It’s early Saturday morning, from the Minneapolis Airport – on even for me, a record low four hours of sleep. I didn’t think it possible, but last night’s Q&A Rap Session was a bigger success than our inaugural event in Denver – with nearly 150 people, asking no less than 100 questions before Andy Schectman and I called it a night. The entire Miles Franklin team, including David Schectman, was present, in a show of unity that made me feel proud – and lucky – to be in the position to educate, and empower, that I’m in. To that end, I’m very much looking forward to Phoenix next month; Ft. Lauderdale in April; and the numerous cities we plan to visit later this year.
Of course, no such positive, inspirational event for Precious Metal advocates can occur without the Cartel’s “imprint.” Which is why it was no surprise that PMs were viciously attacked mere hours earlier – particularly silver, as the so-called “commercial” traders that don’t have a solitary connection to commercial silver trading, finally got their wish. When, as Craig Hemke predicted based on years’ worth of repetitive, blatantly transparent Cartel behavior – silver’s 200 day moving average of $15.09/oz was broken just in time for this weekend’s G-20 meeting in China.
Which is quite ironic; as right next to Craig’s article on Goldseek was Steve St. Angelo’s, noting how COMEX registered silver inventories hit an all-time low a day before. And right next to that, Goldcorp’s hideous year-end earnings announcement release – forecasting a 10%-20% production decline in 2016. Which I perused, I might add, just after receiving an email from a close friend in Australia, noting how Perth Mint silver supplies – as is the case with the U.S. Mint – have been put on “allocation” due to rapidly draining inventories. And wouldn’t you know it – I awoke this morning to not one, but two international emails asking to lock in silver orders as soon as possible.
In other words, what occurred yesterday – and for that matter, each second since Wednesday morning’s “minute the Fed died”, when the PMI Service Index “shockingly” revealed the U.S. service industry to have joined manufacturing in recession – was “window dressing, desperation style.” As trust me, if the equity and commodity crash – and Precious Metal surge – that ensued wasn’t reversed by yesterday afternoon, the pressure on the “powers that be” to use said G-20 meeting to “do something” would have been sky high. In the end, the can was kicked a few millimeters more – right into the wall that I assure you, will push back with all its might. One of these days – at a G20 meeting or otherwise – they decidedly will do something draconian; and when they do, the unforeseen consequences will be historic.
And not just in Precious Metal markets, where exponentially expanding fear – of currency devaluations, capital controls, and negative interest rates – has reached levels reminiscent of the 2008 crisis; but all markets, as the growing realization that said “wall” has been reached encircles the globe as rapidly as Superman trying to turn back time. To that end, we this week learned, once and for all, that there are no remedies for the historic energy glut – crude oil, natural gas, and otherwise – which threatens to annihilate the world’s largest revenue-producing sector for years to come, at a time when energy-related debt is as high, or higher, than subprime mortgage lending in early 2008. Additionally, we learned that global trade, in dollar terms, plunged to multi-decade lows in 2015 – i.e., before commodities started really plunging in early 2016. And for anyone focused on the Wall Street, Washington, and MSM propaganda of the “good news” of rebounding equity markets, take a gander at how the far more impactful currency markets did this week – with myriad fiat toilet papers hitting new multi-month, year, and and in some cases multi-decade lows; in India, the UK, and Continental
Moreover, the publication of America’s official financial statements revealed a nation so bankrupt, even the world’s best book-cooking can’t hide it. Let alone, when considering its dependency – or better put, addiction – to zero interest rates, to avoid instantaneous collapse. As comically, its Central bank seeks to pretend all’s well, and pretend it can tighten monetary policy in 2016 – when, to the contrary negative interest rates and QE4 are far more likely scenarios.
Still, the Keystone Kops attempting to sustain history’s largest fraud fought on – like trapped rats -, against the rapidly rising tide, by blatantly manipulating markets, and publishing hideously fraudulent economic reports, like a 4.9% durable goods surged based entirely on the largest “seasonal adjustment factor” in history. Not to mention, an “upward revision” of 4Q GDP “growth” from 0.7% to 1.0%, based entirely on a reduced estimate of inventory liquidation – which will surely be “recouped” in the first quarter, when the largest inventory-to-sales ratio since 2008 starts shrinking with a vengeance. To that end, personal consumption expenditures were downwardly revised, depicting exactly why the “retail Armageddon” I predicted a year ago is far worse than even I imagined.
In a nutshell, this week was about the “powers that be’s” all-out, all-time “window dress.” That is, a last ditch, desperation effort to slow the momentum of the catastrophic, irreversible implosion of history’s largest, most destructive fiat Ponzi scheme. With increasing pressure on increasingly discredited governments and Central banks to “respond” – with quantitative easing, negative interest rates, and capital controls, negative interest rates – the urgency, blatancy, and sloppiness, of such actions is setting the stage for far uglier crashes in the coming weeks and months. And in the case of Precious Metals – amidst surging worldwide demand, plunging inventories, and collapsing production – will only accelerate the inevitable product shortages (first in silver, and eventually gold) that are destined to define the market for years to come, in the words of Andy Schectman. So for those that believe yesterday’s blatant paper silver raid – and downside technical breach – “meant” something, fear not; as people are no less fearful today than yesterday, and far more inclined to gobble up rapidly depleting physical supplies, now that prices are $0.40/oz lower than yesterday.