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Before I start RANTing, here is a link to an interview, posted last night, I taped Monday morning with the SGT Report:

The Gold & Silver Con, Hyperinflation & The Euro Collapse
The Gold & Silver Con, Hyperinflation & The Euro Collapse

…and another, posted yesterday, with the Financial Survival Network‘s Kerry Lutz…

A very exciting day indeed, as the world inches, or should I say leaps, closer to hyperinflation.  I rarely “pound the table” in a RANT as yesterday, but I believe the latest act of Central Bank intervention is a watershed event symbolizing, in essence, “the white flag of surrender.”  The puppet media and U.S. apologists want you to believe the problem is solely in Europe, when, to the contrary, the entire world is infected by the rapidly spreading, cancerous financial contagion.  Europe’s unsolvable debt problems, as well as those of Japan, the UK, and America, ALL emanate from the same root cause – global acceptance of the U.S.-dollar anchored fiat currency system, which commenced at Bretton Woods, New Hampshire in 1944, and was “signed, sealed, and delivered” when the world allowed Nixon to fully abandon the gold standard in 1971.

We may never know what catalyzed the world’s leading Central Banks to agree yesterday to FLOOD THE WORLD with an earth-shattering amount of FRESHLY-PRINTED dollars, but I’m SURE Bank of America on the verge of falling through $5.00/share was part of it.  In other words, for all hell raining down on Europe, don’t be surprised if it’s an AMERICAN bank (the LARGEST American bank, to boot) that’s actually the closest to failing.

Today’s RANT may be a bit disjointed, as I started writing last night.  This morning I am traveling to Montreal to inspect Miles Franklin’s Canadian bullion storage facility, which I am very excited about, and looking forward to writing about shortly thereafter.  I may not be able to publish a RANT tomorrow, but if not rest assured I’ll be back Monday, with MUCH to say as usual.

Before I get to today’s topic, or even the “horrible headlines,” I want to comment on yesterday’s market action, which reeked of manipulation on all fronts DESPITE the tailwind of an epic GLOBAL QE announcement.  To start, I want you to read the terse statement issued by Ron Paul about the latest Federal Reserve foray into destroying America, and the world for that matter, by indiscriminately PRINTING MONEY.  Don’t be surprised if, at 77 years of age, he is the next U.S. President – and believe me, if he is it will mean the system has already collapsed.

Ron Paul Statement On The Fed’s Bailout Of Europe

Next, I wanted to visually demonstrate how pathetic it was that, on a day when the world’s seven largest Central Banks decided to print, literally, an INFINITE amount of dollars, the PPT was required to show up for work!

As noted above, every ounce of my being KNOWS that action was required when Bank of America closed Monday at $5.03/share, and was subsequently downgraded after the close by Standard & Poor’s to just a few notches above junk.  There is NOT A DOUBT in my mind BAC would have opened with a  “4” handle on Tuesday, unleashing a fury of mandatory selling that could have started a run on the stock and, ultimately, the company.  That is why B of A was set to be the topic of yesterday’s RANT, before the GLOBAL QE announcement, of course.

Anyhow, for those watching BAC stock yesterday, it was quite obvious investors could care less about the Fed’s “bazooka” firing.  It essentially opened at its highs (see below),and proceeded to spend the entire afternoon eroding while the rest of the insolvent bank stocks SOARED.  With just two hours left in trading, BAC sunk below $5.20 on HUGE volume and looked set to challenge the $5.00 mark again by the end of trading.

Then, miraculously, the stock turned on a dime and headed up on ENORMOUS volume while the Dow barely budged in the +220 to +240 point range.  Clearly, someone with deep pockets didn’t want this stock declining while the rest of the world levitated higher on such “great news.”

Meanwhile, the Dow barely budged from its opening price level ALL DAY, and as you can see below, if anything was in a mild downtrend when BAC stock suddenly “awoke from the dead” just before 2:00 PM EST.  And then, just as we saw yesterday, a massive HAIL MARY rally in the last ten minutes of trading, to the tune of another 80 points or so.  Readers, THIS is the PPT in action, a group with so many plugs to fill each day that their work has gotten sloppy, in fact embarrassingly so.  That same second grader I mentioned yesterday, you know the one that could spot Gold Cartel intervention a mile away, would probably have watched BAC trade yesterday and made the same conclusion as a died-in-the-wool PPT watcher such as myself.

And speaking of the PPT, let’s take a look at the article below, depicting a 14th STRAIGHT WEEK of retail equity outflows.

Readers, I cannot SCREAM loud enough that not only is there no longer a free market, there is no longer any market.  With close to three-quarters of ALL equity trading from HFT computers (a large proportion of which emanates from U.S. government-linked entities such as Goldman Sachs; nearly all hedge funds gored by this year’s volatility (not to mention LEVERAGE and STUPIDITY); and “Main Street” mired in a generational DEPRESSION; trying to gauge “meaning” from the Dow’s movement is patently ridiculous.

14th Consecutive Week Of Stock Outflows: Retail Refuses To Go Back Into Stocks No Matter What Market Does

Trust me, if retail investment has declined for 14 STRAIGHT WEEKS, hedge and mutual funds have been reducing exposure as well, as EVERYONE owning stocks has been BRUTALIZED this year by the massive declines in August, September, and November, not to mention the HUGE short covering rallies such as we saw in October when NYSE short interest approached RECORD HIGHS.  AMAZINGLY, the Dow remains UP for the year while ALL global markets are down, thanks to the “mysterious force” that rescues it EACH AND EVERY TIME it attempts to fall.

In fact, the only chart more comical than this BLATANT PPT support of the Dow…

…is yesterday’s BLATANT CARTEL SUPPRESSION of gold!  I mean, c’mon guys, on a day when the ENTIRE WESTERN WORLD announced the MOTHER OF ALL QE OPERATIONS, gold was STOPPED COLD at EXACTLY 10:00 AM EST, as usual, and for good, yet again, at EXACTLY 12:00 PM EST!  Not to mention, it was STOPPED COLD at EXACTLY the KEY ROUND NUMBER of $1,750 a total of FIVE TIMES, with a final daily gain of yep, you guessed it….1.9%, just below the typical 2.0% daily Cartel upside limit!

Following today’s GLOBAL QE announcement, I am more bullish than EVER on the prospects of a 2012 gold and silver EXPLOSION, but keep in mind this is a life or death situation for TPTB, and thus that they will do ANYTHING, legal and illegal, to keep PAPER gold and silver down while they pray the IMMINENT FINANCIAL COLLAPSE is staved long enough for they themselves to sell their own fiat currency in exchange for REAL, PHYSICAL gold and silver!

And one more note on silver, which I passionately recommended yesterday.  I have on numerous occasions noted that the USGS (U.S. Geological Service) recently stated that silver would be the first element on the periodic table to become “extinct” (by roughly 2020), with the exception, of course, of bullion coins and bars held in “deep storage” by Precious Metal “bugs” like ourselves.

Silver will be the first element in the periodic table to become extinct

One can never predict the exact timing of “peak” production, particularly of metals like silver, of which roughly 70% of supply is by-product of OTHER types of mines.  However, it certainly appears that production has peaked, and given SURGING demand for both industrial and monetary applications, as well as EXPLODING global money printing, I expect the supply of sub-$100/oz silver to be a thing of the past A LOT sooner than most people can imagine.

The World Will Run Out of Silver in Nine Years

Now for today’s horrible headlines, which, despite yesterday’s MONEY PRINTING orgy, continue to attack TPTB like piranha on a bleeding victim.  Actually, I have to correct myself, as the list is much shorter today, for two reasons:

  1. Yesterday’s Central Bank-driven, PPT-aided rally bought the market a mini-moratorium on STRESS, although I assure you the list would have been MUCH longer if the PPT hadn’t intervened to rescue Bank of America stock from sinking toward the key $5.00/share level.  Keep your eye on BAC, as it is currently the most important stock in the entire world.
  2. Due to my trip to Montreal later this morning (and then to Minneapolis to visit the Miles Franklin crew!), I am writing earlier than usual, before the venerable “Tyler Durden” of Zero Hedge starts his day.  He may have an issue with posting my “conspiracy-laced” RANTS, but he does operate the world’s best financial website, in my opinion.

Thus, I see just three major “horrible headlines” this morning (not included the just reported, worse than expected jobless claims number), starting with yet another sovereign downgrade, this time of dead man walking France to just a few notches above JUNK.

Egan Jones Downgrades France From AA- To A; Negative Watch, Sees Debt/GDP Rising From 91% to 117% By 2013

I find it comical that Sarkozy gallivants around Europe with Merkel of Germany as if they are somehow “partners,” when France is on the verge of financial ruin and Germany has the means to CRUSH it at any time (and believe me, it will).  It reminds me of Lex Luthor following around General Zod in Superman II pretending they are partners, when Zod could crush him in his fingers at any time.  Here is a scene from that partnership, but unfortunately no one posted on You Tube when Zod tells Lex Luthor, “you cannot bargain with what you do not have.”

Superman 2 - Lex Luthor with feet on desk
Superman 2 – Lex Luthor, General Zod

On the topic of Europe’s ongoing COLLAPSE, it looks like yesterday’s GLOBAL QE action has not instilled as much “confidence” in the system as was hoped, as banks continue to mistrust each other to the extreme.  Each day, more and more interbank deposits are withdrawn in favor of the “security” of the ECB and Federal Reserve Banks, the “guarantors of last resort.”  Just wait until, a year from now, this €300 billion figures surpasses €1 trillion, or two years from now when the ECB, and possibly the Fed as well, no longer exist.

Still Stressed – ECB Deposit Facility Usage Passes €300 Billion, Highest Since June 2010

Finally, I see Chinese manufacturing activity followed last week’s Purchasing Managers Index in unexpectedly declining below the “50” level connoting recession.  This is a very ominous sign, as each day it becomes more apparent the PBOC’s policy of printing UNLIMITED Yuan to maintain its peg to the dollar has directly caused a gargantuan construction and real estate bubble.

China may have the world’s largest manufacturing base, but its largest customers, the U.S. and Europe, are contracting sharply; and it may have the world’s largest currency reserves, but is “held hostage” by the fact it has too much invested in dollars.  Selling dollars en masse is IMPOSSIBLE due to the cascade effect it would have on the global fiat system, so only a small portion of such reserves (and hence U.S. Treasuries) is “available for sale” at any given time.  Moreover, printing too much money is the root of ALL global financial problems, and it looks like the PBOC has created the same unsolvable problem as the Western world did five years ago – a HOUSING BUBBLE just now starting to BURST.

China Manufacturing Contracts As New Export Orders See Biggest 2 Month Drop Since Dec2008

Marc Faber, one of the world’s most savvy money managers, lives in Singapore and is one of the world’s top authorities on Asian business activity.  If he tells you business is universally slowing and “the Chinese economy might crash,” pay heed.  Of course, he also says the Chinese government will, upon the slightest contraction, PRINT MORE MONEY, which is exactly what they did yesterday when they unexpectedly lowered bank reserve requirements.

Keep your eye on China, as we are about to see a lot of “myths” about its immunity to Western financial contagion dispelled…

Marc Faber – Be Careful, The Chinese Economy May Crash

Wow, that was easy.  Thanks to yesterday’s GLOBAL QE3 announcement, just a handful of “horrible headlines,” and I already see parties in the streets this morning over “successful French and Spanish bond auctions” (assuming, of course, the ECB’s COVERT hand wasn’t there supporting them).  Don’t worry readers, the European contagion has just taken a brief respite as, if there’s one thing we’ve learned over the past three years, it’s that new MONEY PRINTING SCHEMES achieve NOTHING except to buy more time, stoke inflation higher, and ultimately create an even larger financial collapse due to the exponential increase in debt from each new initiative.  And each scheme achieves less time than the last, as “INTERVENTION SATURATION” has nearly been reached.

Oh yeah, there’s the tiny detail that the press seems to forget, or most likely ignore, when an action like yesterday’s “U.S. dollar swap” arrangement is announced.  By definition, it entails HUNDREDS OF BILLIONS, if not TRILLIONS, of increased LOANS to banks and sovereign nations. Thus, if Europe, and essentially, the entire Western banking system was HOPELESSLY INSOLVENT yesterday, they are significantly more HOPELESSLY INSOLVENT today!

On to the topic of today’s RANT, “WHY WAIT FOR “QE” NEWS WHEN IT NEVER ENDS?”

As most readers, know, one of my favorite areas of research is HUMAN NATURE.  On an individual basis, one can never under-, or overestimate the capabilities of man, and its penchant to pleasantly, or unpleasantly, surprise.  Only a handful of people would even dream of writing a column such as this, and the group of people likely to even read such “blasphemy” is nearly as small.  Conversely, the percentage of the population unlikely to think as we do, put it on paper, or even read something of its ilk is enormous, probably not far from 99%.

My study of HISTORY, as well as observation of the world I have inhabited for four decades, tells me what to expect from humanity as a whole, particularly during times of crisis.  A handful of people without POWER will strive to attain it, the smaller handful with power will stop at nothing to keep it, and even increase it, and “the 99%” will lie meekly, accepting propaganda as gospel, demanding welfare, and taking orders.  A handful of outliers, like us, observe from the periphery, seeing the world objectively and acting accordingly.  We will never be understood by the 99%, and certainly not the “less than 1%” making the rules, but we are survivors and make our own breaks in the world.

For the past three months, we have seen PAPER gold and silver under vicious attack by the Cartel, as it yet again seeks to influence the PERCEPTION of “the 99%.”  Most have no means to PROTECT themselves even if they did understand, but more sadly, they don’t even want to understand, and thus are doomed to a life of FEAR atop their ignorance.  WE, however, KNOW what is happening, understanding COMPLETELY that, at this point, the global financial system is way past the “point of no return.”  We KNOW that PHYSICAL gold and silver are the only time-tested means of PROTECTING OURSELVES, and we KNOW PM smashes like we have seen this year in January, March, May, September, and November are simply ILLUSIONS created by the “less than 1%” noted above to fool “the 99%.”

Just look at yesterday’s trading activity (red line below), during perhaps the most gold-bullish announcement to date, as it was capped at EXACTLY a 2% gain, at EXACTLY the same times as we see every day, at EXACTLY the KEY ROUND NUMBER of $1,750/oz, as I have been demonstrating for YEARS, including just two days ago in my third “manipulation opus,” i.e. “COMEX GOLD MANIPULATION PICTORIAL, FALL EDITION.”  Then look at today’s trading thus far (green line), in which, yet again, the Cartel is capping at $1,750/oz to the death.

Irrespective, many of us continue to doubt what we KNOW deep down inside to be true (remember the Darth Vader clip from last week?).  The fiat currency system is hopelessly broken, and actions like yesterday’s GLOBAL QE announcement should only reinforce what we know, yet the constant propaganda and market manipulation cause many to “worry” that gold and silver are set to “plummet anew.”

I'm Your Father - Star Wars The Empire Strikes Back
I’m Your Father – Star Wars The Empire Strikes Back

I have news for you, and good news at that.  If the bottom is not in yet (and I believe it is), we cannot be very far.  Yesterday’s announcement all but guarantees it, and more importantly, PHYSICAL DEMAND SKYROCKETED in late September following “OPERATION PM ANNIHILATION,” particularly for silver, revealing to the world that MASSIVE buying interest exists in the $30/oz range for silver and above $1,600/oz for gold.  Remember the long-term silver chart presented in yesterday’s RANT, depicting how we have finally scaled the $15-$30/oz range that served as overhead resistance for the past CENTURY, and are clearly consolidating in the $30-$50/range as we prepare to launch upward toward levels last seen when Christopher Columbus set foot in “Hispaniola” in the late 15th century.

If your PM investments are based on PAPER products such as ETFs and mining shares, or even worse, utilizing LEVERAGE, you are always vulnerable to the whims of the Cartel, and the markets in general (which as I’ve noted nearly every day this year are ENTIRELY controlled by Washington/Wall Street COMPUTER PROGRAMS).  Not to say you cannot succeed with such investments, but the RISKS are very high, and will only get higher as the Cartel digs in to PROTECT its fiat currency franchise in its final hours.  And again, as I’ve noted countless times, such risks are far from limited to capital depreciation, with equally dangerous tides likely to rush in on the taxation, political, and systemic fronts.

Only PHYSICAL gold and silver are immune from such risks, and no matter what TPTB attempt, they will NOT be able to stop the STRONGEST OF RISING TIDES, the GLOBAL FEAR OF PAPER INVESTMENTS that will continue surging on “bad days” when financial markets are collapsing and “good days” such as yesterday, when TPTB erroneously decide PRINTING MORE MONEY is the path to salvation.

Readers, DO NOT WAIT for “QE announcements” to take precautions to PROTECT YOURSELVES, be they buying PHYSICAL gold and silver, stocking the cupboard with long-lived foods, arming yourselves, or simply reducing your cost of living and financial expectations.  “QE announcements” should serve to further empower you, but by now you have should have built an irrefutable mosaic of where the world is going, and thus should not let Cartel/PPT manipulation and “official decree” divert your attentions and actions.  To paraphrase the ultimate Wall Street shill, Abby Joseph Cohen of Goldman Sachs, ‘the economy is like a supertanker, incapable of suddenly changing direction.’

To conclude, I figured the wise words of “Mr. Gold,” my idol Jim Sinclair, could say more than anything espoused by little ol’ RANTING ANDY.
My Dear Extended Family:
I have not written much about the recent failure of a major clearing house out of respect for my friends who are caught in that situation.
A clearing house of note is the mechanism of the marketplace, without which trading simply does not occur. This is a situation where “Too Vital to Fail” trumps “Too Big to Fail.”
You want to know why the Fed organized the do-nothing European leaders in concerted action, along with China? The answer is no major clearing house can be allowed to fail because then the market mechanism is broken.
The reason sovereign debt cannot fail is the five largest US banks hold trillions of dollars of credit default swap OTC derivatives guaranteeing that garbage against failure.
If euro debt fails, the Western financial world implodes, so it will not now.
“QE to Infinity” and gold at $4,500 is coming as sure as death and taxes. Good call, Alf!
What a head fake gold gave last week, turning almost everyone, even some big guys, gold bearish. They should have known better.
Regards,
Jim

PROTECT YOURSELF, and do it NOW!