It’s Thursday morning, and I think I’m going to take a week off from my Audioblog – particularly given the 40-minute, all-topics-included podcast I did with Kerry Lutz yesterday. As for next week, I’ll play it by ear, given that I have a busy podcast schedule as well. To that end, I have a lot to write of today – on this bi-annual OPEC meeting day; in which, UGGGHH!, yet another “production freeze” rumor was circulated yesterday to boost a flagging oil price – which has a ZERO chance of occurring (as validated by the “no action” communique issued as I edit). But even if it did, it wouldn’t change oil’s horrible supply/demand fundamentals a whit; as absent hyper-inflation, I believe oil prices have nowhere to go but down.
To that end, isn’t it “funny” how historically under supplied Precious Metal markets don’t “respond” to real, fundamental data – like peak production, collapsing inventories, supply disruptions (particularly, platinum), or the prospect of mass base metal mine closures, where two-thirds of the world’s silver emanate from? Don’t worry, my friends, they will – in a BIG way – in due time; as when the Cartel inevitably, and hopefully imminently, is swamped by “Economic Mother Nature,” an historic lack of supply will be, in the long-time words of Miles Franklin’s President and Co-Founder Andy Schectman, the factor that defines Precious Metal markets.
It’s also an ECB meeting day – of which nothing material occurred, as the ECB is currently in “wait and see” (for its previous schemes to fail further) mode. And an ADP employment report day as well (“in line” with weak expectations), ahead of tomorrow’s, LOL, “most important ever” NFP jobs report. And how about this? Of all the “chutzpah” I’ve encountered, it’s difficult to top the IMF – which today, published a “white paper” concluding that “austerity” policies do more harm than good. Then why, pray tell, do they continue funding an imploding Greece with “bail-outs” – to pay only bankers, like themselves – under the condition of further austerity concessions; which are not only (per their conclusion) destroying Greece’s ability to generate capital, but aren’t even being adhered to? In other words, validating the mathematical certainty of a near-term (as in, the next 12 months) Grexit. Which, if Europe is still in tact by then, will surely prove every bit of the death blow it was feared to be when Greece first becamse a “PIIG” six years ago. No thanks to Mario Draghi – who, when still working with Goldman Sachs, helped to engineer the “off balance sheet” debts that have put Greece, and by extension Europe at large, at the precipice of collapse.
Here in the United States of Economic Implosion, yesterday’s data couldn’t have been uglier. Weekly mortgage applications fell 5% – as Sam Zell revealed he’s selling everything not nailed down, in anticipation of a 2008-style real estate crash. The PMI and ISM Manufacturing Indices both came in barely above 50; and construction spending “unexpectedly” plunged 1.8%, when it was “supposed to” rise 0.6%. And as for auto sales, the worse case scenario has come to pass – in the form of last month’s “credit surge” equivalent of “Cash for Clunkers II,” which caused a brief spike in leases and liar loans, yielding a post financial crisis high in the inventory to sales ratio, and May sales plunges like the 18% crash at General Motors. But don’t worry, the Atlanta Fed’s “GDP Now” predicts 2.8% second quarter GDP growth. I mean, why not just go “full Chinese,” and say GDP is growing at 6.7%, when it is in fact contracting by that much? And by the way, do you know what the current money market “odds” of a June Fed rate hike, LOL, are? Drum roll please…a whopping…22%!
More than ever, the only thing holding America’s – and effectively, the entire world’s – shrinking economic stability together are the PPT, Fed, and Exchange Stabilization Funds’ ability to manipulate “last to go” markets like the “Dow Jones Propaganda Average” and paper gold and silver. Sam Zell is selling real estate; institutions are selling stocks at an historic rate; the Chinese are dumping Treasury bonds; and physical gold and silver demand is at a record high, amidst an environment of plunging production and vanishing above-ground inventories. Given these trends, how much longer can this deception last, as the entire world becoming wise to it – particularly when “Cartel henchman” like Deutsche Bank are admitting it? Let alone, when those same market-distorting processes are destroying the global economy, at an exponentially increasing rate. As for PMs, you’d have to be a dolt to not realize the Cartel’s current “lines in the sand” have been set at $1,220/oz and $16.00/oz, respectively. Which, in due time, will be breached, en route to their inevitable surge to new all-time highs.
And by the way, for those that claim the Yen/dollar is the principal factor governing the stock market. Was it me, or did the Yen rocket higher not only yesterday, but this morning – with the Dow doing absolutely nothing over this period? In other words, as I have said all along, such algorithms are set up to only benefit stocks, and damage Precious Metals. So whilst a surging dollar/Yen, in today’s 100% rigged markets, has (for now) assured surging stocks, the opposite hasn’t held true. But again, I extremely confidently say, “all in due time”; as while the manipulators may have the upper hand in “last to go” markets today – in the long-term Economic Mother Nature always wins.
Which brings me to the most damning evidence of her dominance yet – i.e., the political and social revolutions caused by manipulative attempts to subvert her immutable laws. To that end, the “referendum trend” is clearly moving in the wrong direction – starting with last year’s Greek “OXI” vote, and Catalonian secession vote. This weekend’s Swiss “Unconditional Basic Income” referendum is not expected to pass – for the most part, due to its utter outlandishness. However, it is my contention that it will be a lot closer than than most anticipate, as the lure of the proverbial “free lunch” is powerful, even in a nation as supposedly, LOL, “conservative” as Switzerland.
However, all prior referendums don’t compare in importance, in my view, to the June 23rd “Brexit” vote – which is exactly why I last month penned “the most important, and Precious Metal bullish,” vote in history.” The reason I think so, is that never before has so much been at stake globally – as simmering nationalistic trends, resulting from a Central-bank-destroyed global economy, are at the point of violently boiling over. In my view, a “leave” vote will catalyze similar movements worldwide; and lo and behold, with each passing day the odds are rising, irrespective of recent propagandistic efforts to purport otherwise. As in Switzerland, ahead of the November 2014 gold referendum, the propaganda and market manipulation leading up to the Brexit vote will be hot and heavy. And frankly, the fact that UK Prime Minister David Cameron is actually against it, demonstrates just how little today’s Western “leaders” care about their constituents.
Clearly, evidence proving the EU has been a disaster for the UK is incontrovertible. Economically, no better case can be made to “leave” than the one-hour long, wonderfully produced “Brexit, the Movie” – which I not only encourage all Britons to watch in the next three weeks, but all Europeans. However, as I am learning quickly, in my quest to understand the issues at large, it is unquestionably immigration (and secondarily, the “migrancy crisis” that springs from it) that will determine the vote’s outcome. And frankly, I find it difficult to imagine that citizen’s of the world’s oldest, proudest, and in many ways most sophisticated culture could vote any other way than to “leave.” As frankly, the fate of their 2,000 year old society is at stake.
To that end, I yesterday watched a 50-minute podcast from the great Stefan Molyneux, titled “The Truth about Brexit.” Molneux, an Irishman who grew up in London, knows as much about the key Brexit issues as the culture he grew up in – and supplies indisputable facts to support it. Frankly, any Briton that watches it, and subsequently votes to BrEmain, deserves his or her fate.
No matter what happens in the Brexit vote, it will be positive for Precious Metals, irrespective of what “spin” is cast. A “stay” vote only ensures the ongoing destruction of the European Union’s hundreds of millions of citizens in slow motion; whilst a Brexit, despite being an unquestionably positive step for Britons, will yield significant turmoil in global currency and financial markets. As for me, I’m not “rooting” for anything – certainly, not “Armageddon” – other than the destruction of “99%-destroying” policies like the European Union, and vile “leaders” like David Cameron. And as for Precious Metals, there is NOTHING the powers that be can do to stop the inevitable reclamation of their roles as the “Once and Future Kings” of money (possibly, to be shared with Bitcoin in the digital world of the 21st Century). And no place would it be more fitting for a major step in this direction to occur, than the land of Camelot itself.