Sadly, it couldn’t be more obvious where things are going, both in the short- and intermediate-term. As I sit here early Monday morning, reading reports of a recessionary cliff-dive of Japanese PMI, exports, and imports – whilst, LOL, the Yen ominously surges; as well, reports of plummeting Chinese credit creation; and the lowest European PMI reading in 16 months; I can’t help considering how close we are to a total loss of the “powers that be’s” control over financial markets.
Also in the news, Greece’s traitorous Parliament – incredibly – voting for dramatically higher, across-the-board taxes on its predominately anti-austerity citizenry, to “unlock” €10 billion of “bailout” funds to pay off the Troika next month, amidst an unpayable repayment scheme scheduled for (at least) 43 years. Throw in a report that a British “Lord” insists Britons should simply work into their 70s if they can’t afford retirement, and you can see how far down the road to serfdom the world has come. Not to mention, the increasing level of disenfranchisement with the fraudulent monetary system that caused this economic monstrosity – as evidenced by record worldwide Precious Metals demand; and heck, the birth of Bitcoin.
When these topics are considered cumulatively, it’s difficult to not believe what Bix Weir says about a system intent on destroying itself – particularly when a psychotic gambit like last week’s FOMC minutes propaganda (and associated Precious Metals attack) is perpetrated; suggesting the Fed is considering what would amount to economic and financial market suicide. Let alone, ahead of potentially market-shaking events in the coming weeks – from the June 2nd OPEC meeting, to Switzerland’s June 5th “Basic Income” referendum; to the June 23rd “Brexit” vote; and if Syriza doesn’t get what it wishes – against the wishes of the majority of Hellenic citizens – a Greek default in July.
Not that the Fed are actually going to do anything, of course. However, simply intimating they “could” raise rates amidst the worst economic environment in decades – “recovery” notwithstanding; much less, with financial markets already rolling over; leaves one wondering if the inmates are truly running the asylum. And frankly, given how we have seen multiple, major shortages in physical silver in recent years – including last summer, when Miles Franklin had its three busiest months ever – it’s difficult to believe the Cartel’s current, unfathomably brazen attempt to quell surging “paper prices” won’t catalyze a physical market panic. It’s only a matter of time – and with what may be the most dramatic, nation-changing election in U.S. history less than six months away, nothing would surprise me at this point. Fortunately, the one thing I KNOW, rather than believe, is that the purchasing power of physical gold and silver – and likely, platinum as well – will increase by many multiples as the collapse of history’s largest, most destructive fiat currency Ponzi scheme inevitably unfolds.
To that end, a terrifying topic I have discussed for some time – along with many things previously considered “impossible” – is slowly creeping into the mainstream. Which is, the inevitable result of overpopulation, monetary inflation, and the resulting economic “deformation.” I.e., the explosion of government size and scope, which always accompanies mass financial hardship. Which, whether officially termed socialism, fascism, or the “nanny state,” are, in reality, various forms of communism. Or, by definition, public ownership of all property and enterprise.
In some places, Communism is already official policy, as in Russia. Whilst others, like China, pretend they are capitalist, when in fact the government, in some way, shape, or form, either owns or operates all corporations. Still others are blatant socialists, like Canada and essentially all of Europe; whilst in “capitalist” nations like the U.S., the line is being increasingly blurred by the explosion of entitlements, regulations, taxation, Central bank “monetization,” and corporate cronyism. Sadly, the common denominator is that throughout history, “big government” has been the end result of economic collapse. Meaning that, no matter where one looks today, the trend toward the “ultimate end game” of communism is not just evident, but starkly so.
In recent weeks, a handful of blaring warnings of what’s to come have emerged – not uncoincidentally, as financial markets have started to decline anew, starting with the shocking news that due to unbridled “equity QE,” the Bank of Japan is now a “top ten holder” of more than 90% of Japanese stocks. In other words, the government that “owns” the BOJ, is on the verge of owning the vast majority of Japanese companies. I.e., communism.
Worse yet, was this weekend’s news that the Chinese government’s recent “proposal” to “assume” trillions of bad debts in exchange for corporate equity – debts, which ironically, were created by their own “social financing” policies – has been ongoing, en masse, for months. To wit, roughly $220 billion of debt-for-equity conversions have already occurred, destroying whatever remaining semblance of “capitalism” the new Red Ponzi scheme purported to create.
That said, it’s not China where the “switch” to Communism will make headlines – given that capitalism never really existed. Frankly, the only real “capitalistic policy” in China was pretending as much, to
sucker enable Western capital inflows, under the false belief they’d be able to take it out. No, the real carnage will be seen in the Western world – as “first world” economies like Europe and Japan more still further to the left, whilst the “world’s most capitalist nation,” the U.S., moves overtly to full-blown socialism, en route to outright communism. Think I’m crazy? Than pray tell, how can more than half of all American’s receive entitlements during a “recovery?” And what exactly is Obamacare?
And if you think the current, hopelessly unfunded “entitlement nation” environment is bad, consider that, care of eight years of NIRP, QE, and other unnatural, manipulative policies, the vast majority of American pension funds, insurance companies, municipalities, and States are either insolvent, or on an irreversible path towards such. Not to mention, the very banks that were supposed to “benefit” from negative interest rates – like the “next Lehman” itself, Deutsche Bank. Which, in reality, have not “benefited” a whit from the Fed’s free money. But instead, from the rigging of financial markets by the Fed, PPT, Exchange Stabilization Fund, and other manipulation operatives; which they not only are privy to, but a part of.
I mean, do you think it’s a “coincidence” that after centuries of at best making money on 51% of all trading days, today’s “TBTF” banks do so nearly 100% of the time? That said, the losses from dying loan portfolios and misguided “derivative” bets quite obviously trump said “trading profits” – which is why Central banks continue to keep interest rates at zero (or below); continue to “monetize” assets; and continue to protect banks’ interests – and perceived solvency – at every possible turn. Such as, of course, suppressing Precious Metals prices – the “canary in the coal mine” that, if unchecked, exposes the collapsing system for the financial carcass it is.
In my view, a whole slew of catastrophic, inter-related “end games” are coalescing in the very near-term term, with the exploding trends towards global socialism, fascism, and communism exposing the chronic monetary disease for what it truly is. Which will clearly lead to most of the world experiencing the most challenging political, economic, and social conditions in memory. Which fortunately, for those living in markets where supplies are still available, can be at least partially mitigated by ownership of the only real money the world has ever known.