Like the Miles Franklin Blog itself, this week’s articles have focused as much on the quantity of “PM-bullish, everything-else-bearish” events, as the quality. As frankly, even I have been overwhelmed lately – as the terminal stage of history’s largest, most destructive fiat Ponzi races through its cancerous terminal stage, en route to the spectacular, world-changing event it was destined to produce when it was launched on August 15th, 1971. I.e. when America, and it’s “Demo-publican” President, Richard Nixon, reneged on the Bretton Woods agreement. In an instant, destroying the dollar’s “intrinsic” value; and with it, the monetary responsibility gold imposed on it. Simultaneously, it cast the same death blow on 180-plus other currencies “tied” to the dollar – whose “leaders” sought to exploit Nixon’s idiocy, in the pursuit of the temporary wealth and power that ultimately destroyed their nations.
Per today’s title, tomorrow has the potential to mark the permanent end of the “glorious” Trump-flation Era, just two months after it started. Or more accurately, five months; given that the powers that be, upon being surprised that their historic election rigging efforts failed to usher Crooked Hillary into the White House, doubled down on their equally historic market rigging efforts – under the comically obvious propaganda meme that a Trump Presidency; which until that very evening was portrayed to be the worst imaginable outcome for America; would suddenly be the best. In other words, they quickly transferred the PPT/Fed/ESF/gold Cartel meme that Hillary is “good for stocks, and bad for gold” to Donald is “good for stocks, and bad for gold.” Not un-coincidentally, just as gold and silver, on election night, had re-captured their 200 week moving averages, after having been held below them since the Cartel’s April 2013 “alternative currencies destruction”– executed the day after Obama’s infamous “closed door meeting” with the top “too big to fail” bank CEOs. Some of which – like the “Lehman of Europe,” Deutschebank – are on the cusp of very, very dark days, just as the Precious Metal outlook becomes blindingly bright.
The Fed’s latest, and equally desperate, gamut to push gold and silver back below those key technical levels – which started the second they again reached them three weeks ago. To wit, a coordinated jawboning blitzkrieg, telegraphing an imminent “rate hike.” This, whilst they simultaneously injected massive liquidity into the markets, causing actual rates to plunge – not un-coincidentally, from the 2.5% “economic line in the sand” I drew two months ago. And how about that? Just one week after said “rate hike” – to the historically minuscule level of 0.87%- said gamut is on the verge of failing, too, care of yesterday’s gold surge to $1,246/oz, a mere $5/oz from said 200 week moving average; with silver’s 200 WMA of $18.30/oz, also within striking distance).
I’ll get to what makes tomorrow, Thursday the 23rd, so important momentarily. However, I’m going to start – as I’ve been forced to do the past two days as well, by a rapidly, and dramatically deteriorating political, economic, and monetary landscape – with my own blitzkrieg, of the aforementioned quantity of “horrible headlines” you should be aware of. Starting with crude oil plunging to $47.50/bbl; as tellingly, not one, but two attempts by the dying “oil PPT” to artificially boost it miserably failed; as opposed to the modus operandi of the prior year, in which essentially every attempt to goose it higher succeeded. To that end, it’s blatantly obvious “line in the sand” at $50/bbl is shrinking further and further into the rear-view mirror – with the world destroying “30-handle” appearing more and more likely, as history’s largest asset and economic bubble implodes.
Recall, that Monday, said “oil PPT” attempted to goose prices with a spurious; unsubstantiated; and ultimately, meaningless headline about OPEC “considering” an extension of its “production cut” deal beyond the scheduled June termination date (this, as the Iraqi oil minister brazenly forecast massive production increases). Which contrary to their hopes, worked for mere minutes before prices plunged anew. Followed by yesterday, when a headline that Russia – which thus far, has blatantly cheated on said “deal” – would also “consider” a deal extension was published. It too, failed, as did the “oil PPT’s” third attempt to goose prices in two days; after the close, when yet another record crude oil inventory report was published.
Please read this fantastic article by Steve St. Angelo – about how Mexican state oil company PEMEX is bankrupt; and heck, this one about upcoming accounting changes that will expose just how much more debt U.S.-listed corporations will be forced to report in 2019; led by Brazilian state oil company Petrobras, which is equally insolvent; and the number two and five companies on this list, Chinese state oil companies Sinopec and Petrochina. Get used to it, as at sub-$45 oil prices, an astonishing amount of energy-related companies will go bankrupt; and nations, led by Saudi Arabia when the $100 billion Saudi Aramco IPO plan is inevitably shelved. Heck, even the dramatically accelerating “retail apocalypse” will likely play second fiddle.
Next, we have the OECD, or Organization of Economic Cooperation and Development, admonishing China to “urgently address rising levels of corporate debt, excess production capacity, and frothy prices in property and other asset markets that add to the risk of disorderly default.” This, as the PBOC “coincidentally” injected hundreds of billions of dollars into its banks, after numerous small lenders defaulted on overnight loans. This, just one week after the PBOC attempted to “match” the Fed’s ill-advised rate hike with a minuscule one of its own – of just ten basis points; which clearly, China’s massively overleveraged, rapidly imploding economy couldn’t handle. Which ominously, Chinese Premier Li, at last week’s national Congress, forecast to “grow” at its lowest rate in three decades this year.
Next, we have the inevitable Puerto Rican default of the $70 billion of debt pushed onto it by sociopathic U.S. bankers, which will shortly be incorporated into that of its “parent” the United States government, $19.9 trillion “debt ceiling” and all. Hey, better than the $1 trillion of Spanish, Greek, and Italian debt that will be defaulted to the European Union in the coming years; that is, if a “European Union” still exists.
Then there’s last night’s miserable earnings report by “Ally Financial” – i.e., the new name of the ignominiously failed, government “bailed out” General Motors Acceptance Corporation; i.e., GMAC – which validated the hideous ramifications of the horrifying plunge in used car prices, and surge in auto loan delinquencies, reported last week; in forecasting a particularly bleak outlook. In other words, the subprime student and auto loan bubbles that together, have become as large as the subprime mortgage bubble that nearly destroyed the world nine years ago, are decidedly popping. As are some of the world’s largest property bubbles, if the Australian Central bank’s stark warning last week of such is any indication. Not to mention, the utter collapse in U.S. corporate and household lending, not witnessed since the heart of the 2008 collapse.
And oh yeah, the “Trump-flation”-supported, six-month-long PPT “inflat-a-palooza” finally ended yesterday, with the U.S. stock market finally falling 1%, amidst a myriad of worrisome factors, such as those noted above. Not to mention, the highest valuations since the dotcom bubble; the highest level of insider selling in decades; and oh yeah, “secret polling” regarding the upcoming, potentially “BrExit times 100” French election, revealing Marine LePen to be taking a significant lead.
But undoubtedly, the day’s biggest story – which according to the MSM, is the principal reason for plunging stock prices, interest rates, commodities, and the dollar; and rising Precious Metals; is tomorrow’s (Thursday’s) House of Representatives vote on the “Ryan-Care” bill to “repeal and replace” Obamacare – which as of today, doesn’t have enough Republican support to pass. So bleak is the outlook for this worthless piece of garbage, which is essentially Obamacare under another name, that Trump resorted to threatening Republican Congressmen that if they don’t vote for it, they will lose the 2018 elections. As if any Republicans identify with Trump as one of their own, given that he is no more a “Republican,” than Bernie Sanders was a “Democrat.”
Irrespective, the Trump Administration has made it well-known that no “yuugge” stimulus plans or “massive” rate cuts are possible without the “repeal and replace” of Obamacare. Which, as I vehemently predicted the day after Election Day, is not only never going to happen, but will likely be a “dead in the water” concept just two months into Trump’s Presidency. As will be said “stimulus” and tax cut proposals; let alone, that the biggest debt ceiling crisis in American history looms mere weeks away – after the Treasury exhausts all remaining “extraordinary measures,” and runs out of cash.
More importantly, if even the Republican-controlled House can’t rally behind this bill, it will embolden, a mere two months into Trump’s thus far disastrous Presidency – as depicted by the 37% approval rate Gallup reported yesterday – the gathering forces, from both sides of the aisle, seeking to oust him. And I don’t simply mean “neuter” the Tweet-master himself, but oust him.
Again, I need to emphasize that I am writing this from a completely apolitical standpoint – particularly in light of how mightily I supported his candidacy, even if I did so principally to subvert the Wicked Witch of the Western Hemisphere. As I wrote last month, I am decidedly not “anti-Trump,” as nothing would please me more than if he made the impossible a reality, of “making American great again.” However, what I am decidedly against are the lies and propaganda claiming he can do so; particularly those utilized as cover to rig financial markets; particularly Precious Metals – which, care of the fraudulent “Trump-flation” meme, which is disintegrating before our eyes, has forced prices down to historically undervalued levels yet again. Which clearly, hasn’t been lost on Eastern Markets like China; which contrary to last week’s ridiculous article by “Simon Black” – suggesting physical gold demand is “collapsing”; and thus, that the only reason prices have surged is LOL, “paper gold demand” – what is really going on, is that the demand plunge we have indeed seen here in America, care of the aforementioned, Trump-flation-inspired stock bubble, has been more than offset by surging demand overseas.
Here at Miles Franklin, one of the nation’s largest, most trusted bullion dealers, physical demand has indeed started to rebound in recent weeks. And trust me, if the “end of Trump-flation” indeed commences with tomorrow’s House vote on “Ryan-care,” Simon Black’s next article will likely have a decidedly contrary tone.
P.S. If you truly want to see just how pathetic, and doomed, America’s government is, simply watch this 40-second clip – of an Idaho State Congressman’s reasoning why gold shouldn’t be considered money. Seriously, you must watch this!