Hallelujah! It’s Monday morning, and for just the fourth time in the past 121 weekends, (paper) Precious Metals were not attacked with a “Sunday Night Sentiment” raid. And for just the 74th time in the past 602 trading days, a “2:15 AM” attack either! Yes, I know it’s Columbus Day – and thus, the Cartel likely had its alarm on snooze – at least until the 8:20 AM EST COMEX open, when they suddenly “awoke” with a prototypical “Cartel Herald” algorithm – whilst silver’s own Cartel Herald occurred at exactly the current $16.00/oz “line in the sand,” which just happens to coincide with its 200 DMA of $15.96/oz, which it hasn’t traded above in 4½ months. However, it cannot be denied that Precious Metals are clearly trending upwards, despite the most relentless, blatant suppression tactics in memory – at least, the 13½ years I’ve been watching them trade, tick for tick.
Of course, it was never fundamentals that were the issue; but instead, pure, unadulterated manipulation – of financial markets, the money supply, economic data, and “spin” surrounding all of the above. Heck, just on this “quiet” weekend, when the MSM essentially took two days off to bask in the false, temporary “confidence” of last week’s comical, blatantly orchestrated 1,000+ point “Dow Jones Propaganda Average” rally – under the guise of “relief” that the Fed has apparently put “rate hikes” on hold yet again – the news items picked up by “alternative media” websites like Zero Hedge include soaring Brazilian bank interest rates; a massive terrorist attack in Turkey; escalating violence in Syria; and relentless commentaries of the ominously surging U.S. inventory/sales ratio – which likely is severely understated, given corporations’ unprecedented accounting chicanery.
And no, I’m not even close to done – as I haven’t yet mention the 250,000 Germans protesting Obama’s newly signed, “99%”-destroying Trans-Pacific Partnership; the Chinese Finance Minister pleading for the Fed to maintain zero rates, whilst the PBOC “unofficially” launched a new round of QE, by expanding its Collateral Asset Refinancing Program. Not to mention, escalating military tensions between the U.S. and China in the South China Sea; South Africa’s second largest miners’ union going on strike; Fitch Ratings dramatically raising its estimate of 2015 junk bond defaults; a surging high yield “distress ratio”; and none other than Bank of America advising the purchase of gold, due to their expectation of soaring global “fiscal stimulus” in 2016 – i.e., printing press funded government spending.
That said, the biggest “news” of the weekend – which I assure you, will not be reported anywhere but the alternative media – is the Fed having quietly, surreptitiously, increased its calculation of total U.S. “credit market instruments” by $2.7 trillion; from $58.7 trillion, or 330% of (massively understated) GDP, to $62.1 trillion, or 350%. Better yet, the Fed’s long-published “credit market instruments” series has been quietly “discontinued” – just as M3 (the broadest measure of U.S. Money Supply) was in 2006, mere months after Helicopter Ben became Fed Chairman.
Yes, $2.7 trillion; which was the entire national debt in 1988, compared to $18.1 trillion today – which will shortly surge towards $19 trillion when the “suspended” debt ceiling is raised next month, “coincidentally” after Election Day. Which, of course, doesn’t include $5+ trillion for “off balance sheet” debts held by Fannie Mae and Freddie Mac. Or $200+ trillion of “unfunded liabilities” – like most of the entitlements the government has issued “IOU’s” for over the past four decades.
But what’s $2.7 trillion anyway? I mean, it’s barely half the Fed’s balance sheet of $4.5 trillion of toxic, historically overvalued Treasury and Mortgage securities; which likely is far larger than reported; and likely, holds historically overvalued stocks and paper gold and silver naked short positions as well. And barely more than the combined $2.4 trillion of U.S. Treasury holdings of China and Japan – who can’t be too pleased to hear of the dramatically diluted “backing” of such “securities” over a single weekend.
As for Precious Metals, what’s the big deal? I mean, $2.7 trillion is not only 25x the value of annual gold production, and 200x the value of annual silver production; but 4,000x the COMEX exchange’s registered silver inventory, and 13,000x registered gold inventories. No, I’m sure no one is going to take notice of this “minor statistical glitch,” which has instantly made the U.S. – and the entire world – significantly poorer. Heck, $2.7 trillion is more than the national debt of 63 of the world’s 197 countries!
Of course, per today’s title, the aforementioned parties – from sovereign nations like China and Japan; to stock and bond market investors, and fiat-currency fearing “goldbugs”; are as far from America’s “friends” as could be imagined. Each is decidedly at odds with U.S. policy – be it political, economic, monetary, or otherwise. And each, we assure you – will take notice of not only the sheer magnitude of this debt increase, but the terrifying realization of how arbitrarily such numbers are “calculated”; how surreptitiously they are “published”; and ultimately, how “open-ended” the upside of future calculation “adjustments” might be.
As history’s largest, broadest fiat currency Ponzi scheme rapidly passes through its malignant terminal stage – catalyzing “unspeakable” political, economic, and social horrors the world round, the escalating debt of the planet’s so-called financial “leader” will become more and more scrutinized – and feared – as the world at large realizes it is being “steered” by the drunken sea captain that is the Federal Reserve. One day soon, we will be considering today’s $2.7 trillion “overnight increase” in U.S. debt a “drop in the bucket” – and sadly “soon” may well be far sooner than most can imagine. Which is why, for the umpteenth time, we can only scream at the top of our lungs to PROTECT YOURSELF, and DO IT NOW!