It’s early – and I do mean early Saturday morning – as I prepare to take four-year old Sylvie skiing for the first time. Frankly, I’m as excited about this outing as the beginning of the end of the gold Cartel – as are all Coloradan parents with children who, for the first time, are strong enough to don skis. And “beginning of the end” it certainly was. At least, here in the States – as overseas, gold has been in a raging bull market for two years, care of the unprecedented destruction of fiat currencies in the “Post-Crisis Era.” Per below, many currencies are already at all-time highs – whilst many others that might surprise you quite a bit, such as America’s neighbors to the North and South, are nearly there.
Eventually, the “top of the fiat Ponzi totem pole” – i.e., the world’s “reserve currency” – will, along with the Cartel that props it up, succumb to gold’s immutable value; likely, sooner rather than later. And considering gold and silver are what I deem “last to go” markets – i.e, the most manipulated, as they threaten “international financial security” – the “powers that be” are clearly on the verge of losing control entirely. As the gold Cartel collapses, the end of all belief in Central banks, fiat currency, and the ability of governments to “save,” as opposed to destroy, the public will vanish – perhaps, for generations to come.
In other words, said “powers that be” are finally losing control of the unprecedented “can-kicking” scheme that commenced when the global economy peaked at the turn of the century, and broke in 2008. To that end, it’s been 4½ years since the system nearly collapsed – in the Fall of 2011 – when it became crystal clear that the post-2008 money printing orgy was dismally failing to prop up economies and financial markets. The record prices of gold in nearly all currencies at the time – including the U.S. dollar – was all the proof one needed to see. Which is why, in September 2011, “leading” Western banks reached their collective “point of no return” – in realizing the only way to prevent instantaneous collapse was to commandeer financial markets on a 24/7 basis, utilizing an unprecedented, maniacal scheme of overt and covert money printing, market manipulation, and propaganda. This is why Precious Metals plunged despite exploding fundamentals; whilst equities and bonds surged amidst the worst fundamentals in history. The resulting “deformation” of economies and financial markets alike has put the entire world, and its 7.4 billion denizens, on the precipice of an historic collapse that cannot be stopped, and now appears as imminent as it is inevitable.
As I survey the global landscape, following an historic week when U.S. dollar-priced gold prices finally resumed their bull market, a loss of “powers that be” control could not be more evident. From collapsing stock, high yield bond, commodity, and currency markets; to surging Precious Metals; imploding political regimes; burgeoning social unrest; rapidly escalating geopolitical tensions; and draconian government policies, tell-tale signs that the 45-year old fiat cancer is metastasizing could not be more obvious.
From a financial perspective, the most alarming development is the explosive spread of negative interest rates – which couldn’t more obviously depict the “quantitative failure” of eight years, 637 rate cuts and $12 trillion of overt asset monetization. Let alone, the gargantuan amounts of covert monetization, such as the tens of trillions the U.S. PPT prints and spends to prop up the “Dow Jones Propaganda Average” with prototypical “dead ringer” algorithms, as it did yesterday in a desperate attempt to “save the world” ahead of what could have been – and might still be – a cataclysmic opening of the Shanghai stock exchange this coming Monday, following a week-long closure due to the Chinese New Year holiday.
Not to mention, their comical attempt at slowing the freight train that is gold after Thursday’s historic breakout, with one “Cartel Herald” algorithm after the next – in an effort that, frankly, didn’t accomplish a heck of a lot. To that end, the past month’s dramatic gold surge has occurred as the “commercials” that supposedly control prices went MASSIVELY short. Yet again, proving they are losing control – just as rapidly as the COMEX has lost registered inventories; LBMA supply has vanished to points East; and the GLD has seen its supposed massive hoard depleted. And don’t think for a second that it’s a “coincidence” that PMs surged mere days after last week’s historically manipulated silver “fix”; resulting in an exodus of mining firms from LBMA trading that, just five days ago, I deemed the “biggest news in gold market history!”
Even the pathetic attempt to restore “confidence” in Deutsche Bank with an obviously ECB-funded “debt buyback” scheme reeked of desperation, as $5 billion is but a drop in the bucket for a company in freefall mode due to $165 billion of on-balance sheet debt, a $70 trillion off-balance sheet derivatives book, and massive exposure to the collapsing European Union. And even if it was indeed funded internally, the last thing a company with liquidity issues should do is to spend its capital buying back stock and bonds! Which, I assure you, will be fully recognized by the financial markets in the coming weeks and months. For that matter, how about the MSM “excitement” about December U.S. retail sales rising a whopping 0.2%? Which in and of itself is a horrific number – but particularly when said “increase” was entirely due to the “seasonal adjustments” that masked an extremely negative unadjusted number!
To that end, I could spend three more pages writing of the dozens of “horrible headlines” I’ve accumulated since my last Audioblog – “the very last to go – are going!” 48 hours ago. But in a nutshell, let’s just say they are all leading to the same terrifying conclusion. That is, for everyone but Precious Metals holders – and heck, perhaps Bitcoin holders as well, as the draconian, confiscatory movement toward a “cashless society” pushes investors as far “out of the system” as possible, into “alternative investments” that cannot be commandeered by governments. In other words, the “powers that be” that have destroyed the world for the past 15 years – or more accurately, the 45 years since the gold standard was abandoned – are rapidly losing control of history’s largest, most destructive fiat currency Ponzi scheme. Which is why, the time to protect yourself from what’s coming is NOW – particularly as, in many parts of the world where such protection is in desperately needed, it is entirely unavailable. In other words, good luck trying to buy gold in Brazil, Russia, Venezuela, and dozens of other nations where currencies are in freefall mode.
Before I go, there’s one more “loss of control” metric I want to note, regarding the closed-end bullion funds I three years ago presciently warned would be viciously attacked by the Cartel with naked shorting, to ensure they traded below net asset value, and thus prevent Stefan Spicer (CEO of the Central Fund of Canada) and “Admiral Sprott” (CEO of the Sprott Physical Gold and Silver Bullion Trusts) from buying up the world’s scant gold and silver inventories.
Since the late 2010 IPO of Sprott’s PSLV silver trust – which exposed the tightness of physical silver markets, causing prices to spike to $50/oz – the Cartel has relentlessly kept the five, now four, closed-end bullion funds trading at well below net asset value. This is why, in last month’s “Miles Franklin 2016 Silver Outlook Webinar,” David Morgan noted that institutional Precious Metal demand was stagnant, even as retail demand has soared. Central bank physical gold and silver demand, too, has surged. However, until recently, such growth has been offset by paper naked shorting, as well as covert leasing, swapping, and other fraudulent methods of dishoarding.
However, following Sprott’s successful proxy war conclusion last month, when his gold bullion trust (PHYS) finally acquired Spicer’s GTU; not to mention, the subsequent surge in gold prices, PHYS’ discount to NAV has dwindled from 2%-3% to nearly ZERO as of yesterday’s close. To that end, his PSLV silver trust is now trading at a mere 1% discount to NAV; whilst the Central Fund of Canada, whose discount to NAV has been in the 10%-12% range for the past two years, is down to 8%. In other words, the institutional demand Morgan spoke of is returning – and there’s no more obvious place it can be found than in the HUI mining index. Which, despite unrelenting Cartel naked shorting, is up a whopping 65% in less than a month. Trust me, I have watched mining stocks for 14 years; and it’s been a long time since they’ve had such a violent, powerful upward move. In other words, like the waning discounts to NAV of the closed-end bullion funds – which inevitably, will turn to premiums, yielding massive, Cartel-crippling physical metal purchases – it couldn’t be clearer that the ENTIRE WORLD is starting to realize Central banks have destroyed it; and thus, must be destroyed themselves. Which, when this inevitably occurs – perhaps, imminently – will leave dozens of fiat currencies in the dust bin of history, restoring real money – i.e., physical gold and silver – to its rightful role as the “once and future king.”