be an interesting RANT, written as I drive back to Denver today. My
wife and I visited friends in Scottsdale for Christmas, and today we’re
driving to Santa Fe to spend the night. Diana is driving as we speak,
and I’m in the front seat typing over the shoulder of my panting pup,
Giselle. Hold on, we’re turning left on Highway 377, in the
ironically named Snowflake, Arizona.
I copied a
slew of “horrible headlines” this weekend to write about, but
given that I’m doing most of the driving, I won’t have time to
give commentary on them in this RANT. Instead, I’ll just write
about today’s RANT topic, answer your myriad holiday questions in my
mailbox, and add an addenda featuring these headlines, several of which I
plan to discuss in my more “normal” RANT tomorrow, written from
my office. In the meantime, you can fill the info gap by listening to
my two podcasts posted this weekend, on the SGT Report and TF Metals, as
archived on the Interviews and Appearances page of the
Miles Franklin blog site.
of these headlines verifies everything I have been speaking of for the past
months, including the bullish PM fundamentals, declining GLOBAL economic
activity, a terrible holiday shopping season, and the sheer FAILURE of ALL
short-term money-printing schemes to improve ANYTHING other than short-term
stock prices, such as the below.
LTRO “Bazooka” Is Epic Disaster As Banks
Scramble To Redeposit “Free Carry” Cash With ECB, Lose Money On
“Inverse Carry” – ZeroHedge
more article which needs to be called out as B.S., exemplifying how even
“good guys” like Zero Hedge still don’t seem to understand
the most important factor in global financial markets, the Cartel
suppression of PAPER gold and silver prices.
article below about China “tightening controls” on gold trading
has ABSOLUTELY, UTTERLY ZERO IMPACT on gold demand at all, particularly as
99% of ALL gold pricing still occurs in the New York CRIMEX paper
market. Not to mention, gold didn’t decline AT ALL when the below
headlines emerged, but many hours later, just after 4:00 AM EST, when gold
was stopped cold EXACTTLY at the KEY ROUND NUMBER of $1,600.
attacked by the Cartel in Friday’s EXTREMELY thin pre-Christmas market
at EXACTLY 3:00 AM EST, and then again at EXACTLY the COMEX open at 8:20 AM
EST, and this morning as described above – end of story! And to
think “Dr. Copper” was up 3.8% on Friday for no reason, a daily gain gold has only achieved TWICE in a 12-year
bull market, care of the Cartel.
Gold Down As China Tightens Controls
I’ll move right into today’s RANT topic, then move on tomorrow to
the news, which is fine with me, as I’m anxious to write about
“LOCKDOWN,” in many ways a sequel from an earlier RANT this year
referred to the seemingly interminable periods between Cartel smashes, when
day in and out PAPER gold and silver are under pressure, particular during,
in the terminology of Bill Murphy of GATA, the “Plan A, Plan B, and
Plan C” pattern times of 3:00 AM EST, 10:00 AM EST, and the ACCESS
market late in the NYSE trading day. I brought the 3:00 AM EST attack
pattern to Bill’s attention circa 2003, and added the 8:20 AM EST and
12:00 PM EST times to my observational repertoire in the ensuing years, not
to mention the Sunday night DEATH STAR attacks that have become prevalent
since “D-DAY” just over a year ago, when the Cartel stepped up
its suppression tactics to spiritual levels.
amidst such “WAITING” periods before the next rise, it appears
the misery will never end, particularly when one owns large positions
in mining stocks, which have dramatically underperformed PHYSICAL metal for
as long as I can remember. During such bleak periods, refer to
the table I constructed last week, depicting how, thanks to Cartel pressure,
gold tends to “consolidate” close to 75% of all trading days,
making up for the misery in the quarter or so remaining days, such as during
July and August 2011, when gold rise from $1,480/oz
to $1,900/oz, and silver from $34/oz to $45/oz.
thing that’s important to remember is we are very, very close
to the ultimate END GAME, when not only the gold Cartel, but the political
Cabal hoping to retain POWER by kicking the can down the road, runs out of
pavement and watches the razor-thin threads holding the global
financial system together permanently sever. Thus, the level of Cartel
ATTACKS on the PM sector, including gold, silver, and mining shares will only
grow worse as they protect their 40-year old wealth-stealing system, making
it impossible for all but the strongest hands to PROTECT THEMSELVES –
those that BELIEVE in their investment and are smart enough to not be
too-heavily weighted in mining shares, let alone on margin or other
types of financial leverage. In late 2008, gold fell just 30% (due to
violent Cartel attack, of course), but the PPT-supported Dow fell 55%, the
HUI 65%, and the average junior miner 90%. Not to say history will
repeat in 2012, but think about if your portfolio can stand that type of
decline if we do see a (very likely) market crash event.
don’t forget that due to the exponential, obviously unregulated growth
of PM NAKED SHORTING, which now accounts for MORE THAN 50% OF ALL LARGE-CAP
MINING STOCK TRADES, the supply of mining shares has become essentially
UNLIMITED in size, as opposed to PHYSICAL metal, which is so scarce that
production peaked ten years ago, with ALL the gold EVER mined throughout
history only voluminous enough to fit under the Eiffel Tower’s base,
and less than one billion ounces of above ground silver remaining on EARTH.
also keep in mind it’s Christmas/New Year’s week, traditionally
the slowest of the year, and thus the most manipulatable.
The list of “horrible headlines” is unending, such as
Friday’s news that, just TWO DAYS after the supposedly
“world-saving” LTRO money printing operation was executed, the
Italian 10-year sovereign bond yield EXPLODED higher, slicing through the key
7% level like a knife through hot butter.
Above 7% Again – Any Italian Bank That Bought
BTPs With LTRO Cash Is Now Underwater – ZeroHedge
given the thin holiday trading conditions, and FPTB (Financial Powers That
Be) mandate to maximize year-end bonuses with “Santa Claus (i.e.
PPT-generated) rallies, the odds are nothing dramatic will happen this week
(but NO PROMISES!).
hedge fund or investment bank can be awarded ANY bonus this year is beyond
me, given that hedge funds are disappearing like dinosaurs after a meteor
shower, while banks have reported losses for much of the year, with their
ONLY gains attributable to accounting gimmicks such as writing UP falling
real estate assets and characterizing their own falling bond prices as
“buyable at cheaper prices.” But that’s another
story, for another RANT.
slack period to ponder all that occurred in 2011, not just in financial
markets but your personal lives as well. Think about the microcosmic
changes you endured, and how you expect the sweeping macrocosmic changes
coming in 2012 to affect you. Trust me, we will ALL be affected,
unfortunately not for the better, and only YOU have the power to
PROTECT YOURSELF by taking to heart the information you have processed, and
advice given, and translating your conclusions into ACTIONS that may mean the
difference between “financial life and death” as the most pivotal
societal changes in generations sweep over the world’s
about how much you have learned in the past year, and what the worlds
smartest people, like Jim Sinclair, have to say. In a special year-end
interview given with King World News this week, he made some of his most
forceful statements of the past decade regarding the inevitable collapse of
the global financial system and PHYSICAL gold explosion, so pay close heed if
you aim to PROTECT the value of your net worth in 2012 and beyond.
escalating fears from gold and silver investors around the world, including
professionals, today King World News interviewed legendary Jim
Sinclair. When KWN asked if he has ever seen this kind of fear and
panic in the gold market, Sinclair responded, “Not in the first gold
market (1970s), not in the gold market we are in now, not in the correction
(in ’08 & ’09), which took us down after the first move
through $1,000 and back under $800.”
amount of discontent and bearishness among people who know better is
enormous. It’s moved from bearishness to some form of anger.
(This is a) historical bottom, capitulation, a clear sign the gold market is
moving into an outrageously oversold position, most certainly in anything
that’s a common share.
not allow your emotions to direct your decisions. Your emotions will
always be your best contrary indicator you have. You have to examine
the circumstances and ask whether or not the reasons why you’ve
committed to something have changed. And if they haven’t changed,
you simply need to buck up and go the course because you’re right.
beginning to literally crack, defined as shifting their total focus to their
emotions and away from their intellect. I’ve seen emotionalism in
areas where it doesn’t belong, where it’s never existed
before. I’m in total shock.
When I see
people who have distinguished themselves under pressure, over years, let
their emotions cloud their judgment, actually letting their emotions break
over them like a tidal wave, it puts me in total shock….
in the most manipulated markets. We’re in the most fraudulent
markets in history. There has never been a time when you can have
assets disappear from people and modest inquiries take place of the leaders
of that company. What you are seeing go on right now favors the bankers
and disfavors all others.
when it’s finally finished there will be one man standing and that one
man standing will be gold, the only market that the banksters
can’t control in the final chapter. In a very short
period yesterday we had a range of $100, and I’m going to tell you and
the listeners now, you haven’t seen anything yet compared to what you
are going to see as gold moves toward $4,500.”
what to expect from gold in 2012, Sinclair stated, “Well into the high
$2,000s. And as Truman said, ‘If you can’t stand the heat,
you’ve got to get out of the kitchen.’ But let me tell you
that when this year is over, the only hands left holding physical gold and
gold shares are the strongest hands on the planet.
possible weak hand has been shaken out. Every person with emotions even
latently capable of overwhelming their intellect, overwhelming their
judgment, will have already overwhelmed it this week. After this week,
the people who are left are people who will never give up their positions.”
Jim Sinclair Broadcast – King World News
finances were far stronger in the mining stock heyday of 2003-2007, but the
economic and political world has become a far different, essentially
recognizable place since then, and my guess is my experience is no different
than millions of others over the past five years, the “five years of
infamy” that will be recorded as the time the markets broke, the
world’s “leaders” turned EVIL, and HUMAN NATURE asserted
itself with a vengeance.
As we head
into the next five years, which I believe will be among the most pivotal in
human history, I have never felt so
comfortable with my financial decisions, particularly the transfer of ALL my
paper wealth to REAL assets, namely my home and PHYSICAL gold and
silver. I expect global economic malaise for years –
perhaps decades – to come, and thus my primary goal is to
PROTECT MYSELF and family, as well as anyone else who will listen. The
more people that make such physical, and mental preparations, the more
that will SURVIVE the upcoming economic CHAOS and THRIVE when the new,
gold-backed order eventually arrives.
YOURSELF, and do it NOW!