I didn’t expect to publish this morning, given my schedule of flying to Montreal Thursday afternoon on a flight ultimately delayed two hours, and subsequently plans to tour Miles Franklin’s bullion storage facility Friday. I woke up very early to finish yesterday’s RANT, and thought I might be short on time, or energy, to write again so soon.
But not so!
As I write, it’s Thursday afternoon, and I’m flying somewhere over the continental States en route to Canada. My inspiration for writing is twofold, staring with the incredible manipulation of both the Dow and PAPER gold I observed this morning while at the airport.
I won’t bore you with details, but that same second grader described the past two days could have spotted blatant PPT support of the Dow at the KEY ROUND NUMBER of 12,00, and simultaneous capping of gold at the equally KEY ROUND NUMBER of $1,750/oz, tied together by the “Dow, Gold x 2 algorithm,” which ensures gold’s directional correlation with the Dow remains 100%, albeit with gold rising at ½ the rate of the Dow but falling at 2x the rate.
I’ve been watching this ALGORITHM for more years than I can remember, and until the Cartel is broken it will NEVER stop. It’s just THAT important for TPTB to create PERCEPTION that gold is not a safe haven – i.e., it CANNOT be allowed to rise when equity markets are falling sharply, or alternatively when highly inflationary fiscal or monetary policies are unleashed, as we saw yesterday.
This is not to say the Cartel/PPT strategy “works,” as over the past decade Precious Metals have outperformed ALL asset classes, and will continue to do so ad infinitum. However, in the short-term this ALGORITHM, utilized in unison with the other, myriad manipulation strategies noted in previous RANTS, is quite effective at stealing money from “potential gold bulls,” weakening PM sentiment, and ensuring the puppet media misrepresents the news and misinterprets the markets.
The second, and more important inspiration for this impromptu RANT, is the in-flight movie I randomly chose. Air Canada has the best economy-class movie system in the world, but the only film that piqued my interest, by pure chance, was Contagion, about the worldwide, accelerating spread of a new, un-diagnosed viral disease.
Strangely, the name didn’t strike a chord until halfway through the film, likely because my mind needed a break from the financial world, and hopefully because I’m capable of thinking of other things aside from financial calamity.
What did trigger the connection, however, was a scene in which the CONTAGION rages out of control, causing death, disease, social disorder, food shortages, and, ultimately, murder. Scenes depicting rioting, empty store shelves, and starving bandits breaking into homes with shotguns made me rhetorically wonder “what happens next?,” per a question received from a reader today.
The truth is, no one knows “what happens next,” as current economic conditions are unparalleled in human history. Yes, mankind has experienced microcosms of what we see today, such as depression, inflation, and sovereign debt collapse. But NEVER has such a large block of countries participated in the same flawed system, one that ties ALL financial destinies together and relies on man’s basest frailties to save it.
No matter what tops the “horrible headlines” on any given day, be it an Italian bond collapse, the U.S. debt ceiling debacle, a catastrophic Japanese tsunami, or money laundering in Mexico, Pakistan, or Switzerland, they are ALL symptoms of the same problem, too much UNBACKED money, ALL linked in some way, shape, or form to the whim of the banking Cartel OWNING the U.S. Federal Reserve Bank.
Readers, I want you to clear your heads for a second, and try to erase the predjudice of years of financial market – and life – experience. Don’t consider Goldman Sachs, President Obama, or the Patriot Act; or the “EFSF”, “IMF”, or Bundesbank. Just, for a moment, think about Economics 101.
Currently, the entire world ‘pays’ for things with pieces of paper. Such paper, which at best meets half the criteria for the time-worn concept of MONEY, is printed at will by “Central Banks” in more than 200 countries worldwide. The only difference between such “currencies” is the color of the paper they are printed on and how many pieces of each paper are owned by the other Central Banks. In other words, the more pieces of one Central Banks’ paper owned by other Central Banks, the more “power” the former has (i.e. the most issued currency becomes “too big to fail” because if any single Central Bank starts selling it, the value of ALL such pieces of paper becomes worthless).
I hope I haven’t confused you, but take a look at what I just wrote. In essence, the only thing holding up one Central Banks’ piece of paper is MORE of that paper, and each time MORE is printed, cumulative DEBT increases, making it MORE unlikely that CUMULATIVE, systematic debt can ever be paid off. Eventually, the laws of economics state that when systematic debt becomes too large, it can NEVER be paid off; thus, adding MORE debt simply expands the problem and, ultimately, the size of the eventual default.
This network of relationships DEFINES a Ponzi Scheme, where the first to sell their depreciating Central Bank paper for something more valuable wins, while the large majority lose everything. Readers, THIS is what is coming into view of the ENTIRE WORLD today.
Per the aforementioned reader’s question, I cannot foresee the extent of “collateral damage” from GLOBAL recognition that fiat currency is a toppling Ponzi scheme, and hopefully things won’t get as bad as the movie “Contagion.” However, I can confidently surmise the end result of the financial CONTAGION itself, as Economics 101 guarantees.
Printing more money, per the GARGANTUAN operation announced Tuesday by a Federal Reserve-led consortium of global Central Banks, will simply build the pyramid higher, a tactic that worked fine when the CUMULATIVE, SYSTEMATIC debt was financeable. But it no longer is, which explains why individual, corporate, municipal, and sovereign interest rates are rising globally.
At this late stage of the game, ONLY U.S. Treasury bond rates remain low, as ONLY the Federal Reserve has enough of its own pieces of paper outstanding to ensure the other Central Banks are too scared to sell, thus temporarily avoiding the domino effect which will wipe out the GLOBAL fiat currency system like the M-1 virus in Contagion.
Why do I write RELENTLESSLY about such topics, you ask? Because I CARE about the welfare of my brothers and sisters in arms, at least those intelligent enough to know right from wrong, and motivated enough to take actions to PROTECT themselves.
I do not KNOW what the world will look like as the dollar-based GLOBAL fiat currency Ponzi Scheme tumbles to Earth in the coming months and years, but I do KNOW one would be crazy to not take precautions against the worst-case scenarios played out in Contagion.
As they say, Life imitates art, so don’t let the ”art” portrayed in Contagion consume your destiny.
PROTECT YOURSELF, and do it NOW!