Deconstructing the Anti-Silver Propaganda

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And we thought we were rough on silver's newest troll (Bob Moriarty).  Don't Tread On Me's latest piece attacks 5 prominent anti-silver propaganda writers and debunks all fiat profit taking arguments with the skill and ease of Zorro.  The only thing missing is their pay stubs from The Morgue.

Picking A Fight With 5 Silver Traitors/Traders

From Silver Shield:

Anytime silver gets smacked down by the banksters, I feel like picking a fight. This time I will take on 5 bloggers at once who are trying to break the silver bull. 

At the beginning of the year when silver got knocked down from $31 to $26, I got the fire in me that if people knew what I knew about silver, silver would be at $50 by the end of March. So I spent 3 weeks putting together every single reason I could think of for people to sell every single intangible paper asset and buy REAL physical silver in their possession. The Silver Bullet and the Silver Shield showed how we can fight back the corrupt welfare/warfare state and create generational wealth by buying REAL physical silver.  The article was read by 100,000 people on my blog. When the article was released silver was at $32 and has coincidentally ran all the way up to $50 an ounce yesterday.
There was one guy in particular that did not like my article at all and that was Bob Moriarty of 321gold.com. Without beating a dead horse, Bob and I got into a blogger battle over the direction of silver. (Read My Skirmish with 321Gold, Bright Spark vs. Old Fart, Crash Bob Moriarty- Buy Silver, and Poor Bob Moriarty of 321Gold.) From $31 an ounce, Bob has been calling a top in silver. EVERY single time he has made a prediction, it has blown up in his face, especially his arrogant call to short silver at $38.
“The next major move in silver is down. A lot more than the silver bulls want to face. When silver permabulls throw in the towel and give up, I’ll be a buyer again.” Bob Moriarty 3/24/11 at $38 dollar silver.
That was a day that the CRIMEX raised margin rates and there was this key technical trading inter day reversal that is supposed to signify a blow off top. The day Bob made his call to short silver, I wrote Crash Bob Moriarty- Buy Silver. In it I told him that his trading buddies were fighting the last battle of paper manipulation and that this battle, is a physical battle, and that we are playing for keeps. All of these games the Elite used before to scare the weak hands out of the market, are not going to work anymore. We have your number and we wait patiently while you hang yourself on your “naked short” rope. We will simply keep standing for delivery saying show us the silver. Any short term gains the banksters make will come at long term, catastrophic losses.
“Shorting silver is the most profitable trade you can ever make.” Bob Moriarty

I will pick a fight with 5 Silver traitors traders and knock down each and everyone of their arguments they use to try to scare us out of our silver. First, one must know that this propaganda pattern is very familiar. Every time we get close to options expiration, the silver traitors traders try to scare you out of your positions. This is coupled with raising margin rates and a slew of negative propaganda pieces on silver in the media. The first one up, of course, is poor ole Bob Moriarty. After calling a top in silver at $31 and $38 he has called the top for the third time in three months. This article was coincidentally released just as the hammer was coming down on silver as the New York market opened yesterday. (Some call it coincidence, some may call it conspiracy, some may want to look into this…) The article called the Facts of Silver, is where he laid out 5 reasons to scare potential investors out of silver. I will knock these down with extreme prejudice.
1. The chart of silver has gone parabolic. Parabolic charts mark tops no matter what the commodity.-The chart Boob Bob should have been showing, is not the parabolic chart of silver, but the parabolic chart of the Federal Reserve and our money supply! I mean I love silver, but the biggest reason I buy it is because I am deathly afraid of the Federal Reserve Note. Here is a little lesson in economics Bob, the price of silver is not going up as much as the value of the FRN/dollar is going down. You need more dollars to buy the same amount of silver. (Read No Investment Goes Straight Up...)

2. The bullish consensus on silver is at a record high. Record high bullish consensus on any commodity is common at tops. You mean to tell me that when 1% of the Western world wakes up to buy silver, that is the top? What is he going to say when 1 billion Chinamen dump $2 trilliion into commodities? Or when the dollar breaks the long term support and people rush into REAL tangible assets?

3. When the most credible guys in an industry start explaining why supply and demand don’t really work, it’s a top. With 19 billion ounces of silver above ground we aren’t about to run out any time soon. The only guys I know that are saying that silver is going to become extinct any time soon is the United States Geological Survey. They said that “While cheap silver ore may become scarce, given the right price, it shouldn’t become extinct!” The real problem is not that it is going to run out, it is how much is available relative to the rising demand. (Don’t forget Evo Morales is threatening to nationalize the silver miners on May 1st.) The industrial demand for silver if one huge factor but I feel the increased monetary demand is insatiable and just now starting. The most immediate threat is the amount of fiat money relative to the amount of silver.
4. When guys start writing about silver that didn’t have a clue as to what it was or what it was used for at the bottom, you are at a top. I’m astonished at both the ignorance and the arrogance of the newly invented silver “Gurus.” This is an obvious smack at me. Funny, I have been so right, while he has been so horribly wrong and that is his excuse for calling a top? I cannot imagine that amount of losses he must be sitting on trying to short this silver bull. I have said over and over again, buy right and sit tight in physical. I know a lot of happy people because of this. This simple principal got me through the crash of 2008 to 400% returns while every single other paper asset has taken it on the chin.
5. When the smartest guys in an industry start telling you, “This time it’s different,” it’s not. It’s just a top. I wrote that we are NOWHERE near the REAL inflation adjusted top which should be closer to $500 an ounce for silver. (Read The REAL silver high.) And yes, this time it will be different, because the dollar is mathematically, inevitably going to collapse. When this happens, silver will enter a new paradigm of REAL money. (Read The Silver Rocket.) Have fun Bob trying to short the hottest commodity, that the whole world needs, during a world-wide, hyper inflationary, fiat currency collapse.
The next guy I want to take out is Mark Taylor, Bob Moriarty’s friend on 321Gold. He wrote an article released at the same coincidental time as Bob’s article and the CRIMEX smack down yesterday morning. (Things that make you go hmmm…) Mark wrote an article called More Silver Than You Imagined. This article is trying to say that there is much more silver than we are lead to believe. He believes the rise of 900% in silver is unwarranted with the supposed supply of silver. The percentage of rise in it of itself means nothing. Silver has been violently suppressed by the banksters since the Crime of 1873. This parabolic correction up is just a simple reversion to the mean after 138 years of price abuse. (Read Beware of the Great Silver Correction.) Things I would like for Mark to explain away…

• Why did Eric Sprott have to wait months to fill his Physical ETF meanwhile, SLV can add 245 tons overnight?
• Why did the US Mint suspended the sale of Silver Eagles illegally in March?
• Why is APMEX pestering its customers to sell silver back to them?
• Can the supply of silver big enough to absorb $2 trillion Chinese dollars? How about $200 billion or even $20 billion? $2 billion…
  
• Can the supply of silver handle a Nationalization of one of the largest silver miners in Bolivia?
• Can the supply of silver meet the demand for a world rushing out of doomed paper assets?
  
• And if there is supposedly billions of ounces floating around, why why is there less than 40 million ounces in the CRIMEX?
  

The next in the Bob Moriarty parade of traitors traders is Puru Saxena. Puru wrote a quick piece talking about this technical trading note of the outside inter day reversal. This again is supposed to get everyone to think this was the blow off top and that this is the time to short. He parrots Mark Taylors point that, “we want to make it clear that there is no shortage of physical silver and the world is not running out of the metal. Anybody who says otherwise is only engaging in propaganda and trying to separate you from your money.” I would say again to all of these traitors traders, that the buyers are physical buyers and will hold until the dollar dies. The sellers are paper tigers hoping to catch a break. (Watch Wall Street Laughs at Main Street.)



Barron’s wrote and article called Why Silver Will Tarnish. This trite little article is a their attempt to assure their readers that there is nothing to see here and stick with their advertisers who peddle paper. Her first argument is that the demand has been pushed up by individual investors who have been driven out of gold and that “the little guy is less likely to hold silver over the long run.” First, I and many other investors can afford to buy a lot of gold, but we wisely chose to invest in silver. Her comment that us little guys won’t hold for the long term is ridiculous. Most investors that I know are buying silver for the end of the dollar, not for some short term trade.
Her second argument is that silver is more used in industrial applications and that the weakening economy will lessen demand. Show me where silver demand is falling? It seems every growing industry has some silver in it and silver’s uses are second only to oil. As I have stated before the monetary demand of silver is insatiable and just now getting started.
Her third argument is that silver is more volatile than gold. I would agree with her but what does that speak to the fundamentals of silver. I have shown that if you adjusted for REAL inflation, not the government propaganda inflation numbers, silver would have to get to $500 an ounce. Gold also is close to doubling its 1980 nominal high of $850, while silver is just barley cracking its previous nominal high. Silver has a long, long way to go even before a dollar collapse.
Her final argument is that miners will respond will increased supply to meet the rising prices. Really? Silver is up like 900% this in the past 10 years and the best that I can tell, mining production has maybe increase 15% over that same time period. And how about all of those huge stockpiles that we burned through? And what about miners being nationalized? Next…

Brett Arends of “Smart Money” (their words not mine) wrote an article 6 Signs The Silver Market Has Gone Nuts.
1. The price spike- He says that silver has spiked and that it will collapse. Really?

• I guess the trillion dollar deficit is no more?
• Or the billion dollar a day wars are ending?
• Or our huge trade deficit is done?
• Or that China is NOT going to sell their $3 trillion dollar portfolio?
• Or jobs are recovering in America?
• Or that Wall Street should be trusted with our money again?
• Or that the dollar is NOT on the knifes edge of a waterfall collapse into a hyper inflation?

Yeah Brett, all is well, nothing to see here…
2. Madness in silver funds- He says that it is nuts to buy Sprott’s PSLV because it is trading at a 22% premium to net assets. Maybe this is because Eric has the real stuff and the SLV does not have any? Maybe there is a limited amount of seats at the table and it cost more to get in? Maybe the 22% premium is closer to the REAL price of silver instead of the crap they are peddling at the CRIMEX?
3. Silver vs. gold- He says the GSR has moved from 60 ounces of silver for 1 ounce of gold to now 33 ounces of silver to 1 ounce of gold and that it is time to trade your silver for more gold. That would be true if the natural ratio was not more like 12 to 1. I could get at least 3x more gold if I hold until then. I think there can be a case made that we may see a 1 to 1 ratio before this “madness” is over. Also why buy gold when the Banksters have tons of that and they have NO silver.
4. The conspiracy theories- He says that the tin foil hats claim that JP Morgan is suppressing the prices. He says why doesn’t the Morgue just close their positions? What he does not get is that this the plan the Elite use to suppress the silver market and inversely prop up their quadrillion dollar empire of lies. The 8 largest banks are net short 150 days of world wide silver production and it is not something they can just “cover” without bringing down the whole facade. He then says that this should be driving the banks into disaster. This would be true if they actually had to recognize these loses or if they did not have the unlimited bailout of the Federal Reserve. That being said…

5. The bloggers- “There’s a lively community of silver bug bloggers. And they are having a fair amount of influence, especially on the naïve.” Ahh… only people who read and write for “Smart Money” are smart, I guess. He says that we are not to be trusted because we have banner ads on our site pushing silver on our unsuspecting and naïve sheeple. I would say that same thing about Smart Money. Let’s see who is paying Brett’s bills…

Oh Fidelity! Let see what those FDIC-insured CDs are all about….
WOW!!! I CAN GET A WHOLE HALF OF A PERCENT WHILE MY MONEY IS LOCKED UP FOR A WHOLE YEAR!!! WHERE DO I SIGN!!! Nahhh Brett I will continue with my silver that I am up something like 700% since 2005 or 43% since January 1st. I will continue to work for free after giving away my life’s work, the Sons of Liberty Academy. And I will continue to smoke Elitist, apologists who work at snooty, arrogant rags like “Smart Money.”

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6. A silver shortage? He concludes his little piece with a “what me worry” attitude if there is a silver shortage. Little does he know that silver is the second most used commodity next to oil and that the fluffy existence he is living would end tomorrow, if we ran out of silver. The best line of the whole article is,”Silver won’t save me. Silver is a totally pointless metal.” It is sad to say that I now have found someone that I have less respect for than Bob Moriarty.