I’m sorry if my Friday-written articles are less cohesive than the rest. Technically, it’s my day off; but given the relentless carnage in the global economy – and the most maniacal Precious Metal suppression in the 13½ years I’ve been watching – I feel as compelled to help you as to relieve myself by venting. And particularly this Friday, as I have seven pages of “horrible headlines” to filter in just the 18 hours since recording yesterday’s Audioblog, “crumbling before our eyes.” In other words, another day where it’s difficult to pinpoint a single topic – as literally, I could write separate articles on a half dozen “horrible headlines.”
To wit, Zero Hedge summed it up perfectly with today’s market-closing quote, that “stocks soared by their most in 13 months, after the worst European terrorist attack in over a decade.” And they could just as easily have written “stocks complete best month in years, on heels of the Fed suggesting it would raise rates”; or “stocks explode as the Baltic Dry Index hits an all-time low,” the CRB Commodity Index a 40-year low, and commodity capital spending an unprecedented low, with no hope in sight.” Or heck, “Precious Metals plunge, via the same algorithms as always, following relentlessly positive news – regarding surging demand, plunging inventories, and the worst production outlook in decades.
Heck, even the second “zinc PPT” sighting in a month failed miserably, with zinc losing nearly all its comical 5% early morning by day’s end – with all five major base metals finishing at or near their post-2009 crisis lows. Not to mention, the zinc PPT’s primary benefactor, Glencore, not only gave up all its early morning stock gains, but closed 1.4% lower – en route to its ultimate, commodity-derivatives destroying destiny with ZERO.
Of course, per the red arrows on the below charts, the newly formed “base metal PPT” – as they have been doing increasingly lately – “magically” changed the closing prices to make them look higher; in today’s case, with all five metals! Let alone, the comedy of the “oil PPT” taking crude prices dramatically higher any time the U.S. rig count falls – as if the rig count has had the slightest impact on the shale industries burgeoning “frack-log.” Which, too, miserably failed today, with WTI crude closing – for the third straight day – right above the key psychological level of $40/bbl; i.e., the oil PPT’s current “line in the sand,” which will fail barring the outbreak of Middle Eastern war. And not in Syria, I might add, but an actual oil-producing nation like Iran.
Heck, even perma-bull economic cheerleader Goldman Sachs predicts $20/bbl oil this winter – whilst partner in crime Bank of America suggests that if Saudi Arabia de-pegs the Riyal, $25/bbl is possible. Which, given Saudi Arabia’s catastrophic financial problems – and the exploding, global “final currency war” – is not only plausible, but likely. And trust me, if oil comes even close to such horrifying levels, not only will whatever’s left of the global economy be vaporized, but the “unspeakable horrors” I warned of a year ago will be certain to occur. But don’t worry, the Fed’s going to raise rates in December; as these historically tragic deflationary winds – which their policies were most responsible for creating – continue to be deemed “transitory.”
Or perhaps, Zero Hedge could have written “stocks explode higher on news that Greece is official dead” – as per today’s catastrophic 50% plunge in the National Bank of Greece’s stock, towards its guaranteed date with zero (likely by year-end), you can bet that the massive economic carnage, and social and political unrest, racking the “bailed-out” PIIG (with a realistically accounted for $600+ billion of debt) will go exponential – just as it is, or shortly will be, in the hopelessly indebted nations of Portugal, Brazil, and Puerto Rico – and heck, even Finland. Not to mention, the increasingly welfare-dependent United States – including its “wealthiest city,” New York. And of course, the granddaddy of coming economic implosion – China. Trust me, the Fed wouldn’t have called an EMERGENCY, CLOSED-DOOR MEETING for this coming Monday if things weren’t that bad. Let alone, as the House of Representatives passed a “Fed Transparency Bill.” Which, while it will clearly be vetoed by Obama, may NOT be if a Republican President is elected next year.
And how about “stocks rocket to the stratosphere as junk bonds plunge” – as I first warned of two months ago. Or “stocks explode on news that America’s largest healthcare organization, United Healthcare, may be ‘opting out’ of Obamacare.” Again TRUST ME, if that actually occurs – assuming it’s “legal” – what I wrote last week of Obamacare being the “bullet hole to the head of the 2016 economy” will be upgraded to the “shotgun shell” – whilst last month’s “unmitigated disaster that 2016 will be” will be upgraded to catastrophe.
And last but not least, the quote that “inspired” today’s article – from none other than “Goldman Mario” Draghi of the ECB; who this morning, said the ECB will “do what it must to raise inflation quickly”; as “the economy will need more aid if the recovery is determined to be, left to its own forces, non-self-sustaining.”
Yes, “left to its own forces.” Gee, I wonder what said “recovery” would have looked like without the ECB’s gargantuan QE and NIRP policies. Which, despite the ECB’s comical assertion that it has been “successful,” has not only left Europe at the brink of economic collapse, mass default, currency implosion, and unprecedented political and social unrest, but all such tragic trends are just getting started. And I wonder if “markets” like gold and silver, and the “Dow Jones Propaganda Average” – to name a few – would be trading at levels historically decoupled from reality if they were “left to their own forces,” for even an hour. Or if anyone would even listen to Central bankers’ drivel if they didn’t expect “markets” to be manipulated to suit their message. Or if we’d have been taken so far down this economic, political, and social “rabbit hole to hell,” that we could never, ever emerge. Which is exactly where the entire world stands today.
Fortunately, “Economic Mother Nature” always wins – as she is decidedly as we speak. And nowhere will she win more spectacularly than in the tiny, historically tight “canaries in the coal mine” that are the gold and silver physical markets – when inevitably, the global mad dash for real money ignites. Which, in my view, has, due to recent events, been upgraded to much “sooner” than “later.”