It’s the rare day I wake up to see news so powerfully Precious Metal bullish – regarding its short and long-term implications – I can barely contain myself. The last such event was the BrExit – which set into motion the inevitable collapse of the European Union and Euro currency as we know it. Which, seven months later, appears more certain than ever – and perhaps, if this year’s Dutch, French, German, Italian, and Catalonian elections and legislative actions trend in the direction I anticipate, imminent. Which I assure you, last night’s news will only hasten further.
Moreover, it’s equally rare to see so many of my predictions borne out in real time; let alone, as today’s events were catalyzed by none other than Donald Trump himself, the most anti-establishment politician ever elected to a major Western political office. To that end, I have written more of Donald Trump than any single person in my five-and-a-half years at Miles Franklin – who last night, confirmed why back in September I predicted a Trump victory would be the political, economic, and monetary equivalent of a “BrExit times ten.” To the point that, at one of his rallies mere weeks before the election, he actually utilized that very term.
In fact, in the past week alone, I vehemently espoused my views of why his Presidency, as initially opined in “BrExit times ten,” would be the best imaginable scenario for Precious Metal investors. First, I taped the “Death of Trump-Flation” Audioblog on Wednesday – discussing my belief that few of his campaign promises were politically and economically viable; and fewer still, a net positive for America in the first place. Which in reality, was a “sequel” of the “turning on Trump” Audioblog I taped in November, mere days after the election. When, in the afterglow of having successfully avoided the election of the Wicked Witch of the West(ern Hemisphere) as President, I focused on the economic reality of what a Trump Presidency actually meant.
Next, I wrote “Candidate Trump to President Trump, and all it entails” this weekend; in which, I discussed how the fraudulent, farcically fallacious “Trump-flation” meme – concocted by the world’s top market manipulators on Election Eve, after Trump “shockingly” beat ”their” candidate Hillary Clinton – was bound to dissolve into oblivion once the post-election “honeymoon” period was over. Followed by yesterday’s “loose cannon versus the wicked witch,” when I discussed how Trump’s post-election actions were demonstrating how the lack of diplomacy that has characterized his entire public life – and frankly, a disturbing lack of economic understanding for such a successful businessman – were setting the stage for heightened political, economic, and trade wars, at a time when a debt-infested, politically unstable world is at its most vulnerable.
Throw in last week’s “2.5%, ‘Nuf said!” – in which I opined that in the face of “Trump-flation”-addicted traders’ and “analysts”’ record Treasury bond short position, the odds of plunging rates were far greater than rising rates; and December 27th’s “gold bottoming in late December for the second straight year?” – whose content is self-explanatory; and you can see why I’m so excited. Heck, Bitcoin is also surging this morning, coincident with Precious Metals, following Trump’s thermonuclear “final currency war” salvo last night – demonstrating why I view Precious Metals and Bitcoin to be “natural allies” in the eminently winnable war against the dying fiat regime; and thus, why I believe “Bitcoin will make gold and silver go up.”
Not that the Cartel, as I edit just before the COMEX open Tuesday morning, isn’t desperately trying to quash the impact of last night’s historic Trump proclamation -fighting particularly hard to defend silver’s 50 DMA of $16.95/oz; as God knows, they will fight to their own, mathematically-guaranteed demise. However, clearly Trump has taken the “final currency war” I warned of four years thermonuclear, inadvertently putting the gold and silver Cartel “on notice” that its days are numbered. And thus, that they’d better start thinking about covering their massive paper shorts, and acquiring as much physical metal as they can, before the inevitable shortage arrives. Which, unlike the historic gold and silver shortages of 2008 – and lesser silver shortages in 2011, 2013, and 2015 – is unlikely to be “reversed” by manipulative Central bank actions.
On the eve of Theresa May’s speech on the “twelve points” of a “hard and clean” UK BrExit – which again, the majority of “pundits” and “analysts” said wouldn’t happen; not to mention, Chinese Premier Xi Jinping’s historic Davos speech – in which he attacked protectionism, claimed China had no intention of devaluing the Yuan (LOL, after having devalued it by 15% in the past 17 months), and claiming China would “take the gloves off” if America continued to provoke it; Trump gave an interview with the Wall Street Journal, in which he directly countered the primary pillar of the Cartel’s two-decade gold and silver suppression scheme – concocted when Bill Clinton’s newly appointed Treasury Secretary, Robert Rubin of Goldman Sachs, first uttered the filthy lie that America had a “Strong Dollar Policy.”
Irrespective, the dollar index peaked a few years later – as the mirage of the dotcom bubble burst – resulting in that ridiculously fallacious term being put in cold storage circa 2001. However, the concept of pretending the dollar was the best way to store value was propagandized ad infinitum – as quite obviously, the worse the dollar’s fundamentals became (as debt surged, and political and economic hegemony declined), the more aggressively financial markets were rigged to support this increasingly comical notion. And never more than during times of extreme crisis; such as the early stages of the 2008 financial collapse, when Precious Metals were viciously attacked to “prove” they weren’t safe havens – even if just a few weeks later, not only did PM prices soar, but the aforementioned physical shortages nearly destroyed the Cartel then and there. Then, when the powers that be nearly lost control in 2011 – when it became readily apparent that their post-2008 market-saving mechanisms (like TARP) were failing, they passed the “point of no return” (in silver, in May; and in gold, in September); when they realized they must manipulate all markets, all of the time – or face a disastrous, immediate defeat at the hands of “Economic Mother Nature.”
Similarly, when Trump “surprisingly” won the election, they determined to pretend it was a good thing for financial markets by smashing gold and goosing the “Dow Jones Propaganda Average” – even if the bond and currency markets, which simultaneously crashed, did not “agree” with this ridiculous meme. Which in turn, have spawned some of the most egregious market distortions I have ever seen – such as the insane mini-bubble in base metals like copper, lead, and zinc, whilst the most industrially-used metal on the planet, silver, was held in check. Throw in the fraudulent OPEC “production cut” – which with each passing day, inches closer to being “called out” – and you have the ingredients for an historic financial market “transformation” in the coming months. In other words, dramatically increasing the odds that my predictions that 2017 will be an historic year for “money printing”; “draconian government actions”; and “monetary revolution” will come true.
Anyhow, one of the principal tenets of the “Trump-flation” meme is that the dollar will inexorably rise due to Trump’s trade policies. Not necessarily against “real items of value” like gold, of course – as if Trump gets what he wants, U.S. inflation will skyrocket (which will likely occur irrespective, once the Fed re-joins said “final currency war”). This belief holds little, if any, water when held up to any significant scrutiny – but hey, when markets are being manipulated to support the theme, and the brain-dead, “fake news” MSM suggests markets “know,” who cares? For that matter, why quibble over “trivialities” like the fact that such manipulations aren’t even internally consistent – like attacking gold whilst claiming inflation will rise; and goosing stocks whilst interest rates surge?
Thus, when Trump “shocked the world” last night by claiming the dollar is “too strong”; and to boot, slamming the Republicans’ “border adjustment tax” proposal, in lieu of the hard-coated import tariffs he favors, he for all intents and purposes took the aforementioned “final currency war” thermonuclear; in the process, putting the gold Cartel on notice that his policies will unquestionably yield a dramatic surge in physical Precious Metal demand – particularly, here in America, where even the most die-hard, Keynesian-brainwashed investors will be forced to realize the dollar’s purchasing power is about to be significantly devalued. Not that it hasn’t already, of course. However, in the past, such inflation occurred in a more “frog in a boiling pot” fashion, as markets were manipulated to deflect attention from the Fed’s dollar-destroying policies, whilst the “strong dollar policy” and other anti-gold propaganda was relentlessly spewed by the cast of Atlas Shrugged cartoon characters running the government, Central banks, and major financial institutions to keep investors away from the “barbarous relic” that is gold.
Well, care of the “loose cannon” himself, the gold Cartel – and the entire world political, financial, and monetary order – has been “put on notice” that the U.S. no longer intends to even pretend it has a “strong dollar policy”; and to the contrary, may well devolve into the same, overt currency depreciation policies made famous by the Japanese; Europeans; Chinese; and heck, every Central bank. This, at a time when the global “war on cash” is exploding; and the inexorable Bitcoin emergence is making a clear statement that the world’s populace no longer believes “money” is what it once was. In other words, as I wrote last week, the death throes of “money” are becoming eminently visible – making it more and more likely that the inevitable “run” from worthless fiat; and into “priceless” Precious Metals”; is rapidly approaching – like a runaway train, careening down an icy hill with no breaks.