Growing up in New York, my ideal “date” was to take a girl on the Long Island Railroad into Manhattan, take a subway to Greenwich Village, and browse the hippest counter-culture stores – like Flip, the Antique Boutique, Astor Place Hair-cutters, and Tower Records. When in Tower Records, I’d often hear extremely unique music playing, and buy it on a whim – tape cassettes, not CDs. Two such records, circa 1985, were Bryan Ferry’s “Boys and Girls” and Jean-Michel Jarre’s “Oxygene” – which is why it was so cool to see both coming to Denver this summer, enabling me to see two people whose albums I have so thoroughly worn out, I know every syllable of every song.
Later this summer, I’ll see Bryan Ferry – who just happens to be coming the day the Rockies play my Mets, setting up what will likely be a very exhausting day of traveling to and from Downtown. And last night, I saw Jarre; who, at age 68, is amidst the first North American tour of his four-decade-plus career. A Frenchman, he is one of the world’s most famous New Age musicians; who, despite his age, was as energetic, youthful, and entertaining as anyone I’ve seen. The accompanying light show was breathtaking; and my wife, who had never even heard of Jarre, said it was one of the best shows she’d ever seen. And best of all, his message of independence, revolution, and strength – as evidenced by his tribute to Edward Snowden – made the show as inspiring as it was entertaining.
On that positive note, let’s move on to what I see as an equally positive development; given that fiat currency, a root cause of a significant amount of the world’s evils, past and present, is in the early stages of a vast, crippling attack that will destroy its rapidly weakening grip on humanity further; and eventually, totally and permanently.
In yesterday’s “historic market manipulation setting the stage for catastrophe,” I summarized how global market rigging is getting so egregious, everyone is starting to talk about it. Tuesday, legendary investor Asher Edelman, whom Gordon Gekko himself was modeled after, said “I don’t want to be in the market because I don’t know when the plug is going to get pulled…(as) the government’s ‘plunge protection team’ is the only thing propping up the current market rally.” Whilst yesterday, Bloomberg analyst Richard Breslow espoused that “people love the Plunge Protection Team conspiracy theory when looking at equities. Well that’s exactly what is happening in bonds, right out in the open.”
Perhaps someone should tell him that by definition, suppressing interest rates is fixed income “plunge protection.” However, what he is clearly suggesting – as I have, since October 2014’s “end of QE – LOL,” is that the Fed engages in as much covert bond monetization as it does overt; in the same manner that said equity PPT – i.e., the President’s Working Group on Capital Markets – is as active covertly as the Chinese, Japanese, and Swiss “national teams” are overtly. I mean geez, look at the past two days of Shanghai Equity trading. Wednesday, after China was downgraded by Moody’s, to just two notches above junk status; and Thursday, after Chinese commodity prices crashed, the Yuan surged, and the potentially horrific ramifications of said downgrade – on the nation’s unparalleled, parabolically-rising debt – came to light. Yes, the “dead ringer” that has become as ubiquitous in China since its own “point of no return” two years ago, as it has been in the U.S. for at least five years.
Come to think of it, here’s the U.S. PPT in action on four of the last five trading days; with the fifth being not much different, via what I deem a “variations thereof” algorithm. Don’t worry about collapsing new and existing home sales; plunging manufacturing, retail sales, and wholesale data; a skyrocketing trade deficit – despite a plunging dollar; exploding political scandals; and the potential for World War III to break out at any moment. Or Obamacare imploding whilst the Trump Administration is powerless to “repeal and replace it”; a new “budget” with not a chance in hell of passing – as an historic “debt ceiling” fiasco awaits in the near-term; the potential for a Greek default in July, a Catalonian secession in September, a Brazilian civil war, and countless other PiMBEEB events. This, as Precious Metals are subjected to the same, relentless “attack algorithms” every day, despite every imaginable “outside market movement” moving in their favor – such as falling Treasury yields, and a plunging dollar. To the point that shortly, anyone who doesn’t acknowledge such blatant government intervention is going to be labeled a “conspiracy theorist.”
And then there’s yesterday’s “minutes” of the May 3rd FOMC meeting – which were so pathetic, they are barely worth noting. To wit, the key statement – as usual, likely to have been doctored since the meeting, in response to subsequent events – was that “FOMC voters thought it prudent to await evidence that the slowdown is transitory before removing further accommodation.” In other words, they have not a clue what is going on, and will only raise rates if they think said PPT – and gold Cartel – can maintain financial order in the process. This, despite the fact that the three miniscule quarter-point rate hikes are destroying what’s left of the “expansion” – given that utter collapse of economic data in recent weeks, to its weakest level since the 2008 financial crisis. Not to mention, for all the hype about the “balance sheet reduction” the Fed was supposed to discuss – which I assure you, will NEVER happen – all they essentially said was, they’d ‘consider it’ if the economy moves in the direction they hope.
Observing yesterday’s “minutes” fiasco – in which, Precious Metals rose in prototypically capped fashion, whilst PPT-supported stocks surged on what amounted to a decidedly “unexpected” dovish tenor – it occurred to me that the days of Central banking dominance are rapidly coming to a close, after decades of world-destroying hegemony.
For one, now that market rigging is becoming mainstream – even for “fake news” outlets like Bloomberg – it won’t be long before the gaping chasm between collapsing economic reality and the supposed prosperity “markets” are suggesting is called out, too. Which in turn, will put an increasingly interrogatory spotlight on Yellen, Draghi, Kuroda, Carney, Thomas Jordan, and their crews of financial terrorists; who cumulatively, have created history’s largest, most destructive fiat Ponzi scheme – which quite obviously, is violently imploding in real-time.
That said, the widespread recognition of government market rigging; and Central banking incompetence and destructiveness; doesn’t hold a candle to what is becoming, more rapidly with each passing day, the most ominous threat to Central banking hegemony in global history. I.e., the explosion of crypto-currency; which, far quicker than most can imagine, will, as discussed in yesterday’s MUST READ article, decentralize the world’s “monetary policy.”
The more capital that flees the centralized monetary system – of government-regulated “financial institutions”; to the “shadow” world of unregulated, decentralized crypto-currencies; the more difficult it will be for Central bankers to impact the economy (thank G-d); financial markets; and most importantly, the already dying perception that they are in control. This, whilst simultaneously, as noted above, the mainstream financial community comes to realize, as fact, that the majority of Central bank “influence” has nothing to do with “analysis”; but to the contrary, market-rigging.
This, in turn, will cause bankers like Yellen and Draghi – who are already starting to be considered pariahs, given their relentlessly consistent track record of producing NOTHING but debt, inflation, economic malaise, wealth disparity, and financial bubbles – to be increasingly viewed as the economic destroyers, and government shills, that by definition, Central banking produces. Which in turn, will catalyze greater skepticism of, and attacks on, the market-rigging mechanisms they principally utilize to promote “faith” in their policies – particularly, by “enemies” of the Western banking monopoly, like China and Russia. Which in turn, will catalyze rapidly increasing safe haven capital flows to what I last year deemed the “twin destroyers of the fiat regime”; i.e., Precious Metals and Bitcoin.
In a nutshell, the more reasons investors – and anti-West governments – have to mistrust the current, world-destroying system – which as we speak, is already well into its malignant terminal phase – the more likely they are to attack it. And now that crypto-currency is morphing, in lightning-fast fashion, from curiosity to threat, the odds that Central banks themselves will become “attack vectors” are exponentially surging. In such an environment, no Central bank “tool” will be more vulnerable to dismantling than the age-old “gold Cartel”; which not only will be less “necessary” in a paradigm in which crypto-currency is viewed as the principal alternative to fiat toilet paper; but, after five decades of relentless price suppression, is more vulnerable to price explosion than ever before – given just how sharply demand has risen, the supply outlook has declined, and above-ground, available-for-sale inventories have been eliminated.
In other words, the more rapidly crypto-currencies like Bitcoin rise, the more likely the Central bankers’ increasingly well understood market rigging schemes will be destroyed. Most notably, the suppression of gold and silver; which in said new paradigm, will be free to express themselves, in their full glory, as what they have best served as throughout the entirety of history; i.e., the best wealth preservation asset class ever known to man.