Ah, those “deflationists.” Whether “wave theorists”; “cycle theorists”; or my favorite of all, “proprietary technical analysts,” they continually claim that any price that’s falling must continue to fall – forever. That includes gold and silver as well, although unerringly such “experts” claim to be “short-term bearish, but long-term bullish.” I’ve been observing this fear-mongering phenomenon over a 26-year career as a CFA-chartered bond trader, stock trader, stock analyst, investor relations officer, and blog commentator. But nowhere more so than in Precious Metals – due to the relentless, covert actions of a manipulative “Cartel” intent on maintaining the status quo of history’s largest fiat Ponzi scheme.
After 13 years of watching the U.S. government and its Central bank and Wall Street minions – i.e., the “1%”- cap every advance; enhance every decline; and orchestrate hundreds of enigmatic waterfall plunges, I’m as versed in how markets really work as anyone on the planet – as are Bill Holter and David Schectman. Yet, incredibly, 99% of fellow Westerners are not only financially and economically clueless, but in a perpetual state of denial. Only when a 2008-style crisis occurs do they even acknowledge something’s wrong; and even then, want little to do with truth-tellers like the Miles Franklin Blog. This is why TPTB work so hard to manipulate perception with unrelenting market manipulation and propaganda; although thankfully, “Economic Mother Nature” has never been defeated, and never will be. To that end, I long ago learned that “those who will not see” are not worth wasting time and energy on – which sadly, includes the vast majority of “family, friends, and colleagues.” My goal – and Bill’s and David’s as well – is to save perhaps 1% of the population before it’s too late; which is probably all that’s “savable” anyway, given the extreme shortage of actual, available-for-sale precious metals.
It’s Tuesday morning, and even I am in awe of the carnage. Not that what is occurring is not EXACTLY what I predicted – in forecasting collapsing commodities, currencies, and interest rates. And oh yeah, rising gold and silver prices – which per last month’s “end of the gold ‘bear market’,” are EXPLODING worldwide, care of the global currency contagion signifying the terminal stage of said Ponzi scheme; i.e. the “single most Precious Metals bullish factor imaginable.” Gee, I wonder what those “deflationists” will have to say of PMs surging whilst all commodities plunge, from oil to base metals to even many agricultural products. Frankly, the “death by deflation” I wrote of last week – based on the horrific overcapacity fostered by decades of unfettered money printing and Wall Street financial engineering, will likely be so catastrophic, even the so-called “survivalist savior” farmland is purported to be may well become largely worthless – with only real money guaranteed to maintain its purchasing power. In the past, we’ve written ad nauseum how gold and silver are the “Achilles Heel” of the global monetary system; and last week, how plunging oil prices are the Achilles Heel” of U.S. economic and political hegemony. Following that logic, the title of a Charles Hughes-Smith article yesterday, “Deflation, the Achilles Heel of the Global Status Quo,” speaks volumes of just how close we are to the end game of worldwide economic collapse, and subsequent Central bank hyperinflation.
Again, we cannot emphasize more what we wrote three months ago; i.e., before oil prices plunged from $95/bbl to this morning’s catastrophic level of $44.50/bbl. Which is, that “2008 is back, with one temporary exception”; that “exception” being maniacal government support of stock markets – in some cases, overtly– as a tool to mask the horrific implosion of global commerce, and “kick the can” as far as possible. In the case of U.S. stocks, their relentless, PPT-supported surge has become so ridiculous, they have decoupled with global equities in historic fashion; and watching European stock rocket higher this morning, as commodities and the Euro (and Swiss Franc) implode, you’d think the ECB is not only going to announce sovereign bond QE at next Thursday’s meeting, but Bank of Japan-like equity QE!
Yesterday (Monday) morning, the EXACT same thing happened, with Dow Futures surging whilst commodities and currencies plunged. The PPT was forced to actively work to slow the subsequent equity plunge – whilst the Cartel desperately capped PM gains; but by day’s end, oil had plummeted 5% and the CRB Index 2%, whilst the Bloomberg Commodity Index hit a new 12-year low. Gold rose – what do you know – by EXACTLY 1.0%; silver rose a percent as well; and the 10-year Treasury yield, which this weekend I said might never see a “two-handle” again (until hyperinflation inevitably arrives), had plunged to 1.91% – just above the October 15th “flash crash” low of 1.89%. And for the coup de gras; with oil closing at just above $46/bbl; rig counts plunging at their fastest rate EVER; commodity currencies in freefall; and even Wall Street starting to admit the horrific ramifications of plunging oil prices we wrote of three months ago; perma-cheerleader Yahoo! Finance issued perhaps the most idiotic headline in its long sorry history. Yes, those “retail investors”; that no longer exist – and have, on average, ZERO financial expertise, are predicting a “bottom” for oil. Frankly, even I am speechless at how moronic the MSM has become; albeit, highly reflective of the consensus “group think” noted above.
Well here we are Tuesday morning, and yesterday’s trends have dramatically accelerated. Oil is down another 3%; the CRB index is in freefall – as exemplified by copper, i.e., “Dr. Death,” down 2.5%, to a new five-year low; the dollar index is absolutely exploding, with the Euro hitting a new ten-year low and the Ruble in utter freefall, to name a few. Gold and silver are again surging (albeit, in typically capped manner); again, defying said “deflationists” – who don’t understand PMs are not “commodities,” but money; and the 10-year Treasury yield briefly fell below the aforementioned 1.89% “flash crash” low, to 1.88%. In other words, deflation is winning the day, making it more and more likely that hyper-inflationary monetary policies will be initiated globally in short order; and this, with gold and silver already at or near all-time highs in the vast majority of worldwide currencies. And oh yeah, guess what else is in freefall mode this morning? Yes, the so-called “savior” of the monetary system – BITCOIN – which not only plunged 18% overnight, but has a chart that looks as ugly as the worst of the 1999 dot com frauds.
But amazingly, not only are stock futures up again, but I kid you not, the “National Federation of Independent Business” just posted its highest “Small Business Confidence Index” reading in nine years! Yes, just as the “National Association of Home Builders” is historically “confident” despite plunging home sales and prices amidst record low mortgage rates; and the Fed unerringly “confident” in the economy, calling the oil price plunge “transitory”; the small business trade group claims to be “confident” despite historically high levels of business failure, historically low levels of business formation, plunging real wages, and the lowest labor participation rate in 38 years! I mean, seriously, you just can’t make this stuff up!
That said, the reason today’s article is titled the “death of manipulation” is because the “unstoppable tsunami of reality” has become so powerful, it is swamping essentially all manipulative efforts to disguise it. Per the aforementioned article, I have written of this phenomenon for some time. However, it was this must read article by Raúl Ilargi Meijer that catalyzed this piece. In other words, whilst I have focused principally on collapsing commodities, currencies, and bond yields as proof that global economic activity has completely detached from rigged Western financial markets, he describes the cataclysmic impact on “emerging” markets of the explosive outflow of capital, relentlessly seeking safe haven as history’s greatest economic storm arrives. In other words, the aforementioned, historic deflationary trends has been felt inordinately in the currencies of “lesser” nations, more so than even the products they seek to buy. Thus, whilst deflation of commodities and consumer prices engulfs an oversupplied world, price inflation dominates in these nations, due to the even greater collapse of their currencies. In other words, a cycle of hell that worsens as said safe haven flows increase; which, in turn, causes “stronger” nations to accelerate their money printing in an attempt to “win” the “final currency war,” exporting still more inflation to emerging markets.
I know such explanations can at times sound complex. However, in “layman’s terms,” I am simply describing the terminal stage of history’s largest financial Ponzi scheme. In other words, global suffocation on debt, printed currency, and suicidal financial, monetary, and geopolitical policies – yielding poverty, social unrest, and draconian government responses.
Clearly, time is running out rapidly on not TPTB’s ability to control the uncontrollable. In many markets – like commodities, currencies, and sovereign bonds, “the death of manipulation” has already occurred; and frankly, only Western equities and paper gold and silver have not yet overcome government attempts to maintain their respective ruses. To that end, I could not care less if the “Dow Jones Propaganda Average” hyper-inflates or crashes – as either way, real purchasing power will inevitably be annihilated. However, with global physical gold and silver demand at record levels – and going parabolic care of the aforementioned global currency contagion – it’s only a matter of time before the “New York Gold Pool” is permanently destroyed. To wit, if yesterday’s news that the U.S. Mint sold nearly three million one-ounce Silver Eagles in the first 12 days of January doesn’t demonstrate just how powerful demand is becoming; frankly, I don’t know what will!
In other words, the time to PROTECT YOURSELF is now. And if doing so includes the purchase or storage of precious metals, we hope you will give Miles Franklin a call at 800-822-8080 – and give us a chance to earn your business!