With each passing day, I don’t just think, but know the world cannot, and will not, survive the collapse of history’s largest, most destructive fiat Ponzi scheme without “thousand-year-flood”-like changes in the global political, economic, social, monetary; and likely, military landscape.
These changes have unquestionably begun in “second” and “third world” nations with undversified economies, unstable political regimes; and of course, fiat currencies that can’t be abused – like the dollar, Euro, Yen, and Yuan – without catalyzing immediate hyperinflation. And yet, anyone living in “first world” nations knows full well that “it” has started; particularly economically, where the average Joe and Jane have never struggled more, with less opportunity and financially resources. But also politically, where America is rapidly descending down the Banana Republic hole; socially, given the ever-widening divide between socialist-leaning “liberals” and the majority of the population, who did not vote for Hillary Clinton. Not to mention militarily, given America’s increasing penchant, no matter who’s the “Commander in Chief,” to bomb first and ask questions later. And of course monetarily, given the all-time high, parabolically rising cost of living – amidst the largest ever debt edifice; which thus far, has only been held up, in Jenga-like style, by Central banks forcing interest rates to their lowest levels ever, and historic, unprecedented market manipulation. In turn, creating “dotcom valuations in a Great Depression Era”; the largest wealth disparity since Feudal times; and burgeoning social discontent that is just starting to manifest itself in political revolution.
For years, I have referred to the relentless “horrible headlines” signifying the rapidly accelerating rate of societal decline – in my view, principally due to abandonment of the gold standard 46 years ago. Recently, I have “re-branded” horrible headlines as “PiMBEEB,” or Precious-Metal-Bullish, Everything-else-bearish.” And very recently, PiMaBBEEB” – or Precious-Metal-and-Bitcoin bullish, everything-else-bearish.” However, for the sake of this article; particularly given Precious Metals’ all-time low inflation-adjusted valuations – care of a Cartel on its last legs, as Economic Mother Natures’ immutable, undefeated armies swarm around it – we’ll stick to plain old PiMBEEB this morning.
The reason I’m again focusing on PiMBEEB as a dedicated article theme – just one week after penning “wide world of PiMBEEB” – is that I was literally blown away by the amount of dramatic events; and terrifying facts; that either occurred, or came to my attention this weekend. Which cumulatively, reinforced the ageless, time-tested notion of Precious Metals as insurance against the myriad political, social, economic, monetary, and military events that could cause massive fear in the financial markets; particularly, for fiat currencies that are already being serially hyper-inflated – and doubly so, when such events arise. Which, in today’s historically unstable world, are not just possible or likely to occur, but guaranteed.
Before I blitzkrieg you with the aforementioned, 2008 financial crisis levels of PiMBEEB headlines that cumulatively should have you running, not walking, to protect your financial assets NOW; consider that, as I write, gold is above both its 200-week moving average ($1,236/oz) and 5½ downtrend ($1,277/oz) lines; whilst silver is well above its 5½ year downtrend line of $16.28oz, and barely below its 200-week moving average of $17.76/oz. Which, per last week’s presciently timed article – just before Friday’s “shocking” NFP jobs report – are clearly amidst “ultra-bullish developments.” On that note, away we go into the horrifying world of PiMBEEB news, just from the past 72 hours.
1. Yet another ISIS-claimed terrorist attack in London, yielding a heightened likelihood of draconian government response – from Trump asking the Supreme Court to enforce his extremely socially divisive “travel ban”; to Theresa May calling for global regulation and monitoring of the internet.
2. Explosive fallout from Trump (rightfully) withdrawing from the Paris climate accord; which, along with his renewed focus on the aforementioned travel ban; dramatically increases the chances of a complete political breakdown, in a nation already on the brink of financial ruin. Which, when it gets ugly enough, will unquestionably yield a dramatic reduction in the dollar’s already declining “reserve currency” status. Which in turn, will dramatically increase America’s already record-high cost of living; at a time when it’s never been more indebted, nor economically weak.
3. This mornings “geopolitical earthquake” in the Middle East, when Saudi Arabia and several other nations broke off all ties with Qatar – in an ultimate “pot calling the kettle black” moment, accusing it of funding terrorism. My friends, I cannot tell you how horrifying the ramifications of this split will be; as not only has it all but destroyed the GCC, or Gulf Cooperation Council; but likely, put the final nail in OPEC, and the fraudulent “production cut” agreement I have railed against since day one. This morning’s oil price plunge, directly after the news emerged, should tell you all you need to know about what is likely to occur in the world’s most important – and indebted – industry; validating, in spades, what I wrote in last week’s “OPEC, like the London Gold Pool, proving that all Cartels fail.”
4. The biggest Wall Street cheerleader – and TARP recipient – Citibank, actually advised Australian regulators to address their “spectacular housing bubble.” Which is no better in Canada, parts of the U.S., and other parts of the artificial, Central-bank-created “dotcom valuations in a Great Depression Era” world.
5. Japan held national evacuation drills, amidst growing concerns that North Korea may launch, or be provoked into, a major regional war
6. Speaking of unprecedented housing bubbles – even relative to the mid-2000s, given how much the economy has since weakened – the worst demographics in history make it impossible for this Central-bank-fostered Ponzi scheme to last much longer. This must-read Chris Hamilton article puts these stark, ugly facts into perspective; as well as the equally ugly fact that a whopping 70% of 18-34 year old Americans – i.e, the nation’s “future homebuyers” – are not only paying record high rents, but have less than $1,000 of savings.
7. Lest anyone thinks America has a prayer of being “great again” economically; look at this damning chart; as Zero Hedge would say, “presented without comment.”
8.And if you think those jobs are “coming back” – that is, the ones that haven’t been permanently automated – see this video, of the exploding, unprecedented inventories of cars at America’s largest automobile import port, Baltimore. Combine that with GM reporting its largest-ever dealer inventories last week; and in Zero Hedge’s words, the May auto sales “bloodbath” reported Thursday; and the odds of the above “record low” in U.S. manufacturing jobs is likely to get a lot “record low-er” in the coming months.
9. On to fraud; when, following the third ugliest Challenger Layoff report in three years on Thursday; and Friday, perhaps the worst NFP jobs report in memory, when incorporating the massive full-time job losses, persistent wage weakness, and plunging labor participating rate; we learned that a whopping 93% of all NFP-purported job gains since the 2008 financial crisis were due to the birth-death model – which, I might add, accounted for 230,000 of May’s supposed 138,000 job gain. I have been harping about the birth-death fraud for years, particularly since it is a fact that since the 2008 crisis, more small businesses – where said “birth-death” jobs supposedly emanate from – have died than been birthed. And by the way, the official unemployment rate of, LOL, 4.3%, is now below the level that essentially allS. recessions have started from.
10. And oh yeah, one of the Deutsche Bank traders involved in the horrifying gold and silver manipulation chat logs from earlier this year formally admitted his guilt; once and for all, proving the Precious Metals markets have been serially manipulated, downwardly so, for at least eight years.
11. We also learned this weekend that Central banks officially own more than one-third of the entire, $54 trillion global sovereign debt market. With interest rates at record low yields, care of the very Ponzi-like buying that painted Central banks into this hideous, inescapable corner, what could possibly go wrong? To that end, even Goldman Sachs admits the Fed’s rate-hiking plans are going the way of the dodo. I mean, geez, the Fed’s own minutes of its May 3rd meeting said most Fed governors wanted to see “additional evidence that the recent economic decline wasn’t transitory” before committing to additional rate hikes; which Friday’s hideous “jobs” report – as well as all other economic data since the May meeting (like Friday’s trade deficit explosion, and this morning’s zero productivity and negative -0.2% factory orders prints) – have refuted in spades! Not to mention, the yield curve flattening to its lowest level in nine months.
12. We also learned this weekend that India’s May gold imports surged fourfold from a year ago; which will only increase further after Saturday’s government decree that gold sales will only be taxed at 3%, compared to the widely expected 5%.
13. Spain’s sixth largest bank, Banco Popular, is on the verge of collapse; whilst the region responsible for 30% of Spain’s GDP, Catalonia, is likely to secede by October.
14. Oh yeah, James Comey is testifying before Congress on Thursday – and according to “sources,” will suggest Donald Trump obstructed his investigation into alleged Russian involvement in the 2016 Presidential Election
15. Senate Majority Leader Mitch McConnell said it is unlikely a deal to repeal Obamacare – and by proxy, enact either tax cuts or infrastructure spending – will occur any time soon. And did I mention the $19.9 trillion “debt ceiling” will be hit sometime this summer?
16. Perhaps the best piece of economic research in some time, by the great Michael Snyder, revealed that the average GDP growth of the past ten years – which is massively overstated by modern “statistical adjustment” methods – is exactly the same as the average annual growth rate, of a piddling 1.33%, as the…drum roll please…1930s!
Yes, 16 iron-clad reasons to insure yourself from political, economic, social, monetary, and/or political disaster – in just a 72-hour period. This, at a time when the best financial insurance man has ever known is not only trading at its all-time, inflation adjusted low due to the unsustainable actions of a Cartel running on fumes, but such manipulation is becoming mainstream news.
Remember, there are many reasons to make investments – from pure, unadulterated speculation to ultra-conservative wealth preservation. In the case of Precious Metals, one can actually ultra-conservatively preserve wealth, whilst simultaneously having the potential to generate extraordinary, speculative gains as well. And most importantly, the piece of mind in knowing they afford you in their historic role as the best insurance imaginable against such events, in an increasingly, explosively, “PiMBEEB” world.