Read the Thursday Afternoon Wrap-up for 6/21/2012 and the Friday Morning Commentary for 6/22/2012

NO ONE in the PM community has been as willing to challenge its own “members” as aggressively as myself, and likely NO ONE ever will. I’m not sure why this burden falls on my shoulders, as PROTECTING one’s readers entails informing them of ALL threats, both external and internal. Additionally, one must realize that even the “good guys” – like Richard Russell and Jim Sinclair, for instance – are sometimes wrong, in most cases due to biases inherent in their business models. Russell, for example, needs readers to believe in his archaic “Dow Theory” – and thus, rarely mentions the MANIPULATION that renders it obsolete (although he did this week). Meanwhile, Sinclair has enormous assets (capital AND time) wrapped up in a mining stock, and thus is biased toward mining stocks. Perhaps I, too, am biased by my vocation, but I was writing of the need to sell mining stocks LONG BEFORE I joined Miles Franklin!

Moreover – as I have written of for years – the sector is littered with frauds, charlatans, and “wolves in sheep’s clothing” – in my view, the greatest threat to PM investors, BY FAR. And NO ONE in this sector is more deserving of these descriptions than Martin Armstrong – BAR NONE!

Over the years, Jim Sinclair and others have written of Armstrong’s “brilliance,” in some cases calling him a hero for being unjustifiably imprisoned – specifically, for illegally commingling investor assets within his asset management firm. He went to jail for five years, and was released earlier this year. Unfortunately, when I read the accounts, I am baffled as to why anyone would assume him to be innocent, regardless of what actually happened. As for me, I’ll assume the justice system got it right, unless I see evidence otherwise.

Irrespective, due to the cumulative “sympathy” engendered to his plight by PM supporters, I read some of the articles he penned in prison. I have written many times of my views on this work – i.e., he is a brilliant historian, a reasonably sensible economist, a delusional chartist, and a “closet gold bear.” Each incremental piece furthered this view, to the point that last year, I stopped reading to prevent nausea.

In a recent report – which of course, I DID NOT read – he finally showed his true colors, in all their vile glory. His “closeted” attacks on gold are no longer so – and frankly, his comments could have easily been written by Warren Buffett, Charlie Munger, or Bill Gates. Once again, my instinct was right – as I believe my greatest gift is separating the few “good, smart people” from the rest. But this time around, “Genius Armstrong” was taken to task by the one and only Jason Hommel, who personifies “good, smart people.”

Below is Hommel’s targeted, methodical criticism of “Criminal Armstrong,” once and for all shutting up the so-called hero.

Silver Stock Report – Martin Armstrong wrong on Gold

This RANT is specifically targeted at Martin Armstrong, but encompasses my feelings for ALL those in the “PM community” that purport to “have your back,” when in reality they just want your money or to otherwise obscure reality. Long-time readers are well aware of others I hold in this esteem, but I will be kind and not name them here. I have purposely not excerpted anything from Hommel’s piece here – so you’ll read his brilliant rebuttal in its entirety – except for two quotes, listed above in my “QUOTES OF THE DAY.”

When you finish reading the article, scroll up to the quotes, and keep them in mind when you read ANYTHING presented to you by so-called “analysts” and “newsletter writers.” As mantras in life, they will serve you well.

PROTECT YOURSELF, and do it NOW!