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The ‘WORDS’ we think with affect our understanding of events!

March 6, 2012

Why are Eric Sprott and Bill Fleckenstein using ‘words’ that do not reflect today’s reality?

Eric Sprott and Bill Fleckenstein are well-known as financial pundits and experts. They understand the financial markets and are listened to by millions. Yet these two individuals seem ‘deceived’ on what they are reporting to the public via their audios. Take the time to listen to these two pundits on the King World News website: Click on the Broadcast tab (far right) and then click on the March 4 audio with Eric Sprott and the March 6 audio with Bill Fleckenstein. What you need to focus on are the ‘words’ being used by these two individuals as they speak about the markets and future trends. What  ‘words’ are key and being mis-represented by these pundits?

Both of these pundits think that the gold/silver ‘price’ manipulations are a ‘paper’ market situation. Eric and Bill use the ‘word’ PAPER to reflect the actions of traders as they manipulate the gold/silver markets. Is this accurate? Actually, NO! In reality, there is NO PAPER manipulation that is occurring in the gold/silver markets. What is happening is that traders are using their HFT computers to manipulate the gold/silver markets. The implication from the mouth of Eric and Bill is that PAPER money is being used in the gold/silver markets and the PAPER buying/selling is causing the ‘price’ drops (changes) in these metals. Is this accurate and true?

This mindset is NOT reflective of our markets or our trading activity today. Traders, now use digital money units to trade and execute their speculations in the gold/silver markets. Everyone, today has a COMPUTER for their executions of trades. These computers use DIGITAL money units…NOT ‘paper’. When I buy gold or silver  today, I do so by executing a trade via my personal COMPUTER. Stocks are now DIGITAL instruments. ETF’s and Option trades are done electronically. Trading by the large Hedge Funds and all Commercial Banks (including all Central Banks) are done electronically. There is NO PAPER being exchanged between traders, investors, or financial institutions today. All markets (in our global marketplace) have been converted to DIGITAL formats and markets with electronic execution for trades and all other financial transactions.

When Eric and Bill state that the Central Banks are PRINTING money, they imply that Bernanke, Draghi, and the rest are ‘printing’ paper notes for their markets. This is no longer accurate and all you need to do is look in front of your face to witness the COMPUTER which you use for your trading, etc. Yes, there are still some PAPER notes in circulation around the World (about 4% of money units are still ‘paper’). But…the vast majority of all trading, investing, lending, financial manipulations, etc. are done via the COMPUTER (96-97% of all activity).

When Eric and Bill (listen to their ‘words’ on the audio above) state that all this PRINTING is causing inflation and that traders are manipulating the PAPER price of silver/gold they are not reflecting accurately what is now happening in the markets. I might add that when I attend any HARD MONEY CONFERENCE I witness this same mindset and mis-use of ‘words’ by practically every speaker. So this missive is not meant to criticise Eric or Bill. Eric King, James Sinclair, Jim Dines, Rick Rule, Peter Schiff, Jim Rickards, Dr Marc Faber, and James Turk also mis-use the words ‘printing’ and ‘paper’ in their enunciations about money and the markets.

This mis-use of WORDS creates a false and deceptive image in the minds of the listeners and it also creates mis-understandings on what is happening with regard to ‘inflation’ and ‘deflation’, etc. Since there is NO real ‘printing’ of money units today and since all markets are now nearly 100% digital, this CHANGES the dynamics and the interpretations which we need to make with regard to the markets. We now need to THINK in terms of new words like:  digital money units (created out of nothing), HFT computer trading at near the speed of light, electronic global markets for all banking and inter-bank activity, millions of traders (visualize the global marketplace) with their own computers to execute trades, digital money units for our personal investment accounts and for our personal trading, all stock and clearing houses are now digital exchanges, and on-line execution of trades in milliseconds via HFT computers.

Today, our markets have evolved into a web of global on-line networks with digital money units as the medium of exchange. All this change needs to be reflected in the WORDS that we use when we describe market activity and market behavior. The markets today are SUBJECTIVE and manipulated by those who have large ‘pools’ of digital money units in their on-line accounts. The CENTRAL BANKS are the biggest and most pervasive money manipulators. The 9th floor of the New York Federal Reserve Bank has enormous influence on what happens within the markets. This floor contains the HFT computers for the trading DESK of the Fed (the System Open Market Account). QE and other money manipulations occur on this floor and all is now DIGITAL.

Bernanke has warned everyone that he no longer PRINTS money. He now (via the DESK on the 9th floor of the NY Fed) just punches ‘numbers’ into a COMPUTER for new money units. The old days of PRINTING and creating PAPER notes is mostly over. The NEW WORLD is digital, electronic, at near the speed of light, and controlled by those with access to the CENTRAL BANKS policies and activities. THINK digital and drop the ‘words’ of the old regime, i.e., PRINTING and PAPER. My teacher mentality is displayed via this missive! Enjoy!

P.S. Go to and plug-in ‘High Frequency Trading’ to learn about our new technology and our computer trading machines. Europe plans to promote their new DIGITAL SINGLE MARKET for their union and our Central Banks are doing likewise. Vistualize traders with computers when you THINK finance today!

One Comment leave one →
  1. March 6, 2012 6:35 pm

    Totally agree. nice to find somebody who gets this. “Printing” money is so yesterday.


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