The gold Cartel has attacked PMs at the 2:15 AM EST open of the London “pre-market” on 91% of all trading days since the April 12th-15th “ALTERNATIVE CURRENCIES DESTRUCTION.” When the history books are written, this farce will likely be viewed as the singular act of hubris accelerating the demise of the global “fiat currency order.” Similarly, the pending October 1st government shutdown – i.e., tomorrow – if indeed it occurs – may be viewed as the day psychotic politicians lose the world’s confidence.
Regarding the former, even I am in awe of its blatancy; and I’ve seen EVERY tick of the past eleven years of PM trading. My manipulation motto has been “each day worse than the last”; however, I NEVER thought they’d become careless enough to actually destroy the mining industry in their quest to “kick” the can a few months longer. Although, as they say, desperate times call for desperate measures. Since April, mining companies have gone into “terminal crisis mode”; and consequently, my view that GLOBAL gold and silver production will plunge by 15%-25% over the next 2-3 years is already gaining traction.
If (when) this occurs, the Cartel will be wiped out with the intensity of a “CAT 5” hurricane, an “EF-5” tornado, and a Fukushima-like tsunami combined. PHYSICAL demand is already exploding worldwide; with the world’s largest buyer – China – on pace to double imports in 2013 alone. And now that its government is dramatically broadening the amount of eligible buyers, demand could literally go parabolic.
I noted Friday how the Cartel had moved up their PAPER “line in the sand” from $1,330/oz. to $1,340/oz.; and as you can see, they have done everything in their power to prevent gold from exceeding that level amidst the most PM-bullish news imaginable. From Friday’s blatant $1,340/oz. capping all day – i.e., EXACTLY 1.0% above Thursday’s close; to the Sunday Night Sentiment attack when gold reacted as it should to a potential government shutdown; to the 2:15 AM EST attack when it again exceeded $1,340/oz.; to the farcical WATERFALL DECLINE at EXACTLY the 8:20 AM EST COMEX open; the desperation is becoming evident to nearly every deep pocketed investor, institution, and sovereign wealth fund around the world…
Given essentially NO ONE sells product back to Miles Franklin, methinks the same dynamic is occurring the world round. That is, PHYSICAL buyers are motivated to PROTECT against the destruction of fiat currency purchasing power; whilst (naked) PAPER sellers are simply trying to depress the price – and thus, sap sentiment toward the only true SAFE HAVEN in the financial world has ever known. And now that the mining industry implosion is SCREAMING prices are below the cost of production, it shouldn’t take long for the last remaining PHYSICAL metal to be scooped up. What’s more, you don’t have to take my word for it. Instead, simply look at the COMEX’s own inventories. And by the way, for those that believe India’s suicidal policies to restrict PM buying will work – like the KING of mainstream sellouts; pray tell how silver demand – excluding unreported smuggling – has more than DOUBLED this year…
As for the latter topic – i.e., the first “government shutdown” in 18 years; it is scheduled to occur at midnight if House Republicans or Senate Democrats don’t flinch regarding the former’s stipulation that Obamacare be delayed. It won’t, to the detriment of ALL (particularly those that do the hiring). However, these guys appear headed for a “fiscal cliff-like” situation in which any such deal will only occur in the night’s wee hours – if at all.
Should they PRINT more money today, or simply wait until tomorrow? That is the only remaining question; as, of course, these vote-seeking TRAITORS wouldn’t risk re-election by allowing the MILLION or so government furloughs that would result from a shutdown – let alone, the trillions of entitlement payments that would be cut off. Which leads me to the topic of today’s article; i.e., the “DEPENDENCY NATION” that money printing, corporate subterfuge, and political lunacy has created. In other words, “big government” itself has become a Ponzi scheme; in that – like fiat currency – it MUST grow larger to survive.
As long-time readers know, I consider Jon Stewart one of the nation’s great patriots. Irrespective of his motivation, the fact remains that he alone dissects the news for what it is – just as I dissect “gold trading” for the FRAUD it has become. Unfortunately, Stewart has a major idealistic flaw; i.e., unabashed support of any and all things Democratic – frankly, on a par with Fox’s views on the Republican Party.
To wit, I recall his commentary last December about the upcoming “fiscal cliff” spending cuts; i.e., the “sequester” mandated by the oxymoronic Budget Control Act of 2011. Oxymoronic, in that no budget has been passed in five years; whilst not a whit of control has been exercised over spiraling U.S. deficits. At the time, Stewart acted as if the nation would collapse if – god forbid – $150 billion of spending (later reduced below $80 billion), funded by PRINTED MONEY – was cut. In other words, ignoring the $2.2 TRILLION of debt accumulated as the pre-determined condition of such cuts.
And today, he speaks similarly of the pending government shutdown; as if it’s the nation’s “duty” to HYPERINFLATE the currency to maintain worthless, overpaid, unproductive jobs. Trust me; no one sympathizes with the plight of the average American more than me. However, the bigger picture of a national economic collapse is far more important; as it will likely result in widespread social unrest; poverty, crime, and WAR. At this point, such an event is inevitable. However, I’m certainly not going to condone the very actions that caused it in the first place!
FYI, I still believe a “deal” will be cut tonight to avoid such an event; most likely, with House Republicans giving in on their Obamacare delay “PR tactic.” However, if not, we could see unmitigated CHAOS in the financial markets; particularly as historically cantankerous “debt ceiling” negotiations are simultaneously commencing.
Comically, I see the Chicago PMI and Dallas Fed surveys were “higher than expected.” Of course, as usual they make ZERO sense – as pray tell how employment can continue plummeting as “manufacturing activity” rises. As usual, one needs to focus on HARD DATA – not statistically insignificant, manipulated “diffusion indices” like the PMI. This is where the REAL economy is measured; explaining EXACTLY why “QE to Infinity” is guaranteed; and “tapering” IMPOSSIBLE…
And what’s this? Just as I go to print, with the Dow Jones Propaganda Average still down 100 points, after being protected at the “ultimate PPT daily loss limit” of minus 1.0% – both PMs suddenly surged higher; led by silver, again just above the current Cartel “line in the sand” of $22/oz., whilst gold just turned green. This silly headline about France not selling gold is being cited as the “reason”; to which I say, GIVE ME A BREAK!
Remember, absolutely ANYTHING is possible as the government shutdown/debt ceiling debacles take center stage – especially as we enter the market’s most dangerous seasonal period. Will it finally mark the end of TPTB’s control over financial markets? I don’t know, but don’t be surprised if the “status quo” changes markedly; that is, from a collapsing political and economic environment masked by MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA to one recognized by the ENTIRE WORLD. If the latter occurs, you had better own PHYSICAL gold and silver before financial FEAR inevitably encircles the planet.