I’m the ultimate “morning person” – and at 4:30 AM, as wired as the average person at 4:30 PM. My mind is afire with thought, as the terminal phase of history’s largest Ponzi scheme has clearly commenced. Frankly, it’s amazing how few people understand what should be plain as the nose on one’s face testifying to the power of history’s broadest campaign of money printing, market manipulation and propaganda.
Of course, no matter what TPTB try, global “realization of reality” will overcome them as more and more people understand the destruction fiat currency is wreaking. And oh yeah, more and more markets. Yes, we know it seems like the manipulators are in control in relentlessly supporting the “Dow Jones Propaganda Average” at record high nominal levels and maniacally suppressing paper gold and silver prices. However, in the big picture, equity markets are largely immaterial – ask Argentinians how they feel about record stock prices – whilst physical precious metal markets tell a far more revealing story. To this end, recall yesterday’s commentary of how Shanghai silver inventories have fallen 90% this year yielding contract premiums, as we speak, 8% above the prevailing “battlefield $20” line in the sand; Western Central banks are so viciously defending in Western paper markets.
We have long written of how the “propaganda leg” of said “evil tripod” of deception is nearly broken; as with headlines such as the below, all from the past 24 hours, do TPTB really believe the masses buy the “recovery” lie anymore?
- Japan GDP Slump Stirs Stimulus Talk
- Japan suffers worst economic contraction since tsunami of 2011
- Little improvement seen from China’s Economic Stimulus Measures
- Broken Europe: Economic Growth grinds to a standstill
- Is the Eurozone being dragged into a deadly spiral of deflation?
- ‘Sick man’ France slashes growth forecasts and urges Draghi to act
- Shock contraction in German growth fuels Eurozone fears
- Study finds Americans plagued by debt
- Price of Imported Cars Plunges Most Since 1992 (Miles Franklin note: What did we tell you about overproduction, channel stuffing and subprime auto lending/leasing?)
- Copper and crude oil are getting crushed
Or, for that matter, geopolitical “de-escalation” lies, per these headlines from the past 24 hours?
- The Iraq War Officially Begins (Again): US Troops Prepare For Rollout As US Drones Strike ISIS Positions
- Iraq’s Maliki steps down “to Stop Bloodshed”, blames CIA
- ISIS Issues Threat to White House; Secret Service taking “Appropriate Steps”
- 5-Day Gaza Ceasefire Over In 5 Minutes as Hamas Fire Rockets, Israel Sends Warplanes
- US Sending 600 Troops, APCs and Tanks to Countries Bordering Russia to “Reassure Threatened Allies”
- Putin Punks West (Again): Russian Troops Enter Ukraine, Guardian Reports
- Putin says the Petrodollar Must Die, “The Dollar Monopoly In Energy Trade is Damaging Russia’s Economy”
- Ukraine Passes Russian Sanctions Law: Gas Transit Halt Seems Imminent
- U.K. alarmed by reports on Russian military trucks, warns of ‘serious consequences’
- NATO accuses Russia of “Escalating The Conflict
The MSM continues to publish pure drivel in trying to describe how stock markets can possibly rise during such conditions – let alone, from historically high valuations. However, even their best-penned propaganda is becoming laughable; such as Yahoo Finance’s “top stories” of the past two days, which we’re to believe were not wildly precious metals-bullish…
However, more ominous than the public simply dismissing the lies – which record low MSM viewership decidedly validates, is the fact key markets the world round are not “co-operating” with TPTB’s goals. We noted the Chinese physical silver market above, but fortunately for the riggers, most people don’t currently follow such “trivialities.” However, the entire world certainly watches sovereign bond markets; which, as we have “screamed from the rooftops” for three months are loudly validating what we predicted in “the most damning proof yet of QE failure.” Which is the utter collapse of interest rates despite unprecedented money printing and ceaselessly propagandized “recovery.”
In May’s “2.6%, ‘Nuff Said,” we highlighted how the Fed was taken by surprise when it no longer had to cap interest rates – as it was doing through 1Q 2014 with every overt and covert tool in its arsenal at 3.0% – but support them as expanding recessionary fears prompted market participants to bet on “QE to Infinity.” Japan has been the poster child of how big money has realized the nature of the Yen Ponzi scheme, but now the disease has spread to Europe – where German 10-year Bond yields plunged below 1.0% yesterday; and finally to America, where as I write, the 10-year Treasury yield has fallen below 2.4%.
And thus, for those believing today’s title refers to the inexorable global demand for gold and silver – which will NEVER stop until the global fiat Ponzi scheme collapses – you are wrong. To the contrary, I am referring to Zero Hedge’s description of yesterday’s U.S. 30-year Treasury bond auction – which, care of Fed “tapering” is a far bigger reflection of public expectation than in previous months.
Yes, the government’s most economically-sensitive bond experienced “blistering demand.” In fact, the strongest since October 2011, when the world was deeply entrenched in Global Meltdown II, and gold has just achieved a new all-time high of $1,920/oz. whilst silver nearly eclipsed $50/oz. In other words, not only is said “propaganda leg” collapsing, but so are key components of the “market manipulation leg.”
Sure, the PPT goosed the Dow with a prototypical “dead ringer” algorithm utilizing comical MSM headlines like the ones above to explain why equity “investors” were so excited. And sure, the Cartel put in an unparalleled demonstration of blatant suppression – both yesterday and this morning, despite interest rates falling further – in not allowing PMs to breach current “lines in the sand” at $1,320 gold and $20 silver.
However, no matter how hard TPTB try, the damage is still done and worsening with each passing day. Politically, economically and socially (think Ferguson, Missouri), said “evil tripod” is falling apart; and ultimately, will shatter entirely. Perhaps it will actually be physical precious metals – i.e., the “Financial World’s Achilles Heel” – that catalyzes their inevitable undoing. And perhaps Jim Sinclair will be right, in such an event occurring this year. But even if some other event catalyzes it, ranging from an unforeseen “black swan” to the weight of its own fraud. And even if it takes another year, it will happen, just as it has every time throughout history. And when it does, if you haven’t already protected yourself from its inevitable, hideous financial ramifications it will likely be permanently too late.