It’s Sunday afternoon, and I simply don’t know where to start; as each day, there are literally a half-dozen “horrible headlines” worthy of full-time discussion. To that end, even at the height of the 2008 crisis, things didn’t look as dire as today – with literally dozens of potential “black swans” on the horizon, in an environment where, sadly, such events aren’t even necessary to catalyze the inevitable collapse of history’s largest house of cards. Unquestionably, the majority of the global financial community realizes something is very, very wrong, though the vast majority haven’t yet acted to protect themselves. However, history’s largest game of “financial musical chairs” has clearly begun; and shortly, the entire world will be desperately rushing for an infinitesimal amount of “chairs.”
Let’s just look at Russia, to give but one example of the ominously swirling ill-winds. With its currency in free-fall (yes, still); the economic and geopolitical ramifications are, at the least, terrifying. To wit, in the last 12 months, Russia (in Mitt Romney’s words, “America’s greatest geopolitical foe”) has dramatically strengthened its allegiance with America’s greatest economic foe, China; for all and intents and purposes, annexed the Crimean Peninsula amidst heavy Western opposition; cut off natural gas supplies to six Southern European nations; and introduced a new military doctrine, naming NATO – and the U.S. specifically – as its principal enemies. Scarier yet, was this weekend’s comments by Russia’s Minister of Agriculture, claiming it would exclude Greece from its European food import ban “in the event it leaves the European Union.” In other words, with Greece’s potentially cataclysmic election just a week away, Putin is clearly laying the ground to build “Soviet Union 2.0.” Such an offer will undoubtedly be viewed as an act of diplomatic war in the West – and consequently, will only heat up the expanding “Cold War 2.0.” In other words, last year’s anti-Russian sanctions are morphing into more serious acts of aggression, at a breakneck pace. And thus, when I read that the Ukraine’s President is drafting 50,000 citizens for an anti-Russian mobilization – which, as I write on Sunday evening appears to have begun – I can only cringe with fear.
Yes, Greece is just one week from an historic election, in which the “anti-austerity” (read “pro-default”) Syriza party is all but assured to take control. When it does, its leader, Alexis Tsirpas, plans to immediately demand the forgiveness of hundreds of billions of Euros of debt – which unquestionably, the Euro Zone government will refuse. After all, if Greece is allowed to default, all PIIGS would demand the same; and perhaps, “non-PIIGS” nations like France. And thus, the potential for the Euro to break apart NOW – yielding a catastrophic daisy chain of debt defaults, derivative implosions, currency crashes, and social and geopolitical unrest, has reached “Defcon 1” levels. Already, we are witnessing runs on Greece’s largest banks, and its citizens have stopped paying taxes in anticipation of a “debt jubilee” and currency devaluation, when Greece inevitably abandons the Euro for a new Drachma. Under such conditions, even the most arrogant Central banks cannot stop – or even slow – the “unstoppable tsunami of reality”; and in the case of the Swiss National Bank last week, can be entirely “overwhelmed.”
This is why it’s so incredible that the “evil troika” of Washington, Wall Street, and the MSM – aided by their counterparts in Europe, Japan, and other “leading” nations – have been able to create a “meme” that printing money is a positive development. Much less, as all previous efforts have failed. Fortunately, said “tsunami” cannot be stopped, as it was unleashed by the indomitable “Economic Mother Nature” herself. And thus, one by one, the dominoes are falling – as exemplified by the SNB announcement last week, and comments like these from one of the world’s largest “TBTF” banks, Deutsche Bank.
“We doubt inflation expectations will spike sustainably higher on any announcement (at this Thursday’s ECB meeting) given the failed history lessons of US and Japan, as well as doubts about QE making a difference quickly in the Euro zone.”
Let alone, those of people actually operating in the real Main Street economy; such as these last week from the CEO of Lennar, one of America’s largest home-builders.
“Across the board, we’re seeing intensified competition as builders go out and chase volume.”
Thus far, “TBTF” banks haven’t left the trough of free money – prompting the majority of their commentary to mirror the propagandist cheerleading of Central bank puppets like Janet Yellen; who, laughably, believes the historic oil price crash is “transitory.” Heck, even as the Vampire Squid itself, Goldman Sachs, issued a disappointing earnings report Friday, its criminal CEO uttered the “lie to end all lies” of the state of the economy – which ultimately, will sit atop the all-time list of hubristic “last words.”
“We see evidence of a continued pick up in momentum for the global economy that will improve the opportunity set for 2015.”
Again, under the category of “How dumb do they think we are?,” what part of this chart suggests a “pick up in momentum?” Or Friday’s negative industrial production report? Or multi-decade lows in most commodities and currencies? Or all-time low bond yields in the majority of the Western world? Unless, of course, he is referring to downside momentum – backed by an “opportunity set” structured to benefit from the world’s misery!
Of course, as the “end of the era of Central banks” intensifies, even the Goldman Sachs’ of the world will be running for cover – realizing that when their benefactors at the Fed and on Capital Hill are bankrupt, they are no longer too big to fail. Heck, even Goldmanprobably “believes its own BS” about Central banks being in control, capable of navigating even the roughest of financial and economic waters. That is they did, until the Bank of Japan lost control subjectively, and the Swiss national bank objectively.
Even the SNB’s arrogant leaders – like “Lady Macbeth” Thomas Jordan, who “doth protest too much” against gold’s value – all but admitted its policy failure, in not only losing control of the Euro/Franc peg, but incurring massive, unpayable debts and catastrophic losses in doing so. And not only that, but in today’s disastrously over-leveraged world of “carry trades” – financed by the promises of central bankers, both implicit (like the “Yellen Put”) and explicit (like the Euro/Franc peg) – the “breaking” of such promises puts the entire financial system at risk; as occurred Thursday, when massive losses were reported by foreign exchange traders, hedge funds, and “TBTF” banks themselves – including Goldman Sachs. And oh yeah, an utter avalanche of selling in the world’s most widely used currency, the Euro, whose cumulative ramifications will be so broadly negative, it could easily catalyze a new World War. In other words, the veneer of Central bank infallibility was permanently broken, with the only questions remaining being “who’s next?,” and “how long?” until the game finally ends.
By now, particularly following Christine Lagarde’s comment that the SNB announcement took the IMF off guard, the entire world is starting to realize just how desperate – and terrified – the SNB was; although frankly, if they (and Christine Lagarde) had simply read the Miles Franklin Blog, they probably would have been more prepared. In other words, it is rapidly becoming “common knowledge” that not only are Central bankers clueless; and incapable of having even the slightest positive impact on economic activity or balance sheets; but they are clearly not even communicating anymore, as it’s become “every man for himself” amidst the terminal, catastrophic phase of history’s largest Ponzi Scheme.
Yes, U.S.-led market manipulators are still doing everything they can to prevent the “end game” of a final and total loss of confidence; but at this point, the only markets they still hold sway over are the equities of the largest markets – like the “Dow Jones Propaganda Average” and German DAX; and, of course, the paper gold and silver markets. I mean, watching the DAX hit a new all-time high Friday, as the Euro hit a new 12-year low; whilst the Swiss stock market plunged as the Franc surged, could not better depict just how “deformed” the Central bank fostered, PPT and Cartel-abetted financial markets have become. Only now, the “hangers on” that have been utilizing such orchestrations to their benefit are losing massive amounts of money. And with the Swiss carry trade now over – and confidence in the viability of other such “free money” schemes in doubt – it shouldn’t be long before the aforementioned, bastardized “memes” are dead, too. To that end, when I saw St. Louis Fed President James Bullard again try to prop markets with pathetic, transparent jawboning on Friday, I couldn’t help but think this is the “bottom of the barrel” of Central banking “weaponry.”
*Bullard – Fed could resume unconventional policy if needed
*Bullard – Lesson of QE is it works ‘fairly well’
No matter how you slice it, the SNB’s catastrophic decision to initiate the Euro peg in 2011 will be remembered as the beginning of the “end of the era of Central banks”; although it wasn’t until the peg was broken that the world realized it. And in its aftermath, Central bankers’ fear and cluelessness will be Center Stage, as the Bank of Japan meets on Wednesday the 21st, the ECB on Thursday the 22nd, and the FOMC on Tuesday the 27th. And oh yeah, in between we have that little old Greek election, which may well catalyze a horrifying run on European banks.
As for the only guaranteed benefactors of this financial macabre, how ironic is it that the wildly dovish September 2011 commencement of the Euro/Franc peg started the gold “bear market?” – which I write in quotes, as it was entirely due to illegal price suppression. Whilst the end of the peg, when all is said and done, will almost exactly coincide with the “bear market’s” end? Just looking at the startling U.S. Mint sales figures to start the year – before the SNB fiasco, as “after” data has not yet been reported; as well as data released Friday that China imported an unfathomable 61 tonnes of gold in the first week of the year, putting in on a pace to exceed 2014’s record level by a whopping 50%; and oh yeah, accelerated Russian gold buying, and you can see how the potential for the entire world catching an advanced case of “gold (and silver) fever is extremely strong.
To conclude, we can’t be more emphatic that “2008 is back.” Only this time, we are at the “end of the era of Central banks”; and thus, they will not only be unable to “contain” the damage, but themselves will be destroyed like ants under a magnifying glass. The Central banks’ maniacal money printing schemes were the only way to keep history’s largest Ponzi scheme growing; and now that confidence in them is failing, and the need for gargantuan QE programs just to prevent instantaneous collapse has arrived, it won’t be long before Central banks will have as much relevance as buggy whips.
We at the Miles Franklin Blog can only plead with you to take action to protect yourselves. And if you decided to do so with precious metals, we hope you’ll give us a call at 800-822-8080, and give us a chance to earn your business.
Hi Andy;
I’m sure you already know this, but for those of us (in my case since 2010) who have been closely monitoring the state of the world’s economic implosion, something very ominous has suddenly entered the body consciousness. I read everything you write and listen to every available interview you give, which means I’ve come to know somewhat, the level of tension and concern in your thoughts as you communicate with your loyal and informed audience. As of late, I am detecting a level of anxiety in your writing and voice, that tells me the crunch is nigh.
Personally, the energy price collapse was my moment of realization that this facade of an economy would be brought to its knees. Over the past couple of years, I devoted a considerable amount of time and effort to understanding the inextricable connection between energy and capital – a nexus which is entirely lost on the economic mavens that pollute our airwaves and print media and dominate the governing political opportunists or should I say, CRIMINAL CLASS. The substitution of one market fraud for another is dangerous enough (tech crap, mortgage scam, student loan vapor, auto loan fiasco), but when you screw with energy (0% loans that cause deformation), you’re really asking for it! When the energy scam busts – it’s lights out! Where’s the capital going to come from to extract the “high cost” energy that remains???
Back to the theme of this comment — I consider it a privilege to have the opportunity, almost on a daily basis, to pick your brain and keep abreast the critical events now ever so rapidly, converging before us. As a result of your efforts, I have made many changes in my financial and personal affairs I need not delve into, suffice it to say, I’m not easily impressed or influenced. Too many years of military, corporate and personal experience has led me to a fairly jaded opinion of most institutions and persons. Today, I limit my sources of critical information to a handful of outlets. I consider your work to be in the top 1% of my trusted sources, not only because of the quality of the analysis, but because of the passion, the sincerity and the genuineness of the perspective of which you come from. Some of us so-called tough harden guys need some companionship as we travel the last few miles of this difficult road… only to arrive at a juncture in human history that may be the most ominous of all in recorded history. Let’s hope not.
Take care and keep up the excellent work!
Bill Sodomsky
Bill,
Thanks so much for the kind words.
It’s for people like you that I love to wake up and write for!
a
Andy,
Generally speaking, when any one allows another to control their currency or wealth, it starts to disappear and gets stolen. Banks are not our friends, nor the safe keepers of our currency. Even the banks safe deposit boxes are a huge risk!
NO ONE WILL TAKE BETTER CARE OF YOU THAN YOURSELF !!!
Amen!
“banks safe deposit boxes are a huge risk!”
So are all those bullion storage facilities. If the government goes to confiscate gold that is the first place they will hit. Why waste time going through 90,000 safe deposit boxes to find a few ounces of gold here and there. And even storing PMs in your home are not completely “safe”.
First of all, I couldn’t agree more about safe deposit boxes. In fact, I don’t even hold deposits in banks anymore, let alone valuables. However, to suggest that all vault facilities are targets is unreasonable, especially very small ones way under the radar. Not to mention, we’re talking about Canada here, not the Big Brother States of America.
To expound, here is what I just responded to an email expressing the same sentiments…
I worry about everything – and in fact, my advice is always to store at home if possible – with a good alarm, safe, dog, gun, etc., making sure to only let “need to know” people in on it, with a plan to have it passed on upon death.
However, for some people, home storage is just not feasible – like, for instance, renters, ex-patriots, people who move a lot, high profile owners (like me), people extremely concerned about security, and those who simply have too much to store at home. For them (like myself), they must choose the most subjectively desirable storage program – considering operator, jurisdiction, cost, etc.
For me, it was a no-brainer, as our Brink’s vault in Canada checks off every box imaginable in my “mental and financial checklist.” As for Canada acting on American orders, I can’t even conceive such a scenario – especially if the global economy collapses, in which the relatively self-sufficient Canadians would want no part of America. Plus, we barely have any metal at our vault worth speaking of – compared to, say, the Central Fund of Canada; and to be honest, the Canadian government would have to work awful hard to even know our vault exists.
Ultimately, only you can decided what makes you comfortable. Fortunately, our Brink’s program is the industry’s finest, which is why myself (/breaking-news) and our firm’s principals all keep their own metal there – where they can count it themselves, at our regular (third-party aided) audits. Moreover, we just had some fantastic features added to make the program significantly more attractive to Canadians (/brinks-montreal-the-worlds-best-precious-metals-storage-program); and as noted in the article, everything you could possibly want to know about the program was discussed in this interview (https://www.youtube.com/watch?v=ATIUiUvRhwU) I did with our President and co-founder, Andy Schectman, three months ago.
So you do not have direct access to you precious metals. And you think when the SHTF, and there is lawlessness, that they will gladly give you back your PMs? And that those armed guards will never think of stealing it? And Brinks certainly is not one of those that is flying “way under the radar”, so the government will confiscate it if it wants to. Well I sure hope you do not have more than half of your PMs there. You might never get it back.
Nice sales pitch though.
Lauren,
Why so hostile? Let alone, as I have publicly made this “sales pitch” for free, publicly, since roughly 2005 – six years before joining MF. Not to mention, I put my money where my mouth is.
As for your question, here is what I wrote to another similar question…
I worry about everything – and in fact, my advice is always to store at home if possible – with a good alarm, safe, dog, gun, etc., making sure to only let “need to know” people in on it, with a plan to have it passed on upon death.
However, for some people, home storage is just not feasible – like, for instance, renters, ex-patriots, people who move a lot, high profile owners (like me), people extremely concerned about security, and those who simply have too much to store at home. For them (like myself), they must choose the most subjectively desirable storage program – considering operator, jurisdiction, cost, etc.
For me, it was a no-brainer, as our Brink’s vault in Canada checks off every box imaginable in my “mental and financial checklist.” As for Canada acting on American orders, I can’t even conceive such a scenario – especially if the global economy collapses, in which the relatively self-sufficient Canadians would want no part of America. Plus, we barely have any metal at our vault worth speaking of – compared to, say, the Central Fund of Canada; and to be honest, the Canadian government would have to work awful hard to even know our vault exists.
Ultimately, only you can decided what makes you comfortable. Fortunately, our Brink’s program is the industry’s finest, which is why myself (/breaking-news) and our firm’s principals all keep their own metal there – where they can count it themselves, at our regular (third-party aided) audits. Moreover, we just had some fantastic features added to make the program significantly more attractive to Canadians (/brinks-montreal-the-worlds-best-precious-metals-storage-program); and as noted in the article, everything you could possibly want to know about the program was discussed in this interview (https://www.youtube.com/watch?v=ATIUiUvRhwU) I did with our President and co-founder, Andy Schectman, three months ago.
a
Andy, I wish I could put my thanks as eloquently as Bill just did. Suffice to say that I also have followed your work and have always been impressed with your genuine interest in helping your fellow men and woman. Many thanks to you, Bill and Miles Franklin for the excellent effort and guidance you have provided.
You’re very welcome!
I’m with you Bill S., as i compile my daily information from various opinions that i consider credible, people with their pulse on the latest developments(Andy and Bill of course included),thing’s are feeling rather ominous. Black Swans have stopped circling, several now fluttering down for a landing. This could be any day.
Thanks for the kind words; and regarding fluttering swans, I couldn’t agree more!
Hey Andy
I think Bill couldn’t have put it any better, I am extremely grateful also for your writing and informed opinion almost on a daily basis. I too have been all in since around 2011, and this has been one hell of a ride. There have been many occasions when I have doubted my judgement.
I have tried to wake my friends and compatriots as to what is happening, some woke up most didn’t. Some blame me for the demise of the gold price and one in particular has accused me of destroying his life savings because I advised him to buy PM’s back in 2012.
I’m sure you get the same accusations directed toward you also. Since this time, I don’t advise anyone, I just tell them what’s happening and they can work it out for them selves.
Most just nod their heads and think I’m a doom merchant. Nothing could be further from the truth in actual fact. I’m very optimistic for what comes on the other side of this collapse and truly believe there is a better world for everyone when we finally awake the masses.
Unfortunately it won’t be without spilled blood and much suffering.
I also hear the anxiety in your recent writing, as I hear your desperation to save as many as you can from the tsunami which is about to wash over the entire world.
Unfortunately the old adage of leading the horse to water applies with the vast majority of the uninformed out there, and no matter how much you shout “Fire” they are all too asleep to awaken from their perceived normality until it will all be too late.
Andy,
Much appreciated, although I have no illusions of saving everybody – much less the people closest to me, who I gave up on long ago (/family-friends-and-colleagues).
Not that I could if I wanted to, as so little metal exists, and so many people that will want it.
a
Thanks for the link Andy, and how true it is that the hardest people to help are the ones closest to us. As I said before, I now just inform and now don’t bother to advise.
In any case it’s not my job to do so, and like you, I don’t delude myself that they will listen anyway. I have a handful of friends who understand totally what’s happening, they read, and they think for themselves, and if you want to survive this you need to be a critical thinker and be prepared to think outside the MSM box.
Your writing along with Bill Holter’s, And a hand full of others have allowed many of us to stay on message and stay the course of this bloody horrendous criminality that has been keeping the masses from waking up until it’s all going to be too late.
You have to have a thick hide to weather the beating you must have got over the years from other analysts and economists, and I’m sure the most painful thing has been that they have up until now been proved right even though they aren’t. That’s all about to change!
Andy,
Yes, a thick hide to deal with the lies and manipulations – but no real personal attacks, as deep down inside they know I’m write.
As for what we are doing to keep people “on message,” it’s exactly what Bill Murphy, Richard Russell, and Jim Sinclair used to do for me. Happy to reciprocate!
My greatest concern is when the mother of all Ponzi schemes comes to an end what diabolical plot the central banks have in store for the rest of the world. Will it be Ponzi scheme 2.0? Will the IMF step in and create a global currency as Jim Rickards has alluded to, in the form of an IMF SDR?
NO! There will be no more fiat currencies of import once this game ends; at least, not for a long time. Even Rickards probably no longer believes that SDR BS. I mean, if the dollar, euro, and yen fail, why would a currency COMBINING them do any better. Or better, yet, who would ACCEPT it?
Andy…As an avid reader of everything you right I know how dedicated you are to the subject at hand. I have personally communicated with you about the level of research and time you must devote to your writings. You shared with me the amount of time it takes in real time and I have no reason to doubt your statements.
I consider you not only one of the very knowledgeable but I also consider you one of the best at what you do.
Although I too am dealing with family members that are doubting Thomas types, I have done my best to encourage them to prepare with very little success.
I now just simply accept that all I can do is reverse their We Will See response to me back to them.
To their doubting minds I just accept that soon they will see for themselves that my warnings were justified.
Please never stop doing what you are doing…
To many of us you are a beacon of light.
A gentlemen and a class act is what you are.
The pace of developments is growing and time is short.
sincerely,
A great fan. Mike
Mike,
Thanks for the kind words; and I assure you, I’ll never stop until there’s no more internet.
a
You wont believe me, but I am in with this too, and grateful for your reports.
With me its like, after a while of panic – my mind try to calm me down, telling me to get “real” and it isnt so bad as it seems. (trying to get rid of the sorrows we are heading to).
Then I read your new report, and my eyes are wide open again, telling me I am not wrong with that damn nagging that something ( or all) is very very wrong.
Thank you very much for that!
Frank
Thanks Frank, happy to do for you what others once did (and still do) for me.
a
Andy, I wish to add my same sentiments. thanks for your efforts and bolding going wherever logic and common sense take you, and explaining so many new things. Thank you for explaining the difference regarding the central importance of energy, vs other financing bubbles.
In this same context, I note that technology often acts as a white swan. Technology advances often surprise by giving us an extra little bit of time or extra bit of unexpected benefit by doing more with less, helping scrape the bottom of the barrel etc.
However the biggest practical problem in the information-overload internet age is the inability for anyone to truly understand the facts of what is going on (consider the global warming debate where Kerry Lutz’s FSN publishes the “facts” of global cooling at the same time others are publishing the “facts” of 2014 being the hottest year yet).
As a dual scientist in molecular biology of nutrition and in energy engineering I have found that virtually all science and technology related articles on the MSM and alternate media of which I have personal knowledge of are completely wrong or misleading. I wonder how many other people have this observation or have any solutions……………..
Mots,
Yes, this current episode of financial, media, and economic lunacy shows the idiosynchracies of human nature at their finest.
I’m just happy some of us are capable of rising above the lies and propaganda, in seeking TRUTH.
a