets slid and gold fluctuated with an attempted retest of the lows in early 2011, the uncertainty displayed in late May of 2001 created a huge spike in purchases which was followed by an even larger move after September 11, 2001:
The bull market was on. The gun was fired. And physical assets once viewed as the investment of “primitives” became chic once again as the power of real money became evident as the government and Greenspan’s Fed began the rapid degradation of the dollar’s value. The three year explosion which lasted well into 2004 continued as the housing bubble was inflated and expanded by banksters and government within the U.S. and demand for the precious metal accelerated:
Then the bubble burst and common sense reigned supreme. After a very sharp correction as the liquidity crisis accelerated with the real estate crash, the average person and large investor both realized that the only weapon against political and economic instability was in fact precious metals. Gold continued to move higher from 2007 through 2010 as the desperation of D.C. and the bankers knew no limits:
After that period, the acceleration intensified as Bernanke’s Fed indicated that there was a no holds barred approach to socializing America’s bankster losses by inflating the money supply to new heights of insanity and the precious metals markets knew that until full court price suppression began; not too long after some central banks started demanding physical delivery for all purchases as distrust in our nation began to expand worldwide. The chart from September 2010 until today reflects wild uncertainty:
Over one year of range bound trading and a sharp decline recently still keep gold trapped in a long term basing pattern between the $1280-$1300 range upwards to around $1800-$1825 per ounce. A retest of the lower end of this range, especially below $1380 indicates another monetary contraction is underway and a 30%+ correction will set off a panic in the currency wars and American economy. The only stability the average American can obtain during this upcoming period of economic instability is in fact real money loaded with silver bullets (coinage) as a shield against the hyperinflation which kicks into high gear after this next market correction.
While anyone sane and with the resources can, I highly advise obtaining the one weapon the common man has against tyrannical governments and the destruction of fiat currencies:
The most dangerous gun in the world, the weapon of freedom, real money, aka. gold and silver.