How committed is the Miles Franklin Blog to guiding you through the unprecedented, global economic collapse that accelerates with each passing day? Well, I currently have a horrific case of bronchitis – to the point that I can barely speak, and spent much of the past 48 hours at rest. However, I still posted my rebuttal to Harry Dent’s “deflation sensationalism”; and here I am Monday afternoon, with a broad litany of “horrible headlines,” propaganda, and market manipulations to expose.
This is another of those days where it’s difficult to select a single topic; and frankly, I could write a book on the potentially hyper-inflationary impact of this weekend’s surprise Chinese reserve requirements cut alone. Not to mention, the PBOC hinting it may shortly offer its own version of Quantitative Easing, by enabling countless municipalities crippled with high yield debt to “swap” it for low-yielding PBOC obligations. In other words, the most Precious Metal bullish news imaginable if this were a freely-traded market world – which of course is not the case; at least, not yet. Instead, we were forced to endure yet another ridiculous paper raid – starting at exactly the “2:15 AM” open of Western paper markets, via prototypical Cartel Herald “cap and attack” pattern.
And this, despite not only the aforementioned, massively Precious Metals bullish PBOC news, but these, equally PM-bullish headlines…
1. The largest Russian gold purchases in six months
2. India’s ICRA predicting 10% Indian gold demand growth in 2015, and 8%-10% over the “medium to long-term”
3. Shanghai Gold Exchange withdrawals, as of April 3 rd, not only running 24% above last year’s feverish pace, but accounting for more than 90% of total global production!
4. A near disastrous weekend for the imminently concluding “Greek tragedy“; starting with Russia’s official refutation of a desperate rumor that it was going to advance Greece a measly €5 billion loan, based on prospective royalties of a supposed trans-Greek gas pipeline that would be completed in – get this – 2019. Otherwise, the story remained the same, featuring all manner of ugly threats, innuendo, and rhetoric from both sides – including Greece vowing not to cross its anti-austerity “red line” – ahead of this Friday’s likely monumental failure of a Euro Group meeting, and next month’s increasingly likely “Grexit.”
With the aforementioned, mythical Russian €5 billion, Greece would have bought itself but a few weeks – as well as a merciless “big brother” intent on exploiting it worse than the Euro Group itself. Without it, Greece is on the verge of default; which is probably why draconian capital controls were decreed this weekend, causing Greek bond yields to surge to their highest levels since late 2012. Worse yet, a report surfaced that European banks are not only on the hook for as much as €110 billion of potentially defaulting Greek loans, but that number has “more than doubled” in the past six months.
5. A scathing IMF report warning of an upcoming global liquidity shock, as “an illusion of liquidity has beguiled financial markets across the world, spawning some of the worst Wall Street excesses in modern times.” Really, you must read it, to see just how “deformed” global economies and financial markets have become, care of seven years of unfettered money printing and market manipulation.
6. Comments from Saudi Arabia’s oil minister that it has no intention of backing off the record oil production levels achieved this month.
7. The deployment of U.S. paratroopers in Ukraine, after Russia said its missiles will target NATO member States
8. An utterly abysmal Chicago Fed National Activity Index reading, of -0.42 in March versus -0.11 in April, and the consensus of an increase to +0.15
9. More completely ambiguous statements from “Mr. Goldman Sachs” himself, Bill Dudley of the New York Fed; in validating last week’s “death of credibility” Audioblog by claiming to be “hopeful” of a Fed rate hike “later this year.” Of course, in true Fedspeak gibberish, he claimed “economic performance will determine the Fed’s policies”; and thus, “we have to see what unfolds.”
10. Surging bond yields in America’s “next Detroit” – Chicago – where economic activity is plunging (note the aforementioned Chicago Fed National Activity Index), and the risk of a catastrophic debt default grows ever nearer.
11. Last but not least, a scathing dismissal of the so-called economic recovery by none other than leading MSM propagandist Bloomberg; which, in an article titled “the U.S. economy keeps disappointing,” revealed exactly what the Miles Franklin Blog has been claiming all along; i.e, we are already in an environment as weak as 2008, and getting worse each day – as measured by Bloomberg’s U.S. “Economic Surprise Index”…
Sorry if my “message” isn’t as coherent today as usual; but I think it’s quite powerful nonetheless, and given my head is swimming with medication, it’s the best I can do. Which is why I saved my best for last; i.e., the “dumbest Central banking statement ever,” care of none other than “Goldman Mario” Draghi himself.
Not that this infamous “title” doesn’t have many suitors these days – from Shinzo Abe, to Mark Carney, Helicopter Ben, and Whirlybird Janet herself. However, in using the worst ever “Dirty Harry” impression, Mario Draghi “took the crown” this weekend, in claiming it was “pointless” for speculators to short the Euro currency.
“Pointless?” Now there’s an interesting choice of ambiguity, even for a powerful Central banker. Pointless, as in you will “lose money” in doing so? And if so, how do you know that, Mario? Last I looked, neither the ECB’s nor your personal forecasting record has been even modestly close to reality. But more importantly, lending credence to today’s article title, is that Mario Draghi said the exact same thing in – get this – August 2012, one month after his infamous “whatever it takes” speech gave birth to the historic, unprecedented European sovereign debt bubble.
At the time, the Euro/dollar exchange rate was 1.23; and yet, “whatever it takes” and all, it has plunged all the way to 1.07 since – i.e., a fresh 12-year low. And this, with the ECB’s gargantuan, 20 month, €1.2 trillion QE program having only started last month! Anyhow, Draghi completed the “dumbest central banking statement ever” by not only calling it “pointless” to short the Euro, but challenging traders to do so, at their own risk. Frankly, even I am short of words to describe such lunacy; which is a good thing, as whenever I open my mouth, I’m attacked by a coughing fit!
Draghi is either dumber than a box of rocks or just a plain out liar (maybe both).
Dumb Question: Greece is bankrupt and could never pay back loans, so why would any one want to force a loan on some one who can not pay it back?
Keep up the excellent articles.
Dumb answer: Because that’s how Ponzi schemes work! Until they don’t.
So they can foreclose on the debt and steal the Governments assets. The bankers want private islands, the highways, airports, gambling concessions, etc. All for money printed out of thin air.
Get well soon!
It’s all that Ranting about that complete arse wipe Harry Dent that’s done you in Andy.
I have to admit I was in two minds to listen to him on Gregg Hunters channel, but I did anyway.
Apart from the several U turns he has made since his last appearance he is still calling the rest of us ill informed and gave us a pseudo complement by saying he was in complete agreement with the gold bugs except…… And then went on to say we don’t actually understand a bloody thing and only Harry knows what’s going to happen because Harry is the smartest and most arrogant wanker in the class. I can understand your anger and frustration at this walking Ego that fills the airwaves with his self importance, and not just because he spouts nonsense which can easily be proved to be false, but because he is deliberately misleading people into serious losses when the inflation kicks in. He is a dangerous agént pravocotor and I tip my hat to you for the veerment rebuke you gave him.
Just as a final note, I noticed Harry told us he was going to be ok, because he had his bolt hole all worked out for when the crash comes, and he wasn’t going to disclose where it was.
This was presumably not because of the vast amounts of worthless rapidly hyperinflating dollars he’s nailed under the floorboards, but to keep the hoards of heavily armed pissed off people from finding him because he lost them all their money!
Thanks Andy. Yes, he is the rare breed smart enough to be dangerous – but not smart enough to be RIGHT – and amoral enough to not care.
LOL! at that! I’ve long thought that old Harry had a Dent in his forehead and that is why his ideas are so scrambled. 😉
Tough break on the bronchitis, Andy. That’s rough stuff and can lead to serious issues, like pneumonia. I’ve had it a couple of times and it is NO fun at all. Please take good care of yourself and get well soon. We need you. 🙂
Thanks, I’ve had it before. Very annoying, hope it’s gone soon.
Andy so sorry to hear you have bronchitis.
I love your writings and would like you to keep on writing.
If you’re open to some alternative theories I can show you how to never get bronchitis again. And how to possibly eliminate your current symptoms if you still have them. And do so with safe and natural methods.
This is something the Medical Mafia doesn’t want people to know about.
It’s a program I sell to my customers but I’d gladly give it to you for free so that you can keep on keeping on.
There’s no reason for most adults to ever get colds, flues, bronchitis or pneumonia.
And it’s real easy to do.
I haven’t had a cold or flu in the last two and a half years and my kids and partner have not gotten sick either.
Email me back if you want to learn the details.
Now to get back to reading your post.
The 47-Year Old Teanajer
Andy- I don’t know if you ever listen to radio advertising, but it seems that the only items being monotonously advertised are financial in nature(and with 4-5 repeats of the advertiser’s phone #’s):
“Get xyz to GUARANTEE highest earnings with NO HISTORY of ever a loss of principle!” Then the disclaimer: “These items are NOT INSURED by FDIC.”
“GET RID OF your credit card debt WITHOUT hurting your credit rating!”
“Call us to learn how to TRADE in the market risking no more than $100/day while MAKING a much as $1000!”
“The KEY to making money in the REAL ESTATE MARKET is KNOWLEGE! We’ll teach you!”
It seems obvious that the need for VOLUNTARY FRESH MONEY to keep the PONZI SCHEME alive is close to being maxed out. Next up- THE RETIREMENT ACCOUNTS! What do you think?
Bing… whenever anyone discovers something that really works well, they don’t waste any of their time by selling subscriptions or teaching others how to do it. They do it themselves and rake in the money that it generates. Those who can’t rake it in, pretend to do so to entrap the gullible into paying good money for their worthless schemes. These remind me of the “Make BIG money working from home!” schemes. The only people making ANY money working from home are those who have real skills, such as accountants, attorneys, CPAs, etc. Something that you can learn in a week or two simply isn’t of sufficient value to generate meaningful earnings, so grab your wallet and hang on tight.
Amen to that!
Andy, take rest, man. We don’t want you to end up in the hospital with pneumonia.
Everybody here knows that the system cannot take another major hit without the shock wave reverberating through the system and picking up speed with little chance of stopping it.
Andy has reported for many months that this was all beginning to unravel.
Every time I turn on my computer and look at what is happening and yet not being reported on mainstream news I am further convinced that we are reaching the limitations of extend and pretend.
How much longer can the realities facing us be hidden from mainstream society.
Belief and confidence in Governments will be destroyed in such a manner that society as we know it may change forever.
My next expectation is that the powers to be will silence us all with some method of denying what gets filtered through and posted on the internet.
They have control of the mainstream media…..now they need to control the alternative media..not just fill it with trolls but control the content published.
All in my humble opinion.
On the general topic of “dumbest central bank statement ever,” Helicopter Ben Bernanke is in a class by himself and therefore deserves special recognition for these gems:
June 20th, 2007 – [The subprime fallout] will not affect the economy overall.
We believe the effect of the troubles in the subprime sector on the broader housing market will likely be limited, and we do not expect significant spillovers from the subprime market to the rest of the economy or to the financial system – May 17, 2007
The Federal Reserve is not currently forecasting a recession. Jan. 10, 2008
There is no bubble – everything is contained – February 22, 2013
One myth that’s out there is that what we’re doing is printing money. We’re not printing money.
The money supply is not changing in any significant way. What we’re doing is lowering interest rates by buying Treasury securities.
It is not the responsibility of the Federal Reserve – nor would it be appropriate – to protect lenders and investors from the consequences of their financial decisions. Oct. 31, 2007
Milton Friedman would have supported what the Fed is doing – October 1, 2012
With respect to their safety, derivatives, for the most part, are traded among very sophisticated financial institutions and individuals who have considerable incentive to understand them and to use them properly.
Gold is not money
Nobody really understands gold prices – July 17, 2013
Hopes this brings a smile as you continue to mend.
Best wishes for a speedy recovery.
Yes, but he was so “courageous” to ramp up the printing press in 2008.
Andy: good analysis as usual..
You should have a #12: the louder and louder drumbeats for WWIII by the psychos in charge who can see their power slowly, but surely slipping away.
The humor is appreciated- and maybe the only way to get through years of frustrating manipulation by the “not courageous” banksters. Thanks for the daily dose of truth and be well.
Yes, writing is my therapy. Thx.
Even drugged up, you still make more sense than 99% of the crap I’ve read yesterday and today, and believe me, some of the crap that has gone over the Kitco wire has been…….WTF(including shoulders shrugged and both arms up in the air)?
Sorry for the language 🙂
Thanks, all good.
Kitco’s headline today was “gold up on short-covering, bargain hunting, safe haven buying.” Yeah, that about covers it.
“… we are already in an environment as weak as 2008, and getting worse each day…”
There is NO doubt in my mind whatever that in 2008 we had a depression and we are, in fact, still in it because depressions last for a decade or more whilst a recession typically lasts for about a year.
In typical bankster and govster fashion, however, it has been papered over to the point that it is invisible to the sheeple. But not to the hard-eyed folks in the alt-media and those of us who read their writings daily. No, we understand that the US economy is shrinking as it approaches collapse. We also understand that neither the Fed nor the US Gov will EVER use the “D” word, preferring instead terms like “the Great Recession”. Well, what is a “Great Recession”, if not a depression?
Clearly it is much worse than a normal recession, is it not? We have no soup kitchens or bread lines in this depression like we did in the 1930s because we now have EBT cards. The mooch class and those down on their luck need not worry about eating and other necessities because Uncle Sugar will be there with someone else’s money in hand to bail them out. As always, this works until they run out of other people’s money.
This is the same problem that Greece has. They spent all their money and then borrowed a lot more and spent that too. Consuming more than we create is not sustainable and, as we all know, anything that is not sustainable, ENDS. It is just a matter of time because this has little to do with economics or politics and much to do with MATH… and the math of a coming collapse is inescapable.
Cheers, all. Prep and stack as if your life depends on it… because IT DOES!
try some Collodail Silver (spelling) on your throat , Try to spray it in….PMs are good for everything, thanks Andy
Andy – sorry to read that your not well, maybe its a bad case of FEDUPITIS! -:)
Another excellent article, thanks for all of your advise both monetary and personal, storing like crazy here.
I was wondering if you could do me a favour (although I can probably guess) and advise what you think will happen to economies like here in Australia and the pacific Rim, which are $US pegged and have countless American owned business’? which way for us down here as to our own $
No nation is immune, this is a global crisis.
The Aussie dollar is just as fiat as the rest, and its heavy commodity focus in a major recession/depression won’t help.
Who knows what will happen? That’s why we should all prepare.
Our economic recovery is opposed by those who could bring it about. Every time an official or candidate tells us that he will restore jobs but does not mention repeal of NAFTA and similar agreements along with bringing back a sound tariff policy, he is speaking from ignorance or lying.