Good morning to all, on what should be a well-earned rest from writing the day after Thanksgiving. Unfortunately, it appears my prediction that “Black Friday” may take on a whole new meaning this year, as just 36 hours from my last RANT I have a RECORD-LONG list of “horrible headlines,” which I fear will be still longer by the time this missive is published. All hell is breaking loose financially the world round (not withstanding this morning’s DESPERATE PPT goosing at the NYSE opening), and I simply do not see the thin threads of support holding Europe together surviving much longer.
Once again, I will conclude this RANT with my “message,” but not before I update you on the political, economic, and social horrors rapidly engulfing the globe. Today, I am not simply moving from East to West, but by topic, starting with the widespread social unrest resulting from the global economic collapse.
To start, let’s discuss the reinvigorated “Arab Spring,” which looks set for a “2.0” revival in the coming months as economic conditions continue to worse despite rising oil prices. Higher oil prices benefit a very small proportion of the dictator-led Arab nations, but higher food prices impact all thanks to rampant, worldwide MONEY-PRINTING. As I’ve noted constantly over the past six months, currencies the world round are collapsing as funds FLEE lesser nations to the so-called “safety” of the U.S. dollar (for now), causing rising inflation nearly everywhere.
In Yemen, the 33-year dictator Ali Abdullah Saleh was forced to step down amid widespread protests…
…while in Egypt, Tuesday’s bloody massacre of 35 protestors has been followed by a brief calm, but for how long? Tens of
thousands of angry, unemployed protesters have assembled in Tahrir Square, with a high likelihood the radical Moslem Brotherhood will shortly be leading them with a highly-charged anti-West regime (just as I’m expecting to occur in the
oil rich, American-destroyed nation of Libya)…
…and speaking of America’s insatiable thirst to bomb Middle East nations, even ones without oil reserves, it appears we are
preparing to attack Syria (under pretense, I’m sure, of “spreading democracy”), a nation DANGEROUSLY close to the potential focal point of a coming World War, Israel.
The “peace-loving” U.S. is pound-for-pound the most warlike nation in world history, surpassing even some of Europe’s most notorious imperialists. Reading this list will shock you, as few realize the extent America has imposed itself on the world in the name of “peace” over the past 235 years. I’d bet the U.S. government has killed more American Indians alone than most nations have killed foreign invaders….
…and thus, it should be no surprise that a reinvigorated, wealthy Russia is officially letting the U.S. know it remembers
the Cold War, and wants nothing more than REVENGE…
…or that China is being pushed to the limits of its toleration of American profligacy, hyperinflationary fiscal and monetary policies, and overall economic and military imperialism…
China media says US sitting on debt ‘bomb’
Finally, on the topic of political/social trends, I need to RANT about how vile this “Black Friday” retail sales event has become. Amidst the accelerating economic breakdown of the nation, wherein unemployment, foreclosures, bankruptcies, and debts are rising exponentially, I have never seen more aggressive advertising from retailers desperate to stay in business by luring the masses to “doorbusting” Black Friday sales events. Such events are, in essence, frauds themselves given that customers are teased with a handful of “too good to be true” sales, which are just that, as such loss leaders are in limited supply, only available for the first few dregs through the door at 4:00 am, midnight, or even 10:00 pm last night for doorbusting king Wal-mart.
I mean HOW LOW can corporate America sink, in that major American mainstays such as Walmart, Sears, and even Toys R’ Us use the actual word “doorbusters” in announcements, a term coined three years ago when a Walmart employee was actually KILLED by stampeding Black Friday shoppers?
And by the way, the one retail item that hasn’t been selling well is the wonderful film version of Atlas Shrugged, which I
just watched yesterday for the first time. It should barely cover its $6 million film budget by the time all DVD and
DVR sales are completed, showing just how few people “get it” in 2011 America.
Of course, there are some retail businesses doing fine and dandy, and doing so without aggressive, misleading “bait and switch” advertising tactics. One such business is firearms and ammunition, and another ‘survival stores’ selling products for utilization in the event of food shortages or other extreme consequences of societal or economic breakdown. As an aside, I have utilized with great success the fine websites www.mredepot.com and www.honeyvillegrain.com for such items.
That said, I’m going to end this section on a POSITIVE NOTE, as it appears that Ron Paul, the one and only politician I have ever fervently supported (actually, I felt the same of Ross Perot 20 years ago) is slowly but surely gaining traction as more and more people realize the remaining Presidential candidates are a bunch of lobbyist-owned morons, Democrat and Republican alike. I was truly inspired by his National Security Debate responses Wednesday night, when he DEMOLISHED the amateurs seeking to
lead the most powerful nation (for now) in the world.
There is some hope for America yet, but ONLY after it rises from the ashes of its upcoming COLLAPSE.
All that, and I haven’t even gotten to the ECONOMIC woes expanding rapidly throughout the globe, particularly at GROUND ZERO in Europe. As noted above, it looks highly likely the situation will lose all semblance of control in the coming months, at which point an “every man for himself” environment could rapidly develop as the viability of major currencies such as the Euro, Pound, and Dollar come into question.
Or, perhaps, the levitating Yen, sitting at an ALL-TIME HIGH despite Japan experiencing one of the greatest economic train wrecks in history, while attempting the largest-ever currency depreciation operation, and enduring the worst nuclear accident to impact a major, industrial population center…
In Europe, I don’t know where to start, as there are literally 20 “horrible headlines” below to bring to your attention. Perhaps I’ll start with the following blog post this morning from Alessio Rastani, a trader who shook the financial world with his September BBC interview predicting collapse of the Eurozone. He believes two, and perhaps three TBTF banks are on the brink of collapse, likely within weeks – the so-called “Lehman Event” which could commence the END GAME for global economies, currencies, and the gold Cartel.
This summer I predicted most of us will NEVER see a sovereign rating upgrade in our LIFETIME, and each day that passes I am more confident in that prediction. Just in the two days since my last post (one of them being THANKSGIVING, when no one works), we have seen three more major ratings downgrades…
…while, not surprisingly, the unintended consequences of the proposed, but ALREADY FAILED Greek “debt haircut” deal continue to rear their ugly heads. It is only a matter of time before ALL the PIFIGS, and many others, demand similar debt write-offs as Ireland did yesterday, fueling bank collapses and, subsequently, regime changes around the world…
Interest rates are EXPLODING across Europe, as in Italy where this morning 5-YEAR bonds rocketed up to 7.85% following a catastrophic auction simply for SIX-MONTH BILLS…
…and Spain, following a CANCELLED bond auction…
…fueled further by the broadening understanding that the EFSF is DOA…
…as well as ALL other schemes to attract capital to bailout the increasingly insolvent PIFIGS…
…and fringe nations such as Belgium, where the proposed Dexia bailout, too, looks to be DOA…
…as well as the “final frontier of hope,” the supposedly ‘untouchable’ nations such as Japan, Germany, and ENGLAND. Want to have your socks blown off – then take a look where ENGLAND ranks in the European CUMULATIVE DEBT rankings…
Due to the growing probability of an IMMINENT European collapse, it looks like the movement to create “one-world government” (i.e. martial law) across Europe is gaining strength. All of a sudden, the top European “leaders,” particularly from nations most endanger of epic collapse such as France and Italy, are discussing the destruction of national sovereignty as an emergency measure.
There is simply no way such draconian actions can occur, in my view, without major social unrest amongst tens of millions of people, and potentially civil or revolutionary wars.
Back here in the States, the markets are still reeling from Wednesday’s financials-led Dow collapse, notwithstanding the
miraculous PPT rally commencing at EXACTLY the moment the NYSE opened for EXTREMELY THIN, HALF-DAY POST-THANKSGIVING TRADING. Clearly, the European contagion is deeply enmeshed into ALL the major U.S. banks, which have myriad other problems as well, including MASSIVE exposure to the disintegrating U.S. real estate market; unconscionable, Lehman-like leverage; and the fraudulent FASB mark-to-market rules that allow asset valuations MANY MULTIPLES
above their actual value. Each day those multiples grow larger, as each day the underlying assets decline in value…
…by the way, I have avoided talking about the mid-tier investment bank Jeffries, promoting itself as the ‘last remaining pure investment bank in America.’ I dealt with these “mavericks” for many years in the oil service business, and can tell you they have as loose financial morals as any firm I’ve come across. It looks like they, too, have destroyed themselves with European sovereign bonds, and good riddance to this soon-to-be acquired for pennies-on-the-dollar piece of garbage.
By the way, with little fanfare the CFTC appears to have finally defined a “swap,” and thus the silver shorts theoretically have 60-days to comply with proposed futures position limits. For the record, I believe this is all smoke and mirrors, and that NO MATTER WHAT rules are mandated, JP Morgan et al will still short PAPER silver to their heart’s content, with full sanction of Goldman Gary Gensler, “good cop” Bart Chilton, and the rest of the U.S. government controlled CFTC. If JP Morgan does in fact reduce its current short positions, they’ll likely just create shell corporations to continue their shorting dirty work, or, equally
likely, the CFTC will simply lie about accounting rules so it appears JPM is less short when they in fact are not.
But have no fear, readers, the COMEX and ALL PAPER exchanges WILL collapse in the not-too-distant future, but NOT because
the U.S. government, which has more incentive for the fraud to continue than ANY ENTITY ON EARTH, brings it to a halt.
Instead, it will IMPLODE due to the inexorable buying of PHYSICAL gold and silver by individuals, corporations, hedge funds, municipalities, and sovereign nations on a WORLDWIDE basis…
OK, yet another day of it taking TWO HOURS to get through the “horrible headlines,” before getting to my topic, “THE EUREKA MOMENT.”
On Wednesday, I had a stimulating conversation with someone interested in learning about the fundamentals of PHYSICAL gold and silver investment. I was asked all the right questions, the type of questions a smart, skeptical person SHOULD ask about WHY things are happening, and WHY I believe certain events will occur.
At one point, we calculated the value of ALL THE GOLD AND SILVER IN EXISTENCE against the world’s REPORTED fiat currency and Central Bank gold holdings, as well as contingencies for the likely ACTUAL fiat currency and Central Bank gold holdings. In all cases, the response was one of incredulity, to the point it was difficult to even conceive how undervalued gold and silver actually are. I mean, think about it, ALL the investible silver WORLDWIDE is valued at less than $35 BILLION (most of which is not for sale), compared to $50 TRILLION of printed currency and $50 TRILLION of overvalued stocks and bonds.
As GLOBAL FINANCIAL MELTDOWN II accelerates in ferocity over the next 12-24 months, and PHYSICAL Precious Metal prices
surge to uncharted territory, I expect such calculations to be made by MILLIONS of people worldwide, yielding MILLIONS of “EUREKA MOMENTS” when people realize gold and silver are in fact REAL MONEY, not “commodities” as the mainstream propaganda has been purporting since the gold standard was abandoned 40 years ago.
At this point, I expect the “no offer” situation I have been forecasting to emerge, where prices will need to rose exponentially to bring meaningful supply into the market. Such events will coincide with a collapse of the Cartel, as occurred with the London Gold Pool in 1968, and a similar re-rating of Precious Metals in markets finally freed from official suppression. From the time the London Gold Pool collapsed, it took just 12 years for gold to rise from $35/oz to $900/oz, a nearly 30x increase which I would not be surprised to see a repeat of in the coming decade.
More importantly, however, will be the UNIVERSAL REVELATION that gold and silver are MONEY, a EUREKA MOMENT that will transform GLOBAL thinking, reverting it to what has been cumulatively learned over five millennia – that ONLY PHYSICAL GOLD and SILVER possess ALL the traits that define MONEY.
In the majority of the brain-washed, fiat currency dominated world, people view their net worth in terms of how many
Dollars, Euros, or Yen they own, but it would surprise you to know that in some parts, particularly INDIA, the world’s largest gold buyer, people still think of their net worth in terms of how much GOLD, SILVER, and other ITEMS OF REAL VALUE they own. I believe the global EUREKA MOMENT that gold and silver are MONEY will spawn a sea change in such thinking, to the point that MOST people will view wealth as the Indians do.
David Schectman, founder of Miles Franklin and author of its daily blog, did a wonderful piece on this topic Wednesday,
demonstrating the fallacy of those worrying about “top calling” and “bottom fishing” in the PHYSICAL precious metals arena.
As currencies continue to collapse against ITEMS OF REAL VALUE in the coming years, only the NUMBER OF OUNCES you own will matter, not the exact price paid to get them. Moreover, in a world where gold costs nearly $2,000/oz (soon-to-be vastly higher), the difference in OUNCES you can purchase at say, $1,700/oz compared to $1,600/oz is miniscule.
PROTECT YOURSELF, and do it NOW!