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Despite yesterday’s blatant HUI shellacking and PAPER PM attacks (remember, “all great PM days must be followed by horrible ones”); followed today by the 101st visit from the 2:15 AM algorithm in the last 113 days, a COMEX-opening Cartel Herald capping, and a subsequent WATERFALL DECLINE – directly after a miserable jobless claims number – gold and silver continue to rise.  All this, despite Goldman’s “slam dunk sell” call at $1,320/oz.; or better yet, Dennis Gartman’s at $1,270

24hr Gold 10-24-2013 1124

Why am I starting today’s article this way, you ask?  To demonstrate that no matter what illegal, unethical, or amoral tactics TPTB utilize to delay the inevitable collapse of its fiat Ponzi scheme – and simultaneous explosion of Precious Metal prices – they will unquestionably lose.

Whether the world’s central bankers are intelligent enough to understand this are remains in question – particularly given the political nature of their jobs, which REQUIRE them to keep printing.  However, one thing they unquestionably realize is that if they don’t ACCELERATE the printing, the banking system will instantaneously collapse.  Alan Greenspan knows it (as he desperately attempts to blame his failures on Ben Bernanke), Mario Draghi knows it, Shinzo Abe knows it, Janet Yellen knows it, and Chicago Fed President Charles Evans certainly knows it – per the startling answer he gave to a CNBC interviewer yesterday…

Does the Fed have a limit to its balance sheet?  You are headed towards $4 trillion.  Could it be $5 trillion?  Could it be 12 trillion?

The Fed needs to do whatever is necessary to help meet our dual mandate objections.  I don’t really think about it as far as limits are concerned because I think there is a tremendous amount of capacity.  We can go as long as necessary.

King World News, October 23, 2013

The FACT remains that the global economy is plunging, led by the United States of Financial Destruction; which this morning, reported the aforementioned surge in jobless claims, its lowest PMI manufacturing data since 2009, and a collapsing “consumer comfort” index – while even Zillow, one of the nation’s largest real estate consultants, admits the housing bubble is deflating (using their best “spin,” of course)…

Bloomberg Consumer Comfort

The fact that government MONEY PRINTING and INTERVENTION have temporarily lifted stock markets to unsustainable levels – both East and West – doesn’t change the inexorably lower economic trend – as yesterday’s Caterpillar earnings disaster demonstrated, loud and clear

CAT Revenues Vs World GDP

Said MANIPULATION can’t halt gaping deficits – as in Japan; or more alarmingly, the relentless Chinese selling of U.S. Treasuries that makes an end to QE impossible.  Worse yet, each day the Cartel holds PAPER gold and silver below their respective costs of production – much less, objectively calculated “equilibrium levels” many multiples above current prices (go to time stamp 6:45); worldwide PHYSICAL demand will continue to explode.  In silver alone, we are seeing RECORD U.S. mint sales of Silver Eagles, RECORD Indian bullion imports (despite every imaginable government effort to quash them), and an utter implosion of inventories on the Shanghai Exchange.  Not to mention, U.S. COMEX silver inventories – down 51% since 2009, to just a measly $1 billion worth.  It’s only a matter of time before this “Achilles Heel of the Global Financial System” destroys TPTB’s plans; and when it does, you may NEVER get another chance to PROTECT your assets from the hyperinflation guaranteed to envelop the planet…

India's Silver Imports on Recrod

As for today’s primary topic, sometimes “ka” – as Stephen King would call it; or “karma,” to others, is on one’s side.  I have been watching the European political, economic, and social situation deteriorate all year; however, somehow its equity markets have risen, demonstrating the temporary power of MONEY PRINTING and MARKET MANIPULATION.  However, with today’s news that the Europe’s initial October economic data has sunk back toward recessionary levels, it’s time to refocus on what I still rank as one of the most likely “black swans” to catalyze the upcoming, catastrophic financial crisis…

PMI Graph

Notice how France, the Eurozone’s second largest economy, is already contracting; and given the DISASTER Francois Hollande’s Communist Administration has been, it should be quite clear why I long ago added France to my list of PIIGS.  Hence, the PIFIGS.  In my view, France is a “Greece waiting to happen”; particularly as its banks are the largest holders of Greek debt.

Greece’s unemployment rate – despite “rising equities” – is now at an ALL-TIME HIGH; and this month, its citizen’s disposable income plunged at an ungodly 9.3% rate.  Government debt is exploding, in an economic conflagration so untenable; the European “troika” is already setting the stage for a third Greek bailout.  In France, where such a CATASTROPHE would be felt with the equivalent force of Katrina in New Orleans, its clueless establishment is toying with the idea of leaving the Eurozone; and thus, hyper-inflating its debts away – just as John Law unsuccessfully attempted 300 years ago.  In the meantime, Hollande appears hell-bent on taxing French citizens into oblivion; which frankly, could cause widespread social unrest at ANY TIME.

Meanwhile, as “Goldman Mario” Draghi this week demanded a framework for “bailing in” dying banks with depositors funds, he simultaneously ordered stringent “stress tests” for hundreds of marginal banks next month; noting he “won’t hesitate” to fail underfunded banks – and presumably, activate draconian remedies such as bail-ins.  Presumably, the U.S. Fed will abet the ECB’s attempts to PRINT its way out of trouble – after the bail-ins are instituted, of course.  However, as neither the Fed’s “swap facility” nor the ECB “Long Term Refinancing Operations” have improved banks’ solvency one iota – as demonstrated by exploding bad loans; it’s difficult to imagine a new PRINTING scheme accomplishing anything other than heightened INFLATION fears.  And now that Europe’s ringleader, Germany, is amidst its own leadership crisis; not to mention, loudly voicing its anger at the Obama Administration regarding NSA spying – it’s not difficult to foresee the emergence of a CATASTROPHIC European financial crisis in the very near future.

In the big scheme of things, the European economic situation has gone from bad to worse to dire since 2008’s Global Meltdown I and 2011’s Global Meltdown II.  Only the bluff of Mario Draghi’s “whatever it takes” dogma – plus, unprecedented levels of MONEY PRINTING and MARKET MANIPULATION – have lifted sentiment above the post-crash lows; and in my view, said bluff is about to be called.  There is simply NO WAY these nations can survive much longer on smoke and mirrors; as “Economic Mother Nature” has been violated, and likely, will shortly exact her revenge on the manipulators.  The Euro may be “stronger” than most currencies due to its broad scope, but it is decidedly NOT the world’s reserve currency; and thus, can unravel at breakneck speed once the ball starts rolling downhill.

For reasons I have written incessantly of for the past five years, I believe the Euro currency is one of the worst disasters in political history.  It is on borrowed time at this point, with the PIIGS literally on life support.  When the bluff is finally called, which could be in the VERY near future, hundreds of millions of Europeans will be reminded of past hyperinflationary episodes; prompting a stampede from their respective fiat currencies into REAL MONEY.  The same will eventually occur worldwide, but due to the unique political issues inherent to the dying European Union, I expect the continental impact to be among the most terrifying.