We had planned on writing about China's emergence as the world's new superpower, while the United States keeps sliding into Third World status, but we cannot escape the more cogent political implications/ramifications of the diverging paths between the two countries. Actually, the United States has turned direction from a positive influence to a negative one with almost all other countries in the world.
There is no other country aggressively pursuing war and human rights violations more than the United States is, today. The US has engaged in perpetual warfare with one country after another in the Middle East: Iraq, on totally false pretenses, [Weapons of Mass Destruction]; Afghanistan, [seeking control of the drug trade]; Syria, a huge embarrassment to aggressor Obama, who claimed the use of chemicals in war, and to the extent of any truth, the supplies came from Saudi Arabia via Great Britain, both US allies. It took the intervention of Russian President Vladimir Putin to stop the Obama lies and deception to prevent another Iraqi-style deceit as excuse for another "invasion."
Of course, it could not have had anything to do with the fact that Syria is critical as an access point for Russia supplying natural gas to Europe, and diminishing reliance upon Saudi oil and the oil backing the US "dollar." Then there is the ongoing Iran situation, "potentially building nuclear weapons" as an excuse. The fact that Iran has been selling oil for gold, bypassing the use of the US "dollar," rendering the fiat less and less important on the world economic stage, was never a consideration for US opposition to that country.
Trying to get something started with Iran is the way elites "pay back" any country substituting the use of the fiat "dollar" in trade. Look at how the reaction has been in the Ukraine for refusing to align with the EU. Leave it to the elites to foment disorder with the intent of disrupting the Kiev government as another form of pay back.
The United States is crumbling from within, engaging in self-destruction. It has been helped, actually intentionally directed by what we call the New World Order, those elitists who control the entire Western banking system. It has been the purpose of the moneychangers to overtake and destroy from within the capitalistic United States. That plan has succeeded. The New World Order has been in direct charge of the United States since 1933, when the US went bankrupt, shutting down the entire banking system and reopening it with the privately owned, [by the elites], Federal Reserve in charge.
This is not a simple explanation to connect the dots from the Rothschilds in Europe and the Rockefellers in the United States to see how the United States has been stealthily destroyed by the Rothschild formula: "Give me control of a nation's money supply, and I care not who makes the rules," Meyer Amschel Rothschild. He was very serious about what he said, and he spoke from experience. It has taken about 150 years, by design, but the United States has finally succumbed.
The Rothschild formula is accomplished through money control, and what has been more controlling than central banks? For anyone who wonders why no banker has ever gone to jail in the last 8 years for the theft of millions of illegally foreclosed homes, for which the banks were often paid several times over for each property, why no Wall St banker has ever been indicted, why the inept US Attorney General of the United States cannot find any crimes in the banker's world, it is because they are all protected for their roles as bankers in promoting the financial theft and control of the country's assets.
The one asset no banker can control or diminish in value is gold and silver. Both metals are the wooden stake in the heart of all fiat. The answer, at least for us, as to why there has been such a disparity between ever-increasing world demand for gold and silver, and ever decreasing price levels for the past few years, is the control which the financial elites exert over all Western governments.
The natural law of supply and demand continues to be subject to the stranglehold of the elites over money, over governments, over news media, and over people who remain so unaware, for the most part, that the biggest Ponzi scheme ever has been conducted by the biggest financial mafia ever, the moneychangers.
China is a huge game changer. Russia and the other BRICS nations are gaining more and more independence from the soon-to-fall-world-reserve-currency, the totally fiat Federal Reserve "dollar." The Chinese government has been buying as much gold as it possibly can because it knows the "dollar" is done, as far as they and the BRICS, are concerned. More and more business is being conducted outside of fiat "dollars," because fewer and fewer countries are willing to deal with that toxic "currency."
The elites will not give up control without a fight, allowing the destruction of all fiat currencies, in the process. No one knows how this will play out. China has no issue with central banks being used to suppress the price for gold and silver, for it is to advantage for China and the other BRICS countries to be able to buy PMs at such ridiculously low prices.
It is also likely that the central bankers, who know this better than anyone that they are losing control, are being accommodative to China to keep prices low as a form of compensation for the worthless US Bonds China holds. The last thing the money elites want is to have China dump their bond holdings all at once and overwhelm the over- extended Western banking system, where not one bank in the Western world is solvent. The financial fraud must be perpetrated for as long as possible.
Those who are buying, accumulating, and personally holding physical gold and silver stand the best chance for economic survival when and as the US "dollar" is devalued and the financial system collapses, or undergoes dramatic change. Holding any form of paper gold and/or silver will not work. Paper claims will never be given delivery of physical metal. Any form of paper asset is at risk of being devalued to the "worth" of fiat "dollars."
The United States is at the end game in its survival. It will not survive, certainly not in the way people unwittingly [falsely]believe it can. The moneychangers have won with only a few shots fired, and two out of then three most successful were at Lincoln and Kennedy. The effort against Reagan failed.
The Chinese are experts at warfare, employing tactics espoused by Sun Tzu in The Art of War. The supreme art of war is to subdue the enemy without fighting. The West is playing right into China's hands. In contrast, the Western financial elites have employed only one tactic, All warfare is based on deception, for everything about the moneychangers is predicated on issuing worthless fiat and getting back tangible assets.
The elites created the current situation, and no one can escape the ravages of a fiat collapse. Remember, the Federal Reserve is modeled after the Weimar banking system, if that is any help in getting people to realize a replay of some degree is going to occur in this country.
There is a reason why the government has put the NSA in place, [started over 60 years ago], why the Patriot Act was passed by Bush, the National Defense Authorization Act by Obama, why FEMA was formed, [federal control over the population, as in detention camps], the TSA, subduing and controlling movement by citizens. They are coming after the guns, next. We are living Orwell's "1984."
Take a page from the Chinese, who know very well what they are doing in assuring the downfall of the US "dollar," and the country itself. Keep buying the physical metals.
We do not know what the tipping point will be for the turnaround in prices, but it will certainly show up in the charts, eventually. For now, there is still no ending action to the current decline. All we can do is read developing market activity and look for tell-tale signs when they do show.
The decline is holding near the last swing low. Will the June low hold? The odds are greater for the low not holding, based on the trend, but there is no way to determine the probability of the June low giving way, for it is possible it will not. For now, the 9 week rally from that low is undergoing a correction, currently in its 14th week. From that, we can infer the decline has not been as strong as the rally.
As is pointed out, the ranges of the last 6 weeks down are smaller. There is not as
much EDM, [Ease of Downward Movement], which says sellers are not as strong; buyers are meeting the effort of sellers, more so than in the past since the highs; or a combination of the two. The mid-range close from last week shows evidence of buyers successfully defending the low, and that requires a closer look at the daily chart to see if more can be read into that observation.
What is known about bars that overlap is they reflect a balanced struggle between buyers and sellers. On the weekly chart, price is well away from the upper channel line. On the daily, the upper channel line is being retested. The upper line represents supply, [selling] and the lower channel line represents demand, [buying].
Because price is bumping up against a known supply area, it illustrates why the bars are overlapping, showing the balanced struggle between buyers and sellers as just explained. All that can be said is that control by sellers appears to be weakening. That happens in all declining markets, but a weakening of the trend does not mean that it has ended.
Wednesday's large, high volume rally bar needs to be watched to see how it is retested. The how of any price reaction often provides important clues. If price narrows and the volume declines on a retest, it lets us know sellers are weak, and buyers can more easily take control. If price declines in a wide range bar and closes poorly, we know sellers are still in control. Next week should give some kind of answer.
No question that the trend remains down, and there is no sign of a turnaround. Of late, silver has been relatively weaker than gold.
The thin line connecting the recent swing highs and lows shows a time frame of 23 weeks in the August high October low decline, and the current low is the 24th week since the late October swing high. Sometimes, markets rhyme in time. What matters the most is how price behaves. The swing low timing gives greater reason to watch how price responds at the current lows for a possible rally turnaround.
Note how the last three closes were in the upper range of each bar. That tells us buyers won the battle on each of those days. Many more battles will have to be won before the tide of the "trend war" changes.