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Another day of widespread “horrible headlines”; another day of – as Zero Hedge puts it, “mundane overnight stock futures levitation”; and – of course, the 199th “2:15 AM” Precious Metals raid in the past 222 trading days; as yet again, the Cartel drew its long-time “lines in the sand” at the key round numbers of $1,300/oz. and $20/oz., respectively.

24hr Gold Silver 4-3-2014

Apparently, yesterday’s prototypically capped gains – utilizing the signature “Cartel Herald” algorithm – weren’t worthy of holding; even with JP Morgan’s commodity witch, Blythe Masters, out of the picture.  No matter, another puppet of TPTB will seamlessly replace her, just as Obama replaced Bush, and another one will replace him.

24hr Gold Silver 4-2-2014

That said, today’s moral is a positive one for truth-seeking, PM-holding readers – as ultimately, no amount of money printing, market manipulation, and propaganda can stop the “primary trend” from asserting itself.  To wit, “news” is but noise in the bigger picture of global economic collapse, resulting directly from a currency regime guaranteed to fail.  I’ll get to that in a moment, but first let’s go over the aforementioned news – as always, to empower you to understand just how untenable the global economic predicament has become; and thus, how fearful billions of people will become when they realize the “money” their governments are printing will ultimately be rendered worthless.

According to the MSM, the only economic data that matters – on the planet – is the monthly U.S. NFP report.  No need to discuss it further here, given that not only is it proven to be a sham, and irrespective, indicative of a “new employment paradigm” that bodes for a horrible economic future of low paying temp jobs in non-productive industries.  More importantly, with the benchmark 10-year Treasury yield having crept up to 2.80%, the odds of a “bad” NFP number are significantly higher than a month ago, when it was 2.72%.  Yes, per what we wrote in “3.0% – Nuff Said,” TPTB are that scared of rising yields; and thus, just as they cannot allow PM prices to surge, they cannot allow bonds to materially fall.  Thus, their mandate to cap the 10-year Treasury yield at 3.0%, even if they have to hyper-inflate the dollar to prevent it.

Of course, the NFP report is just a sideshow in the big scheme of things – where not only is the global economy plunging, but the “race to debase” taking a dramatic turn for the worse.  With the Japanese economy on the verge of collapse – one day after the national sales tax was increased from 5% to 8% – the Yen has fallen to a new multi-year low of 104/dollar.  Speculation that Abenomics will be expanded in the coming months is at a fever pitch; and thus, we reiterate our belief that Japan will be the first major economy to experience hyperinflation in the 21st century.

In China, the government announced a new, broad-based stimulus package last night, following a composite (services plus manufacturing) PMI report of 49.3 for March, down from 49.8 in February.  And thus, how anyone can believe the PBOC’s silly forecast of 7.7% GDP growth is beyond us.  The fact that the PBOC essentially “de-pegged” the Yuan last month – in a desperate attempt to debauch it further, against both the dollar and Yen – should tell you all you need to know about just how dire the situation is.  As discussed in last month’s “Most Terrifying Article we’ve Ever Read,” the bursting of China’s credit, construction, and real estate bubble may well be the most catastrophic in global economic history.

Zero Hedge

In Europe, the ECB maintained its key interest rate of 0.25% this morning; but as we anticipated, made it crystal clear it may soon launch its own QE program.


In “Draghi’s Reckoning Day,” we reflected on how the OMT, or “Outright Monetary Transaction” program – first discussed in Draghi’s infamous July 2012 speech, in which he said he’d do “whatever it takes” to save the Euro – will inevitably be unleashed, to disastrous effect.  Since then, a combination of jawboning, covert money printing, and Federal Reserve QE has served to artificially support European stocks and bonds.  However, the European economy has so dramatically weakened (unemployment has surged from 11.4% to a record 12.0%), the ECB is starting to play the “deflation card” to fool Europeans into believing QE – and/or negative deposit rates – are necessary.  At some point, the bubble they created must burst; and if they don’t initiate QE soon, the mirage they’ve created will likely come crashing down to Earth.  Case in point – the Spanish five-year Treasury bond now has the same yield as a U.S. five year Treasury.  If that doesn’t scream bubble, what does?

As always, we cannot overemphasize that only items we “want” deflate under fiat currency regimes – as opposed to items we “need,” which are the first things printed money flocks into.  Initially, the world’s “weak links” are most severely impacted by the inflation created by powerful Central banks; such as Brazil, which was again forced to raise rates to attempt to slow escalating food inflation.  But ultimately, all nations are hit full on; last but not least, the one printing the “reserve currency.”

Comically, the European MSM also blames “the weather” for high prices; when, as discussed, for instance, in last week’s “Californ-inflation,” the weather is but one of many factors.  Above all, remember this, just as the BOJ seeks to debase the Yen, the PBOC the Yuan, and the Fed the dollar, the ECB’s primary fear is continued Euro strength.  And thus, no matter what the underlying data – or ramifications – the ECB must effect policies that debase the Euro.  The “final currency war” has commenced, and it won’t end until NOTHING is left standing but real money.

EUFN Chart

As for the United States of Lies, it’s “credibility” took a big hit when Russia announced a $20 billion “oil for goods” deal with Iran yesterday; as Jim Sinclair put it, a “declaration of economic war” against U.S.-led sanctions.  Just as the White house “objects” to Crimeans democratically voting to rejoin Russia, it has “serious concerns” that such a deal is “inconsistent with the nuclear talks between world powers and Iran.”  In other words, according to the Obama Administration, no other nation is allowed to do anything without its approval – with dire consequences for disobeying.  To that end, we just deployed another warship to the Black Sea; but don’t worry, the Ukrainian situation is “de-escalating,” according to the MSM – and thus, gold deserves to have fallen more than $100/oz. in the past two weeks.

Before I get to today’s topic, I’d be remiss if I didn’t bring up the point that Bitcoin’s brief brush with “credibility” is rapidly vanishing.  Since the Mt. Gox exchange collapsed last month, Bitcoin’s price has fallen 50% and 65% since nearly reaching the price of an ounce of gold five short months ago.  As we wrote in November’s “Are Bitcoins Money?” and February’s “Store of Value,” we’re all for attempts to create alternative monetary systems.  However, while Bitcoin is an intriguing concept, any chance it has of making an impact on the global economy is – at best – decades away.  And irrespective of the success – or failure – of digital transaction platforms, no crypto-currency will EVER meet the definition of money that, thus far, only gold and silver have met.

Blue Chart

Anyhow, while at the gym this morning, I read an intriguing article called “Have We Reached Peak Wall Street?”  Clearly, the latest HFT scandal catalyzed it; however, the bigger question is just how long the collapsing financial system can be maintained in its current form.  True, “TBTF” banks appear to have commandeered it through ownership of the Fed; and via massive campaign contributions, the legislative and regulatory process as well.  However, this is not the first time such parasitic relationships have developed; with the same, catastrophic result, each and every time.

To wit, after finishing the article, I went back to my book; “Poland,” by the great James Michener.  In it, he writes of a 1771 meeting of German, Austrian, Russian, and Prussian representatives, plotting to carve up Poland for their own interests.  One noted that such imperialism should be accompanied by propaganda, to fool the masses in the same manner as described above, regarding the ECB’s current “deflation” scare-mongering.

Very rich people – in all nations – can be divided into two categories:  those with brains and those without.  Those with brains make a great effort to hold on to every penny they have while preaching to the general population that freedom, dignity, and patriotism are possible only under their protection; in this way, they elicit the support of the very people they hold in subjection.

Barker Hill

This quote summarizes exactly what the world’s “leading” Central banks have perpetrated on billions of deluded citizens since the gold standard was abandoned in 1971; and thus far, they have not only gotten away with it, but grown in power and fostered an era of historic wealth inequality.  However, in doing so, they have permanently damaged the world’s economic engine – fostering inflation, civil unrest, and an exponentially expanding understanding of what they have wrought.

In other words, Wall Street has not only overstepped its bounds, but encroached on humanity’s ability to survive.  And thus, humanity’s cumulative “survival instinct” is starting to kick in – which is why oppressive governments are being overturned; the “alternative media” thriving; and, of course, global PHYSICAL gold and silver demand skyrocketing.

I think it’s safe to say Wall Street’s influence over the average Joe and Jane peaked with the internet bust in 2000, nearly re-gaining its former glory before being permanently destroyed by the real estate crash of 2008.  However, safe to say it is now universally reviled; and thus, with the latest revelations of fraud – in everything from mortgage origination, to credit rating agencies, LIBOR, high frequency trading and even the London Gold Fix – we may well be passing “Wall Street’s” peak of global power.  And not just Wall Street, but London’s “City,” Tokyo’s “Marunouchi,” and Toronto’s “Bay Street,” among others.

In the fantastic Silver Circle Movie, the Fed essentially takes over America – creating hyper-inflation while, as demonstrated above, spreading propaganda at an equally virulent rate.  However, Silver Circle is just a movie while in reality; the Fed is a dying institution on its last legs.  Ironically, its 100th year in existence may well be when it permanently loses whatever credibility it once had – on its way to the inevitable implosion that all fiat currency printing Central banks have experienced throughout history.  And when it does, we may well look back to today as the inflection point where “peak Wall Street” occurred; and with it, the last available opportunity to protect one’s assets with real money.