Without exception, all nations are in dramatically worse condition than 2008. No matter what metric one uses – from debt, to GDP growth, financial stability, political tension and social unrest – 2008 can objectively be viewed as the “good old days.” Sure, things were worse for a few “deer in headlights” months at the crisis peak – but otherwise, there really is no comparison. For example, Greece would do anything to be back to those halcyon days – when its debt and unemployment were dramatically lower, its GDP dramatically higher, and Neo-Nazi political parties unheard of. However, simply because Mario Draghi said he’d do “whatever it takes,” Greek interest rates plunged – comically, yielding unending propaganda that Greece was “fixed.” But guess what, it’s decidedly NOT! In other words, the “Greek tragedy” was simply in its intermission. And when S&P’s new prediction of a 2015 default unfolds, there will be no way to save it. Recall how typical Greek tragedies end, as this is exactly what we are about to see in the “second act.”
Ominously, said “second act” has already started with Europe – for all intents and purposes – in the throes of a rapidly expanding depression. This week’s horrifying disclosure that Europe’s “leading” economy, Germany, saw its August manufacturing orders and industrial production plunge by 4.0% and 5.7%, respectively, validates this summer’s historic collapse in German business confidence with nearly all European PMI indices now in the red. And while the ECB comically claims Europe is suffering “deflation,” this table depicts that for the average European, inflation is the number one concern. As it is in the “Land of the Setting Sun,” whose anticipated third quarter economic contraction will seal the deal on Abenomics’ failure. Yes, while the BOJ cried “deflation” in 2012-13, Tokyo and Osaka were the world’s two most expensive cities; and that is before Abenomics decimated the Yen’s value by 45%.
Back to Europe, the “every man for himself” mentality is exploding – as Scotland nearly seceded from the UK; Catalonia will likely vote to secede from Spain on November 9th – potentially collapsing Spain as we know it; and for the coup de grace, Switzerland may “shock the world” November 30th, when it decides if it should re-back the Franc with gold. Trust us, this will happen if gold prices are surging by then, in response to the expanding economic implosion that will end with worldwide currency collapse. This is why TPTB are so desperately attacking paper PM prices every second of every day as elucidated by the great James Turk.
It’s a war on gold out there. The central planners are pulling out all the stops to try keeping gold under their thumb. They will do whatever they can to win, including using psychological warfare on investors. But while the central planners can win some battles, I promise you they will lose this war.
–King World News, October 7, 2014
Yes, Zero Hedge writes of the “sea of red” in global equity markets; with the only reason U.S. “volatility” is so two-sided is because the PPT is fighting the inexorable plunge in stocks – large and small – with “Dow Jones Propaganda Index” support so blatant, it can only be matched by the simultaneous unprecedented capping of precious metals by its “sister manipulation team,” the gold Cartel. Global currencies are imploding and physical PM demand exploding; and now that gold and silver prices are so far below the cost of production, we have ZERO doubt production levels will plummet into the abyss in the coming years.
Moreover, worldwide interest rates are in FREEFALL, validating what we so vehemently wrote of five months ago – in perhaps our most important article in years, the “most damning proof yet of QE failure.” To staunch the bleeding, the Fed “painted the tape” ahead of its September meeting by goosing rates higher. But guess what, the rally in the benchmark 10-year Treasury yield stopped cold at the 2.60% yield we shouted to the rooftops about in May; and plunged thereafter, even despite Friday’s “strong” NFP report. To that end, it shouldn’t be long before the 10-year Treasury yield – down to 2.37% this morning – takes out its 52-week low of 2.31%, enroute to record lows as the entire world anticipates “QE to Infinity.” Trust us, this WILL happen; as will the abrupt reversal of bonds’ ill-begotten games – when hyperinflation inevitably arrives.
Now that “peak debt” has been passed – on the individual, corporate, municipal, sovereign, and Central bank level – global liability accumulation has turned parabolic. Consequently, the worldwide, hopelessly entangled banking system is far more insolvent than in 2008; and thus, the “free money” must exponentially expand like any other Ponzi scheme. Frankly, the only “benefit” of history’s largest most suicidal money printing experiment is the “temporary exception” noted in today’s title. I.e., the goosing of financial markets with limitless Central bank issued toilet paper – for the benefit of the “1%,” at the expense of the “99%. And speaking of the 99%, what headline tells the story of how lethal the combination of socialism and money printing has been than the below – hot off the press? Yes, the world’s largest retailer – and private U.S. employer, already notorious for preventing employees from reaching the 30-hour weekly limit qualifying them as “full-time” will be cutting off health insurance entirely for its 30,000 sub-30 hour workers.
Fortunately, “Economic Mother Nature cannot be defeated. And clearly, TPTB’s “game” is on its last legs – as even the world’s best companies are contracting, per Samsung’s horrible earnings guidance this morning. As for the rest, not only are their businesses plunging; but the majority, their stocks as well. Gee, I wonder how the all-time high level of U.S. stock repurchases – financed with short-term debt at Fed-created all-time low interest rates – will turn out.
Yes, as the PPT relentless gooses equities with limitless, covert futures buying – per yesterday’s “hail mary,” and today’s “dead ringer” algorithm – the Cartel works 24/7 to prevent the inevitable PM explosion from occurring now.
From Sunday’s 68th straight “Sunday Night Sentiment” attack to this morning’s twin “Cartel Heralds” – at the “2:15 AM” EST open of the London paper pre-market session, and the 10:00 AM EST close of the global physical markets known as “key attack time #1”; to the daily silver freefall we long ago documented; not a second goes by when the Cartel is not actively suppressing prices. Today alone, it’s using every fraudulent tool imaginable to simultaneously enforce “PPT Rule #1” – “thou shalt not allow PMs to surge whilst the Dow plunges” and “Cartel Rule #1” – “all great PM days shalt be followed by horrible ones.” Trust me, there’s a reason we have articles describing each of the Cartel’s myriad tactics – which is, they’ve been ongoing that long.
Fortunately, we cannot lose by holding real physical gold and silver; as no matter how hard TPTB try to discourage – such as utilizing the aforementioned “psychological warfare”…
…they can’t escape the reality of the tightest physical gold and silver supply/demand balance of our lifetime; which inevitably, will destroy the “New York Gold Pool,” just as it did the “London Gold Pool” before it.
Until the bitter end, which may well arrive much sooner than most can imagine, the Miles Franklin Blog will be espousing the TRUTH of the dying global economy and financial system, and inevitable return to power of the “once and future kings” of money, gold and silver. Hopefully, you will respond by acting to protect yourself before the “end game” of currency collapse commences. And if you do, we hope you’ll “give us a chance” to earn your business.