From my perspective, as Marketing Director of one of the nation’s oldest, largest bullion dealers, and a daily contributor to the Miles Franklin Blog; my sense is that a aura of “surrender” has occurred on the part of many Precious Metals investors. The reason being, that the Cartel’s “pre-election” suppression campaign – starting with the blatant, over-the-top “Deutsche Bank Destruction” raid on October 4th, when China was closed for its “Golden Week” holiday – has given way to a belief “the powers that be” are in total control; of financial markets, economic data, and the election process.
Of course, nothing could be further from the truth – even regarding the election, which is far from over, in my view. Not to mention, that as regards Precious Metals, both scenarios are wildly bullish, as discussed in last week’s “Trump vs. Clinton – Who’s ‘better’ for gold?” I mean, what part of the Chinese Yuan’s accelerating devaluation – at 6.78/dollar as I write, well below last summer’s low of 6.70/dollar, and less than 1% from the PBOC’s 2008-10 “line in the sand” of 6.82/dollar – are people missing? Or the “oil PPT’s” soon-to-collapse propaganda gambit, regarding the OPEC “production freeze” that cannot and will not happen – per rapidly mounting evidence otherwise, such as this weekend’s news that Iraq, too, demands an “exemption” from said “agreement,” whilst Russian won’t even dream of reducing production? Or 2017 Obamacare premium increases being released mere weeks before the election, of, on average nearly 50%? Or the Chinese government, through one of its state-owned newspapers, openly mocking the “accelerated decline of America’s global influence?”
Or Paul Volcker posting an editorial in the New York Times, specifically stating why the Fed CANNOT raise rates without destroying America’s economy? Or a Wikileak email showing DNC Chairman Donna Brazile, just six months ago, directly contradicting the party line of “four more years of economic strength,” in espousing “people are more in despair about how things are”; “yes, new jobs, but they are low wage jobs”; and “HOUSING is a huge issue, as most people pay half of what they make to rent.” Or additional Wikileaks, depicting how the DNC has serially worked with the media and polling organizations to rig political polls, and the coverage of such? Or heck, Bob Woodward himself, of All the King’s Men fame, descrying the Clinton foundation as “corrupt” and “scandalous.” To that end, I’m really looking forward to the expected release of Part III of the Project Veritas undercover reporting series later today.
In other words, have no despair – as holding the only real money the world has ever known, at a time when fake money has never been more oversupplied or maniacally “created”; with the prospects of said creation never being “brighter”; you have safely protected yourself from what’ s coming. Let alone, as global gold and silver production peaked last year; whilst demand is at record highs; and inventories record lows; in an industry in which prices are below the cost of production at the majority of mines; and more importantly, below the cost of industry sustainability at large.
To that end, the Cartel has run into quite a bit of “downside resistance” at gold and silvers’ respective 200 day moving averages of $1,266/oz and $17.22/oz; whilst U.S. Mint sales have measurably picked up, on pace for the year’s strongest month; and India’s “buying season” just started. And oh yeah, the fundamental reasons to own gold and silver have never been stronger, politically, economically, and monetarily – particularly as this year’s historic “rigging season,” before perhaps the most important election in global history, ends two weeks from now. Which, I might add, will also be one week after the Fed yet again fails to raise rates. Not that raising rates is “negative” for PM prices, mind you, as I have endlessly discussed before.
All that said, I yet again want to reiterate that the reasons we own Precious Metals are long-term in nature, even as countless catalysts make it possible, and even likely, that such “investments” will pay off far sooner. And the biggest of all – aside from explosive, unpayable debt; an imploding global economy; and expanding political instability – is the deadly demographic trends which are guaranteed to exacerbate such issues.
This is nothing new to long-time readers, as I first wrote of Japan’s “demographic hell” in 2012; followed by “deadly dollar demographics” in 2014; and finally, the “worldwide demographic vice tightens” earlier this year. However, even my extremely dire view of the imploding global demographics that threaten to yield explosive debt defaults, for decades to come, was “taken down a few notches” after reading this terrifying article by Chris Hamilton, titled “the game is up – why exporters are in double trouble.”
In it, the data he supplied was so worrisome, it makes one wonder just how many hundreds of thousands of job cuts will result, how much debt will be repudiated, and how many industries will need to be dramatically “restructured.” In other words, the type of conditions that force Central banks to hyper-inflate, as if the current witch’s brew of collapsing economic activity, record high debt, and record low interest rates isn’t enough. As remember, in a global economy dependent in “fresh bodies” to borrow money and buy goods, a lack of said “fresh bodies” is the equivalent of the retail Grim Reaper. To wit…
1. The “core population” (0-64 years old) of the OECD nations – including the U.S., most of Europe, China, Brazil, Russia, and the bulk of the world’s other wealthy nations is projected to peak in 2018, and decline by 9% over the ensuing three decades. Cumulatively, these nations represent 40% of the global population, but generate 70% of the planet’s oil consumption, and nearly 80% of export consumption.
2. Japan’s population peaked first, in 1989. Since then, it has declined 16%, with an additional 46% – yes, 46% – decline anticipated in the next three decades.
3. The EU core population peaked in 2010, and is expected to decline by 10% over the next three decades.
4. China is even worse; as, after its core population peaks next year, it is expeted to plunge 18% over the next three decades.
5. Last but not least – at least, in this article – there is South Korea, whose population is expected to plunge 32% over the next three decades.
In other words, history’s largest, most destructive fiat Ponzi scheme is under siege from all imaginable sides, with NOTHING to stop its inevitable, all-out implosion. After which, if you haven’t protected your financial assets beforehand, it will already be too late!