My weekly appearance on Kerry Lutz’s radio show is called “Manipulation Monday” – and yesterday’s segment takes the cake, surpassing even the “day of manipulative infamy (and failure)” that was Friday’s “convoy attack” interventions. Fortunately, the cumulative impact of our work is starting to work; as with just 13% of Americans trusting the government, the “alternative media” that the Miles Franklin Blog operates in is become a powerful enlightening force.
The reason we so emphatically speak of PM suppression is because it is the single most important factor in global capital markets – utilized by TPTB to “mask” inflation, and enable Central banks to continue printing money. However, Miles Franklin doesn’t spend such large amounts on this endeavor for “fun,” as our principal goal is to get you to act. And if you do, we hope you’ll give us a chance to earn your business. There’s a reason we’ve been in business for 25 years; and we promise, if you do call us, you’ll get the industry’s most experienced, lowest pressure service at competitive prices. Moreover, we believe our Brink’s Montreal vault represents the Western Hemisphere’s best PM storage solution – so much so, that David Schectman, Andy Schectman and myself utilize it ourselves.
Back to the topic at hand, yesterday represented the Cartel’s 60th straight “Sunday Night Sentiment” attack, while today’s “2:15 AM” raid was the 281st in the past 317 trading days. In both cases, the odds are not even in the realm of “sixth sigma,” with the latter expected to occur naturally once every quintillion trading days. And if we calculated the odds of gold falling every day at the 6:00 PM EST open of the ultra-thinly traded “Globex” paper platform, for at least the past year, they would be significantly higher. As for today, check out the comparison to yesterday morning’s “trading” – “Cartel Herald” algorithms and all – and tell me if you believe something’s fishy.
As we surmised, Friday’s “convoy attack” was but another ruse; and like last month’s MH-17 crash, the world has not a clue what actually happened. Equities rocketed higher, but with entities like the BOJ overtly buying stocks and other “PPT organizations” doing so covertly, it’s hardly surprising. Nor is said, maniacal PM suppression given that economic data has never been weaker, Central bank money printing broader, or geopolitical tension this intense in generations. Actually, we’d say the below Dilbert cartoon – from 1996 – is apropos, but it’s really not. Back then, retail equity speculation was rampant; while today, retail participation is stone cold dead. To wit, if the average investor didn’t lose his shirt in the 2000 “tech wreck” or the 2008 financial collapse, his savings have surely been destroyed by a 14-year recession, 35-year low in labor participation, and 40-year low in real earnings. And per above, few people trust markets anymore, given the ongoing parade of scandals amidst too big to fail, too big to jail banks. No, this time around the “market” is being driven up solely by Central bank money printing and government intervention, with only the “1%” materially benefitting. This is why blue chips and stuff alike are being valued at record levels – on record margin – amidst the worst economic environment of our lifetimes; and consequently, why massive real losses are inevitable, whether markets ultimately crash or hyper-inflate.
This week, the propaganda du jour revolves around the Kansas City Fed’s annual Jackson Hole boondoggle, in which high-level Central bankers pollute the world’s cleanest air with economic drivel. David Stockman opines that yesterday’s “mindless” equity rally” is due to expectation of dovish comments from Whirlybird Janet and Goldman Mario, who both speak on Friday. I agree whole-heartedly with this characterization, in that computers now control 90%+ of all trading. However, per what we noted above, the Central bank money printing – and PPT market support – won’t dissipate under any scenario. And thus, what makes this week any different?
More importantly, the entire world is awash in exponentially increasing debt. And thus, it will never be feasible to raise rates; let alone, exit the Ponzi scheme that is the Fed’s own balance sheet. In other words, bonds must be eternally supported with zero (or lower) interest rates – and stocks, despite historically high valuations. Regarding the latter, U.S. financial custodians empowered by the “Bernanke (and now Yellen) puts,” have completely ignored the lessons of 2000 and 2008, by still having the world’s highest equity allocations!
As for the conference itself, the MSM will yet again misinform, noting the possibility of policy change “hints” in the aforementioned Friday speeches. In reality, the Fed has never used non-FOMC events to do such, be they international symposiums or Congressional testimony. However, because Helicopter Ben stated the obvious in August 2012 – i.e., QE3 was upcoming – the babel leading up to Friday will be deafening. In Whirlybird Janet’s case, her last two public comments spoke of “considerable uncertainty” in the Fed’s economic forecasts (July 17th) and “significant underutilization of labor resources” (July 30th). Since then, the preponderance of data – particularly real data, not published on the “island of lies” – has been awful. And thus, the odds of dovish comments are not much different than those of 60 straight Sunday night paper gold raids.
As for Goldman Mario, he is even less likely to make a major policy statement, given he is the ECB’s sole representative at a U.S.-sponsored event. Granted, his afternoon slot is after European markets are closed for the weekend; thus, enabling him to avoid moving markets. And granted, the world already anticipates the $1 trillion QE program the ECB is “preparing” to be launched in the not too distant future, with Europe’s economy literally plunging into the abyss. However, it would be extremely poor form to announce – or even hint at – such during a Federal Reserve conference; which frankly, would be taken as a sign of rank desperation. And thus, unless a new “Archduke Ferdinand Moment” or other significant equity event occurs between now and Friday, we’d expect Friday’s “Jackson Black Hole” – like all others – to dissipate in the wind.
Of course, the more important question is what Central banks will do after Jackson Hole, when the global economy continues to implode in unprecedented, simultaneous fashion. Here’s a giant hint; they’ll do exactly what they’ve always done when attempting to prolong dying fiat Ponzi schemes. Print, print, and print some more – until inevitably, today’s 180+ currencies join the dustbin of history like the 599 before them. And no, it won’t take “years” to occur, even if some hold on longer than others, as many currencies are already experiencing dramatic purchasing power declines. The terminal phase of all fiat regimes are defined by exponential money printing and debt growth, which is exactly what’s occurring as we write. And after this Fall’s “decision time” for serial money printers like the Fed, ECB and BOJ, the slope of debt growth will likely become significantly steeper.
And thus, we hope you “see the forest through the trees” by soundly ignoring Jackson Hole; and instead, focusing on the exponential money supply growth that will inevitably yield dramatically higher gold and silver prices, and dramatically lower real returns in traditional asset classes. Be warned, such changes will not be without equally dramatic increases in the level of social unrest and draconian government action – and potentially, military engagement. However, all we can do is hope for the best and prepare for the worst; and in the case of history’s most suppressed assets, the risk/reward profile for physical PMs has never been stronger.