Ezra Klein once wrote:
Good economists are great storytellers. They sculpt narratives with squiggly graphs and crowded charts.
That’s actually the polar opposite of a good economist, as anyone familiar with Austrian Economics understands. But that’s how mainstream economists operate.
Let’s take a look at how Bloomberg writer, Nicholas Larkin, is “sculpting” gold with “squiggly graphs” and “crowded charts”:
How does one “sculpt” a gold narrative to make it look unattractive?
Well first, you declare that a “Bust” has occurred. And then you make sure that the “squiggly graph” makes it seem like that is the case. You do that by adjusting the time frame of the graph to fit the “narrative”. In other words, the above chart only shows the years 2008-2013.
But what happens when you to expand the chart out:
That changes the narrative…doesn’t it?
Instead of a “Bust”, what we’re actually dealing with is a “Normal Pullback”. Anyone who pays attention to markets has an awareness of the push and pull that occurs at all times. The gold price ran virtually straight up for a good decade!! It would be naive to think that a pullback would never occur.
The media’s constant portrayal of gold’s pullback as a “Bust” is purposefully done. The government (and it’s media) hate anything that challenges their paper money empire. Gold is always the main threat. They know it, they hate it, and will always try to paint gold as some loser metal that you should never consider owning.
There has been no “Bust” in gold.
If you want to see what a real bust looks like, take a look at the old Lehman Brothers chart:
It’s important never to fall victim to the establishment’s “narratives”.