Since taping my second epic, 30-plus minute Audioblog in three days Saturday morning, “Manipulation/Idiocy/Hubris Conflagration,” a LOT has occurred worldwide, in response to Tuesday’s “shocking” election result; essentially all of it negative, with the only real “positives” being the unquantifiable hope that Trump can reverse a rapidly collapsing economy, powerful geopolitical tensions, and escalating social discontent with the wave of his magic pen. You know, the same moronic belief in “free lunch” that has plagued a self-entitled – and in the West’s case, self-righteous – world, that has been so jaded by manipulative and/or monetized interest rate suppression, for so long, it has lost the ability to diagnose its own, blatantly obvious problems, like debt, overcapacity, oversized government, and inflation. Sort of like sociopaths like the Clintons, who literally have no idea how criminal their behavior is, or how much destruction it has wrought.
Heck, even the smartest of the smart – such as Roger Stone, a long-time, deeply respected political strategist who re-entered the alternative media limelight this election cycle as a regular guest on Alex Jones’ show, moronically claimed that now that Trump is President, America will be able to lower taxes, reduce deficits, and establish above average economic growth. To that end, I kid you not, he actually exhorted Trump to hire Larry Kudlow as Treasury Secretary, because Kudlow “knows how to make the economy cook.” I mean, Kudlow has for at least a decade been CNBC’s top financial shill – vying with Jim Cramer and Steve Liesman for the title of worst economic analyst, mocking anyone speaking truth.
Cramer’s most infamous moment was his epic “Bear Stearns is FINE” rant on March 11th, 2008 – espousing that investors were “silly” to not hold on at $68/share, six days before it was acquired for $2/share – Kudlow’ s “greatest hits” are more “Bernankian” in scope; in first writing in December 2007 that “the recession debate is over, it’s not going to happen”; “it’s time to move on, at a bare minimum we are looking at Goldilocks 2.0”’; and “the Bush boom is alive and well, finishing up its sixth splendid year, with many more to come”; followed up by his equally infamous comment of May 2008, that “President George W. Bush may turn out to be the top economic forecaster in the country.”
Before that, his resume includes every imaginable thing that’s wrong with America, starting with his “first life” as a Democrat – when I kid you not he worked with John Podesta and Bill Clinton organizing Senate electoral campaigns. Next, on to Laffer & Associates – whose “pioneering” work on the relationship between tax rates and economic growth led him to join the Reagan Administration’s Office of Management of Budget, whose equally “pioneering” experiment in “supply-side economics” – i.e, massive tax cuts and spending increases – launched the parabolic national debt explosion (fueled by abandonment of the gold standard) that put America on the precipice of collapse it sits at today. Next, he worked at the New York Fed’s “open market operations” – i.e., market manipulation – desk; followed by Freddie Mac; and finally, in his “audition” for CNBC shilldom, Bear Stearns, where he was fired for having a $10,000/month cocaine habit.
Yes, this is the man the “great” Roger Stone believes to be the best candidate for Treasury Secretary; a job, I might add, whose principal description is figuring out new, creative ways to increase debt. That said, at least Stone had it right when he said “I hope and pray Trump doesn’t hire Reince Preibus to be his Chief of Staff, as Preibus is the ultimate Washington insider, decidedly at odds with the goal of draining the swamp.” Which, of course, is exactly who Trump appointed this weekend, whilst mulling none other than Jamie Dimon of JP Morgan, perhaps the most criminal bankster on the planet, for the post of Treasury Secretary.
As I vehemently espoused in Thursday’s equally epic Audioblog, “Turning on Trump”; as well as Saturday’s Audioblog, and Thursday’s equally must listen podcast with TF Metals Report, it won’t be long before the world realizes, like Obama in 2009, that not a shred of what Trump has proposed will get done – starting with the repeal of Obamacare, which for all intents and purposes he has already backtracked on; which, per this fantastic article from, yes, the New York Times, is literally impossible. Let alone, in the wake of the market’s initial, “BrExit times ten” reaction – that is, aside from the blatantly obvious “outliers” known as the paper PM markets and “Dow Jones Propaganda Average”; whose manipulation, the former to the downside and the latter to the upside, could not be more egregious. Heck, even the typically equally PPT-supported NASDAQ has dramatically decoupled (underperformed) the Dow by its most pronounced amount in 14 years!
In other words, crashing crude oil, currencies, and bond yields are already causing dramatic economic declines, which I assure you will be major headwinds in the coming months. Not to mention, the soon-to-be parabolic explosion of anti-establishment political movements the world round – starting in Italy on December 4th, when the imminent failure of its Constitutional Reform referendum (and with it, the resignation of pro-EU Prime Minister Matteo Renzi) will put the far more dangerous prospect (to the EU’s stability) of an imminent “ItalExit” on the table – as graphically represented here, by the MASSIVE capital outflows Italy is experiencing. Heck, on queue, 80,000 Catalonians gathered yesterday in Spain, demanding the secession its own government legislatively passed this summer – which in and of itself, could be the straw that breaks the EU’s back.
And then there’s China, which again devalued the Yuan last night, to a new seven-year low of 6.84 – below the 6.83 floor the PBOC maintained from 2008-10. In turn, prompting the unofficial “offshore Yuan” to plunge to an all-time low, under the assumption of the upcoming, MASSIVE devaluation I have long warned of; which in and of itself, is as deflationary as any imaginable economic event. Throw in the utter collapse of currencies the world round – which started this week exactly where it last week ended off; and the ongoing annihilation of global bond markets (destroying wealth, and dramatically raising borrowing costs – particularly in nations with rapidly depreciating currencies), and we’re talking about a dramatic economic deceleration, simply based on the last weeks’ trading.
There’s not a chance in hell of a major Trumpian fiscal stimulus program occurring – let alone, for unproductive projects like building the military, roads, bridges, and a wall across the Mexican border – without MASSIVE money printing and Fed monetization (i.e, QE4), especially now that borrowing costs are rising parabolically, as Central banks sell Treasuries hand over fist to fund their own exploding budget deficits and manipulate their currency markets to prevent equally debilitating capital outflows.
Which again, is why it’s so utterly incredible to see base metals surging, whilst nearly all other commodities are plunging; let alone silver, which is now down more than 12% from Tuesday night’s highs, despite being – aside from the world’s oldest form of money – the most widely utilized industrial metal, accounting for the consumption of roughly three-quarters of global silver production. I mean, we are talking about not millions, but billions of people the world round scrambling for physical gold and silver, as the purchasing power of their currencies vanishes before their eyes – including the Rupee, which plunged following last week’s suicidal cash ban; and the Yuan, at a new seven-year low. In other words, rapidly ripening conditions for a major physical PM shortage – potentially as bad as 2008, when the entire global bullion industry shut down for three-plus months, yielding massive premium surges, to the tune of up to 100% for silver. I mean, take a look at this chart, of the current difference between U.S. and Chinese PM prices, and consider how close we are getting, per the title of today’s article, to the PM “system collapsing” due to an historically divided market.
Last but not least, said “divisiveness” could not be more evident here, in the United States. Yes, I know the post-election reaction – i.e., protests, accusations, and antagonistic anti-Trump statements – will likely die down as the emotionality of the event flames out. However, the underlying anger of the half of the nation that didn’t vote for Trump (in most cases, people who could care less about social issues, so long as they receive maximum public assistance) will unquestionably provide a nasty confrontational tenor for the next four years. Which again, I cannot emphasize more, will be the worst economic times since the Depression, no matter what “policy” Trump is able to enact.
I have gathered no less than two-dozen articles from the past 48 hours regarding viral anti-Trump protests; burgeoning secession movements (California and Oregon); public figures insulting Trump and demanding his resignation; and citizens overtly shunning anyone who voted for him. Let alone, the anger in the Hispanic-American community, whilst Trump called for mass deportation; particularly Mexican Americans – suffering the additional ignominy of watching the Peso collapse in direct response to his election.
Whilst the career criminal Hillary Clinton will thankfully not be President, the nation will decidedly NOT improve economically under Trump; and to boot, we now have countless millions of angry, disenfranchised citizens – both legal and illegal – who thought Hillary was their salvation, and believe they were “cheated” out of their free lunch despite handing her, rigged or otherwise, the popular vote. I mean geez, just one day after Trump hired Steve Bannon (who I don’t know from a hole in the wall) as his “Chief Strategist,” none other than Senate Minority Leader Harry Reid, demonstrating just how far American politics have sunk, espoused “President-elect Trump’s choice of Steve Bannon as his top aide signals that White Supremacists will be represented at the highest levels in Trump’s White House.” Thus, if you think America’s historic divisiveness – both socially, and in terms of wealth disparity – is going to improve anytime soon; particularly as the economy inexorably weakens; you’re going to be in for a very rude awakening.
As I edit at noon EST, the day’s massive bond losses have just reversed; and ironically, the stock markets’ gains as well (though LOL, despite the NASDAQ being down 25 points, the Dow is up 15). I mean, how screwed up have things become, that stocks spent years rising with rising bond prices (due to QE, ZIRP, and the inexorable “Fed Put”); only to continue rising with falling bond prices – in this case, due to the PPT and moronic, patently unfeasible assumptions regarding a post-Obama economy. Oil is still freefalling – at $42.20/bbl, en route to the $30s and potentially the $20s; yet incredibly, base metals are still acting like internet stocks – in copper’s case, at its most overbought level in 30 years. Gee, I wonder how that will turn out.
Conversely, the carnage in Precious Metals is like nothing I’ve seen since 2008 – only this time, it’s not occurring amidst a “typical” market crash, when stocks and bond yields crash; but a “new normal” crash – of, per Saturday’s Audiblog title – a “manipulation/idiocy/hubris conflagration,” in which stocks, bond yields, and base metals surge, whilst bond prices, nearly all other commodities (particularly crude oil), and essentially all currencies plunge. Frankly, if you asked me the odds of such a ridiculous confluence of market movements occurring – let alone, following a Trump victory – I’d say they were lower than those of the Cubs fan who, I kid you not, was born days before the Cubs last won the World Series 108 years ago, before dying days after they won it again last week!
MY FRIENDS, I AM SO VEHEMENT ABOUT WHAT I AM ABOUT TO SAY, I AM FOR THE FIRST TIME WRITING ENTIRELY IN BOLD, CAPITALIZED LETTERS. WHICH IS, THAT THE INITIAL MARKET “REACTION” – RIGGED AND OTHERWISE – IS AS UNSUSTAINABLE AS ANYTHING I’VE SEEN IN 27 YEARS IN THE FINANCIAL MARKETS. TO WIT, COLLAPSING CURRENCIES (AND THE INDIAN CASH BAN) ARE CATALYZING RECORD PHYSICAL GOLD AND SILVER DEMAND, WHICH MUST INEVITABLY CAUSE MAJOR DISLOCATIONS WITH THE RIGGED PAPER MARKET, CAUSED BY THE POWERS THAT BE’S’ DESPERATE, FRAUDULENT ATTEMPTS TO INSTILL “CONFIDENCE” IN THE POST-OBAMA ERA.
MOREOVER, COLLAPSING BOND AND CRUDE OIL MARKETS – COMBINED WITH FREEFALLING CURRENCIES, AND THE PROSPECT FOR SIGNIFICANT INCREMENTAL YUAN DEVALUATION – WILL YIELD IMMINENT, MASSIVE DECLINES IN GLOBAL ECONOMIC ACTIVITY. THIS, JUST AHEAD OF COUNTLESS OTHER WORLDWIDE VOTES AND REFERENDUMS – WHICH COMBINED, WILL SO POWERFULLY WEAKEN THE ESTABLISHMENT, IT WILL LIKELY YIELD A SCARY NEW WORLD OF SOCIAL UNREST, PROTECTIONISM, AND EXPLODING GEOPOLITICAL TENSIONS.
IN OTHER WORDS, IF EVER THERE WAS A TIME TO PROTECT YOUR WEALTH WITH THE ONLY ASSET CLASS PROVEN TO HAVE DONE SO THROUGHOUT HISTORY – I.E., PRECIOUS METALS – THAT TIME IS NOW!