Last night marked a sad day in the history of America’s dying culture. After 156 episodes, “The Good Wife” ended its reign as the nation’s top prime-time drama. For seven years, the show was must-see Sunday night television, in a medium where writing, producing, and performing – like music – has been unceremoniously “phased out” by dumbed down, get rich quick commercialism. For me particularly, “The Good Wife” – and the “Big Bang Theory,” which likely has just one season left itself – have been the only shows, other than ESPN’s “Sports Reporters,” that I regularly watch. And now that the Good Wife is gone, with the Big Bang Theory right behind it, the odds of my retaining our cable contract when it expires later this year are close to zero. Good riddance to what is becoming a blight on society – featuring reality shows, one-time specials, and anything else that can generate a quick buck; and farewell to one of America’s great, industry-leading arts.
To that end, I’d like to be “happier” this morning – but as usual, I’m agitated by the unrelenting stress caused by a gold Cartel intent on leaving me not a second to breathe easy – even amidst a bull market that commenced six months ago, featuring record demand, “peak production,” and vanishing above-ground inventories; the latter, as described in Paul Mylchreest’s latest missive, describing just how tight the physical gold market has become.
To that end, this weekend’s epic regarding how the Fed, the Cartel, and Powers that Be are “on the precipice” couldn’t better describe the rapidly growing tsunami of political, economic, and social reality better. And this, before the headlines of the past 48 hours.
1. Essentially all Greek unions commenced a three-day strike, as its psychotic, soon-to-be deposed Parliament voted for additional “austerity measures” to unlock a €4 billion “bail-out” payment, to be used entirely to pay off ECB bond interest payments. In other words, a 2016 “Grexit” is becoming as real of a 2016 possibility as a UK “Brexit.”
2. China reported massively weaker than expected April imports (-11%) and exports (-2%), despite the PBOC having “injected” (printed) $1 trillion of new “credit” (debt) into the economy in the first quarter alone. After which, the state run People’s Daily ominously espoused that “after comprehensive judgment, our economic recovery cannot be U-shaped or V-shaped, but will be L-shaped.” In other words, admitting China’s economy is toast – as its historic credit bubble implodes! Heck, even top MSM cheerleading lackey Yahoo! Finance’s top story this morning was the following…
3. ECB board member Vitor Constancio, speaking at a conference, unleashed his best Mario Draghi impression, in espousing the ECB is not only determined to “pursue expansionary monetary policies,” but will do “whatever is necessary” to achieve its goal of 2% inflation – with which, it has “plenty of additional policy tools” to utilize.
4. Saudi Arabia’s oil minister was unceremoniously replaced after 21 years on the job. Incredibly, the “oil PPT’s” initial reaction was to goose prices higher, despite the new oil minister’s statement that Saudi Arabia has absolutely no plans to change its (essentially all-out) production strategy.
5. The U.S. Treasury rejected the Central States Pension Fund’s request to cut benefits to 270,000 retired truck drivers, construction workers, and other service workers, despite the fund’s claim that it will be insolvent within ten years otherwise. In other words, the government essentially admitted that it will “bail out” the CSFP down the road with freshly printed dollars – as well as countless other, massively underfunded retirement plans.
6. The self-proclaimed “King of Debt” made further dramatically arrogant, and mindbogglingly dollar-negative statements, of how the Fed should overtly monetize Treasuries; in what amounts to the President-to-be not only endorsing QE4, but prioritizing it as a national policy. To wit…
a.”If interest rates go up, we can buy back debt at a discount.”
b. “People say I want to default on debt, but these people are crazy. First of all, you never have to default if you print the money.”
7 . While this was occurring, we learned that high-yield bond funds – which have been as unconscionably “revived” by PPT operations as stocks, crude oil, and other floundering markets – experienced their largest capital outflow ever. Whilst, to the contrary, the GLD ETF had its largest inflow since dollar-priced gold was surging to its all-time high in mid-2011. And for those that don’t believe me when I say gold, on average, is no more than 10% from its all-time high in the vast majority of global currencies, look at this data.
And yet, the day after the most horrific, “unexpectedly” poor NFP jobs report imaginable; which consequently, caused U.S. money market futures to assume NO FED RATE HIKE UNTIL MID-2017 (remember, gold has supposedly been smashed for the past three years due to “rate hike fears”); we not only were treated to the 142nd “Sunday Night Sentiment” raid of the past 148 weekends, but a “triple dip” version that even I hadn’t seen the likes of. Followed, of course, by the 633rd “2:15 AM” raid of the past 728 trading days, and further smashes throughout the morning, culminating with the below carnage just after the COMEX open. And this, with the stock, bond, and crude oil markets essentially unchanged! In other words, more of the same for a Cartel desperate to slow the burgeoning PM bull; which, care of this morning’s massive currency declines, was barely slowed down by the dollar-priced gold raid.
In other words, “Economic Mother Nature” is decidedly winning the war, and doing so in dramatic fashion. Which is why it pains me so deeply to see so much misinformation and fear mongering within the wolf in sheep’s clothing “gold community” itself – be it “Trader Dan” Norcini, Larry Edelson, Martin Armstrong, Harry Dent, or whoever. In this case, I am referring to someone who is deciedly a good guy (as opposed to the others), as Ed Steer is not only a personal friend, but has been a GATA board member for years. In his latest, he discusses Tuesday’s shocking COT report – as I did this weekend – noting how the current “commercial” gold and silver (naked) short positions scare him “half to death.” And how, if you don’t feel similarly, “you obviously don’t understand the seriousness of the situation.”
Look, no one understands the “seriousness” of the situation more than Ed, I have no doubt. But we are now in a global BULL MARKET in Precious Metals – at a time where supply and inventories are plunging, whilst demand is skyrocketing and Central banks are not just covertly, but overtly hyperinflating currencies into oblivion. Let alone, as the last remaining bastion of “recovery” propaganda, the Federal Reserve, is now expected to remain dovish for at least the next year; whilst the PBOC admitted, per what I wrote above, that the Chinese economy is imploding. And this, as both the ECB and BOJ have taken interest rates negative, to a point that nearly $10 trillion of global sovereign bonds are trading with negative yields!
In other words, holding physical Precious Metals – as opposed to the “paper gold” and “paper silver” the Cartel is naked shorting; let alone, at today’s historically suppressed prices; I could not be less scared than today, no matter how short the “commercials” become, or how hard they attempt to break “technical” support levels. Frankly, it is they that should be “scared half to death,” as not only the fundamentals, but thousands of years of history are overtaking them. Which is why blatant paper raids like today are gift horses to those trying to protect themselves from what is coming – which should decidedly NOT be wasted. As trust me, the surge in physical demand such raids will unleash, could send us into a severe shortage situation – as we experienced last summer – in a hurry.