This is the first week I can remember, in which every day, I awoke to so many “horrible headlines,” I couldn’t determine which to focus on. Which is why, articles like yesterday’s “all out political, economic, and financial war” have been commonplace; in which, I comment on myriad topics, from the four corners of the planet; which invariably, are tied to the same root cause. I.e., the catastrophic, terminal phase of history’s largest, most destructive fiat Ponzi scheme.
Consequently, I’m creating a new acronym to describe this phenomena – which not only will reduce the strain on my historically taxed fingers; and give me more writing space, within my allotted daily quota; but provide an irresistible “teaser” to alternative media browsing potential readers. I.e., “PiMBEEB,” or “Precious-Metal-Bullish, Everything-Else-Bearish”; which today, will be featured in a “PiMBEEB-a-looza of topical discussions.
Let’s start with one of my favorite “bailout acronyms” – i.e., the TLTRO free money handout operations from the ECB, which euphemistically stand for “Targeted Long-Term Refinancing Operations.” Which, since the 2008 financial crisis, have “lent” more than €1.5 trillion to more than 1,000 European banks through a series of indefinitely rolling over 0% credit facilities; in a blatantly subversive act of financial engineering that is not deemed a “bailout” solely due to its semantic categorization as a “loan”; even though it has no interest rate, and an implicit assumption of permanence. You know, like the equally indefinite “swap facilities” between the ECB and the Fed (that helps fund the TLTRO); which, because such derivative transactions are characterized as “swaps”; instead of what they really are – loans; enables the Fed to avoid reporting them as increases in the U.S. money supply.
Well, just this morning, a whopping €233 billion of such “TLTRO” loans were handed out, to 474 supposedly “solvent” European banks. This time, with a four-year term and said 0% interest rate; in a blockbuster “auction” nearly double the Street’s expectations. In other words, the European banking sector is as vulnerable now as at the height of the 2008 Crisis; as epitomized by the world’s most systematically dangerous institution,” Deutsche Bank – which this week, was forced to sell €8 billion of new stock at a 35% discount to the prevailing market price; likely, with overt Central bank guarantees to its buyers; simply to remain solvent. Not to mention, this morning’s “surprise” announcement that Credit Suisse, too, needs to raise €3 billion of massively dilutive equity, NOW.
Next up, just one day after it was revealed that “unofficial” polls depict Marine LePen to be leading the French Presidential race, we learned that Italy’s anti-Euro Five Star Movement is experiencing exploding popularity in the official polls leading up to Italy’s Prime Ministerial election. Which, after last month’s collapse of the ruling Democratic Party – after its disgraced leader, Matteo Renzi, the architect of the Constitutional Reform Referendum that went up in flames four months ago, resigned – could be scheduled any day now. And I can only imagine how tense things are in Greece, which needs another €7 billion “bailout” by July; which this time around, for a variety of factors, including what may well morph into open citizenry revolt, is extremely unlikely to occur.
And now that weekend’s Orly Airport terrorist incident involving a radical Islam extremist was followed by yesterday’s equally hideous attack in front of the UK Parliament – by an as yet “unnamed” perpetrator who I’ll bet dollars to doughnuts was of the same origin; much less, Turkish President Erdogan’s threat this weekend to “blow Europe’s mind” with the release of 15,000 refugees per month; you can bet Europe’s populist, anti-EU winds will soon be at gale force. Oh, and did anyone see yesterday’s comments from Head Eurozone Finance Minister Jeroen Dijsselbloem (yes, the same Jeroen Dijsselbloem who four years ago infamously stated that the Cyprus bailout will serve as a template for future Euro zone bank restructurings) regarding the collapsing PIIGS nations’ finances? I.e., “you cannot spend all the money on drinks and women, and then ask for help.” Yes, this is the diplomatic depths Europe has sunk too – when it’s top financial representative literally mocks nations on the brink of bankruptcy; who ironically, only got there due to the fiscally irresponsible and morally reprehensible actions of his own team of “financial experts.” To that end, I’m sure such arrogant, patronizing comments – from a man owed money by the very people he insults – won’t have any influence on French, Italian, and Catalonian citizens voting choices later this year; knowing full well that the ability to destroy such monsters lies directly in their grasp.
And how about the head of the House Intelligence Committee (talk about an oxymoron) admitting that Trump was spied on during the election campaign – just one day after FBI Director James Comey (yes, the same James Comey who cleared Hillary Clinton of all wrongdoing two days before the election) said no such thing occurred? I mean, just how little trust can the people have in their government? (note, while editing, Wikileaks just published new disclosures, that the CIA is bugging all new iPhones). This, as a “Davos for Democrats” group of mega-wealthy, aggressively anti-Trump forces meet in Washington to plan his demise. Which may well occur today irrespective; if, as discussed in yesterday’s “March 23rd – the End of Trump-Flation” – tonight’s “Trump-Care” bill vote dies on the Republican-controlled House floor.
Which, if it does, will essentially end all hope of Trump’s “big three” campaign promises being enacted; i.e., the “repeal and replace” of Obamacare; the enactment of “massive” tax cuts; and a yuugge fiscal stimulus program. Which wouldn’t occur anyway because, due to the installation of a $19.9 trillion “debt ceiling” last week, the government will literally have no more cash by Memorial Day. Ironically, the ultimate Atlas Shrugged lackey Larry Summers perfectly described the dire situation America faces today – when a few years back, he quipped “how long can the world’s biggest borrower remain the world’s biggest power?” To which I’ll add, how long can its hyper-inflated toilet paper remain the worlds’ “reserve currency?” Let alone when, as warned of by the accelerating decline of the dollar, economic data, and Treasury bond yields, the Fed will shortly be forced – perhaps, by year-end – to lower interest rates and launch QE4.
And would you look at that oil price continually failing to re-gain the $48/bbl level, despite every imaginable “oil PPT” propaganda tactic? This, just three months before OPEC’s miserably failing “production cut” deal is to expire, with an even bigger – and historically unprecedented – oil glut than when it started. Which, if yesterday’s Fitch downgrade of Saudi Arabia’s credit rating is any indication, won’t improve any time soon. Frankly, I don’t think there’s a chance in hell the “deal” gets renewed in June; let alone, that it can stop the glut from pushing prices to far lower levels. In turn, causing mass bankruptcies of corporations and nations alike; let alone, of the worthless fiat toilet papers their Central banks are guaranteed to hyper-inflate. Let alone, when the “most overdue financial crisis in history” hits, when every horrible outcome noted above is multiplied exponentially.
And then there’s the “retail apocalypse” that even the mainstream media is now reporting on – per yesterday’s news that Payless Shoes will shortly be filing bankruptcy; with none other than the mighty, debt-infested Sears right behind it, per the “going concern” language inserted in the 10K financial report it published yesterday. Which not only is accelerating in dramatic fashion, but actually spawning the trade that is now being called the “Big Short II”; i.e., collateralized loans backed by retail shopping malls. And what kills me most about all of this economic misery (note while editing, Ford just massively reduced forward earnings guidance), is that the U.S. Bureau of Economic Analysis still maintains the economy is expanding! Oh well, I guess if China’s “6.5% growth forecast” for 2017 represents the weakest since it started publishing such forecasts in 1986, the Fed’s current estimate of 0.9% first quarter GDP growth should be judged via the same manipulated “bell curve.”
All this, as the Cartel desperately tries to stop gold’s inevitable, historically decisive victory in the “200 week moving average war”; which as of this morning, stands at $1,252/oz, with silver’s 200 WMA just a hop, skip, and jump higher, at $18.32/oz. Throughout history, every attempt to supplant real money with fiat toilet paper has failed; and given that this is, unequivocally, history’s largest, most destructive fiat Ponzi scheme, today’s “gold Cartel” will fail more miserably, and spectacularly, than any before it.