It’s still Wednesday evening, and there’s too much going on for me to wait until the morning. If something crazy occurs overnight; so be it, I’ll report on it tomorrow; but as it is, I’m going a half-page over my daily limit. To start with, the 10-year yield was again at nearly 3.0% when “miraculously” the latest Treasury auction saw – according to Zero Hedge – “blistering demand.” I mean, GIVE ME A BREAK; this is Fed “turbo QEing” at its finest – i.e., utilizing the same DLITG, or “Don’t Let it Turn Green” algos on the 10-year yield as are used daily on PAPER PM prices. In fact, all you need to see is these two charts – which I have poetically titled “a tale of two DLITG’s” – to realize what today’s “trading” was all about…
…not to mention, stocks soaring for no discernible reason; even as Apple plunged 5% following the “disappointing” release of the iPhone5. FYI, the Apple “glamour trade” is long OVER; as it is now just a simple retail stock, whose P/E multiple will eventually trade down to the mid-single digits. Heck, when I bought my Samsung Galaxy S3 just one year ago, I was forced to pay nearly $300 despite guaranteeing another two-year Verizon plan; but now, you can get one with “no money down” and payments over multiple years. Sorry, folks, the GLOBAL smart phone market is saturated; and thus, yet another “savior” business is DEAD, DEAD, DEAD.
I’m already out of room, so I can’t write of the incredibly ominous graphs of “Consumer Credit, Student Loans”; or of the explosion of EBT (entitlement) cards; estimated “unfunded liabilities” of more than $200 trillion; the minimum “debt ceiling” increase requirement of $1.1 trillion; the record difference between upper and middle/lower class incomes; John Corzine claiming he’s “innocent”; or, last but not least, the 2013 performance of bullion versus mining stocks. Instead, I’ll simply note that apparently, the GLD ETF is now REFUSING holders of 100,000+ share baskets – per rules dictated by its prospectus – their right to take delivery of PHYSICAL bullion.
This is an incredible game changer in the WAR between the PAPER Cartel and the PHYSICAL market, which I intend to expand upon tomorrow. I’m not sure what more I need to say to convince you the bullion market could go “no offer” at any time; and whether it’s catalyzed by a “black swan” or otherwise, it WILL mark the END of the PAPER markets’ ability to dictate prices – FOREVER!