Yes, I know…it’s a very provocative title – which I’ll get to momentarily. However, in the context of its subject – the desperation of the collapsing “powers that be” to preserve a dying status quo; in which the “1%” maintain the world’s power and wealth, at the expense of an increasingly angry “99%”; their attempts to buy a few more nanoseconds via unprecedented levels of market manipulation have never been more obvious, for the entire world to see.
And nowhere more so, than in the fraudulent; fractional-reserved; massively naked shorted; and for all intents and purposes, unregulated paper markets for the historical mortal enemy of fiat currency. I.e., the “once and future kings” of wealth storage, which have defeated potential destroyers at every turn for more than 3,000 years – physical gold and silver. Which consequently, have become so scarce, their inevitable, Waterloo-like victory will be more powerful than any in financial market history – especially because, in Bitcoin, they now have an equally powerful monetary ally – to divert said “powers that be,” and force them to fight not one, but two unwinnable battles.
Consider yesterday’s unconscionably blatant attempts to enforce “Cartel Rule #1” – i.e., “thou shalt not allow PM’s to soar whilst the Dow plunges” – on yesterday’s first material equity down day of 2017. Of course, said “plunge” was “miraculously” contained, as usual, at the PPT’s “ultimate daily limit down” of exactly -1%; bottoming at exactly the 10:00 AM EST time stamp characterizing the age-old “dead ringer” algorithm; which just happens to coincide with the Fed’s daily, covert “open market operations”; which just happen to coincide with the Cartel’s historic “key attack time #1”; which just happens to coincide with the London PM Fix; which just happens to mark the end of the global trading day for physical gold and silver.
On a day when every imaginable “outside market factor” was on gold and silver’s side, the Cartel started by capping gold at the key round number of $1,200/oz for the 173rd Sunday night of the past 181 weeks; then again, at the “2:15 AM” EST open of the London pre-market paper trading session – for the 778th time in the past 896 trading days; and finally, with the “12:00 PM EST cap of last resort” algorithm – via a prototypical “Cartel Herald” algorithm. And again this morning at 2:15 AM EST, in an increasingly futile attempt to prevent the inevitable outbreak of gold and silver fever we all know is coming. Which may well commence soon; as clearly, PMs again bottomed in late December. To wit, both are trading well above their 50 day moving averages of $1,177/oz and $16.66/oz, respectively; with their 200 day moving averages of $1,267/oz and $17.92/oz dead ahead; followed by the inevitable; massively bullish; potentially historic crossovers of their 50 month moving averages – for gold, at $1,269/oz; and silver, $18.82/oz.
But lo and behold, what’s this I see as I write at 8:00 AM EST? Gold back up to $1,205/oz, silver at $17.40/oz, and the dollar index – despite both the Euro and Yen on the verge of Central bank orchestrated destruction – having just fallen to its pre-Trump breakout level, at the key round number of 100.0! This, just one day before the Fed meets, with interest rates again failing to eclipse the 2.5% “nuff said” level that has become the new “economic destruction line in the sand” – given how it is simply NOT POSSIBLE for the economy, or the government (particularly with an historic “debt ceiling showdown” set to commence next month) to function with rates any higher.
And by “no longer function,” I mean that meaningless “soft data” surveys – like LOL, the same surging “consumer confidence” indices that gave false hope at the start of the Obama Presidency (particularly when he immediately enacted the ill-fated “American Recovery and Reinvestment Act”) will shortly fall back to the levels of the decidedly ugly hard data that hasn’t increased a whit. To that end, not only was 2016 the weakest year for economic “growth” in Obama’s Presidency – which I say in quotes, as if real accounting were used, it would indicate a massive recession; but Obama’s Presidency featured the lowest economic growth in U.S. history; and the lowest wage growth, labor participation, and home ownership in decades; as well as the highest amount of multiple, part-time job holders, entitlement recipients, student loans, and Federal debt, to name but a few ignominious superlatives.
Despite the massive, myriad amount of “PM-bullish, everything-else-bearish” factors to report on – as I did, en masse, this weekend; I’m going to focus solely on the one which, in the big picture, may well represent the most dangerous, deleterious transformation the world has undergone since World War II. Which is, the destruction of “world order” that was created in its wake – when first, the Bretton Woods Agreement established the dollar as the new “reserve currency” in 1944; second, the U.S. reneged on said agreement by abandoning the gold standard in 1971; and finally, it’s solidification – for the ensuing four decades – of said “reserve status” when it agreed to “protect” Saudi Arabia circa 1975, in return for exclusive “petrodollar” status.
And by destruction, I truly mean destruction. As not only are the crony capitalists, Central bankers, and politicians being serially removed, but in many cases the proverbial “pitchforks” are coming out. Since last June’s BrExit; and arguably, late 2015’s Catalonia’s soon-to-be-enacted secession referendum; the gates of revolution have been opened, with Donald Trump’s “unexpected” victory blowing the doors off. And frankly, what we are seeing in the immediate aftermath – before any actual policy is enacted, is truly a terrifying sight to behold. As not only is he, for all intents and purposes, annihilating the status quo, but creating powerful new friends; and unfortunately, far more powerful enemies. Which will only become more vicious, and violent as “Economic Mother Nature’s” full, and total revenge is unleashed, on the last vestiges of history’s largest, most destructive fiat Ponzi scheme.
Today’s very, very important topic, regarding what I have “never done before.” Which is, in roughly 13 years of penning public missives on such topics, actually writing of the same topic two days in a row. As frankly, yesterday’s “a nation – and world – divided” just wasn’t enough, to demonstrate just how terrified I have become of the widespread social unrest I anticipate – both here, and in dozens of countries whose currencies, hopes, and dreams have already died on the vine.
Just seeing the firestorm of violent public resistance, and support, of Donald Trump – who, in just a few months’ time, has already become the most polarizing figure in U.S. political history – I cannot help but fear the worst. Yesterday’s government firings; resignations; and in one particular case, mutiny; are in my view, mere appetizers of what’s to come. Let alone, the emerging California secession movement and the now 1.4 million strong petition to bar Trump from entering the UK – which will shortly be debated in Parliament. All this, catalyzed by a relatively inconsequential “immigration ban” – of a handful of nations who are clearly our mortal enemies, whose refugees will only put further strains on the increasingly irreversible welfare state America has become; which even Trump, “capitalist” as claims to be, has no plans of, or ability to, dismantle.
From an economic standpoint, the following response to last month’s Dallas Fed Manufacturing survey says everything you need to know about where the economy is headed.
“President Trump looks to do things that will be favorable for business, which would improve employment and growth if successful. However, protesters are all over the place, so I tend to think that will cause trouble for the country and for business.”
However, it’s the political, social, and monetary directions I fear far more; as over the coming four years, my very, very strong belief is that the catastrophic ramifications of 45 years of monetary destruction are about to be unleashed on the world – and massively overinflated financial asset markets – like never before. This, at a time when the historically best ways of protecting oneself from such cataclysm – physical Precious Metals – are currently, care of 45 years of official price suppression, both qualitatively and quantitatively , as inexpensive as at any time in modern times.