It’s Friday morning, and I’m at the airport – enroute to the International Living Conference in Las Vegas. This year’s unprecedented Cartel raids have caused me to work harder than at any time in my 12+ years following precious metals, so it’s always nice to spend time with fellow CIGA’s, like Miles Franklin’s President Andy Schectman and Michael Spector.
Watching the world’s equity, currency and commodity markets plunge, whilst interest rates collapse and economic data – from East to West – implodes, it’s hard to believe TPTB have succeeded in strong-arming precious metal prices to such unfathomable, uneconomic levels. Care of such “Cartel Suicide,” the mining industry will unquestionably retrench like the oil industry did in the last 1990s – when prices briefly fell below the cost of production; after which, E&P capex declined sharply for years to come. Fortunately, “Economic Mother Nature” always wins – and in this case, it’s not just the oil industry at stake, but the entire global financial system.
As we wrote in yesterday’s “Here comes the Physical Buying,” PM demand is indeed surging – as exemplified by the U.S. Mint’s October silver Eagle sales, which at 1.65 million ounces have nearly exceeded July and August’s full-month totals of 1.97 million and 2.00 million, respectively, in the first two days of the month! Even September’s very strong level of 4.14 million ounces has nearly been halved putting October on pace to not only exceed, but potentially shatter the Mint’s monthly record. And of course, for full-year 2014 sales to exceed 2013’s record totals.
Since the “point of no return” was reached three years ago, TPTB have been operating 24/7 to make sure such reality isn’t reflected in price, by naked shorting paper to the point that global silver inventories have been reduced to fumes. Yesterday, yet again, the morning’s typical “2:15 AM” raid was followed by attacks at all key attack times; and for the second straight day, with “Cartel Rule #1” in danger of being violated – i.e., “thou shalt not allow PM’s to surge, whilst the Dow plunges,” gold was capped at EXACTLY the 12:00 PM EST “cap of last resort” – whilst the PPT rescued the “Dow Jones Propaganda Average” with a patented “Hail Mary” rally. Even the “new Hail Mary trade” of goosing interest rates into the close was in play, all ahead of today’s patently obvious strategy of “painting the tape” with the final NFP employment report before November’s mid-term elections.
Regarding the latter, never forget that no matter what bogus “headline print” the BLS publishes, the internals will always slam them and even the MSM knows it. And not only that, but with the entire world economy going the opposite direction – as exemplified by this morning’s horrific European service PMI numbers – it’s hard to believe anyone could believe the U.S. economy, record low interest rates and all can be genuinely “recovering”…
…unless, of course, you’re referring to the “1%” receiving free Fed money – who have never been richer, whilst the 99% continue to grow poorer…
However, the “most insidious result” of six years of relentless exponentially expanding money printing, market manipulation and propaganda is that even the slightest decline in equity markets, even from record levels, causes Wall Street and the MSM to scream “fire” – as exemplified by the unbelievable plunge in the “fear and greed index” below. In other words, TPTB have so destroyed the price discovery mechanism, investors have been trained to panic at the first sign of trouble – and subsequently, beg Central banks for more economy-destroying QE. Of course, part of said fear is the “uncomfortable feeling” that the “next 2008” is coming – which, of course, it most certainly is!
And thus, after a whopping 1.5% equity loss on Wednesday, the propaganda “denouement” was reached – when none other than the king investor-killers themselves, CNBC pushed the following heading into the “top story” slot of Yahoo! Finance and other MSM lackeys.
Yes, Warren Buffet, whose largest investments were bailed out in 2008, and who claims to want to pay more taxes whilst supporting “tax inversions” for his investments, bought stocks on Wednesday – near all-time high valuations, amidst the worst economic environment of our lifetimes. I, for one feel comforted. How about you?
Sorry so disjointed, but I have to board my plane shortly. I see that indeed the NFP indeed “beat expectations” of a 215,000 job increase by printing at 248,000. And better yet, the “unemployment rate” plunged from 6.1% to a new “Obama Administration low” of 5.9%. But guess what – CIGAs? The Labor Participation Rate plunged to a new 36-year low of 62.7% as a whopping 315,000 people departed the labor force – and wages were unchanged. In other words, the trend of fabricated jobs – the majority of which are of the part-time, minimum wage paying, no benefits receiving variety, principally for senior citizens that can’t afford retirement – continues. And thus, the Fed will have to further fret about the “significant underutilization of labor resources” destined to catalyze their inevitable “Yellen reversal” to increased QE. It’s only a matter of time.
And thus, as the Cartel pushes PM prices further into the netherworld of mining unprofitability and physical buying explodes, you are being afforded a rare opportunity to insure your portfolio at dirt cheap prices. Eventually, the sum total of QE “insidiousness” will do TPTB in; likely, sooner rather than later.