As a lifelong New York Mets fan, I’m no stranger to disappointment; and today’s news that our great young hope Matt Harvey has a potentially serious elbow injury certainly started my day with an ominous aura. However, as much as I love sports, they are inconsequential to our lives; and on days like today, such a point is driven home “in spades.” Read carefully, as I have MANY depressing topics to cover this morning, but only two pages to do so. Sadly, I have saved the worst for last; and given how dire the first topic is, you can see why I’m in such a foul mood.
Let’s start with what I have screamed would be coming for the past year or so; i.e., Middle Eastern WAR. Last night, my worst fears were brought a step closer to inevitability when it was reported that first the U.S. cancelled a diplomatic meeting with Russia (talk about an oxymoron) to discuss peaceful solutions for Syria; and next, that a U.S.-led invasion could commence any hour. We all knew this would occur; and per what I wrote yesterday morning, such an action not only has Iraq written all over it – in every imaginable way – but if Russia is indeed involved, may make the Cold War look like the “good old days.”
Next up, we have our Treasury Secretary begging Congress for a debt ceiling increase – and potentially, a “DEBT CEILING TO INFINITY”; as by mid-October, the current “emergency measures” (i.e., stealing from government pension funds) will be exhausted. Given what is occurring with interest rates and the economy, can you see just how RIDICULOUS – i.e., coerced – the recent Moody’s and S&P increases in the U.S. government’s credit rating outlook were?
Thirdly, we have the unfolding collapse of the European PIIGS; which given the current state of the world, will likely really accelerate as Europe returns from its annual August holidays. Yesterday, I wrote of the potential for an Italian government implosion, and today the situation is worsening, as Italian markets are again down sharply. Meanwhile, Greece’s soon-to-be defaulted on $500+ billion of debt is again in hyperbolic growth mode; although sadly, such an astronomic figure pales compared to Italy’s soon-to-be defaulted on $2.8 TRILLION. And last but not least, an absolutely shocking statistic on the lesser-discussed economic TRAGEDY ongoing in Portugal, whose economy is just 18% smaller than Greece’s. No, this is not a typo. National auto traffic declined by a whopping 50% in 2012 – and an incredible 68% in the first quarter of 2013 versus the prior year period. Given what I just wrote, what do you think will occur in Europe this Fall – and how are you PROTECTING yourself?
And now, to the day’s final – and most horrific – point of discussion. I’d like to say it’s just India, but the ENTIRE EMERGING WORLD is on the verge of collapse. I have literally “shouted from the rooftops” of the exported inflation the U.S. has poisoned the world with; and now, the ramifications are finally here, front and center. All such markets are crashing, with currencies like the Brazilian Real, South African Rand, Indian Rupee, and now the Indonesian Rupiah and Turkish Lira in FREEFALL. Overnight, the Rupiah alone crashed 4%, and if you can believe it, the Rupee is down another 3%. We are about to experience an utter bloodbath in such markets; and sadly, I’m not just referring to crumbling financial markets.
And thus, I present an email just sent to me from an Indian reader below; discussing not only the likelihood of social unrest, but the fact that PAPER metals trading was halted three weeks ago, and PHYSICAL metal in the “BLACK MARKET” is now trading for $1,800/oz. What do you think of that, Jim Rogers? In fact, this reader is actually interested in purchasing bullion from Miles Franklin – no matter what the cost – as he is desperate to PROTECT his net worth from the oncoming HYPERINFLATION freight train.
Right now, gold is trading at 1800 dollars an ounce, but in the intl market it is below 1400. What happened here? I know our govt keeps putting capital controls every day. My take is with our elections in 2014, Gold is going to go even crazier – with a real estate collapse of around 30 %, followed by another 20 % if there is a hung parliament in the elections. I Hope it is not a second Egypt, as Indians are known to be wild in their protests. Just look at the 1857 Sepoy mutiny.
I would like to purchase silver from you guys, since it is cheaper than here, but don’t know what would the total cost of ownership will be by the time it gets here. From September, there will be policy freeze on all major issues until the elections.
The big news is our commodity markets have stopped trading for the last 15 days, and they are about to default. Here is an article discussing the onset of the trading halt (India Halts Spot-Metals Trade). What does this mean for all gold-loving people?
Honestly, if this doesn’t make you RUN to purchase PHYSICAL gold and silver NOW, I don’t know what will. I have done my duty to warn you, and now it is up to you to act – while there is still time. I know I have, and by the way, I yesterday added dramatically to my silver holdings – to the point that my 65% gold/35% silver split from less than two years ago has been reduced to 52% gold/48% silver.
I’ll finish with a likely very prescient call from David Schectman yesterday. It’s your choice to believe if he is correct; but as for me, I am 1,000% on board…
This is the third time, since 2001, that I am taking the position, with no hemming or hawing, that gold and silver are taking off. It’s buy time once again. The first time was in early 2001. The second time was in early 2009. After the market crash, in 2008 that took gold from over $1000 to around $750 we started to urge our clients it was time to get back in.
–Miles Franklin, August 26, 2013