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As long as there is gold and silver available to sell – and store – the Miles Franklin Blog will speak of the TRUTH of an historically weak global economy and rigged financial markets; the latter of which must inevitably succumb to the “unstoppable tsunami of reality.”  To that end, I learned long ago – as a Wall Street sell-side analyst from 1998-2005 – of the importance of establishing key investment tenets, and drilling them home day in, and day out, in as concise and compelling a manner as possible.  To a man, I’ve found no more convincing way than to empirically prove my points; in the case of Precious Metal manipulation, by painstakingly recording each tick for the past 13 years.

Which is why it’s so empowering to know that last night’s 100th “Sunday Night Sentiment” capping – prototypical “Cartel Herald” algorithm et al; and 447th “2:15 AM EST” raid of the past 510 trading days; only reinforces what we have said all along.


Or, for that matter, the aftermath of this morning’s rare “non-catalyzed” PM surge – stopped cold by yet another “Cartel Herald” algorithm, at EXACTLY the 10:00 AM EST “key attack time #1”; at EXACTLY the +1.0% gain the Cartel has enforced on 99% of the past 15 years’ trading days; at EXACTLY the $1,200/oz “line in the sand” the Cartel has manically defended for the past two years.  And in silver, at EXACTLY its “parallel line in the sand” at $17/oz.


To that end, current market “messages” are but illusions – and the propaganda used to “interpret them, nothing but biased attempts to maintain a dying status quo.   Such as, for example, trying to “connect” short-term Precious Metal price performance to whatever happens to be down on a given day – be it stocks, bonds, commodities, or currencies.  For example, on Monday we might be told gold is falling due to equity weakness; and Tuesday, equity strength.  In other words, don’t believe a word “they” tell you about so-called “market” movements.  Not to mention, as nary a day passes when “they” are not being fined, censured, or otherwise castigated for market manipulation!

Or, for that matter, “analysis” from so-called “good guys” regarding meaningless, manipulated technical charts; particularly when such analysis costs money – and worse yet, prompts you to act on investment recommendations that often, but not always, are not themselves biased by conflicts of interest.  Worst of all, are those claiming to have “proprietary” technical systems, in a world where millions of traders look at the very same data, in real time, with the most advanced analytical tools imaginable.  And I won’t even go into those claiming mythical wave, cycle, and similarly unscientific, unsubstantiated methods can predicting the future.  As for the upcoming “Shemitah” this September – and other fanciful conspiracies – if you want to risk your life’s savings on them, go right ahead.  However, amidst the most dangerous political, economic, and financial environment in generations, we can only warn of the dangers of such undisciplined methods – in lieu of what I learned long ago, when markets were still markets.  Which is, that sticking to one knows is the best way to avoid financial ruin.  Not to mention, paying heed to the gargantuan risks surrounding us, and investing accordingly.

Before I return to today’s principal topic, let’s just say there’s a reason this weekend’s Audioblog was titled “upcoming week of infamy?”  Whether Greece manages to pay the IMF the money it owes this Friday – which they have all but screamed they don’t have – is inconsequential.  What matters more is the four-month bailout extension granted February 20th is just three weeks from expiring.  And anyone following this weekend’s news – featuring an expanding Greek bank run – realizes that not only is a new bailout deal unlikely, but not even possible.  To that end, I don’t think I’ve seen more hatred and rhetoric spewed over to date; and at this point, everyone from the IMF, to the ECB, the German Finance Minister, the Greek President, and even Wall Street are speaking of the inevitability of the “Grexit” I didn’t just guaranteed two months ago, but two years ago – when we I wrote the following.

“I have ZERO doubt that – one way or the other – Greece will eventually exit the EuroZone; potentially, providing the ‘flash point’ catalyzing the END of the Western banking system; and with it, FINANCIAL ARMAGEDDON.” 

Then we have the newly formed “oil PPT” – which in its blatantly transparent attempt to revive the only business sector to have grown over the past decade, is inadvertently injuring the capital starved public further, by driving gasoline prices higher amidst record consumer debt, real unemployment, and cost of living increases.

That said, OPEC’s meeting this Friday is all but sure to not only produce ZERO production cuts, but eliminate any remaining hope of such.  Which will only make said “oil PPT” work harder to usurp “Economic Mother Nature” – who as we speak, is obliterating the prices of nearly all other commodities.  And, of course, the Federal Reserve to “inflate” further – as validated by this morning’s comment from Boston Fed President Eric Rosengren, in prototypical uber-dovish form.

“The Fed is not yet prepared to say if the poor Q1 period was due to temporary factors, and not yet ready to begin the tightening cycle.”

Or heck, the very people most incentivized to maintain the free money gravy train – such as Europe’s largest bank, Deutsche Bank….

“Truth be told, we think the Fed is obliged to talk up the economy because if they were brutally honest, what vestiges of optimism still remaining in the domestic sectors could quickly evaporate.  At issue is whether the Fed in particular, but the market in general, has properly understood the nature of the economic problem. The more we dig into this, the more we are afraid they do not. So aside from a data revision tsunami, we would suggest the Fed has the outlook not just horribly wrong, but completely misunderstood.  Thus, the idea that the economy is ‘ready’ for a removal of accommodation, and that there is any sense in such a move from the perspective of rising inflation expectations and a stronger real growth outlook, is nonsense.”

…and America’s most corrupt, government-partnered financial institution, Goldman Sachs; which not only told clients stocks are overvalued, but reduced its long-term annual U.S. GDP “growth potential” from 2.25% to 1.75% – compared to the 3.2% average of the past 68 years.  And this, following the seven-year “recovery” catalyzed by tens of trillions of Central bank money printing, and overall societal debt accumulation.  Wait, perhaps there’s some connection here.

“We recently reduced our estimate of U.S. trend productivity growth.  (Consequently), we now see long-run potential GDP growth of 1¾%, half a percentage point below our prior estimate.”

Regarding said “capital starved public”; remember, we are told consumption accounts for 70% of the U.S. economy – which, by the way, makes zero sense, as America produces very little of what’s consumed.  Irrespective, this morning’s punk personal spending growth of ZERO – representing its fifth “miss” in six months – only validates further what we have said all along.  Which is, that not only have modest income increases – principally due to inconsequential minimum wage increases, no less – failed to yield “wealth effect” spending increases, but neither have the historic financial asset bubbles the Fed has directly, and indirectly, created.  Or, for that matter, the PBOC; ECB; BOJ, and all major Central banks.  Except, of course, for the “one-percenters” that have grown disproportionately wealthy from the flood of free Fed/PPT money; who given CNBC’s record low ratings, are likely its only remaining viewers.

Yes, the TRUTH is why “goldbugs” won the “conventional” market manipulation wars of 2000-10; and why ultimately, why we will triumph over the “nuclear” manipulations that commenced following TPTB’s point of no return” realization in 2011; when, having witnessed the abject failure of their post-2008 money printing orgy, they cumulatively determined to go “all-in” with market manipulation until the bitter end.  Which, in our view, is barreling at us like a runaway train.

To that end, the level of anti-gold propaganda has never been higher – nor more falsified.  Even the so-called “good guys” are in on the game – such as this misleading article regarding a “weakening” of Chinese demand; based on, at best, spurious data points.  Such drivel keeps frightened PM owners cowering, and potential owners from pulling the trigger.  And what’s saddest of all, is that if they simply looked at this data – of real withdrawals from the Shanghai Exchange – they’d realized the best proxy for Chinese gold demand is not only up 20% from a year ago, and 8% from 2013’s record level, but is on pace to consume roughly 85% of the entire world’s 2015 production!

Or, per this article from the Steve St. Angelo, of how slowly but surely, the West’s “record low PM sentiment” is starting to reverse.  Here at Miles Franklin, it has certainly improved in recent weeks; but has a long way to go to reach the peak levels of 2011, just before said “point of no return.”  That said, in the nation most likely to “lead” Europe’s investment climate – Germany – citizen gold buying is soaring, at a per capital rate more than 12 times the United States.  In fact, during the first quarter – as the Greek crisis intensified – Germans bought nearly as much gold bullion as the rest of the Western Hemisphere combined.

In other words, gold buying is not only at or near record levels in the East, but starting to creep up in the West – particularly in the second most important Western economy, Germany.  Unfortunately for the world, a “perfect storm” of rising Precious Metal demand and stagnant-at-best, plunging-at-worst gold production appears at hand; which in silver, we might add, could be equally dramatic if base metal prices continue to plunge, as they rightfully should (nearly two-thirds of silver production emanates as by-product from base metal mines).

Fortunately, the TRUTH is right there for you to see, no matter how hard TPTB work to obfuscate it.  Said TRUTH will set you (financially) free; and here at the Miles Franklin Blog, we won’t stop disseminating it until there’s no more gold and silver left to buy.