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I’m still steamed about the blatancy of this morning’s Cartel attack; not only on “FOMC Minutes Day,” but as the White House announces “uber-dove” Janet Yellen will likely be running the Federal Reserve.  In fact, just as I’m writing at EXACTLY 10:00 AM EST – i.e, “Key Attack Time #1”; this is what they just did, with the Dow sitting at the same unchanged level it’s been at all morning – and the following headline coming across the tape; “Fed’s Evans says current situation in the U.S, with high jobless rate and low inflation, calls for accommodative policies.”  And FYI, for those that still believe there’s a chance in hell of a “tapering” announcement at the October 29th FOMC meeting, recall that the Fed now considers this decision “data dependent”; with absolutely ZERO data being published due to the government “shutdown”…

24 Hour Spot Gold Bid 10-9-13 1006

By the way, notice how on Monday (blue line), the day’s gains were capped at EXACTLY 1%, at EXACTLY the KEY ROUND NUMBER of $1,325/oz, at EXACTLY 10:00 AM EST.  On Tuesday, yet another Cartel Herald was utilized to stop gold’s gains at EXACTLY 10:00 AM EST – i.e., the second the global PHYSICAL market closes; at EXACTLY the KEY ROUND NUMBER of $1,330/oz. that has served as the Cartel’s “line in the sand” for the past month.  As for silver – which as I wrote about last week, it has been attacked for at least a 2% intraday decline on 45% of ALL trading days this year. To wit, what more can I say than that the Cartel’s “line in the sand” for the past month has clearly been the KEY ROUND NUMBER of $22/oz?

New York Spot Silver Bid 10-9-2013

At least Zero Hedge is finally understanding what I told them two years ago.  However, to act as if such “market action” – with the CFTC closed due to the government “shutdown” – is any different than when it was open over the past decade, is just plain RIDICULOUS…

Yellen is in; nothing is resolved in DC; and there’s no news on the wires – so it makes perfect sense that once again as the 830ET period ticks by that commodity prices – especially gold, silver, and copper enter what many in the business call “free fall.” All sarcasm aside, this is becoming far too ubiquitous – but of course with the CFTC closed for business, while the cat’s away the algos will play.

Margin calls from yesterday’s MoMo massacre, perhaps? Or just a need to show the market that Yellen is no uber-dove…?

Zero Hedge, October 9, 2013

Aside from getting this travesty off my chest, I feel the need to continue reporting it to empower you to understand PAPER gold and silver markets are but an illusion – en route to the ultimate END GAME of fiat currency collapse.  Watching the sheer lunacy of the Cartel’s attacks this year, there is but one conclusion a reasonable person can make.  That is, TPTB are terrified of the impending, inevitable loss of confidence in the unbacked fiat trash they are hyper-inflating; from the dollar, to the Euro, to the Yen, Pound, and ALL other currencies.  In other words, they are panicking – particularly in the United States of Deterioration, whose economy peaked at the turn of the century; and today, represents the epicenter of financial fraud.

As for the MSM, it acts as head economic cheerleader the vast majority of the time.  However, to its managers, readership remains more important than propaganda.  Thus, they are just as happy to print sensationalistic negative headlines when markets are down as fluff pieces, no matter how misleading the content.  In this case, the headlines are in fact foreboding; but considering we are supposedly amidst a “recovery,” we have been taught – by the result of years of market manipulation – to consider events like government shutdowns and debt ceiling debates “trivial.”  After all, the government has already “shut down” 17 times since 1976, while the debt ceiling has been raised 76 times since 1962.  In other words, while the nation’s issues are MANY, we have been brainwashed not to fear these particular red herrings.

That said, it’s difficult to ignore the fact that this time around, markets are acting particularly ominously.  Forget the “whopping” 6% decline in the PPT-supported Dow Jones Propaganda Average; heaven forbid, pushing it below its 200 DMA for the first time this year.  No, I’m referring to the fact U.S. Treasury volatility is now greater than not only some of the worst PIIGS, but soon-to-be bankrupt J.C. Penney.  Moreover, as “economic confidence” – according to a recent Gallup Poll – collapses at its greatest rate since the Lehman bankruptcy, T-bill rates have risen to their highest level since that fateful 2008 day.  In other words, early signs of market panic; notwithstanding official efforts – 24 hours per day, seven days per week – to “calm” them with heightened MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA.

Let’s be honest, such signs – though highly unpropitious – are not that scary.  After all, polls are known for their volatility, and with the Fed “turboQEing” everything in sight, it wouldn’t be unprecedented for T-bill rates to plunge anew (in and of itself, a foreboding development).  However, market participants are clearly starting to worry about America’s fate; not to mention, it’s “stock” – the U.S. dollar.

Such panic is just in its preliminary stages.  However, the same could have been said when markets started turning down in early 2000 and mid-2008.  And don’t forget, the cumulative issues then pale in comparison to what the world is dealing with now.  Don’t believe me?  Than pray tell, why has the Fed since ballooned the (published) money supply by 6x…

Adjusted Monetary Base

…and its own balance sheet by the same.  As for the market manipulation described above, is there ANYONE on the planet who could objectively look upon these charts and conclude gold and silver prices are significantly LOWER than a year ago?

Reserve Bank Credit

Moreover, such panic is far more advanced overseas; as the average currency is down an incredible 10% in the past six months, and 20% in the past two years.  The European PIIGS are nearing financial collapse, the “fragile five” nations have experienced dramatic inflation and social unrest, and the Bank of Japan is en route to doubling its money supply in just two years; while in the United States of Money Printing, the list of “worst since Lehman” issues grows longer each day.

“Panic” – like “sentiment” – can be a very fickle thing.  In other words, one day it can be non-existent; and the next, as virulent and pandemic as Ebola.  Government attempts to delay the inevitable, GLOBAL fear of fiat currency collapse have indeed been powerful; and no doubt, will expand as the trapped rats run for cover.  However, the status quo of “modest” inflation, steady financial markets, and the perception of government control will eventually succumb to REALITY – just as they always do.  When this occurs; which frankly, could be ANY DAY given the horrific issues confronting both America and the global economy at large – today’s “panic” will give way to all-out, 2008-style PANIC.  Only this time around, Central banks won’t have the “ammo” to fight back the tide with new MONEY PRINTING.  Oh, they’ll certainly try; but this time, all it will foster is HYPERINFLATION.

And thus, I could not be more vociferous in my decade-long call to PROTECT YOURSELF from what’s coming.  The how and when may still be in question; but the what certainly isn’t.  In other words, the GLOBAL economy is on a collision course with collapse; led by its “ringleader of destruction” – the U.S. dollar.  Only PHYSICAL Precious Metals are guaranteed to maintain their purchasing power when all is said and done; and when the REAL panic begins, I suspect their supply will dry up as quickly as ice cream in July.