Last week, former Goldman Sachs banker and current Bank of England Governor Mark Carney said “in many respects, we’re coming to the last seconds of central bankers’ 15 minutes of fame…which is a good thing.” Which I couldn’t agree with more, despite said “15 minutes” lasting more than 100 years; or at the least, the 46 years since the U.S. reneged on the Bretton Woods Agreement by unilaterally abandoning the gold standard; with nary a peep of protest from fellow signatories; all of whom were content to charge their nations’ respective “credit cards” to the limit – to garner short-term, personal fame and fortune, at the expense of long-term, worldwide political, economic, and social pain.
Why did he say this, you ask? Trust me, it wasn’t due to altruism towards the billions who have suffered from the sociopathic policies of “elite” post-War Central bankers; or in the case of the Bank of England, which literally invented the concept, for centuries. No, in typical “powers that be” form, he was trying to deflect attention from his and his vile peers’ self-serving, 99%-destroying behavior – now that it’s become crystal clear that they have not only failed miserably, but literally run out of ammunition; outside of outright inflation, which I assure you is coming.
“What The Fed did, and I was part of it, was front-load an enormous market rally in order to create a wealth effect, and an uncomfortable digestive period is likely now…the Fed is a giant weapon that has no ammunition left.”
-Former Dallas Fed President Richard Fisher, January 2016, a week after retiring
You see, Carney and the dying Central banking cabal are attempting to “frame” the very politicians that sustain them; in a desperate effort to avoid blame, by suggesting it’s time for hyperinflationary fiscal stimulus to replace hyperinflationary monetary policy as the leading Central planning can-kicking “tool.” Which I assure is coming (read: Donald Trump); but will decidedly NOT replace hyperinflationary monetary stimulus – but instead, supplement it; as without both, the “game” ends instantaneously, and violently.
This, as the equally dying political establishment places still more economic and financial manipulative power in their hands, in an equally desperate attempt to fool the masses into keeping them in power. I mean geez, one of the first “executive orders” Donald Trump signed was to all but dismantle the (pathetically inadequate) Dodd-Frank Wall Street regulation law – advised by none other than a who’s-who of infamous financial criminals.
Speaking of the dying political establishment, has anyone seen anything like the political and social chaos that has erupted in the post-Trump environment? I warned repeatedly that his election would be a “BrExit times ten”; and frankly, I’m starting to think that might have been a gross understatement. I mean, the political, social, and legal firefight catalyzed by a largely inconsequential, extremely selective, temporary immigration ban on seven violently anti-American nations is in and of itself, dividing a massively, historically polarized nation like no issue I can recall – to the point the inexorably demographically-supported “leftists” are ready to move for impeachment. Let alone, the trade, currency, and diplomatic wars launched mere days after the inauguration, with both “allies” and enemies alike. Heck, the only nation Trump has shown even a modest bit of “support” for is Russia – which, if Hillary Clinton had won the Presidency, would likely already be facing us in World War III. To the contrary, the Trump Administration’s “greatest geopolitical foes” appear to be Mexico; Germany; Iran (which officially disavowed the dollar last week); China; and as of this morning – in many ways, deservedly so – California!
Yes, the leech-like political paradigm that has destructively co-existed with Central bankers’ 15 minutes of tyrannical “fame” is dying, too. This weekend alone, the latest polls show Angela Merkel’s Christian Democratic Party’s lead – ahead of Germany’s September elections – to have shrunk to just a few points; whilst Marine LePen’s supposedly chief competitor for the French Presidency to be voted for in May, Francois Fillon, is amidst an horrific embezzlement and nepotism scandal. Moreover, we’re barely a month ahead of what could be an historic Dutch “Trump-like” Prime Ministerial victory for the violently anti-EU – and ominously, anti-Moslem – Geert Wilders; whilst the prospect of Italian “snap elections” looms larger with each passing day; as well as the inevitable Catalonian secession declaration; and the increasingly inevitable GrExit. This, as this Fall’s Chinese 17th Party Congress may well cause a massive shakeup in the leadership of the world’s largest, and rapidly collapsing bubble economy.
Regarding Europe, isn’t it funny how yet another Cartel ploy to create a short-term meme to blame their most recent PM attacks on, is decidedly failing? Which is, to claim that Trump – who as recently as Election Day, was deemed to be “bad for America” – is suddenly the dollar’s savior. Based on, I might add, absolutely ridiculous premises; like, for instance, that imposing massive tariffs will be good for the economy. Let alone, as Trump launched a “thermonuclear currency war salvo” last week, in not only espousing the dollar is “too strong,” but viciously lashing out at “currency manipulators” like China, Japan, and Germany. To that end, seeing gold rise with “the dollar” this morning – per the comically inadequate, and patently meaningless “dollar index” – I can’t help but laugh; particularly as so many mindless, subscription-seeking “newsletter writers” in our own sector fall for such blatantly obvious tactics time after time – like actually believing gold and silver investors, in a freely-traded market environment, could care less about the dollar/Euro or dollar/Yen exchange rates.
Which brings me to today’s fourth installment of my ongoing refutation of the unconscionably ridiculous propaganda that gold relies on said “dollar index” for its queue; let alone, when 2.7 billion Chinese and Indians – i.e., the world’s largest physical Precious Metal buying bloc – are forced to use fiat toilet papers that aren’t even included in it. And the funniest thing about said propaganda is, that it is only utilized sometimes, as part of the Cartel’s relentless, ongoing “gold is whatever is down” manipulation tactic; i.e. whatever propagandized meme works best at a particularly moment in time.
In other words, it’s time for “if a nuclear bomb destroyed Europe, part IV”; following the initial installment in 2013; part II, in 2014; and part III, in 2015. The premise being, that if something “bad” occurs to Europe – like political, social, or military chaos; or, perhaps, the collapse of the Euro currency itself; it’s utterly ridiculous; and flat-out illogical, to suggest this is somehow “bad” for gold and silver. Let alone, if something “bad” happens to the second largest component of the dollar index – the hyper-inflating Yen; or even the third-largest, the UK Pound – which plunged to an all-time low last summer following the BrExit vote. Not to mention, when the dollar’s “rise” is due to principally to superior liquidity in paper markets occupied by asset managers largely prohibited from investing in real assets; thus, simply trading one piece of toxic paper for another.
To that end, today’s installment comes on the heels of a quote from perhaps the vilest; most hypocritical; and sadly, second most influential financial minister on the planet after the U.S. Treasury Secretary; who ironically, is somehow considered a bastion of “conservatism,” despite having backed every insane ECB, IMF, and EU hyperinflation initiative of the past decade.
Yes, the “great” Wolfgang Schauble, Finance Minister of Germany – a master of double-speak, like pretending to be violently against bailing out Greece, but somehow acceding to new bailouts each time; in response to Trump’s “thermonuclear” accusation that Germany purposely devalues the Euro, actually agreed – in espousing “the Euro exchange rate is, strictly speaking, too low for the German economy’s competitive position”; followed by his pathetic version of deflecting blame – only this time, from politician to Central banker…; i.e., “when Draghi embarked on the expansive monetary policy, I told him he would drive up Germany’s export surplus . . . I promised then not to publicly criticize this [policy] course…so I don’t want to be criticized for the consequences of this policy.”
In other words, Schauble is admitting that Germany – via its proxy the ECB, which it has more influence over than any other EU member – has been manipulating the Euro lower; and ironically, saying this was bad for Germany’s competitive position. Germany, which had the world’s largest trade surplus in 2016 – yes, larger than China; whilst the economies of essentially all major “competitors” have crashed. Taking the argument further, he is essentially blaming the ECB’s hyper-monetary policy for Germany’s competitive position change. Which according to said meme, is “bad” for gold?
After four such “if a nuclear bomb destroyed Europe” articles – or in this case, a thermonuclear currency war salvo; let alone, if logic and common sense are applied; even the most financially illiterate should realize that correlations between real assets like Precious Metals and paper “assets” like bonds and currencies are at best spurious; and in today’s historically rigged markets, more manipulated than real. To the contrary, there are countless dozens of political, economic, social, military, and monetary factors influencing financial markets at any given time – rigged or otherwise; and in the case of gold and silver, the only factors that matters is real physical demand – which currently, is near all-time high levels; and physical supply – which not only is near historic lows, in terms of above-ground, available-for-sale inventory; but is set to dramatically plunge in the coming years – just as fiat toilet papers like the dollar, Euro, Yen, Yuan, and 180 others are on the verge of hyperinflation.