And it starts!
Long predicted by the Mayans to represent Armageddon, 2012 could prove just that, if only politically and economically. There is no way of knowing what will happen in the next 12 months, and typically the safest bet is with the status quo. But nothing about my writing is safe, as my goal is to PROTECT you from the worst-case scenario, and while comets, earthquakes, and tsunamis may not be in the cards, collapsing currencies and soaring inflation just might.
The key point is this scenario is INEVITABLE, proven by historical experience and simple math. ALL fiat-based currency systems throughout history have failed, and 40 years is typically the longest such systems survive before collapse or mass devaluation. It is impossible to create value by printing money, and human nature proves leaders will always choose the path of least resistance, i.e. HYPERINFLATION, when faced with the final stages of currency Ponzi schemes. Moreover, in societies such as America and Western Europe, where people have been brainwashed to believe above average living standards are a right, not something earned, politicians have no choice but to increase entitlements when reductions are needed most, ensuring a more rapid, and ultimately more spectacular, systemic collapse.
Thus, the only questions left are WHEN and HOW, and in my view, it appears a near impossible task for even today’s crop of sociopathic “elites” to maintain the status quo for another year. True, they are armed with unlimited, COVERTLY printed money; complex, market moving computer algorithms; secretive “dark pool” derivatives, and a doting, 24/7 mainstream media network. However, as the old saw relates, “you can’t draw blood from a stone,” and the stone that is the global financial system is BONE DRY.
Before I get to 2012, let’s put 2011 behind us, starting with Friday’s fitting end to the year, one of the most blatant Cartel manipulations yet. Fitting with the ongoing theme of “OPERATION PM ANNIHILATION II,” which started December 8th when the later-retracted “gold sale headline” appeared as gold broke through $1,750/oz, the Cartel “spared no expense” in its goal of ending the PM year on a sour note.
As I have mentioned exhaustively, the Cartel essentially NEVER allows gold, silver, and the mining shares to act well simultaneously, and any time one or more of the three “acts well” on a given day, you can bet the outperformer will suddenly contract “performance cancer” the next day. On Friday morning, I mentioned how silver lost half of Thursday’s $0.80 gain in the two hours directly following the NYSE closing (the thinnest hours of the global trading day), and thus when gold surged the next morning silver, of course, was barely higher.
My Friday RANT started with the fact that walking in the gym gold was up the comically obvious 1.95%, a number that no doubt would serve as the high of the day, and of course I was right. Gold clearly wanted to recoup some of the past weeks’ artificial declines, forcing the Cartel into action at ALL FOUR typical attack times – EXACTLY 3:00 AM EST, when gold first attempted a sharp increase, 8:20 AM EST, i.e. the second the COMEX opened; EXACTLY 10:00 AM EST, when gold once again threatened to surge higher; and the coup de grace, at EXACTLY 12:00 PM EST, the “cap of last resort,” when gold had the nerve to attempt to rise above 2% for the day (which, by the way, is exactly what most of the base metals accomplished).
Not only that, but they attacked again late in the day to make sure gold’s gains were barely more than 1%…
…and that silver would actually go DOWN for the day, falling by nearly $1.00/oz at 2:45 PM EST while the Dow DIDN’T BUDGE and all other commodity markets, INCLUDING GOLD, were stable. Take a look at this beauty of a PAPER Cartel attack at 2:45 PM EST, a whopping $0.30/oz, or 1.2%, in MINUTES to make sure silver ended the day, and year, poorly.
Thankfully, 2011 is behind us, as the thin market conditions that allowed the Cartel to push gold and silver to such oversold levels amidst such bullish fundamentals will shortly be a distant memory. Gold is not only 4% below its 200 DMA, a level observed on just 5% of ALL TRADING DAYS over the nearly 12-year bull market, but is also trading at its lowest RSI and MACD factors of the past three years. Again, short-term technical analysis is MEANINGLESS in a rigged market, but long-term analysis is extremely relevant.
Silver’s undervaluation is even more extreme, trading an incredible 24% below its 200 DMA, at an RSI level from which the price has jumped materially EVERY TIME it has traded there over the past three years.
Irrespective of the vile, blatantly illegal PAPER attacks over the past three weeks, taking gold down by $200/oz, or 11%, and silver $5.00/oz, or 15%, while no other market materially changed, Precious Metals were STILL among the world’s best performing asset classes of 2011. Let’s just forget “OPERATION PM ANNIHILATION II,” one of NINE major attacks this year, which barely cracked the top three as early May’s “SUNDAY NIGHT PAPER SILVER MASSACRE” and early September’s “OPERATION PM ANNIHILATION I” were worse. By ALL MEASURES, 2011 was by far the most vicious, intense year of Cartel attack, as TPTB fought for their lives like the cornered rats they are. Clearly, my analysis that the Cartel first experienced true FEAR a year ago is correct, EXACTLY why we have had to put up with such blatant, intense attacks since then, commencing November 9th, 2010, or as I like to call it, “D-DAY.”
Think long and hard of the misery “goldbugs” dealt with in 2011, be it in gold, silver, or particularly, mining shares, then look at the table below and pat yourself on the back. After all the sector endured, gold STILL was the TOP PERFORMING ASSET CLASS ON EARTH, rising by 12% while only the heavily PPT-supported Dow managed to crack the positive column and, on average, global stock markets declined by 16%. Only the PPT-supported American stock markets significantly outperformed silver’s 9% decline, while the Mexican and UK stock markets roughly matched its losses. And round the world, from the collapsing Euro economies to the supposedly immune BRIC nations, stock losses were endemic, with bond, real estate, and “alternative investment” losses dramatically worse.
Notably, gold mining shares significantly underperformed PHYSICAL metal, with the HUI down 13%, the XAU 20%, and the TSX-Venture (i.e. Vancouver) stock exchange down a whopping 37%, with ONLY the dreadful 52% decline in the equity of the world’s next third-world nation, GREECE, registering lowering on the scale.
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