It’s the penultimate day before the Fed and Bank of Japan destroy what’s left of their “credibility” – and my god, it’s an utter horror show of economic implosion, monetary lunacy, political and corporate corruption, market and data manipulation, and military and diplomatic provocation out there. Typically, I “calm” myself in such situations by realizing it could be worse – by considering “worst-case scenarios,” then appreciating that we’re not there…yet. Unfortunately, what I see – politically, economically, socially, monetarily, and militarily, tells me a whole lot of worst-case scenarios are about to play out in the “first world.” Which sadly, nations like Brazil, Venezuela, Greece, and countless other “second” and “third” world nations are experiencing as we speak.
Before I get to today’s very important topic, I want to point out the across-the-board horrors that cumulatively, threaten the mass breakdown of financial markets, monetary stability, and even political and social order. And not, “in the future,” but NOW. Frankly, it’s difficult to find a starting point, given how many ugly stories are out there; but seeing former Republican President –and CIA Director – George H.W. Bush endorse Hillary Clinton, demonstrates just how lost, and corrupt, America has become. This, on the day it was discovered that Hillary’s Associate Paul Combetta was in fact “bleaching” her illegally stored, confidentially-created emails, from her time as Secretary of State.
[July 24, 2014] Hello all- I may be facing a very interesting situation where I need to strip out a VIP’s (VERY VIP) email address from a bunch of archived email that I have both in a live Exchange mailbox, as well as a PST file. Basically, they don’t want the VIP’s email address exposed to anyone, and want to be able to either strip out or replace the email address in the to/from fields in all of the emails we want to send out.
Read more here
Then we have the U.S. army “accidentally” killing 62 anti-ISIS Syrian soldiers this weekend. Then, having the gall to accuse the Russians of attacking an aid convoy the very next day. And Hillary Clinton, whose Middle East wars have destroyed tens of millions of lives, accusing Donald Trump of fostering terrorism! And my god, supposedly “conservative” Wells Fargo stealing tens of millions from clients – only to have the employee in charge of the crime receive a $125 million “golden parachute”; the CEO say he’s “sorry,” but won’t resign; and NO ONE being arrested! And how about the “coincidental” bomb attacks in New York and New Jersey, in which an Afghani national has been arrested – prompting a new wave of ugly political rhetoric, calls for closed borders, and new “anti-terrorism” measures.
Economically, just how much more obvious can it be that history’s largest financial bubbles are collapsing as we speak – from high-end real estate to “emerging art”; exposing just how insane the deformation created by the hyper-inflating of history’s largest, most destructive fiat Ponzi scheme has become? In China, mortgage loan demand hit an all-time high last month, whilst business loan demand hit an all-time low – the result of a government fostered housing mega-bubble that has created excesses unlike any since the Japanese real estate bubble of the 1980s. To that end, cumulative Chinese debt has essentially doubled since the 2008 crisis, to roughly $30 trillion – a significant portion of which, financed vacant apartments in hyper-bubbly cities like Beijing and Shenzhen, whilst the Chinese economy is experiencing its lowest “growth” since records commenced 30 years ago. Heck, the Bank of International Settlements itself, just this week warned that China faces a full-blown banking crisis!
Here in the United States of Lies and Propaganda, we’re to believe the National Association of Home Builders’ confidence exploded in August – whilst new home starts, reported this morning, plunged. Or that 50% of all new “jobs” since the 2008 crisis were created by the BLS’ birth-death model, despite new business formation free falling. And that the unemployment rate is at a multi-decade low, despite record low labor participation, declining real wages, and countless layoff announcements from major corporations. Port traffic is down 5% year-over-year, Treasury tax revenues are down nearly that amount, essentially all economic data is declining, and corporate earnings have fallen for six straight quarters – but don’t’ worry, all’s well. Meanwhile, oil prices are plunging anew, threatening further, drastic cuts in the sector that not only is responsible for one-third of all U.S. corporate capital spending; but has been the only sector to generate high-paying jobs since the 2008 crisis. And oh yeah, has more soon-to-default junk bonds within it, than all others combined. And yet, we’re told that third quarter GDP will be up 3%, after barely averaging 1% for the prior three!
Heck, even “Fed Whisperer” Jon Hilsenrath said no rate hike “until December” this morning – and yet, the “recovery” propaganda simply won’t go away. In other words, the Washington, Wall Street, and (captive) MSM economic “hockey sticks” – which I experienced first-hand as a Wall Street buy- and sell-side analyst – simply cannot be eradicated, no matter how bad things get. That is, until the “all-important” stock market – which, with each passing day, bears less and less resemblance to economic reality – is finally “lost.” Which I assure you, it will be – via crash or hyperinflation.
In Europe, Deutsche Bank’s stock is freefalling anew – as I write, to within $0.10/share of its all-time low of $12.49/share; as it becomes increasingly obvious it will not survive the “straw that broke the Euro’s back” – which incredibly, was the U.S. government’s demand for $14 billion it doesn’t have. And not just Deutsche Bank, but the entire European banking sector, €80 billion of monthly ECB QE notwithstanding; starting with Italy’s Bank Monte Paschi; which, LOL, needs to sell $10 billion of loans no one wants, and raise $5 billion of equity, by year-end, despite not a shred of interest in the dying company, which has already raised capital twice in the past two years, but has a total enterprise value of just $1 billion to show for it. Better yet, Italy’s soon-to-resign Prime Minister, Matteo Renzi – Italy’s fourth since 2008 – is openly attacking Germany for patronizing Italy regarding the health of its collapsing banking system, by correctly stating that Deutsche Bank’s problems are far greater. Of course, since all such banks are intertwined – plus, the thousands of corporations, dozens of governments, and billions of people with stakes in them – if one goes, they all go. And I assure you, far more than one are about to go.
And then there’s the gold Cartel – which NEVER in my 14½ years in the sector has worked so hard, or blatantly, to suppress the markets they know to be their “Achilles Heels.” I mean, just how obvious can it be that the same algorithms are being used, day in and day out, to suppress paper gold and silver – whilst prices in nearly all other currencies are at, near, or well above previous all-time highs; as physical demand achieves new highs every year? Heck, even the MSM is writing about how Central banks themselves have been buying gold for years…and yet, prices have such “trouble” rising. Just wait until Central banks are forced to admit such buying – whilst increasing it exponentially – to protect their rapidly collapsing currencies…just as today, when they admit buying stocks and bonds.
Last but far from least, today’s incredibly important topic – of what I believe may be a watershed event, upcoming over the next two days. Which is, the Federal Reserve and Bank of Japan’s respective policy statements tomorrow; at least of one of which, and possibly both, may fully destroy what’s left of the “credibility” they still have. Which, I might add, is only due to the blatant support of stock and bond indices they have prevented them from rightfully reflecting an economic, political, and monetary environment worse not only than 2008, but 1929. At least in 1929, the gold-backed dollar was still worth something – whilst debt was nearly non-existent, care of the gold standard that made it so difficult to create.
Many views have been spouted about what will be said tomorrow, starting with when they will actually be stated – as clearly, both banks are scared of “going first.” Heck, the Bank of Japan hasn’t even published the time of their policy statement, as they are so terrified of having their potentially rogue statements “mis-timed.” Are they colluding with the Fed? I have no idea. But frankly, the fact that the timing appears to be as big of an issue as the content, demonstrates just how fearful they are of another “policy error,” from a bank with literally no margin for “error” at all. Honestly, why anyone cares what these people have to say is beyond me – unless, of course, they decide to “go rogue,” by taking hyperinflationary, currency war provoking monetary policy to new, unheard of levels. Frankly, I would be shocked if they don’t announced something out of leftfield, given how desperate Shinzo Abe and Hirohiko Kuroda are to save their jobs, their collapsing legacies, and the “Land of the Setting Sun” itself.
As for the Fed, they will yet again prove me right by not raising rates – making a mockery of their, and Goldman Sachs’, prediction of “four rate hikes in 2016.” I’m sure they would love to simply say nothing else, other than the usual FOMC boilerplate about being “data dependent”; oil price declines being “transitory”; “inflation” likely to rise in the “medium-term”; blah, blah, blah. However, in their ridiculously blatant attempt to suppress Precious Metals over the past month, by relentlessly speaking of imminent rate hikes, they will be forced to address December in more than a cursory manner. Most likely – that is, if Deutsche Bank’s collapsing stock isn’t causing a global panic by tomorrow afternoon – they’ll pretend a December rate hike is a “strong possibility.” However, even that may well catalyze a massive stock decline, given how ZIRP-addicted – and NIRP-craving – markets don’t want to hear anything other than “lower for longer.” Which, shortly, will become an ECB-like call for “QE to Infinity.” And not the covert type they are performing today – in propping up stocks on a daily basis. But an overt QE4, which will make QE’s 1, 2, and 3 pale in comparison.
No matter what these two dying institutions say, I believe that by the time the dust settles on Thursday – ironically, my birthday – both the Fed and Bank of Japan will have dramatically reduced their credibility. And if the “markets” don’t co-operate, manic manipulation notwithstanding, it may well be September 21st, 2016, that goes down in history as the “day the Central banks died.”
Hopefully, you’ll have protected yourself by then, as the ramifications of the serial demise of the “leaders” of monetary destruction are almost to horrifying to consider. Remember, once the ball starts rolling downhill, it will be impossible to reverse; and if you haven’t taken precautions beforehand – like, for instance, purchasing the real money gold and silver always have been, and always will be – you may never again get the chance, certainly not at prices anywhere near today’s historically suppressed prices.
Andy, do you realize the day of your birth could go down in
history as a day of infamy. September 22 would always be remembered as the day when worldwide markets collapsed and
the greatest depression in history began. Of course on the
flip side that could also date the beginning of the greatest precious metal bull market in all of history.
And then there are those of us who are invested in inverse ETF’s that probably won’t payoff post decline in the markets. Historically speaking, this time nicely correlates with the timing for the demise of fiat currencies, and empires.
Congratulations on your lucid perspectives.
Happy birthday Andy! Work a little less hard and enjoy some quality time with your family.
Regards, Hugo
Andy, I have the greatest respect for what you do and how hard you work to do it all. In fact, you are the only “lighthouse” I turn to in order to find my way through the myriad paths of the precious metals’ world. For instance, not only have I heeded your thoughts and added series such as Canadian Wildlife, Predator and Birds of Prey but I turn to you daily to try to comprehend the implications of the many financial shenanigans which potentially threaten everyone’s immediate futures. My one regret is that I am, of necessity, a “leach”. As a long-in-the-tooth retired Junior High School teacher, with savings and pension ravaged by low interest rates, I am unable to afford contributing to your efforts much less being able to purchase sufficient precious metal protection for my loved ones.
However, there is one position that you appear to take that has me bug-eyed. I do not wish to waste your time with a personal response to this 74 year old ‘fella. So, please do not respond to me directly. But I would love to read in a coming blog effort at least some of your thinking as to why Mr Trump appears to have your vote. For the life of me I can not understand why one would think him capable of handling the presidency of this country. 90% of what I hear from him is a mixture of untruths, changed positions, and even hatred … with a lack of well-thought out positions on most every topic of concern. What am I missing?
Thanks for even considering this.
Andy,
Great article as usual and thank you.
I believe the Fed lost all credibility years ago and I’m at a loss to wonder how anyone believes anything they say.
Any, and I mean any, rate hike will immediately bring down the Ponzi house of cards that folks refer to as the financial system. So when the Fed does do a rate hike it will be a planned event to destroy the financial system presently in place which is nothing more than a joke.
I never thought of it, but you are correct that we are in far worse shape than in 1929 and 2008! If you really think hard on that, you should be shaking in your boots and making IMMEDIATE plans for you Ponzi fiat dollars along with food, water, and protection.
Humpty Dumpty has broken and can not be put back together again, but is presently covered up with a blanket of manipulation so no one can see him.
Again, thank you for keeping those that seek the truth informed. You are greatly appreciated.
Carl, you couldn’t do worse by voting for the town drunk to be POTUS over Shitlery. Trump is a stage man, he won’t be able to right this sinking ship of a false world wide economy any more than Billy Barty could play center for the L.A. Lakers.
We are in the middle of a system that was DESIGNED to fail one day. The banksters KNEW that they were committing crimes against humanity back in 1913, but did so anyway under the delusions that they would somehow be immune from the consequences of their actions. Maybe they didn’t realize just how bad things would be in the aftermath of their destruction. There’s something called the ne plus ultra line of logic and reasoning, and they didn’t use it.
Perhaps they didn’t realize at the time, that when the collapse happens, it would be a world wide fiat paper currency/electronic bookkeeping entry financial system. If the collapse was limited to just the USA, then they could flee to Europe and retire. But now we know that there is no place to run to, and nowhere to hide. Japan, China, Italy, Germany and many more nations will all collapse within ours of each other. There will not be any last bank standing in the end. Just a few people who planned ahead and saved some gold and silver to use for trade, and a barter system for those who didn’t.
ROCK ON ANDY MY BROTHER!
Hi Andy,
What do you think is in the cards for Wednesday Thursday re BOJ and FOMC regarding precious metals and markets. Do you think they have a surprise in store enaling them to club PMS yet again!
Best Birthday wishes Andy. I appreciate your shining the light of truth into the abyss of corruption. Without your voice, the chorus sings flat.
This total collapse of world markets, I believe, is a planned event. The world bankers seem to want to keep it all propped up at all costs, but these people create chaos and then step in with the so called “solution.” Their solution is World Government and a world monetary system that would be a cashless society. I believe they will keep on trying to keep gold off the scene. Gold makes good money and it also gives control back to the people. The world bankers will keep fighting gold and silver being used as money. We all have to realize that the necessities of life are what matter the most. We take so much for granted in the U.S., and to think of what could be taken away! When people don’t learn the easy way, they have to learn the hard way. And, what is it that we need to learn? How would God have us live?
As usual , nothing will happen , just like all the “important” days in the last 5 years. BOJ just came out with their statement …. nothing. If GOLD & SILVER should climb after the FED policy statement today , they will hammer it back down , or do the walk down from now to the end of the month ( options expiring , end of month & quarter ). Andy seems to forget that there is no limit to their manipulation . This can go on for years and years . Moonshot on the 22th ? Sure 2025 , maybe…
Don’t get me wrong…I’m a gold & silver bug too. I like your articles , they are a little more balanced than the world is ending EVERY day on KWN and even zerohedge.
Andy, Thank you so much for the tremendous effort that you have put into getting the truth out to ‘we the people.’ Have a great birthday.