Since TPTB realized their fiat Ponzi scheme had passed the “point of no return” in mid-2011, market manipulation has reached heights never before imagined – culminating in last week’s “absolute peak of lunacy,” when Goldman Sachs invoked the long discredited “Fed Model” to predict the S&P 500 would double by year-end if both Treasury yields and corporate earnings utterly implode. Which, by the way, may well occur if the nearly all-time low in the Baltic Dry Index (including the weakest July in 28 years) means anything.
In holding the vast majority of my net worth in physical precious metals, it has been extremely difficult to watch gold and silver trashed by fraudulent naked shorting and covert Western dishoarding (to the East) over these three painfully long years. However, my frustration in the accompanying global propaganda campaign has been far more powerful. To wit, if Miles Franklin were based in China it would be experiencing record sales due to deep-seated time-honored Chinese knowledge regarding the value of, and urgent need to own precious metals. Here in the States, however, anti-gold propaganda is so powerful, that most “investors” would sooner believe Goldman Sachs’ ridiculous assertion that gold will fall to $1,050/oz. – despite the most powerful fundamentals of our lifetimes and a mining industry on the brink of collapse. Even the most powerful technical charts we have ever seen are ignored, such as this astoundingly bullish 43-year MACD chart for gold (silver is roughly the same); in essence, inadvertently created by the aforementioned three years of extreme counter-trend suppression.
Everywhere we look – political, economic and social – blatant propaganda is prevalent and outright lies the norm. So much so, that most people don’t seem to care anymore as the brainwashing of “the 99%” has so powerfully overcome their instincts. For example, I was literally bowled over by the lunacy of the U.S. government immediately accusing the Russians of downing MH-17 – when we had essentially no evidence and no sentient being could proffer a coherent Russian motive. Just days later, when the Russians published an iron-clad forensic analysis depicting a high degree of likelihood that not “pro-Russian separatists,” but the U.S.-supported Ukrainian government was responsible, the U.S. government suddenly changed its tune. And thus, less than a week after accusing Russia of genocide, “U.S. Intelligence Officials” – better yet, “on condition of anonymity” – now claims MH17 was mistakenly shot down by separatists, with “no visible link to Russia.” However, from the other side of their mouths, they claim Russia “created the conditions” for the downing of MH17. I mean, seriously! Just how little credibility can the U.S. government have regarding such an incredibly sensitive tragic event with the potential for yielding a global “Archduke Ferdinand Moment?”
And then there’s the insanity relating to the unrelenting propaganda of economic “recovery,” when the aforementioned Baltic Dry Index – and essentially all measures of real activity – state otherwise. Including, by the way, one of the weakest GDP prints in U.S. history, utilizing the lowest ever price deflator amidst surging “need versus want” inflation. Let alone, the “dog ate my homework” excuse that “the weather” was responsible despite iron-clad proof otherwise. Better yet, we are actually seeing the weather excuse now during the summertime despite the warmest global May and June ever. To wit, no less than the “International Council of Shopping Centers” claims “unseasonably cool weather hurt consumer interest in summer merchandise, despite clearance prices”; ending the statement in true Wall Street-like propaganda form, predicting such ‘pent-up demand’ may “shift to back-to-school shopping.” Again, these are actual quotes from actual people in positions of authority!
Next up, we have Nobel Prize winning economists claiming history’s largest-ever debt explosion to be a non-event. Yes, Paul Krugman – i.e., the Jeffrey Christian of economics – actually claimed the Congressional Budget Office’s own government-sponsored forecast that the national debt will reach $52 trillion by 2039 does not connote a debt spiral. Better yet, his “proof” is the CBO’s simultaneous expectation that interest rates will only rise to 4.1% over the intervening 25 years whilst real GDP growth will average 4.3% (don’t worry, inflation is not possible). Again, I’m not making this stuff up. This is an actual Nobel Prize winning economist, regularly quoted in the most “prestigious” media outlets. Ominously, under such assumptions, if real GDP “only” grows by 3.3% per annum during this period and interest rates do not rise above the aforementioned 4.1% level (well below historical averages), the budget deficit would spiral from $1 trillion per annum to roughly $7.5 trillion. But don’t worry, this can’t happen, Krugman claims; as if so, “people will fear we’re about to turn into Greece – Greece, I tell you.” Nuff’ Said.
Even the world’s smartest anti-propagandist website – i.e., Zero Hedge – can’t even get the most obvious manipulation in history correct; such as yesterday, when amidst surging energy prices, plunging Treasury yields, and wildly PM-bullish news in every imaginable direction, it attributed the gold market surge at 8:40 AM EST to the “hot” CPI report at 8:30 AM EST – and the ensuing plunge to the existing home sales “beat” at 10:00 AM EST. Actually, the headline CPI number of +0.3% – rigged or otherwise – met expectations, whilst the core increase of +0.1% was lower than the expected 0.2%. And as for the existing home sales “beat,” I’d hardly call 504,000 (seasonally adjusted) sales versus the expected 499,000 noteworthy. In the big picture, following its usual 8:20 AM COMEX-opening plunge, gold attempted to rally at the only time of day such movement is “allowed” – before being viciously knocked down at the 10:00 AM EST “key attack time #1,” when the global physical markets close. Better yet, when gold attempted to rally later in the day, take a guess what time it was again smashed back down. Yep, exactly the 12:00 “cap of last resort” I first described a decade ago. Sorry to bring this topic up again, but in my view, such repetition – broadcast daily over the worldwide web – is one of the best methods of spreading truth; and ultimately, ending the price suppression destroying the global monetary system.
And finally there’s the dissemination of PM-positive, non-PM negative “horrible headlines” that saturate the airwaves each and every hour. I mean, to see such Western complacency towards gold and silver is utterly astonishing, when in just the past 24 hours headlines emerged such as “Turkish Prime Minister cuts U.S. ties, mulls de-dollarization with Russia,” “Portuguese President admits Espirito Santo failure could be systemic,” “Gaza death toll exceeds 600,” “NY Fed slams Deutsche Bank (and its €55 Trillion in Derivatives), accuses it of “Significant Operational Risk”; “One week left until Argentine default,” “Market Manipulation Probe Escalates as UK Opens Criminal Investigation Into Foreign Exchange Rigging”; “Venezuela’s Transformation To Socialist Utopia Is Nearly Complete as Its Factories grind to a Halt”; “China’s Clout on Show With BRICS Bank Formation,” “China signs currency swap worth 150 billion yuan with Switzerland,” and “Credit Suisse to Exit Commodities Posts Biggest Quarterly Loss since 2008.”
Fortunately, no amount of money printing, market manipulation, and propaganda can manufacture physical gold and silver which will unquestionably experience exponential demand growth ad infinitum amidst plunging worldwide production. Richard Russell is dead on in his recent comment that,
It looks as though the U.S. has sold all its gold – and then some – in its frantic effort to keep a lid on the gold price. Worse, many foreign nations have kept their gold “safe” and stored in the U.S.
–King World News, July 22, 2014
And thus, given the aforementioned laws of “economic mother nature,” it’s just a matter of time – likely, much sooner than most can imagine – before the entire scheme to control perception via market rigging implodes. Jim Sinclair believes that time is this Fall; and even if he’s wrong, it likely won’t be by much. And thus, we can only plead with readers to consider protecting themselves during this narrow window of summer doldrums-inspired lethargy – and “peak madness” – before the inevitable “end game” commences.