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Today is one of those days in which nothing occurred overnight.  Japan was closed for a holiday, Chinese stocks were unchanged and little transpired in the European and U.S. pre-market sessions.  Regarding the latter, the PPT is hard at work ensuring the “Dow Jones Propaganda Average” rises as it nearly always does on Tuesdays, in perhaps the most blatantly obvious “sixth sigma” market intervention imaginable.

Per below, yesterday demonstrated the typical “dead ringer” trading pattern turning equities sharply higher at exactly the 10:00 AM EST time that Fed POMO or “Permanent Open Market Operations” are affected.  To wit, just as “quantitative easing” is but a euphemism for printing money and monetizing treasuries, POMO is printing money to invest in the stock market.  In this case, for the second straight day, the goal was to convince the world Friday’s NFP report was actually “good news”; and thus, early, large stock losses were – voila! – converted to gains within 30 minutes time.

Dow Jones Chart

Unfortunately for TPTB, market participants are indeed fearful that the long propagandized “recovery” is in fact a figment of Washington and Wall Streets’ self-interested imagination.  This is why they are betting on additional QE and ironically, why the Fed is desperately trying to jawbone rates higher for perhaps the first time this generation.  Trust me, they know full well that plunging rates will signal to the entire world that the U.S. economy is in fact tanking.  And given that essentially all its money printing ammo has been spent, such a catastrophic, universal “realization of reality” could permanently destroy the Fed’s credibility – and with it, the cancerous dollar’s “reserve currency” status.

As you can see, the 10-year Treasury yield surged from its QE-created all-time low of 1.60% last May when the “tapering” propaganda scheme commenced; and for the past ten months, 2.60% has served as a de facto “floor” level – staunchly defended by the Fed in an attempt to convince the masses a “recovery” is in fact progressing.  Forget the fact that rates are clearly rising for numerous reasons, few of which have anything to with “recovery” but instead, simply consider 2.60% as a “recovery propaganda tool” used to “signify” such.  And thus, you should keep your eyes firmly trained to the all-important 10-year yield which as we speak, the Fed is desperately supporting at the new 2.60% “battlefield.”  Or as we commonly refer to in the Precious Metals realm, its “line in the sand.”

$TNX Chart

As for PMs, the Cartel is working equally hard to hold them down – particularly given that gold has now been in backwardation for an incredible three straight weeks, indicating extreme tightness in the global physical market.  On Friday, gold was stopped at exactly a 1.0% gain following the horrific NFP report, at exactly the 12:00 PM EST “cap of last resort; and yesterday, at exactly the 8:20 AM EST COMEX open when it threatened to rise by more than the standard 1.0% “limit up.”  By day’s end – following the lockdown depicted below, at the round number of $1,310/oz. – it closed up by…wait for it…exactly 1.0%. And this morning, when it again threatened to surge past the same $1,315/oz. “line in the sand” as yesterday – with utterly nothing going on in any other market – it was “capped and attacked” by an equally prototypical “Cartel Herald” algorithm at “2:15 AM,” for the 216th time in the past 244 trading days.  In other words, standard blatant suppression tactics as the “New York Gold Pool” approaches its inevitable, catastrophic end.

24hr Gold Charts

I’d say “sorry” for highlighting manipulation so much but as long-time readers are well aware, it is clearly the most important aspect of the Precious Metals market.  Without knowledge of – and understanding of the why, when, and how – “analysis” of such is incomplete.  In baseball terms, does anyone believe Barry Bonds would possibly have hit 755 home runs without steroids?

Of course, baseball is just a game while one’s finances can determine one’s survival.  And by survival, I don’t just mean physically but mentally as well.  Consequently, when performing due diligence in the “investment” world, understanding all relevant aspects is necessary – which in today’s Big Brother world prominently features government manipulation; in most cases, overtly, but in some – like Precious Metals – covertly.

The reasons for owning gold and silver are myriad and 5,000 years of history prove it.  Most importantly, they are the only substances to consistently serve as money given the unique properties demonstrated in this quick, must see video.  In my two-and-a-half years as Miles Franklin’s Media Director, I have consistently highlighted this slide in my presentations, as the most important wisdom I can proffer.  That is, only gold and silver define money as opposed to the 599 fiat currencies that have decidedly failed to do so, with ZERO exceptions.

PP Slide

Sure, one can point to gold’s role as “catastrophe insurance” – as in the case of a regional or global – war focused on the Ukraine which, frankly may well occur.  Per this breaking story, take a wild guess what Ukraine’s government intends to do with the IMF loan it is supposed to utilize to repay debts to Russian natural gas giant Gazprom.

Kiev will use the first portion of the International Monetary Fund (IMF) loan for augmenting its gold and currency reserves in order to stabilize the financial situation in the country, National Bank Chairman Stepan Kubiv said on Monday, May 5.

Itar Tass.com, May 5, 2014

“Gold and currency reserves,” by the way, is another euphemism – in this case, for GOLD; as historically, central banks are reluctant to show how much gold they’re buying and thus, mix them with “currency reserves” in official publications.  In this case, it should be crystal clear they are not taking currency earmarked for debt repayment to simply buy another currency; as quite obviously, the Ukrainian government is well aware that many other currencies face the same fate as their hyrvnia – down 40% since year-end.

And of course, one can simply view gold as insurance against Central banks’ only policy tool – money printing especially in a fiat regime’s terminal stage, as depicted by plunging economic activity, soaring debt, and rampant poverty.  Such monetary “policy” must expand exponentially and no matter how hard TPTB attempt to mask it with propaganda, all money printing accomplishes is expanding inflation and broadening wealth disparity.

In other words, “what it all comes down to” is the irrefutable fact that Central banks inevitably inflate ALL currencies into oblivion; typically, in at most 50 years.  And now that the global, dollar-based standard is 43 years old, with nearly all worldwide debt measures at, or nearing, parabolic growth rates, it’s just a matter of time before “Economic Mother Nature” does what she always does.  Thus, I figured it was a good time to highlight this excellent article by Jeff Clark of Casey Research – who collaborated with John Williams of Shadow Stats to show just how far gold has to go before fully discounting the inflation masked by government “cooking” of the CPI.  Or better put, just how much gold has been suppressed since the global economy peaked at the turn of the century.

Casey Research

And for those propagandizing gold’s “bubble,” take a gander at this chart of gold’s relative performance in the freely-traded 1970s versus the suppressed 2000s and 2010s.  Yes, its 2011 “explosion” to $1,920 doesn’t even appear as a blip on the chart, compared to not only the parabolic surge of 1979 but the powerful rises of 1973-1975 and 1977-1978.

Casey Research

Here at the Miles Franklin Blog, all we can do is tell the TRUTH.  Ultimately, it is up to you to decide how to best protect your wealth – particularly given that all fiat currencies have ended up the same way.  We cannot be more emphatic regarding our views of the ultimate outcome and equally so, vehement that once “fiat fear” spreads it will be diminished PM supply that will be your worst enemy.

Hopefully, you’ll take measures to at least partly insure yourself against Central bank madness; and if you do, we hope you’ll call Miles Franklin at 800-822-8080, and give us a chance to earn your business!