Thursday morning, and thank goodness I can type after jamming my pointer finger playing soccer last night. Ah, the life of a goalkeeper, regularly jamming, breaking, and dislocating fingers in the pursuit of blocking a ball. Looking forward to my next game tonight, and then a well deserved rest as I take a modest vacation, with my next RANT scheduled for Tuesday the 27th.
Before I get to today’s activity, I want to discuss yesterday’s action, yet again. When I started writing for Miles Franklin in October, I hadn’t intended to go into as much detail about PPT support operations. However, just as the Cartel stepped up their attacks on PMs this Fall via “OPERATION PM ANNIHILATION, Parts I and II,” the PPT has gone berserk in its maniacal support of the world’s only positive index this year, the Dow Jones Industrial Average.
Of course, the Dow’s measly 4% gain, albeit negative in real terms, pales compared to GOLD’s 14% gain, as it prepares to close higher for an 11th straight year.
During this period, gold is up 500% (600% at its high in early September) and silver 450% (800% at its high in late April), while the Dow is up just 45%. Of course, the Dow has been reconstituted three times to delete companies that were bankrupted (General Motors) or collapsed and subsequently nationalized (AIG and Citigroup), so in actuality the Dow is down significantly on a nominal basis, and dramatically in real terms.
I have done three calculations for the Dow’s real returns since 2000, starting with a 16% decline relative to the “dollar index,” an impressive negative accomplishment if I ever saw one, given that 58% of the index basket is the Euro, which has been in freefall since GLOBAL MELTDOWN I commenced three years ago, as it prepares to completely collapse in 2012.
Next, I adjusted the Dow for the adulterated version of inflation reported by the U.S. government Bureau of Labor Statistics, or BLS, via the Consumer Price Index, or CPI. Even with the world’s most advanced data fudging technology, the CPI is still up 37% over the past eleven years, yielding a 36% Dow decline.
Finally, I adjusted the Dow for “true CPI inflation,” per the excellent data provided on John Williams’ website, www.shadowstats.com. Williams, the pre-eminent expert in the field of “de-fudging” government statistics, calculates the “true CPI” to be dramatically higher than the BLS’ fudged version, by an incredible 800 basis points, as depicted below…
…resulting in a real decline of the vaunted Dow Jones Industrial Average of….drum roll please…69%!
More importantly, in terms of real money, i.e. GOLD, the Dow has PLUMMETED over the past eleven years, by 81%! There is no greater economic certainty in my mind that this ratio will return to ONE in the coming years (perhaps 2012), just as it did in the 1930s and 1970s.
Back to today’s Dow, the only thing supporting it is the aforementioned maniacal support of the PPT, which will stop at NOTHING to portray a semblance of economic stability through covert buying, essentially every minute of every trading day (and night during thin futures trading periods). However, as I’ve discussed exhaustively for years now, very few “market participants” even exist anymore, let alone influence the Dow’s price.
The retail investor’s role as a key player died in the 2000-02 “tech wreck,” while thousands of “hedge funds,” which are no such thing as 90% of them are 100% LONG, were wiped out in the past three years by GLOBAL MELTDOWNS I and II, leaving only the PPT’s unlimited funds, and mindless HFT computers, running the markets.
Given that I am EXHAUSTED from so much RANTING, and need to shovel the foot of snow outside before two podcasts this afternoon, I will overcome my irritation at today’s Cartel attacks at EXACTLY 3:00 AM EST, EXACTLY the COMEX open at 8:20 AM EST, and EXACTLY the PM Fix at 10:00 AM EST to discuss a far lighter RANT topic, “ABBREVIATIONS.”
Of the dozens of reader emails I receive, a portion relate simply to clarifications of the myriad ABBREVIATIONS I use to describe the economic landscape. I try to write the full names out from time-to-time, but obviously cannot do so ALL the time, so inevitably some readers get lost from time to time.
Here are a few of the most commonly used ABBREVIATIONS and acronyms, but be warned new ones are being invented each day to surreptitiously describe MONEY PRINTING:
PPT – Plunge Protection Team, a/k/a the “President’s Working Group on Financial Markets,” whose sole goal is to “stabilize markets,” i.e. support the Dow with unlimited futures buying
Gold Cartel, or “Cartel” – A group of Western Central banks – led by the Federal Reserve, Bank of England, and Bank of International Settlements, and henchman “bullion banks” such as JP Morgan and Goldman Sachs – that work together to suppress gold and silver prices, principally utilizing un-backed (i.e. naked) PAPER instruments such as futures contracts, ETF shares, and opaque derivatives.
TPTB – The Powers That Be – in other words, the Cabal of political and financial “leaders” that plot to destroy you, and the world in general. Bankers from major institutions such as Goldman Sachs and JP Morgan represent the most influential faction of this hypothetical group, as well as their puppet governments and Central Banks.
FPTB – Financial Powers That Be – not much different than TPTB, limited principally to financial market domination and manipulation
ECB – European Central Bank, which coordinates monetary policy for the Euro currency (used by 23 nations) and has the authority to print Euros. Headquartered in Frankfurt, it is dominated by its largest, and strongest member, Germany, and chaired by “Goldman Mario” Draghi of Italy.
EU – The European Union. Headquartered in Brussels and run by recently appointed President Herman Van Rompuy (of Belgium), includes delegations from 27 nations seeking to enhance political, economic and social co-operation. All European nations are part of the EU, but not all (such as the UK and Switzerland) utilize the Euro currency.
EFSF – European Financial Stabilization Fund – a “rescue fund” proposal from May 2010, under which the 27 EU nations periodically contribute funds to be administered arbitrarily by the EU. So far, all attempts to fund it have failed, particularly as many of the largest EU members, such as France, Spain, and Italy, cannot possibly contribute funds when THEY will be the ones requiring bailouts!
ESM – European Stability Mechanism – what the EFSF will be renamed in July 2012, pending those same member-nation contributions that will never come.
IMF – International Monetary Fund – what the EFSF/ESM is to Europe, the IMF is to the world – Headquartered in Washington DC as the U.S. is the most powerful member, 187 nations are members. Currently, the IMF is having the same problems garnering contributions from its members, who don’t want to flush their capital down the European bailout toilet. The IMF is a dangerous organization with a multitude of secret powers, such as creating the fraudulent accounting rules for Central Bank gold holdings, allowing leased gold to be double-counted
Fed – U.S. Federal Reserve Bank, which coordinates monetary policy by the U.S., led by Chairman “Helicopter Ben” Bernanke.
Fed “swap facility” – announced November 30th, a mechanism in which the Fed loans unlimited funds to any bank, worldwide, that asks for them, at essentially zero interest rates with unclear repayment terms
QE1 – the first round of Federal Reserve Quantitative Easing, i.e. printing money to buy U.S. Treasury and Mortgage bonds, as well as reinvesting interest and principal from its inventory of such bonds into additional Treasuries and Mortgage bonds. QE1 was instituted in November 2008 and ended in June 2010.
QE2 – the second round of Federal Reserve Quantitative Easing, QE2 informally commenced in August 2010, was formally announced in November 2010, and ended in June 2011.
Operation Twist – instituted in July 2011, the Fed’s way of continuing QE without calling it such, “Operation Twist” means selling very short-term Treasury bonds and using the proceeds to buy long-term Treasury bonds. This is a fraud in many ways, as the Fed already purchases short-term Treasuries each day as part of its “Open Market Operations,” with added Treasury market support from the trillions of dollars worth of interest rate swaps created by a handful of banks – led, of course, by JP Morgan, Goldman Sachs, and Bank of America – that require Treasury bond purchases.
LTRO – Long Term Refinancing Operations – instituted December 21st, 2011 (yesterday), essentially the same as the Fed “swap facility”, but administered by the ECB, only for European banks. Claims to have a three-month repayment term, but you can bet these funds will be perpetually rolled over.
BOE – Bank of England
BOJ – Bank of Japan
SNB – Swiss National Bank
BIS – Bank of International Settlements – headquartered in Basel, Switzerland, this secretive “Central Bank of Central Banks” is a major force behind the Gold Cartel and essentially all of the economic and political world’s “shadow entities.” Responsible for creating faux international banking regulations and apparently assisting the Fed and BOE in “selling gold,” the BIS remains one of the most mysterious, and dangerous, forces in international politics and finance.
PIIGS – The weakest links of the major Euro currency nations – Portugal, Ireland, Italy, Greece, and Spain
PIFIGS – The PIIGS plus France
GAO – General Accounting Office – the U.S. agency that creates accounting rules for banks, allowing them to value worthless, or near worthless, assets on their balance sheet at essentially any value the respective banks choose.
BLS – Bureau of Labor Statistics – the U.S. agency that creates fraudulent inflation and employment data
DOA – Dead on Arrival –all proposed European “rescue funds”