Just 24 hours ago, for the first time I can remember, I was on the verge of sitting down to write without a single item of focus, given just how quiet the weekend’s news flow was. Subsequently, I was “saved before the bell” – when China’s People Daily unleashed a scathing attack on Western government, claiming it was ready to assume the global leadership being actively abdicated by today’s supposed “leaders.” Thus, the “upcoming, unprecedented, world-changing clash of civilizations” was born.
Today, the polar opposite situation is present – as the political, economic, and monetary “Mother Natures” have combined for no less than eight topics worthy of highlighting. To wit, the proverbial “feast,” to yesterday’s “famine” – as if China’s leadership declaring open political and economic war on the West can be considered “famine.”
But before I get to today’s “octella” of “PM-bullish, everything-else bearish” topics, I’m want to start with a “word from our sponsor.” Which in this case, is my employer, Miles Franklin Precious Metals, which is currently offering newly minted Platinum American Eagles, which the U.S. Mint is manufacturing for just the third time since 2008. Just over a year ago, I penned “platinum, the forgotten Precious Metal” – discussing why, in modest amounts, Platinum should be a part of all physical Precious Metal portfolios. And given today’s price, at under $1,000/oz, I think it’s a “no-brainer” to take advantage of what I view to be a bargain price for one of the world’s scarcest metals – which not only appears undervalued from a “monetary” perspective, but when considering the huge recent gains posted by base metals. As is always the case when Platinum Eagles become available, supplies are limited – so if you have any questions, the time is to ask them is now, by calling Miles Franklin at 800-822-8080.
Sadly, that’s all the good news I have to report – other than Precious Metals continuing to fight back against the Cartel, starting the New Year well for the fourth straight year. This, amidst a slow-but-steady collapse of the fraudulent “Trump-flation” meme, of surging interest rates and a rising dollar. The former of which, as I vehemently espoused last week, CANNOT occur without destroying the world; and the latter of which, is decidedly NOT occurring – as despite all the political horrors occurring overseas, the dollar index has fallen all the way back to the post-Trump breakout level of 100 – which in turn, as illogical, and rigged as the dollar’s post-Trump surge was, prompted “traders” to sell paper gold and silver en masse at year-end, demonstrating just how desperate the powers that be were to spin the “BrExit times ten” Trump victory as “positive.” Which in turn, pushed Precious Metal sentiment to the three-decade low it subsequently bounced off of.
Sure, the “2:15 AM” and “12:00 PM Cap of Last Report” algos have slowed every PM advance this year – whilst the PPT’s “dead ringer” and “hail mary” algos prop up the historically overvalued “Dow Jones Propaganda Average”; such as yesterday, despite both the dollar and interest rates plunging all day. However, in the big picture, it appears quite clear Precious Metal prices bottomed last month, with a veritable tsunami of PM bullish, everything-else-bearish trends providing a powerful tailwind.
As for today’s “feast” of “PM-bullish, everything-else-bearish headlines,” let’s start with the one emanating from the mouth of one of the most despicable character ever nominated for the post of Treasury Secretary – which is saying a lot, given that second generation Goldman Sachs banker Steve Mnuchin is “competing” for that title with fellow Goldman Sachsites Robert Rubin and Hank Paulson; former Citigroup Mortgage banker Jack Lew; “Mr. Atlas Shrugged” Larry Summers; and jack-of-all-trades propagandist Tim Geithner. Who, following Trump’s “thermonuclear currency war” salvo last week – in calling the dollar “too strong” – responded to Congressional questions related to his appointment hearing that “from time to time, an excessively strong dollar may have negative short-term implications on the economy.” Thus, if appointed, the top two financial authorities in government will be on the record as favoring a “weak dollar.”
Second, there’s that little thing called the Indian cash ban. Which, as I noted when it was announced on America’s Election Day, was one of the most horrifying, nation-destroying decrees in the history of totalitarian government. Subsequently, the mainstream media, as is the case with essentially all negative news developments, has completely ignored India’s plight. Which, per this MUST READ update from the world’s new leading authority on the topic, Jayant Bandari, has for all intents and purposes, permanently destroyed the “BRIC” nation that was supposed to lead the world economy into the 21st Century. Shortly, not only will the Indian government’s comically propagandist prediction of 7% GDP growth be revised below zero, but the “monetary revolution” I predicted for 2017 will be readily apparent. To that end, recall that in December 2013, I wrote of the ““upcoming Indian catastrophe“; and in April 2015, espoused that India has the “world’s worst government” – predictions which, in both cases are, quite sadly, being borne out right before our eyes.
Next, we have a fabulous article from the amazing “Simon Black” of Sovereign Man; who, in the simplest possible manner – utilizing the global “Big Mac Index” – provides indisputable proof that the “reserve currency” dollar is more overvalued than at any time in history. Not that it can’t continue to rise against other fiat toilet paper like the Euro, Yen, and Yuan – as has occurred during every financial crisis since history’s largest, most destructive fiat Ponzi scheme broke in 2008. However, quite clearly the “dollar bubble,” like the fiat Ponzi scheme underlying it, is in its final death throes; let alone, relative to the epic “anti-bubble” in historically suppressed Precious Metal markets.
Next up, this morning’s UK Supreme Court ruling, regarding the Lisbon Treaty’s vaguely worded Article 50 provision of how a European Union member must go about voluntarily leaving the union. As expected, the UK Supreme Court “pulled an Alexis Tsipras” – i.e, the Greek Prime Minister who in 2015 ignored the people’s landslide “OXI” vote, taking yet another Troika “bailout” in return for further nation-destroying “austerity” measures; declaring the BrExit process CANNOT occur without Parliamentary approval. Trust me, the Greek people will have their revenge – and their GrExit; and trust me, if the UK Parliament ignores the will of the British people, the political and monetary fallout will be as draconian as anything witnessed in the 21st Century.
Next, we have this damning article from Zero Hedge, discussing a recent survey by the Invesco Mutual Funds Group, in which they asked portfolio managers at 18 Central banks about their investment strategies for the coming year. Of which, a whopping 80% said they planned to “invest more in stocks and corporate debt.” In other words, even Central Banks that don’t have overt equity and/or corporate debt monetization schemes in place – like the ECB, Bank of Japan, Swiss National Bank, and People’s Bank of China – are allowing their portfolio managers to admit what the Miles Franklin Blog has vehemently espoused all along. Which is, that all markets are rigged, setting them all up for unprecedented “revaluation” when “Economic Mother Nature” inevitably releases her historically pent-up wrath.
And finally, three equally MUST READ articles – the first two from Jim Rickards, and the third from David Stockman. Unfortunately, Stockman’s “now the gong show begins” – eloquently discussing the myriad fallacies of what a Trump Presidency is “hopefully” expected to bring – is available only via his “Contra Corner” subscription service. However, for those with access to it, I cannot highlight enough just how dead on he is about the political, economic, and monetary headwinds the new Administration faces, now that “candidate Trump has become President Trump.”
As for Rickards, while I don’t agree with many things he says, he unquestionably has his finger on the pulse of the unfolding economic and monetary tragedy that will inevitably – and perhaps, imminently – put gold back in the crosshairs of every individual, institutional, and sovereign wealth manager on the planet; as history’s largest, most destructive fiat Ponzi scheme implodes. To that end, his “ice-nine lockdown” discussion of the upcoming bank freeze/cash ban that will likely destroy millions of unprepared investors, is as stark a description of what may pass as you’ll find. As is his “is China about to drop a bombshell?” – in which he describes the inevitable – and also, potentially imminent – Chinese Yuan devaluation that I have been (thus far, accurately) predicting for the past two years.
For these reasons, and so many others, I have never been more fearful of the near future – particularly as regards the destruction of fiat currency purchasing power, no matter which toilet paper your nation’s Central bank prints. Such a “feast” of “PM-bullish, everything-else-bearish” headlines has never before been served simultaneously to so many – and the “famine” people will experience if they don’t prepare will be, in my view, unlike any witnessed in modern times.