It’s Monday afternoon; but unfortunately for TPTB, even closing the “Dow Jones Propaganda Average” for a day can’t prevent “Economic Mother Nature” from continuing to exact revenge for mankind’s hubristic attempt to usurp her laws. Whilst Americans rightfully acknowledged one of their greatest citizens with a day of rest, global markets were as far from “at rest” as imaginable. In China, for example, the massive, PBOC-fueled bubble that is the Shanghai Stock Exchange plunged by an incredible 8%. If “god forbid” the PPT lost control and allowed such a plunge in the States – as it last did in 1987 – the financial system would permanently collapse, given the massive leverage utilized under the assumption that the “Yellen Put” can’t fail. You know, like the “Jordan Put” in Switzerland – which promised to maintain the Franc/Euro peg at all costs, “whatever it takes.”
Meanwhile, crude oil resumed its freefall to the depths of economic hell, amidst news of Iraq reaching an all-time high production level, and Iran’s oil minister claiming “even if the oil price falls to $25 a barrel, the oil industry will not be threatened.” As I edit Tuesday morning, by the way, said plunge has taken on a new life, pushing WTI crude down to $46.40 from Friday’s $48.70 close – and with it, the 10-year Treasury yield below 1.78%. Well, perhaps low-cost Middle Eastern producers like Iran won’t be “threatened,” but high-cost producers in the North Sea and the U.S. shale industry certainly will be. Of course, given that Iran and other OPEC communists like Saudi Arabia base annual spending budgets on $80-100+ oil, they, too, will produce “all-out” to pay their bills. Which will only depress prices further; until ultimately, EVERY oil exporter will be engulfed by a Russian Ruble-like crisis and horrific economic depression – followed by debt defaults; cascading derivative failures; unprecedented geopolitical strain; draconian government actions; and likely, war, of both the currency and military variety.
And heck, I didn’t even get around to today’s ugly base metal plunge; led by copper – i.e., “Dr. Death” – which lost nearly all of last week’s “dead cat bounce” gains. And ditto for the Euro; which ahead of the ECB’s potentially world-destroying QE announcement Thursday – and Greek election Sunday – is creeping anew toward its post-SNB, 12-year lows. By the way, before you read this, the Bank of Japan will have concluded its own policy meeting; and wouldn’t it be a hoot if they “unexpectedly” retaliated against the SNB’s act of financial war – which is exactly what it was – by taking further steps to debauch the Yen? And oh yeah, guess which markets did NOT decline today – despite every conceivable Cartel weapon being unleashed, such as the 82nd “Sunday Night Sentiment” raid in the past 83 weeks? I’ll give you a hint; some refer to them as “barbarous relics.”
In 26-years in the financial markets, only at the depths of the 2008 crisis can I recall such a relentless spate of global “horrible headlines.” Only this time, there is no chance of reversal – as no matter how much money is printed; markets are manipulated; and propaganda is spread; Economic Mother Nature intends to “finish the job.” As I wrote 3½ months ago – before the historic energy, commodity, and currency crash – “2008 is back.” And considering that Central bankers and politicians now have as little credibility as they do “dry powder,” it’s just a matter of time before history’s largest Ponzi scheme entirely collapses, leaving the “99%” that haven’t prepared to swim in shark-infested waters without a life jacket.
Truly, the “end game” has arrived when the MSM starts to tell it like it is. Today alone, the New York Times, home of establishment lackey Paul Krugman, published “Swiss give a scary lesson on the limits of Central banks”; Bloomberg claimed “not even Mario Draghi can save Europe now”; and even CNBC asked “is QE enough to save the Euro Zone?” Comically, the Fed’s discredited “mouthpiece,” the Wall Street Journal’s Jon Hilsenrath, wrote of history’s most destructive financial organization remaining “on track” for mythical rate hikes “later this year” – as the 10-year Treasury yield plunged four basis points; but at this point, such drivel has as much credibility as Whirlybird Janet’s claims of the oil price decline being “transitory.” Consequently, it shan’t be long before the entire world is running for the paper exits, in lieu of the time-honored safety of real money.
What took everyone so long is beyond me; but obviously, the “weapons of mass financial destruction” used to kick the can the last mile were indeed powerful. That said, the SNB’s implicit admission that Central banks “have no clothes”; not to mention, the decision’s horrific, widespread ramifications, has clearly awakened the brainwashed financial community – which eventually, will be followed by the hysterical masses. To that end, Marc Faber may have made one of the prescient quotes ever today – i.e., “the big surprise this year will be the collapse of investor confidence in Central banks; and the only way to short Central banks is to go long gold, silver, and platinum.”
Moreover, said “confidence loss” goes for the Central banks, too – as evidenced by today’s bombshell announcement that the German Bundesbank has repatriated 120 tonnes of gold from the New York Fed. Whether they were lying to help the Fed save face is another story altogether. However, the fact remains that “coincidentally,” Germany claims to have gotten back its gold just as Euro-priced gold launched into the stratosphere. In recent months, Holland, Belgium, Austria, Switzerland, and France have made noises of their desire to repatriate and/or increase their gold holdings; and trust me, that trend is gaining momentum like a runaway locomotive. Pretty soon, every Central bank will be competing – with every institution and individual – for the scant amount of actual, available-for-sale metal. And to those left standing when history’s highest-ever stakes game of musical chairs ends – all we’ll be able to say is “it’s not like we didn’t warn you.”
Which brings me to today’s ultra-important message, as the Miles Franklin Blog issues an “urgent cry to Europeans” to PROTECT THEMSELVES, and do it NOW. Not that we haven’t been screaming this for years; but now, more than ever, the “financial life or death” scenario lies at your feet. A significant part of the world has already witnessed catastrophic currency devaluations in the past three years – with the average currency down more than a third. However, when speaking of the world’s most widely utilized currency we’re talking some serious pain for hundreds of millions of people accustomed to the world’s highest living standards. And now, barely two years after Draghi claimed he’d do “whatever it takes” to save the Euro, it is on the verge of collapse – just as I predicted 3½ years ago. In fact, had it not been for said infamous speech – and the historic money printing, market manipulation, and economic propaganda that accompanied it – it would likely, to at least some extent, have occurred already.
Today, on the eve of what is expected to be a $635 billion QE package – of which the market will be severely “disappointed” if it comes in at a lesser amount -it couldn’t be more obvious that the ECB has entered the fringes of Abenomics-like money printing. Of course, it not only will decidedly NOT improve the European economy, or enable “inflation” to reach Draghi’s arbitrary optimum of 2.0%, but will destroy the purchasing power of the Euro further – likely, to its all-time low, and then some. And oh yeah, it will drag the British Pound down with it, as the Goldman Sachs led BOE will shortly join the party by expanding its own “QE to Infinity” program – especially now that the oil price is destroying its North Sea economy. Plus, this weekend’s Greek elections will likely put the very existence of the Euro in doubt; as unquestionably, the cascade of debt jubilees, derivative implosions, and bank and corporate failures that result will be too much for even the best printing presses to offset.
Sure, said money printing and market manipulation has pushed “leading” equity indices like the German DAX to all-time high levels – at nosebleed valuations – as the financial community “front-runs” QE to Infinity, just as they are doing in the sovereign bond markets. However, the real value of such gains is actually falling due to the Euro’s descent; and in time, will unquestionably plunge into the abyss, either via accession to the inevitable economic implosion, or the equally inevitable hyperinflation.
To wit, Abenomics started with a Nikkei surge, but was followed by an historic economic plunge; rising inflation; and oh yeah, as I write, Yen-priced gold is just 1% from its all-time high. Similarly, “whatever it takes” posturing has yielded surging equity indices, but the European economy is undeniably crumbling – and its financial condition dramatically worsening, to conditions last seen during World War II. Only this time, Europe is trapped by a dying monetary system on the verge of implosion – with very real, and near-term, catalysts. And what do you know? Euro-priced gold is rocketing higher, too; now, just 19% from its all-time high – which likely, will be breached far sooner than most can imagine. Clearly, the Swiss National Bank was terrified at the potential ramifications of tying themselves to the Titanic-like anchor the Euro represents. And thus, why aren’t you? And when it really starts to “hit the fan” in the coming months, do you trust that your governments will have your best interests at heart; let alone, your “precious” financial assets?
Which is why we “urgently” insist that you consider Miles Franklin’s industry-leading storage program at Brink’s Montreal. Every imaginable question you might have about it is answered in this interview I conducted three months ago with our President and co-founder, Andy Schectman; and after listening to it, you’ll well understand why Miles Franklin’s principals – myself included – store their personal metal there.
In this article, I describe the program’s unique characteristics; which, I might add, are just as cost effective for Europeans as American and Canadians. Yes, if you choose to ship your currently-owned metal overseas, shipping costs will be higher than if such metal were emanating from North America. However, if you order the metal from us, we will have it directly shipped from the Canadian Mint to Brink’s Montreal vault. There are no extra fees or taxes for European, or any foreign clients – on either the purchase or sale side of the equation. In my view, Canada represents one of the best geo-political “safe havens” for capital; and coupled with Miles Franklin’s proximity to Montreal (we are headquartered in Minnesota, with principal distribution in North Dakota), we are able to personally oversee the operation. To wit, I have personally seen my metal counted twice.
Hopefully, this sentiment echoes not just to Europeans fearful of a collapsing Euro or Pound, but all people holding the majority of their net worth in dying fiat currencies; which is to say, EVERYONE.
Here at Miles Franklin, our goal is to protect as many people as possible before it’s too late. Thus, we “urge” you to call us at 800-822-8080, as our professional staff – with, on average, 20 years of industry experience – promise to give you the same customer service that has earned us an A+ Better Business Bureau rating, with not a single registered complaint in the 26 years since we opened our doors.
And, as always, you are welcome to email me at [email protected]
“Of course, given that Iran and other OPEC communists like Saudi Arabia base annual spending budgets on $80-100+ oil, they, too, will produce “all-out” to pay their bills.”
Oil is a VERY profitable item with many billions of dollars flowing the coffers of any country selling it. One would think that they would be smart enough to set some of that wealth aside for rainy days that always come at some point. There’s no need for them to live hand to mouth with their kind of wealth. That said, all they need do is not produce any oil for 4-6 weeks, absorb the already produced oil into the market, and the oil price WILL go up substantially. All this oil market roiling has all of the earmarks of a contrived situation, but who knows for what purpose? No doubt whatever that there is one and that it will not benefit any of us.
For once, I disagree 100%!!!!!!!!!!
This is about market share, and the only way to artificially prop it is by giving it away to shale and other high cost producers. They won’t do it; and due to the aforementioned spending requirements, they will actually increase production to try to make up for the lower prices (LOL, let’s see if it works).
The short-term pain will be worth the long-term gain of bankrupting high-cost producers, so they can’t come back when prices rise anew (assuming they do, at least in real terms).
a
I believe this is much more complex than either of you have laid out (at least here) and I will post some modifiers:
1. Lower prices are HELPING the major US Producers at the moment… by forcing consolidation in the US market. Te small producers with loans and leased equipments are mostly gone from the fields at this level. Bought out by the big boys.
2. Anyone still making a profit is buying up the smaller players, or grabbing their contracts as they default. SRSRocco had a chart of corporations who needed prices and the largest category existed above $90.bbl so all of those are long gone.
All that remains is how low will it go?
1. Lower prices are NOT helping miners. You’re kidding, right? “Forcing consolidation” does nothing but yield layoffs, cost cutting, and the mining paralysis that was one of my 2015 predictions. Great for owners of metal, but not miners. Of course, “analysts” will say “in the long run, it’s great.” Which it would be, if mines weren’t destined to be nationalized and windfall taxed once gold/silver are universally recognized as money again.
2. No one is making a significant profit after capex and depreciation, and who wants “smaller players” with no cash but a bunch of leased properties requiring gargantuan costs, at great risk, to develop? Majors don’t explore anyway, they just buy discoveries from juniors. However, as the juniors are all dead, and no discoveries have been made, there’s nothing left to buy.
How low will it go? It already did.
Nice article. Just order some gold eagles from MF.
I meant “just ordered.”
Thanks!
a
Hi Andy,
Have you started censoring or blocking comments on this blog now? For comments on last 2 posts in a row, I notice that my comments sit waiting for approval while everyone else’s comments keep showing up. And it’s not as if any of those comments were off-topic or trolling or spam. They were right on topic just as they’ve always been from a long time commenter. (And in general quite productive too in the past, bringing attention to broken links, other on target links etc.)
It’s quite baffling, but if you’ve arbitrarily decided to “block” my comments I’ll stay away from your posts from now on & only stick to Bill Holter’s posts. He has been giving light of day to all comments, communicating back and forth without any issues.
LOL, I haven’t blocked anything you’ve said.
I simply haven’t responded to some of your comments, as they were more “comments” than questions.
All good!
a
Andy, do you think the “Keystone XL” pipeline will go ahead?
If you do? Why? If you don’t? Again, why?
Been long (what matters) since January 1980 when I got burnt by high cost physical. Still got it! He who laughs last, laughs best! lol Only took me 35 years. lmao!
Have no idea – nor do I care, as it has no material impact on anything I write of. Seems to be a political hot potato, but the pink elephant in the room is that with plunging oil prices, how can it possibly be economic?
Andrew- Thanks for the clarification! Good to know the plan. I hope we’ll all keep future items in a more questioning format.
All good. Sometimes people don’t realize just how busy I am. And sometimes, it’s OK to simply post something without requiring Bill or I to respond.
a
Like this article, as usual A.H.!
I noted you said Gold was within 1% of it’s all time high as measured in Japanese Yen, so I did some math to get a Silver Price versus U$DX (which is a b.s. number anyway) to lend some perspective to where we maybe “really are” even with HFT and market manipulations, which some believe are the rule of the day…
Without further ado, The Numbers!!!
NOW (in U$D) with U$DX @ 93:
$18.20
if U$DX was 80:
$21.15
U$DX @ 70:
$24.18
U$DX @ 60:
$28.21
IMO, if the U$DX was a true index, and not just weighted against other fiat trash-cash currencies, we are in reality UNDER 60 at this time. But when it all comes down, the “index” will still have a “respectable reading” as the U$D drags all the others down with it. There is no referencing to any BRICS currencies, it is all tied to the Vampire Squid fiat. Fancy That! 😀
I should add, the only thing “holding back” the U$D these days is the 3.6% weighting of the greenback against that pesky “Swiss Franc” which is now de-coupled from the Euro… Imagine the carnage if they had actually passed their Gold Referendum?!? 😀
That’s why they moved heaven and earth to prevent it. Of course, by telling people to vote “no” so they could maintain the peg, and reneging just six weeks later, they probably increased future gold demand by AT LEAST as much as if the vote was “yes.”
I appreciate the thought, but not sure I understand what you are trying to show.