Finally, gold recaptured its 50-day moving average of $1,190/oz – not for a lack of Cartel attempts to prevent it; having “lost” this widely watched technical support level in the aftermath of the heinous, historically blatant “post-Trump destruction” raid; after having surged, rightfully so, from $1,280/oz to $1,340/oz in the election’s immediate aftermath. After which, the “powers-that-be,” shocked by the world-changing loss they believed to be impossible, were forced to shift their manipulation tactics – desperately so – by smashing PMs so forcefully, and enigmatically, that to this day the Eastern physical gold premium above the historically suppressed, Western-generated paper price remains elevated; and in silver’s case, “through the roof,” at roughly $1.30/oz.
Silver’s week-end close of $16.81/oz – quite blatantly, suppressed with all the Cartel’s might – sits mere pennies from its own 50 DMA, of $16.85/oz. I mean, just how much more bullish can the past two days’ news have been? And yet, those same, prototypical attack algorithms – like the “2:15 AM”; “Cartel Herald”; and “12:00 PM Cap of Last Resort” – were relentlessly utilized, in a desperate attempt to hold prices down. This, whilst base metal prices, which are no more “industrial” than silver, continued to inflate their historic bubbles by 3%, 4%, and even 5% per day! I mean, look at the incredibly damning evidence below; of just how ubiquitous the 12:00 PM “COLR” algorithm has become – in the Cartel’s desperate, ultimately unwinnable battle against the monetary system’s “Achilles Heel.”
Irrespective, the Cartel lost the battle for gold’s 50 DMA – on a Friday, no less; and put silver in prime position to win its own “DMA battle”; likely, in short order. After which, the far more technically important 200 DMA’s of $1,268/oz and $17.84/oz, respectively, will be “on deck” – now that they are once again, a “hop, skip, and jump” away. And don’t forget, gold’s 50 week moving average just crossed above its 200 week moving average for the first time since 2002; whilst silver’s 50 WMA of $17.40/oz is just $0.85/oz from its own 200 week moving average, of $18.25/oz. Which, when inevitably crossed, will yield an equally, wildly bullish technical signal. Which, I might add, is not only a fait accompli due to the same, wildly bullish monetary fundamentals boosting gold, but plain old Economics 101 – as demonstrated in this fantastic article by Steve. St. Angelo, of how the world’s largest primary silver miner, Mexico’s Fresnillo, at today’s hideously suppressed prices just reported the worst operating reports in its history.
The daily, increasingly blatant manipulations notwithstanding – including TPTB’s desperate, but as yet futile, attempts to push the “Dow Jones Propaganda Average” above the meaningless nominal level of 20,000 – history’s most overvalued financial markets are facing more deleterious fundamental headwinds than at any time in recent memory; arguably, the ugliest in generations. To wit, increasingly ugly economic data – like the auto industry’s first year-over-year sales decline since 2009; China’s second straight yearly decline in worldwide exports; and December’s ZERO percent retail sales change. This, as global debt levels rise parabolically; whilst currency volatility – i.e., the “single most PM-bullish factor imaginable” – hits all-time high levels, as the terminal phase of history’s largest, most destructive fiat Ponzi scheme races towards its catastrophic conclusion. Let alone, as the epically fraudulent “Trump-Flation” growth meme; which, as Wednesday’s Audioblog title, “the death of Trump-Flation” not so subtly suggests, is rapidly approaching its own, universally “unexpected” end – with an “ETA” of just six days (I’m writing this Saturday morning), when “Candidate Trump” officially becomes “President Trump.”
Clearly, the Obama Administration is doing everything it can to sabotage the incoming Trump Administration – but even if it weren’t, the Donald would still learn shortly that none of what he promised is achievable; whilst Americas will learn, equally painfully, that little, if any, of his what he hopes to achieve is actually good for the country. Starting with the trade wars he thinks will “make America great again”; when in fact, they will only cause America’s cost of living to explode, and the “final currency war” to go thermonuclear. Or “repealing and replacing” Obamacare – which not only would take years to occur logistically; but would catalyze a social revolution in a nation whose ugly demographic trends all but assure a Democratic victory in the 2020 election – after which, I assure you, the movement for more socialized healthcare will be more powerful than ever. And then, of course, there’s the big pink elephant in the room – of the near impossibility of passing a major tax-cut-financed, deficit-busting stimulus plan, when deficits are already exploding due to a collapsing economy (read, negative year-over-year tax receipts, and major layoff announcements from companies like Macy’s, Wal-Mart, Lowe’s and Boeing ). This, as the $20.1 trillion debt ceiling “suspension” is set to expire in mid-March, catalyzing a potentially unprecedented political war in Congress.
And don’t forget that the Fed, LOL, claims it will be raising rates three times this year – and possibly, “shrinking its balance sheet.” Which I say mockingly, as there’s not a chance this will happen, given how it would have the equivalent effect of dropping a nuclear bomb on the economy. And not just because, as vehemently espoused in last week’s “2.5%, ‘Nuff Said,” because America’s terminally debt-infested economy (and government) can’t handle higher rates; but because higher U.S. rates, whilst the rest of the world’s Central banks desperately try to hold rates down, will only prompt the dollar to surge further – at one fell swoop, devastating U.S. corporate earnings, annihilating historically underfunded pension fund portfolios, and catalyzing the devaluation of U.S.-pegged currencies like, say, the CHINESE YUAN; which in turn, would be the most devastatingly deflationary event imaginable.
Throw in the dramatically negative impact such a fatal “policy error” would have on already weakening crude oil demand, amidst an environment of record high inventories and soon-to-be called out OPEC “production cut” lies, and the odds of mass default in the sector with more debt tied to it than any on the planet will skyrocket. Oh, and did I mention the already deflating real estate echo-bubble, which will be annihilated if rates move higher? Let alone, if the Fed, in Kamikaze fashion, attempts to push them higher via tighter monetary policy. Ah, the tangled web we weave, when we seek to deceive!
The PPT/Fed/ESF/Gold Cartel-orchestrated post-election “Trump-Flation” honeymoon is about to end; and when it does, widespread political, geopolitical, economic, social, and monetary chaos is sure to follow. To wit, my vehement belief that 2017 will represent a turning point in modern history – characterized by unprecedented money printing; draconian government actions (as foreshadowed by India’s nation-destroying cash ban decree); and ultimately, monetary revolution. This, during a Presidential “transition year” in which, historically speaking, Precious Metals tend to generate their most powerful year-over-year gains.
Late last year, Chinese Premier Xi Jinping made a statement that speaks volumes of the chaos to come, which I whole-heartedly agree with. And irrespective of how it occurs; and how soon; the inevitability of a new monetary order is becoming more imminent with each passing day. In which, confidence in the dying fiat regime will be dramatically weakened, if not lost entirely. Which in turn, will push desperate investors, the world round, to the safety of the only asset proven to protect wealth throughout history; i.e., physical Precious Metals.
“The world is on the verge of radical change. We see the European Union gradually falling apart and the U.S. economy crashing, and that all this will end with a new rearrangement of the world. In ten years we can expect a new world order, in which the key factor will be the alliance between China and Russia.”
In my view, the “beginning of the end” of this historic, likely unprecedented era of change starts six days from now, when “Candidate Trump” becomes “President Trump.”