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Today’s RANT has been written over the last four days.  However, when I saw the below article this weekend, I had to place it FRONT AND CENTER, as it validates the key premise of my five-plus years of writing.  In essence, it points out that buying gold at the AM Fix (5:30 AM EST) and selling it “intraday” at the 10 AM EST PM Fix would have generated a 38% CAGR over the past TEN YEARS, compared to a 17% CAGR for simply holding it, suggesting gold prices are dramatically smashed between those hours.  These hours include the 8:20 AM EST COMEX open and the 10:00 AM EST PM Fix, two of the Cartel’s key smash times, but not 3:00 AM EST and 12:00 PM EST, and I’d guess a strategy of selling at 3:00 AM EST and buying at 1:00 PM EST would probably net TWICE the 38% gain this “fund” achieved.

Overnight Long/Intraday Short Gold Fund More Than Doubles In Just Over A Year: Generates 43% Annualized Return

Below is a graphic representation of the aforementioned “short intraday/long overnight” gold index, screaming MANIPULATION at the top of its lungs.  When analyzing it, keep in mind the COMEX PAPER futures market is the most actively traded gold exchange in the world, where 90% of ALL material price changes occur.  When you realize – per Jeff Christian’s testimony – that COMEX PAPER trading is 100x – 400x leveraged to actual, PHYSICAL gold, accounts for nearly ALL major price moves, and coincides with the period directly between the AM and PM price fixes, it should become quite clear what occurs each day.

Actually, this “fund” is corroborating what James McShirley of GATA has concluded after a decade of proprietary research; that gold and silver are essentially NEVER allowed to rise during New York PAPER trading hours, specifically focusing on the same 4½ hour period between the AM and PM fixes.  Below is data for the entirety of 2010, which I ASSURE you is no different than that of any other year in the eleven year old PM bull.

Year 2010 – AM Fix vs. PM Fix Gold Trading Analysis  
Days PM fix over 2% higher than AM fix 0
Days PM fix over 1% higher than AM fix 2
Days PM fix more than $5 higher than AM fix, but less than 1% 41
Days PM fix either lower, or no higher than $5   211
Total trading days 254

Then again, I don’t need validation of my hypotheses, as I have presented hard PROOF in five-plus years of RANTS, culled from observations made over the past decade.  In fact, the chart below shows what I have been RANTING about more starkly, from the desk of my good friend Dmitri Speck, whom I felt privileged to meet at the London GATA conference last summer.  Below is a chart of silver intraday price moves of the past TWELVE YEARS, which I assure you is identical to that of gold.  Notice the peak overnight pricing at EXACTLY 3:00 AM EST – as gold gets smashed into the 5:30 AM EST AM FIX; the violent smash at the PM Fix at EXACTLY 10:00 AM EST, and the “cap of last resort” at EXACTLY 12:00 PM EST.

Interestingly, the largest RISE of the day occurs at EXACTLY the 8:20 AM EST COMEX open, apparently contrary to what I have been writing, and demonstrating, for years.  However, it is not, as despite the incredible amount of SMASHES at the COMEX open, per the Zero Hedge article and McShirley evidence above, it also happens to be the ONLY time of day where major gold rallies are tolerated.

I attribute two main reasons to this consistent market pattern.  To start, as the world’s largest PM market, naturally it is bound to see numerous sharp rises at the COMEX open, and two, the Cartel carefully manages gold surges as much as it does smashes – in essence, controlling WHEN it is allowed to materially rise, and by HOW MUCH (hence, the constant 1% and 2% daily caps).  Though not “freely-traded” in the 1960s (talk about irony), you can bet the London Gold Pool’s OVERT suppression was just as transparent during the 1960s, until one day in 1968 it COLLAPSED due to surging PHYSICAL demand.

And finally, per my ongoing anti-moron tirades of the past decade, here are some plum quotes from “Tyler Durden,” yet again showing how he can be so WARM in publishing such articles, yet in missing the main point so badly, simultaneously freezing COLD.
 

As for the reasons for this gross arbitrage – who cares?  Is it manipulation? Is it the early Asian buying offset by London pool selling?  It is largely irrelevant – the point is that this is “the divergence that keeps on giving.

Ah, my favorite quote about PM manipulation, the taboo topic that happens to be THE reason for the collapsing global economy, and potentially catastrophic war zone  – “Who cares?”  Alas, perhaps there’s no reason to CARE about something as trivial as the life and death of mankind.  Conversely, according to Zero Hedge, there’s plenty of reason to care about trivial topics such as what “Goldman analysts” spout out each hour, or what some dolt of a fund manager named “Whitney Tilson” is doing each minute.

“Who Cares” is the mantra of the ignorant, stupid, or disingenuous, and when you hear it uttered, it should be your cue that you are not reading from one of the “smart, good guys.”  Tyler Durden is close – oh so close – to getting it, but possesses the 21st Century anti-gold gene that prevents people from PROTECTING THEMSELVES from the evil surrounding them, staring right between their eyes.

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Now it’s Friday afternoon, just after the close, but I had to give my post-market commentary immediately to make sure all RANTING I can possibly muster gets squeezed out.  Not “OLD RANTING,” in which I screamed in rage because my MINING SHARES were decimated – possibly never to rebound – but “NEW RANTING,” i.e. calmly dissecting fraud perpetrated by the U.S. government right in front of our eyes.

I coined my own personal description for Cartel/PPT activities more than five years ago when I stated “each day worse than the last,” but five years ago was a virtual free market compared to today.  Even a year ago was liberty personified compared to the all-out con job going on today.  Richard Russell used to say he listens to what the market is telling him, but unfortunately “the market” is now brain-damaged, speaking nothing but GIBBERISH.  Today, there is only one reason to even OPEN financial markets each morning – as a propaganda tool for the U.S. government, to tell market participants and the media what they want it to hear, i.e. that all bad news is already “priced in.”

Yesterday (Thursday), we saw “worse than expected” jobless claims, retail sales, and the trade deficit, a “worse than expected” Treasury auction, “worse than expected” comments from the head of the ECB, and the “unexpected” collapse of Sears, among other things.  But don’t worry, all’s well, as the logical early morning stock decline was stopped on a dime by the PPT…

…while gold magically collapsed at EXACTLY 10:00 AM EST, when the last of the world’s PHYSICAL market gold markets close for the day.

Of course, yesterday’s RIG JOB doesn’t hold a candle to today’s, which started as usual at EXACTLY 3:00 AM EST, just as gold was about to rise through the KEY ROUND NUMBER of $1,650/oz (getting repetitive, huh?).  Look hard at the jagged trading pattern all morning, where no less than six “cap and attack” ALGORITHMS were implemented to keep gold under wraps as the Cartel prepared for the reaction to “the news” it knew of beforehand.

And that news, of course, was S&P’s downgrading of France from AAA to AA+, and Italy to BBB+.  The only reason France is still rated AA+ is political pressure on S&P to prevent PANIC with realistic ratings, but irrespective will soon be flushed down le toilet due to its MASSIVE exposure to Europe’s PIIGS, which it will shortly become itself.  Only a handful of the supposedly strongest nations in the world are still AAA rated, and Austria is expected to lose this status later today when S&P publishes all its ratings statements.

It’s Official: France Cut To AA+ From AAA By S&P, Outlook

For those not versed in the S&P rating system, Italy’s new rating is barely above JUNK, quite ominous for the world’s third most indebted nation, within an economic union where nearly all members require bailouts from the big, tough Italians.  Sorry, but pretty soon being Italian will no longer be cool, more likely to be associated with Mussolini-era fascism and social unrest than soccer, wine, or pasta.

Hello ItBBB+ly

But that’s just the half of it, as pretty much the entire EuroZone will likely be downgraded by day’s end, including Spain and Portugal.  Each notch down means further increases in borrowing costs, ECB money printing, and inflation, which could become HYPER by year-end at the pace Europe is collapsing.

European CDS Rerack

And PRINT MONEY the ECB is doing, and doing in spades per Thursday’s dour comments from “Goldman Mario” Draghi following the morbid ECB policy-setting meeting.  They may have “saved Europe” for a few days – or at best, weeks – but rest assured the ECB cannot contain the contagion.  Unlike the dollar, which is disproportionately held in sovereign treasuries as currency reserves, the Euro is NOT a “world reserve currency” and cannot print itself to higher ground while a financial tsunami envelops it.

ECB Buying Saves Europe From Cliff’s Edge For Now

Moreover, due to the dire state of the European banking industry, freshly printed money is not even being used.  As of today, the ENTIRE “LTRO” free money giveaway has been re-deposited into the ECB, the ultimate symbol of monetary futility and banking system stress.

European Banks Deposit Entire LTRO, And Then Some, With ECB As Deposits Approach €500 Billion

Meanwhile, the Greek tea kettle is starting to vibrate, ready to release a POWERFUL whistle as the upwelling steam is pushed out.  No matter how hard TPTB try to bury Greece’s $430 billion of national debt, and how slick the ISDA thinks it is by proclaiming “haircuts” to not be default events, it will not go away.  Greece WILL shortly default, and when it does, widespread panic selling WILL overcome the MONEY-PRINTING.

And Now “Coercive” Greek Default Seems Inevitable -Deal Failure Would Be “Catastrophic” Greece Warns

Moreover, the Euro WILL be broken up – with a 100% PROBABILITY – and I would not be surprised to see the first expulsions, or defections – LATER THIS YEAR.

Everyone Hates The Euro – EUR Shorts Hit New Record High

Furthermore, PHYSICAL gold and silver WILL re-establish themselves as the true SAFE HAVENS they are, as these markets WILL NOT remain under government control.  More likely, we will see exactly what the article below predicts, and with it a daisy chain of financial and economic conflagration extending the world round.

“Greece Exit Would Provoke European Social Unrest, Hyperinflation, And A Military Coup”

Just the concept of near-term “stable markets” is laughable, as was last Spring’s “consensus view” that we would see “doldrums” in July and August, contrary to the conclusion of this very prescient RANT.

Ranting Andy: “Summer Doldrums,” The Biggest Load of C-p Ever!

Of course, in recent weeks we have seen just that, thanks to unrelenting, 24/7 work by the PPT, Fed, ESF, and Cartel.  And to think I called YESTERDAY (Thursday) one of the greatest rig jobs ever, a mere “piker” compared to today’s (Friday’s) world-class market farce.  I already mentioned the 3:00 AM EST plunge, and as you can see the Cartel saw to it that gold’s attempt at an early COMEX surge was stopped cold, until the real action occurred after the PM Fix at EXACTLY 10:00 AM EST.

When the S&P downgrade news came out, conveniently just before the PM Fix, the Dow meandered down by a modest 60 points, a 0.4% blip in the big picture, while gold was SLAMMED by $15, or 1.0%, in the blink of an eye, and silver 1.4%.  Enter the PPT, which cannot let such catastrophic news fester for more than a half-hour, to bring the Dow back and convince the world “all’s well, nothing to see here.”  By the way, no major declines occurred in other commodities, as both copper and crude oil barely budged.

Given the TPTB’s fixation on saving the Dow, it temporarily ignored the PMs, which crept back up and threatened a major Cartel no-no, the KEY UPSIDE REVERSAL.   Not to worry, the Cartel was performing triage, awaiting the typical “cap of last resort” plan at EXACTLY 12:00 PM EST.  Below I republished the daily COMEX gold chart so you can see how gold was BLATANTLY “capped and attacked” at EXACTLY 12:00.  In other words, demand for REAL, PHYSICAL GOLD did not change one iota – this was a 100% naked-shorted PAPER attack intended to quell budding panic about the impact of a comprehensive European debt downgrade.

Better yet, look at silver’s COMEX action, also SMASHED at EXACTLY 10:00 AM EST as it inched toward the VERY KEY ROUND NUMBER of $30.00/oz, and then EXACTLY 12:00 PM (geez, to the second) when it reached within a few pennies of $30.00/oz.  Of course, while all this occurred, the Dow kept chugging higher, with no “blips,” WATERFALL DECLINES, or jagged trading patterns.

Then again, for all of this week’s CAPPING AND ATTACKING, gold is safely above its steadily rising 200 DMA, and I view the odds of a substantial decline below this level as miniscule.  Yes, I know I’m taking a risk saying that, but frankly I don’t care.  Whether you buy PHYSICAL gold at $1,640, $1,600, or $1,500 really doesn’t matter – all that does is you BUY IT!

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Saturday afternoon, the eye before the Broncos/Patriots storm here in Denver, so I figured I’d write a bit, given the unrelenting swarm of “horrible headlines” I need to comment on.  To start, the official S&P ratings report is out, with nine sovereign downgrades, most notably the loss of France and Austria’s AAA ratings, a two-notch downgrade of Italy to just above JUNK status, and a downgrade of Spain to two notches above JUNK, where it is ultimately headed due to its massive debt load, monstrous real estate crash, and exploding unemployment rate, as was just published, below.

Frankly, it’s COMICAL for individual “data points” to be considered in the big picture of European economic collapse, like assigning importance to peripheral items like “undercoating” and “windshield protection” in negotiations with a car dealer.  Ultimately, all that matters is the COST of the car itself – not windshield protection, undercoating, or accessories – and in the case of most of the Western world, the “COST” is TOO MUCH DEBT, with zero prospect of paying it off!

Q4 Spanish Unemployment Soars By Most Since Lehman, Hits “Astronomical” 23.3%

Following the S&P report, the propaganda team immediately highlighted the “good news” of Germany retaining its “coveted AAA rating,” although no one expected it to be lost in the first place.  However, the big questions should be “coveted by who?” and “why did Germany maintain this rating?  The fact that Germany has leverage over its poorer neighbors doesn’t make their financial situation any stronger, and if anyone thinks their €1.9 Trillion (and counting) debt will EVER be paid off, I have a bridge in Brooklyn to sell them.

National Debt Clock – Germany

What a perfectly timed paragraph, as look what just popped up on Zero Hedge.  It looks like Germany is considering a BAN on sales of its sovereign bonds, much as the U.S. and Europe have repeatedly banned the short selling of financial stocks.  Oh yes, Germany is a rich, powerful, strong country (facetious), so much so that it is considering the nationalization of Commerzbank, its second largest bank, and afraid of a run on the nation itself – ROFLMAO! 

Der Verkauf Ist Verboten – Germany Considers Ban On Sovereign Bond Sales

Moreover, the past three years have PROVEN that ratings agencies are paid shills (by the very organizations they rate!), and if I had a buck for every “AAA-rated” credit that went bankrupt, I’d be a very rich man.  The fact that rating agencies are even downgrading sovereign credits at all is to give the appearance they are on top of things, when in essence they are as far behind the curve as ever.  Does anyone REALLY believe Germany is an AAA credit, or France AA+, or even Italy BBB+, all “investment grade” tiers.

Euro trouble: S&P downgrades France, Italy, Spain, 6 others

While at the gym last night (Friday), I saw flashing on the muted CNBC screen the following drivel – “S&P Praises ECB for Averting Complete Collapse of Confidence.”  Once again, a RATING AGENCY, whose role in the market is that of financial expert, showed it is completely devoid of logical thought, let alone “expertise.”  Just like the Fed, White House, ECB, Bank of Japan, “People’s Bank of China,” and the rest of the world’s “leaders,” their sole response to ALL crises has been to PRINT MONEY and MANIPULATE MARKETS.

All the ECB accomplished by PRINTING €489 BILLION of essentially FREE MONEY was creating an additional €489 BILLION of DEBT to a problem caused by too much debt, and no force in the universe – mortal or divine – will enable such acts to do ANYTHING but make things worse!  Not only that, the more things deteriorate, the greater the internal stresses pushing the Euro apart, particularly from its strongest member – which, by the way, knows a thing or two about HYPERINFLATION.

Is German Anger Finally Coming To A Boil? Even Local CEOs Say Time To Exit Euro May Have Arrived

Moreover, the fact that Standard & Poor’s, the most “respected” name in the ratings agency business, could even utter such nonsense shows how far down the rabbit hole the GLOBAL PONZI SCHEME FINANCIAL SYSTEM has gone, to a realm inhabited solely by fraud, stupidity, collusion, and denial.  I have NOT A DOUBT how this “game” will end, and the only question left is when.

DO NOT be fooled by the current market lockdown, engendering the same apathy experienced between market calamities for the past decade.  As I’ve written in prior RANTS, “the market” never gets it right, and today there isn’t even such thing as a freely-traded “market!”

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And where to go next?  How about America, the land of blatant FRAUD and public STUPIDITY?  For one, when does a day EVER pass by without an article describing “massive” fraud in the U.S. financial industry?

Bank of America, Big Banks Face Massive Credit Card Case

When I think about the farce that is Dodd-Frank, a law written by two of the top financial criminals in Congress, I want to PUKE.  NOTHING has changed an iota in this collapsing shell of a nation, except the criminals grow more powerful each day at the expense of the public.  This bill, passed 18 months ago, has still been just 20% implemented, and still not a single white-collar criminal has been jailed, or white-shoe firm significantly fined.

As far as I’m concerned, Dodd-Frank was a ruse to fool the public into believing something was done to regulate Wall Street (as if more than 1% of the public is even aware of Dodd-Frank), just as Iraq’s WMD’s and Saddam Hussein-9/11 connection were created as a ruse by the Bush administration to appear we are “fighting back” against al Qaeda, when the real play was to steal Iraq’s oil.

But then again, LYING to the public is what the government does best, as they have about essentially ALL matters of importance in recent decades.  At least in the “old days” the nation was prosperous and respected, as opposed to the dying swan it’s become today.  Thus, the need to lie is greater, as is the willingness to accept such lies.  But of all the lies the U.S. government perpetrates on its listless citizens, NONE are greater than those leading us into catastrophic WARS, starting with – yes – World War II, through Vietnam, Iraq, and soon-to-be IRAN.

What will the war-commencing lie be?

Fears of them possessing nuclear weapons, even though other potentially hostile nations have them as well, such as Pakistan, Russia, and China?  Or a false flag attack?  Or a minor incursion blamed on Israel?  Who knows, but I assure you something will be dreamt up to rally the “unwashed masses” to Obama’s side, or Romney’s – or ANY potential U.S. President except Ron Paul.  Congress wants war, the military wants war, the bankers want war, and of course defense contractors, so you can bet it will happen – AND that every effort will be made to prevent Ron Paul from becoming President, potentially including his assassination.

Please watch the below, short video, and when the U.S. imminently gets attacks Iran, try to remember that “IRAN IS NOT OUR ENEMY!”

Iran is NOT our enemy

But they soon will be, as will their staunch allies such as RUSSIA and CHINA, both of whom WILL NOT allow the U.S. to gain influence over the Middle East at their expense.  Iran – and by extension its neighbor Saudi Arabia – possess the largest oil reserves on Earth, and there is NO WAY our “communist foes” will let arrogant, collapsing America control it.

Thawing The Cold War: Russia Found To Be Supplying Syria With Weapons, US Not Amused

And speaking of whoppers, how about the one about the Fed “ending QE” in June?  Truly amazing how foreigners are selling U.S. Treasuries in RECORD AMOUNTS, yet bonds never go down.

Foreigners Sell Record $85 Billion In Treasurys In 6 Consecutive Weeks – Time To Get Concerned?

Then again, investors pulled RECORD AMOUNTS out of equities in 2011, yet the Dow was the ONLY stock market on Earth to be higher…

Retail Investors Pull $140 Billion From Equity Funds In 2011 Which Close The Year With 19 Consecutive Outflows

Meanwhile, worldwide PHYSICAL Precious Metals sales are SHATTERING ALL RECORDS, yet PAPER gold and silver prices never rise, and instead have at least one WATERFALL DECLINE each day, nearly ALWAYS at the same times, always in New York trading hours.

First Time Ever: Silver Sales Surpass Domestic Production

And don’t forget those “record Black Friday” sales, touted by every government, Wall Street, and media outlet as sure signs of recovery.  Perhaps the masses should have listened to RANTING ANDY, who vehemently denied this to be the case, or at least John Williams of Shadowstats.com, who dissects government propaganda with a fine-toothed comb.

– Make-or-Break Month for Retailers Was Flat-to-Minus, Both Before and Likely After Adjustment for Inflation
– Worse-Than-Expected Retail Sales and Trade Data  Should Dampen 4th-Quarter GDP Growth Outlook

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Sunday morning, and the hits keep coming.  If there was a ever a doubt as to why TPTB so desperately need to suppress PM prices and support stocks, bonds, and the dollar, my RANTS should put them to rest, soundly.  With the global economy in virtual FREEFALL, the fine line between confidence and panic has worn razor thin.  The Washington/Wall Street/MSM (Mainstream Media) PROPAGANDA campaign and PPT/ESF/QE/Cartel MONEY PRINTING/MARKET MANIPULATION operations are aimed solely at influencing PERCEPTION, although one doesn’t have to look far to see what TPTB really see, such as speeches from four Federal Reserve governors ONE DAY after the supposedly “strong” December jobs report – you know, the one fatally tainted by “seasonal adjustments.”

Fed’s Dudley: Fed Must Continue To Evaluate Need For Stimulus

Fed’s Rosengren Urges Fed Purchases to Aid Housing

Fed may need to buy more bonds: Williams

Fed’s Lockhart does not rule out more easing

Not to mention the below article from this weekend, citing heightened pressure on the Fed to institute OVERT QE3 at their next FOMC policy-setting meeting on January 24th-25th…

Fed to Weigh Further Easing Amid Doubts About Recovery

Don’t forget, the Fed is an “independent entity” OWNED (literally) by Wall Street banks, as is the government itself…

Barrack Obama’s Top 2008 Campaign Contributors

Presenting Mitt Romney’s Top 2012 Campaign Contributors

The growing roster of potential “Black Swans” grows larger each week, each with the potential of laying TPTB’s best laid plans to waste overnight, such as a military invasion of Iran, which I firmly believe would launch World War III, or perhaps a crude oil shortage from an entirely “unexpected” source, such as Nigeria.  Whether or not the “top Iranian nuclear scientist” was assassinated by U.S. operatives may never be known, but the situation rings as far too coincidental for my blood, and likely the Iranian government’s as well.

Iran Foreign Ministry Claims Nuclear Scientist Was Executed By CIA, As Nigeria Strike Talks Collapse

Let’s face it, the “leadership” of America is becoming more militant, and totalitarian, each day, and each new plunge down the economic abyss brings us closer to a potential “Hitler moment,” when a powerful, charismatic demagogue is grasped for in a last ditch effort for survival.  I have spoken of such a possibility for several years, and believe this risk increases with each passing day.  That is why I am highlighting comments from Doug Casey below, who hit it right on the head.

It seems highly likely that the US will get a savior, someone full of bravado, who assures the booboisie that he can straighten things out – if he is given sufficient power. Perhaps it will be an arrogant windbag like Gingrich, perhaps some general. The government won’t wither away; it will reassert itself. I don’t see any way around it, actually. We are already moving into a police state (evidenced most recently by the Senate’s Nov. 2 vote allowing the military to indefinitely incarcerate anyone they accuse of terrorism). But at least it’s a police state with a fairly high standard of living, one with Walmarts, McDonalds, and SUVs – at least for the time being.  But rest assured that if the situation evolves the way I expect, the standard of living will drop steeply, financial markets are going to become chaotic and the US will become a quite repressive place for some time – at least as long as the War on Terror lasts. I will bet you money on this. In fact, I am betting money on it.

My only real hope for prevention of such a scenario is the election of Ron Paul, who I believe can win only if the financial system CRASHES before the elections, sans the reactionary institution of martial law, of course.

Will that happen this year – who knows?  But I do know Ron Paul is the ONLY candidate with genuine regard for your rights, as opposed to the brainwashed cadre of lobbyist lackeys he opposes.  And if you DON’T believe Ron Paul knows what he is talking about, listen to this remarkably prescient speech he made in April 2002.

Ron Paul – Predictions in Due Time (Original)

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Next up, I want to address PM sentiment, which from all accounts is nearly as low as at the BOTTOM of Global Meltdown I in late 2008, when – thanks to the Cartel – PAPER gold and silver plummeted below $700/oz and $9/oz, respectively, and the HUI to 193 .  Actually, PM sentiment was lower a few weeks back, amidst “OPERATION PM ANNIHILATION II” when PAPER gold was smashed to nearly $1,500 during the ultra-thin holiday trading period.  However, it’s not much higher now, contrary to selected articles I have read about recent PHYSICAL buying patterns.  I know what I’ve seen at Miles Franklin the past two weeks, and it is NOT soaring demand.

Below is an article from my good friend Bill Holter of GATA fame, one of the best guys I know, and smartest analysts, who publishes daily, FREE blurbs to the public.  He is dead right in his assessment of global APATHY in the PM markets, resulting solely from the combined efforts of PROPAGANDA and MONEY PRINTING/MARKET MANIPULATION, as everything he says about this topic is true, including the imminent consequences.  However, the reason I am posting this commentary is to highlight, and subsequently discuss, the three paragraphs below. 

1. He notes that PM holders just experienced  “the deepest emotional despair since…the bull market…started in 2001.”  Yes, the combination of “OPERATION PM ANNIHILATION I” in early September, commencing hours after the Labor Day holiday weekend, and “OPERATION PM ANNIHILATION II” in early December, commencing minutes after the notorious “gold sale headline” following an ECB rate cut, were demoralizing.  And yes, gold was slammed from $1,920/oz to $1,520 oz, or 21%, and silver from $45/oz to $26/oz, or 42%, quite appalling given the Fall was characterized by an acceleration of the very same fundamentals yielding this summer’s strong PM rallies. 

However, it was NOT gold and silver prices that cause the “deepest emotional despair since 2001” in PM investors, but MINING SHARES, which not only were annihilated (particularly juniors, which haven’t recovered AT ALL), but have underperformed the metals at an ACCELERATING RATE for years.  If anyone understands hopelessness and despair at the hands of the Cartel it is ME, and I am telling you today that in holding 100% PHYSICAL metal this Fall, I experienced ZERO emotional despair.  Yes, I admit bouts of irritation and anger, but frankly such emotions were triggered as much by PPT support operations (of which I have no financial incentive) as Cartel suppressions.  Not only did my unfinanced, unencumbered PHYSICAL metal go NOWHERE, but the value of my brokerage account barely budged because I own ZERO STOCKS.  Moreover, I had the opportunity to help more people PROTECT THEMSELVES with lower-priced PHYSICAL gold and silver, which sold in near record amounts when Cartel attacks were the most intense.

2. He comments how PM sentiment is nearly non-existent, even at $1,600 gold (and $30/silver), compared to prior periods when fundamentals were less attractive and prices significantly lower.  I could not agree more, and believe such sentiment could not more loudly echo how FAR we are from a “gold bubble,” an event, by the way, unlikely to EVER happen.  I fully expect PHYSICAL demand to overwhelm the Cartel in the coming years – perhaps 2012 -yielding a currency collapse, economic chaos, and creation of new, gold-backed currencies that will PERMANENTLY maintain prices (in 2012 dollars) at dramatically higher prices.

3. He advises PM holders to “relax while waiting for your payday.”  In theory, I agree 100% with his thought process.  However, I could never fully “relax” with a heavy weighting of mining shares, which may or may not have a huge run in the future, but nevertheless will be under attack throughout the entire process, and ultimately set in front of the “firing squad” by nationalization rumors, windfall taxes, and bank/brokerage/market “holiday” risks.  Moreover, although soaring PHYSICAL prices will certainly make you “richer” in the post-dollar future, one must view PM holdings as “insurance” against this inevitable outcome, as gold and silver are MONEY, not investments.  Once you understand what PMs are, and why you own them, you will have learned the age-old secret of wealth preservation so vital to your survival in the coming decade.

To all;  the world is waiting for downgrades by Standard and Poor’s for various European sovereigns.  France is rumored down 1 notch, Portugal, Italy and Spain down 2 notches etc..  In reality…who cares?  Tell us something we don’t already know and while you’re at it why not tell us something EVERYONE already does know?  ie. The entire global financial system is a total sham, scam, fraud (with obvious intent) and a liar’s den.  Why not just tell it like it is?  Why not just tell us that if we are sitting on paper promises…we ain’t got squat!  Now that would be a breath of fresh air wouldn’t it?

 

But no, the game of “pointing the finger” away from the U.S. continues, it started back in early 2010 so we are now nearly 2 full years into it.  Anything and everything is being done to keep attention away from where it really belongs, namely that the currency that the entire world uses for transactions (though this is changing) and for reserves is false.  THIS reality will at some point be visited and queried, this you can be assured of.  The fact that Gold has risen (really the Dollar has devalued) roughly 6 fold in the last 11 years illustrates that the market place through muted smoke, mirrors and general stupidity is and has been placing bets that all this global paper is worth(less). 

 

What a joke financial journalists are today.  With straight faces they worry about Netflix, Gamestop and Sears while governments are mathematically bankrupt.  When I say “governments” I am including ALL governments because they virtually all use Dollars for reserves.  Sorry I am in a bad mood today and this is sounding like a rant but it is what it is…everything paper IS broke yet we hear consistently of this plan or that one, none of which even hints at what the real problem is.  How hilarious is it that owners of Gold, Silver and the miners just went through the deepest emotional despair since 2001 when the bull market got started?  Think about it, we are trading at $1,600+ Gold yet people were pissing their pants in fear. 

  

I don’t get it!  5 years ago, 3 years ago, even 2 years ago investors would have been jumping up and down with glee if they knew Gold would trade to $1,600.  Fast forward to today and the bullish sentiment in Gold is virtually nonexistent.  “We” have already won the war, it is over because common sense, logic and pure mathematics says it’s over.  The only way to lose now is trade your positions in for the currency you fled in the first place.  Is the Dollar (or any other paper currency) more fundamentally sound today than the day you began accumulating metal?  No it is not, the Dollar has gotten fundamentally more screwed up each and every day for well more than 10 years.  Nothing has been done nor will be done to fix the real problem…until “they” are forced to by the markets.

 

This is a currency crisis at its core.  This is the largest, most widespread and worst currency crisis the world has ever seen.  You cannot tell me that Gold, which has always been THE lifeboat through every past currency crisis will not float this time.  I have fielded phone calls and e-mails of fear and panic over the last month or so, I just don’t understand “why” this time of all the corrections we have endured that the public is in a twit.  Even the bought and paid for ratings agencies are telling you that the sovereign’s are churning out paper that is more and more risky.  If you don’t want to believe me, listen to S+P, they at least are telling you the proper direction if not scope of the problem.  Regards, have a nice 3 day weekend and relax while waiting for your payday.


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Finally, it’s Monday morning, and I’m basking in the glow of my New York Giants’ “underdog” victory over the Green Bay Packers last night.  I say “underdog” in quotes because yet again, the “experts” have no idea what they are talking about, in essentially ALL realms political, economic, and social.  “They” define what a “classic,” or mainstream entity should be, such as a “classic beauty, “classic quarterback”, “classic investment portfolio”, or “classic liberal,” and then pigeon-hole every aspect of our lives into useless stereotypes.

Sure, the Packers had a better regular season record than the Giants.  However, the Giants and Packers played last month to an essential dead heat, and despite Green Bay’s strong offense, had the worst pass defense in the league.  Opposing a Giants team with one of the league’s best pass offenses, whose running game has recently improved to boot, and the benefit of a return to action of several key players, it was pretty hard to make a decisive case for the Packers being favored at all, excepting the fact it was a home game.

Then again, just four years ago, Giants quarterback Eli Manning – now a dramatically better player, with a better cadre of receivers – “shocked” the world by beating another heavily favored Packer team in Green Bay, which at the time was led by iconic future Hall-of-Famer Brett Favre.  My point, of course, is that “mainstream,” i.e. “consensus” analysis is wrong more than it’s right, and, sadly, tends to be far more wrong about the economy than football.

Given that today is Martin Luther King today, most U.S. markets are closed, making for extremely thin market conditions.  But don’t worry, the Cartel is in action, albeit in “passive mode.”  No major attacks necessary, but look below at how important it is for them to protect KEY ROUND NUMBERS, particularly the VERY KEY ROUND NUMBER of $30.00/ounce in silver that has been staunchly defended the past week.

Little major news this morning, but I see the impending Nigerian oil strike was averted at the last moment, preventing 3% of global production from being held back from the market – at least for now.  Unfortunately for the Pollyanas, oil prices are up nicely this morning, and barely budged when the announcement hit the tape.

Nigerian Countrywide Strike Suspended

Despite the obvious Cartel attempt to hold gold below the KEY ROUND NUMBER of $1,650/oz this morning, the “money of kings” continues to rise.  Even when held down against the dollar, it rises against other currencies, exposing the “dirty little secret” Central Banks are desperate to protect -GOLD IS MONEY!  The worldwide rush out of endangered currencies such as the Euro has catalyzed a new round of “beggar thy neighbor” currency wars, and consequently numerous second and third tier currencies have crashed against both the dollar and ITEMS OF REAL VALUE such as GOLD.

In other words, gold is near record highs in MOST of the world’s currencies, signaling bubbling inflation fears amongst nations where three-quarters (or more) of the world’s population resides, particularly Western Europe, were gold is just 7% below its ALL-TIME HIGH price in Euros, compared to in the U.S., where gold is 15% below its high in dollars.

Gold Nears €1,300/oz – Euro Lower After EU Downgrades and Greece Jitters

In fact, if you look at the below charts, you’ll realize how silly it is to characterize gold primarily as a function of dollars.  Remember, just 4% of the world’s population resides in America, and likely LESS THAN 4% of the gold when considering the U.S. Treasury has clandestinely sold much, or ALL, of the U.S.’s gold reserves since the last Fort Knox audit in the 1950s.

PROTECT YOURSELF, and do it NOW!

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As recently as Sunday evening, I had no new ideas for RANT topics until BAM!, two emerged in my mind.  But when I awoke Monday morning, I realized it was Martin Luther King Day, and the decision process rapidly evaporated.  My RANTS are aimed to educate, dispel, and empower readers to help themselves, and nothing aids this process more than inspiring them with tales of “underdogs”, “turnaround stories”, and overcoming long odds.

No single person in American history, at least since the colonists stood up to England, embodies the struggle of good versus evil more than Dr. Martin Luther King Jr..  Born in 1929 to a preacher in Atlanta, Georgia, King entered an America where racial hatred was at its all-time high, as was persecution and violence toward minorities.  While studying theology and philosophy, he came to idolize the “civil disobedience” techniques Mahatma Gandhi had successfully employed 60 years earlier in India.

In a world where “colored” were considered second-class citizens by the “mainstream” (there we go again), only a larger-than-life figure had a chance of succeeding in a seemingly hopeless cause, that of racial equality in prejudiced, Caucasian-dominated America.  But lo and behold, King accomplished the task with a combination of respect, savvy, charm, and charisma that raised him to the pantheon of the world’s greatest leaders.

In August, 1963, he delivered perhaps the most famous, impactful speech in American history, leading to his receipt of the Nobel Peace Prize in 1964.  Back then, the Nobel prize meant something, awarded to true visionaries that affected meaningful, positive changes in society, such as King, Mother Theresa, Lech Walesa, Elie Wiesel, and Desmond Tutu, as opposed to the garbage that receives it today, such as warmongers like Barrack Obama with not even a blurb supporting “peaceful accomplishments” on his resume.

Martin Luther King – I Have A Dream Speech – August 28, 1963

It’s funny that I RANTED earlier today about stereotypical profiling, as in some cases the term “classic” certainly applies, such as the “classic tragic hero” stature many ascribe to Martin Luther King Jr.  His untimely death was a great blow to the African-American community, as well as myriad, diverse minority groups the world round.  However, he likely accomplished as much – or perhaps more – in death than he could have alive, immortalizing his message and validating his importance.

Hence, I write of Dr. King nearly 50 years after his death in great praise and thanks, and to anyone that stands up to oppression in the name of the greater good.  If only for a brief moment, please consider the contribution MLK had to American society.  And if it helps solidify your thoughts, crank up these two amazing U2 songs in tribute to the man, “PRIDE” and “MLK.”