In 15 years of Cartel, PPT, and Fed “watching,” I’ve not seen anything like the manipulations since Election Day – which is quite amazing, considering the powers that be were clearly aligned with the status quo fronted by Hillary Clinton, and her band of criminal bankers, corporate CEOs, globalist politicians, and “fake news” mainstream media. Why “they” chose to double down their manipulative efforts when the “Red Swan” fought through their historic election-rigging to win the Presidency is beyond me – particularly now that “they” appear hell-bent on removing the ultimate outsider from office. And by “outsider,” I mean politically speaking only – as clearly, the vile scum (Star Wars reference) he appointed to his inner circle, including five former Goldman Sachs executives, depict a level of crony capitalism even HRC would approve of. Not to mention, his jawboning Whirlybird Janet to print more money, and further destroy the intrinsically worthless dollar.
What have “they” actually accomplished? The way I see it, “they” have pinned themselves into an inescapable corner, in which the only weapon they still have is a dramatically depleted printing press, fabricating a currency whose prestige, and usefulness, is rapidly dying. The PPT, Gold Cartel, oil PPT, and Federal Reserve – combined with those managed by the ECB, BOJ, SNB, BOE, PBOC, and every other “leading” Central bank – are running the presses at full tilt, and manipulating markets, both overtly and covertly, at a pace never before witnessed. But, to what end?
Quantitatively, global economic activity as its weakest level since the Great Depression; whilst debt is parabolically rising, like the Tower of Babel; as oversupply, of essentially everything – caused principally by the printing of money, and misallocation thereof – is overwhelming the planet; whilst historically ugly demographic trends are set to destroy consumption for years to come, as technological advancement destroys tens of millions of jobs – of people with little or no savings, desperately depending on hopelessly insolvent corporations, municipalities, and “welfare states.”
Hence, the “coincidental” invention of Bitcoin, just as history’s largest, most destructive fiat Ponzi enters its terminal, malignant stage – which threatens to overwhelm the powers that be’s’ printing presses – and consequently, the gold Cartel’s power – like nothing before witnessed, at a time when the historic wealth inequality caused by Central banks have caused unprecedented social unrest, political instability, and geopolitical tensions – and consequently, a growing hunger for alternatives, to both store and spend economic value. This is why I believe Precious Metals and Bitcoin will be the “twin destroyers of the fiat regime”; why decentralization will be the new paradigm of global value; and why the next 12 months may be the most impactful, and world-altering, of our lifetimes.
Of all the hubris we’ve witnessed – from weak-minded, intellectually-deficient “leaders” who slept their way to the top of the printing-press-armed status quo – the Fed’s recent “rate hikes” take the cake. Not that taking the Fed Funds rate to a still historically low 1%, whilst maintaining an historically high $4.4 trillion balance sheet (and who knows how much “off balance sheet”) is considered “tightening” by anyone with functioning brain cells, of course. However, the arrogance to say anything hawkish in the face of such historically deflationary, economically debilitating forces demonstrates how out of touch with reality the powers that be have become. Creating “dotcom valuations in a Great Depression era” can only end in tears; not to mention, “anti-tears” for Precious Metal longs, given the historic undervaluation the Cartel has created – and with them, historic investment opportunities, in gold, silver, and platinum.
Eight months after the historic post-Election “Trump-flation” manipulations; and 18 months after the Fed started “raising rates,” the world has never been in worse economic shape. Interest rates in the real world are no higher than when the Fed first started “tightening” in December 2015 – which, I might add, was EXACTLY when gold and silver permanently bottomed; as depicted by the benchmark 10-year Treasury yield, which traded at 2.20% the day of the Fed’s December 2015 rate hike from 0.125% to 0.375% – compared to…drum roll please…2.16% today. And oh yeah, the Fed’s balance sheet is completely unchanged over this period, at roughly $4.4 trillion.
Thus, whilst mortgage rates have marginally risen – as bank deposit rates remained static – all the Fed “accomplished” is weaker loan demand, higher delinquencies, and unchanged savings. Economic data has weakened to levels reminiscent of the Great Depression; whilst debt has skyrocketed – as highlighted by the U.S. national debt rising over this period from $18.1 trillion to today’s “debt ceiling” constrained $19.9 trillion. Hence, the explosive market manipulation required to “offset” these horrific trends, yielding the aforementioned “dotcom valuations” in “desirable” assets classes like stocks, bonds, and real estate; and historic undervaluation in “undesirables” like Precious Metals; which have been exposed as that much more ridiculous with each new failed attempt to “justify” them; such as yesterday’s latest “Trump-Care” proposal – which, less than one hour after it was revealed, was deemed to be, for all intents in the water, dead on arrival.
Not to mention, the below chart of how hard and soft data have trended since the “data dependent” Fed’s March “rate hike” – which I put in quotes, as market-based rates have since declined. As frankly, it’s hard to imagine anyone without an agenda attempting to logically justify last week’s “hawkish hike.” Which, like the three “rate hikes” before it, failed to convince the markets that the Fed actually means what it says. Which, in turn, is equally comical, given that for all the bluster about future “tightening,” the Fed is anticipating, for the next three years, the lowest GDP growth in U.S. history. Not to mention, a long-term Fed Funds rate less than half of the average of the past seven decades!
All that said, how much has the steroid-juiced gold Cartel actually accomplished? I mean, both metals bottomed in 2015; both were up in 2016; and both are up this year, too. Global demand is at or near record levels in most non-dollar dominated regions – with the average global gold price within 10%-15% of its all-time high. Moreover, the historic price suppression has so thoroughly destroyed the mining industry, reserves have been plunging for years; production is amidst a long-term, freefall decline; and above ground, available-for-sale inventories have been reduced to fumes – including those “owned” by the U.S government, be they “stored” at Fort Knox or “held” in “deep storage.”
Frankly, I’m starting to feel like Rocky in Rocky III – per this must watch, highly empowering clip of the Italian Stallion telling Clubber Lang “you ain’t so bad.” I mean, think about it. We’ve endured 18 months of “Fed tightening” – not that there’s any historical relationship between Central bank tightening and lower PM prices – and equally unprecedented Cartel suppression. And yet, gold prices have risen sharply overseas, and steadily here in the States. And do you know what we haven’t seen for years now? Yep, the kind of blitzkrieg Cartel attacks that used to be standard practice, in dramatically knocking prices down for long periods of time – like 2011’s Sunday Night Paper Silver Massacre, Operation PM Annihilation I, and Operation PM Annihilation II; 2012’s Leap Day Violation; and 2013’s Alternative Currency Destruction raids. Why, you ask? Because the Cartel no longer has the metal to enable dramatic paper price plunges to stick, given the massive physical shortages that would result. Not to mention, as most of the mining industry, as a consequence of such manipulation, is not only financially constrained, but operating well below its all-in cost of production. Thus, aside from significantly weakening sentiment here in the West – in turn, yielding the aforementioned, historic valuation anomalies – the Cartel appears to have accomplished little. And frankly, for the entire world to see, appears as “tired” as Clubber Lang, just before Rocky knocks him out.
Consequently, its getting to the point where most people will shortly know the Fed’s – and global Central banks’ in general – are Emperors without clothes. They’ll see plunging oil and commodity prices, interest rates, economic data, and corporate earnings – and exploding debt, political instability, geopolitical strife, and social unrest; as well as inexorably rising Precious Metal prices, no matter how powerful the anti-gold propaganda. Which in turn, will cause them to shun mainstream investments, and embrace “unconventional” ones like gold, silver, platinum…and Bitcoin. As unquestionably, the “post rate-hike manipulations,” going all the way back to December 2015 – whilst LOL, the entire rest of the “first world” has been historically easing – are as close to “death’s door” as at any time in the manipulated post-2008 world.
To which I can only conclude by saying, PROTECT YOURSELF, and do it NOW!