The Keystone Kops Central banks; and their gasping, fumbling market manipulations; are clearly in their death throes. Most of the world’s currencies have dramatically plunged – whilst the volatility of currency “markets” has gone parabolic – which I might add, I two years ago deemed the “single most PM bullish factor imaginable.”
Which just happens to when the Cartel-orchestrated gold and silver “bear markets” ended in most currencies – before the epicenter of such suppression, the U.S. dollar gold and silver markets, finally bottomed this winter. The global economy is, without question, its worst since the Great Depression. Only then, the dollar was backed by gold, so debt was infinitesimal. And of course, market manipulation had barely been invented, so the business cycle was alive and well.
Ladies and Gentleman, we are in historically bad times; which is why historically dangerous Central banks – i.e., the root cause of our problems – have utilized historically dangerous methods, with historically catastrophic ramifications. Fortunately, the end game of global currency destruction, from the Bolivar to the dollar, is upon us. But unfortunately, the chasm between this horrific event, and a new, better world, will be historically painful. In other words, Central banks are “shooting historic blanks” – which sooner rather than later, the entire world will fully understand. And trust me, there will be revolutions over this – as in Gerald Celente’s words, “when people lose everything, and have nothing else to lose – they lose it.” Don’t believe me? Well, what do you think of the below chart, of how the very people that destroyed our world – and that of our children – get to benefit, at our expense? I mean, how come they get to borrow at 0.25%, and us at historically high rates? How come they are “too big to fail,” whilst our failure is a desired outcome?
That said, Keystone Kops is indeed the operative word – as seen, for example, in the comically transparent economic data manipulation they publish each week. Or JP Morgan reporting “profits” whilst bank lending is collapsing, non-performing loans soaring, and the trading environment so illiquid, traders and hedge funds are having their heads handed to them. Or the BLS reporting 200,000 “jobs” each month, when negative 200,000 is more likely. Particularly when incorporating a “birth-death” adjustment that assumes “off balance sheet” jobs are being created, when more actual businesses have died then been “born” since 2008.
As for GDP, the BEA last year introduced “double seasonal adjustment” when it didn’t get the result it wanted; and still, 2015 produced the weakest “growth” since the 2008-09 “Great Recession.” This year, we’ve started off even worse – and after this morning’s horrific, “unexpected” plunge in March retail sales, which unquestionably will weaken further in April, the Atlanta Fed’s “GDP now” tracker for 1Q GDP – which started the year at +2.7%, and fell to +0.1% last week, will certainly go negative. But have no fear; as just yesterday, a day after the Fed’s “emergency meeting,” the New York Fed introduced its own “FRBNY Forecast,” pegging 1Q GDP at +1.1% (before today’s retail sales disaster). I wonder how much it costs to have two comically wrong GDP forecasts produced each quarter – as opposed to the vitally important M3 money supply calculation, which was discontinued in 2006 due to the supposedly onerous $1.5 million annual cost. Either way, the FRBNY Forecast, will turn negative, too – and not just for the first quarter. Perhaps it could be “triple seasonally adjusted?”
Speaking of Fed follies, recall a month ago, when the Dallas Fed vehemently denied – via Twitter, no less – Zero Hedge’s insider-sourced accusation that it ordered banks to delay the foreclosure of failing oil and gas loans? Well guess what, it turns out it was TRUE! Hey, at least in Italy, they admit banks have €360 billion of non-performing loans – even if their “solution,” a gun-to-the-head funded €5 billion (yes, just €5 billion) “bailout” fund was the best they could do.
Yes, TPTB are shooting “historic blanks” in their attempts to control public perception – in regards to data cooking, market manipulation, and the MSM they so obviously control. I mean, yesterday’s top Yahoo! Finance story was, I kid you not, “two Fed Presidents backed a rate hike” at the March meeting, even though one voted against it, and the other isn’t even on the Fed’s policy making committee. And as for TPTB’s “TV arm,” CNBC, it outdid itself with yesterday’s “Cramer sees signs an earnings explosion is coming.” Although, in their defense, even CNBC seems to have backed off their “imminent rate hike” propaganda – not just because Janet Yellen done so herself, but because actual interest rates, in nearly all countries, have plunged to or near all-time lows.
As for “markets,: there’s only so long you can push oil up on horrific news of exploding supply (see last night’s API report) and plunging demand (see this morning’s OPEC – yes, OPEC – forecast), whilst all other commodities remain mired near their lows. Or stock markets at record high valuations, amidst the worst imaginable fundamentals. And as for PMs, I’ve been writing for the past month of the Cartel’s maniacal defense of $1,250/oz gold, and $16/oz silver – in the latter case, raised closer to $16.20, which represents the “right shoulder” of the massive “reverse head and shoulders” formation its manipulations inadvertently created over the past year. As I vehemently espoused on yesterday’s Kerry Lutz podcast, we are NO LONGER IN A PRECIOUS METALS “BEAR MARKET” – which is why going forward, everything you’ve “learned” in the past four years, of how the Cartel “always wins,” is about to be reversed, as was the case from 2001-11. And then some!
Yes, “historic blanks.” And if you don’t believe me, consider first what former Dallas Fed President Richard Fisher said on January 6th, less than a week after retiring…
“The Federal Reserve is a giant weapon that has no ammunition left.”
And next, what current German Finance Minister Wolfgang Schaeuble – the second most powerful European banker after “Goldman Mario” himself – said yesterday…
“The ECB is causing extraordinary problems,” and “fiscal and monetary policy is largely exhausted globally.”
Last I looked, when even the manipulators are turning traitor – from Wolfgang Scheauble, to Alan Greenspan himself, it’s time to take action.
“Gold is money. No fiat currency, including the dollar, can match it.”
And when said action involves buying the best monetary insurance the world has ever known – for U.S. citizens, at its lowest ever inflation-adjusted price, the term “no-brainer” could not be more appropriate. As for us at Miles Franklin – which unlike several of our previously “esteemed” competitors has not a single registered complaint in 27 years of business; if you are considering such action, we humbly, ask you to call us at 800-822-8080, and give us a chance to earn your business.