Wow, there is a lot going on in the
world, and it's ALL BAD!
The second I finish a RANT, such
as yesterday's, which took 5-6 hours to write, I am IMMEDIATELY confronted
with scads of new articles to comment on. It is like a non-stop raging
river spewing debris left and right, and it NEVER STOPS. This is
why I have woken at 4:00 AM every day since starting at Miles Franklin in
October, with no hope of changing my schedule until the Cartel is finally broken,
at which time, I'll likely wake at 3:00 AM.
Oh well, at least I'm in the Mountain
time zone, as if it were EST I'd we waking precisely to the first gold smash
of the day. As you can see, the 3:00 AM smash tactic was utilized on
each of the past three days, even Tuesday (in muted form) when the net result
was a $40/ounce UP day.
Yesterday was a very impressive up day
for gold, coming as close to a "key upside reversal" as the Cartel
will allow. As you can see by the green line above, gold yet again rose
in Asia until EXACTLY 3:00 AM EST, when it suddenly plummeted for the third
straight day. We then watched yet another WATERFALL DECLINE at EXACTLY
the 8:20 AM EST COMEX open, with the puppet media initially attributing
gold's decline to "better than expected" jobless claims, which as I
noted yesterday was a load of bull, and subsequently "European debt
worries," as the Euro went into FREEFALL while French and Italian
You know, the same "heads I win,
tails you lose" idiocy of gold falling due to a "strengthening
economy" (facetious) and, simultaneously, a "weakening
economy." And remember, for ten years running, the economy only
"strengthens" and "weakens" at EXACTLY 3:00 AM EST, 8:20
AM EST, 10:00 AM EST, and 12:00 PM EST!
Yes, this is the same brain-dead media
that totally ignores the U.S. government breaching debt ceiling levels $1
TRILLION higher than the level it spent every drop of its ink writing about
just four months ago, even as we literally are on the brink of default
Here We Go
Again: US $25 Million Away From Debt Ceiling Breach
Thank god, I found ONE ARTICLE about the
topic from the Los Angeles Times, a well-written description of how
Congress just passed a $1 trillion omnibus, deficit spending bill, so what's
the point of even pretending they aim to reduce the deficit? It
looks like crybaby Boehner will have to go back to his GOP "war
room" to plan his next hypocritical attack on the Democrats, trying to
pretend Republicans are "conservative" when it was the
administration of his own fearless leader, George W. Bush, that initiated the
endless war campaign in Iraq (under false pretenses, which I called out on
DAY ONE) and developed the concept of "too big to fail."
ceiling: Queuing up another (purely symbolic) vote
As for the aforementioned "war
room," no different than the Democrats' den of illicit, criminal
conspiring, it is where ideas like the one described below are concocted, to
make sure Ron Paul doesn't win. Remember, the Wall Street money is
firmly behind Mitt Romney, just as it was behind GW Bush in both 2000 and
2004 and Obama in 2008. Thus, Romney WILL win unless the PPT/Cartel
cannot perform their duties of preventing the markets from reflecting reality,
and thus creating widespread panic before the November elections.
GOP Insider Admitted to Plan to Subvert Iowa Caucus In Order to Prevent Ron
Rick Santorum, really?
As you can see below, his betting odds
of winning the Republican nomination were just 4% before the Iowa Caucus,
"spiking to 8%" afterwards, before falling back to 4%
already. Romney's odds NEVER changed at 81%, so anyone believing
Santorum received those votes "fair and square" likely ate some "funny
mushrooms" for dinner last night.
Moment in the Sun
Remember Michelle Bachman's August
"victory" in the Ames, Iowa "Straw Poll?" You know, the one where she paid people to attend, and Randy
Travis to perform for them? If you do, I'm sure you realize it was as
much a sham as Santorum's 25% showing Tuesday. Bachman predicted a
"miracle" win in the Iowa Caucus Monday night, but her prayers were
answered with a nearly last-place finish and subsequent end to her campaign,
just days after her long-time campaign manager defected to join Ron Paul's
camp. Yes, America, politics - and stupidity - as usual.
Not to mention, what happened to
"front runner" Rick Perry? Or "front runner" Herman
Cain"? Or front runner "Newt Gingrich"? Only Ron
Paul and Romney have received real votes, even if some of Romney's
were fraudulent, as noted above. Perry, Bachman, Cain, Santorum and
Gingrich are just "patsies" - straw men set up by Wall Street to be
taken down one by one, until only Romney is standing.
In the final analysis, it's "Romney
or bust," although the odds of "bust" are growing larger each
day. And "bust" has a name attached to it - RON PAUL!
Bachmann campaign. Now can we kill the Ames Straw Poll, too? (VIDEO)
Sorry to RANT about politics, and for
the millionth time I hate Democrats as much as Republicans, but I had
to get this electioneering BS off my chest, as it is so sickening. Only
comedian Jon Stewart gets the news correct, and if that doesn't tell
you what's wrong with society, I don't know what does. Each day I look
to him for what's really going on, as opposed to the mainstream news,
which more each day resembles V for Vendetta, in which the "Voice
of London," Lewis Prothero, brainwashes the
people with government propaganda.
Speech (V for Vendetta)
BUT FEAR NOT, READERS, AS WE SHALL
EVENTUALLY HAVE OUR DAY! I have no idea when, but I do know it
Vendetta Dominoes Scene (complete)
Back to gold, the Cartel is desperately
sitting on the 200 DMA, currently at $1,627/ounce. I told you it
wouldn't stay below that ridiculous level for long, as sub-$1,600/oz gold today represents the most oversold level -
from a combined fundamental, technical, and sentimental standpoint -
of the ENTIRE 12-year bull market. The only good thing about last
month's "OPERATIONS PM ANNIHILATION II," which commenced December 8th
with the likely fraudulent "gold sale headline," was that it pushed
gold to this severely oversold level, enabling new buyers to initiate
positions, and to mute the typical early January "OPERATION EARLY YEAR PM
ANNIHILATION" initiatives we have seen in each of the past three years.
Buying at this oversold level has thus
far overwhelmed the early January Cartel attack pattern, even during NFP
employment report week, which clearly is being telegraphed as likely to be
upwardly fudged to spiritual levels. Yesterday's ridiculous
325,000 increase in the ADP employment report is worthless given its beyond abysmal predictive value of NFP payrolls, in my
opinion. However, given the extreme level of jobless claims
manipulation, acceleration of the European debt crisis, and commencement of
the 2012 Presidential election campaign, it is hard to believe today's report
- and all subsequent jobs reports - won't be massively cooked to the
upside, damn the facts.
For that matter, the PPT's
money-printing, Dow-supporting efforts will likely be upgraded from parabolic
to hyperbolic as the year wears on, as proven yesterday by yet
another market saving rally amidst an IMPLOSION of European stocks and
bonds, as well as the Euro itself!
largest bank and one of the ten largest in Europe, is perhaps weeks
from extinction, as is the nation of Greece, and yesterday saw the failure
of a French bond auction and downgrade of Hungary's credit rating
to "junk" status. Thus, I reiterate the #1 prediction from
last week's RANT, "2012 EXPECTATIONS," that the European crisis
will dramatically deteriorate in the coming months.
Lost 30% Of Its Market Cap In Two Days
Costs Rise at Bond Sale as AAA Decision Looms
Officially Assumes 20% Recovery In Greek Default - Time To Change Sovereign
Debt Risk Management Defaults?
Downgrades Hungary To BB+, Negative Outlook
However, for the THIRD STRAIGHT DAY, not
only did European stocks outperform bonds, but miraculously the entire
market reversed upwards as soon as Europe closed, at which point the PPT was
able to take over with unlimited money printing and futures buying.
Kind of like the Cartel waiting until the PHYSICAL markets are closed, so
they can maximize the impact of their PAPER attacks.
Close Prompts Rally For 3rd Day
And how about this beauty of
misdirection, the "rumor" that Washington was planning a MASS HOME
REFINANCING initiative, i.e. MONEY PRINTING to bail out underwater homeowners
and the criminal banks that lent to them. On this
"rumor," America's largest bank - and largest soon-to-be
nationalization, Bank of America, surged above $6/share, although of course
the "rumor" was subsequently denied. No matter, the PPT had
already done its thing, to make sure the nation's richest man, Warren
Buffett, is made whole while the entire public suffers.
Refinancing Rumor Rejected, And Why Even If It Was True It Would Not Help BAC
But who cares about the public,
right? It is only the "elites" that matter, and if you can
rig markets, votes, and the money supply, screw em'!
Statistics That Show The Middle Class Is Dying Right In Front Of Our Eyes As
We Enter 2012
Such unadulterated money printing has
essentially brought ALL the world's toxic assets under the auspices of
Central Bank balance sheets, creating the most insolvent, cancerous
financial entities of ALL TIME. Only further MONEY PRINTING will keep
them alive, at EXPONENTIAL growth rates, lest the entire "Tower of
Babel" comes crashing down. That is, if HYPERINFLATION doesn't
destroy it first!
Central Banks Account For Up To 25% Of Developed World GDP
Yes, Central Banks such as the Fed, ECB,
BOE, and BOJ now own an astounding 22% of the world's "assets,"
accounting for 25% of the world's "GDP." Yes, collecting
interest on your own, insolvent, plummeting bonds is now considered
"GDP," and, of course, no one calculates the massive CAPITAL LOSSES
engendered by plunging sovereign bonds into these calculations.
No problem as long as
the PPT/Cartel are in control of the markets, and the media asleep at
Investor Sentiment Nears Record Lows
Ah, But for how long?
Back to the moronic media, I need to
bring up my good friend "Tyler Durden" of
Zero Hedge, who ironically unsubscribed from the RANTING ANDY email
distribution list yesterday. I am shocked he remained on it for so
long, but after last week's RANT, "ZERO HEDGE SUCKS - YEAH YOU, TYLER
DURDEN," he must have been seething, with yesterday's follow-up
commentary finally putting him over the edge.
Oh well, in the words of Jack Nicholson,
he can't "handle the truth," at least not in the taboo world
of gold manipulation where few dare to tread. Which is EXACTLY why Zero
Hedge published two of his most brain-dead articles yet on the topic
yesterday, starting with the below drivel about "gold outpacing oil
He actually thinks there is something
material to conclude from "gold outpacing oil" for THREE BUSINESS
DAYS, particularly after it was viciously attacked for an ENTIRE MONTH?
Outpacing Oil YTD As Stocks Disconnect Again
Even better, how about this idiocy about
gold falling due to the "MF Global bankruptcy, a "rising
dollar," and "tax-loss selling." No, it has nothing to
do with an all-out PAPER attack on gold to prevent it from taking out $1,750/oz and putting it in position to challenge August RECORD
HIGHS, to the point that, after an incredible 21 unsuccessful attempts to
take out that level over a week's time, the Cartel was forced to trot out a
fraudulent "BIS/BOE/Fed in market selling gold" headline MINUTES
after the ECB confirmed its hyperinflationary bent by cutting interest rates
Not to mention, with COMEX open interest
continuing to decline, and with it the "commercial" gold and silver
short positions, how can one conclude that "MF Global liquidations"
caused PMs to decline. Not to mention, why was it ONLY gold and silver
that plummeted? Last time I looked, MF Global customers held positions
in ALL commodities, including crude oil - which has recently surged - as well
as copper, corn, soybeans, and a slew of products that have just done
And how can ANYONE still believe the
"dollar is rising," when all that is occurring is a rush out of
Euros on fears it might be DISSOLVED, i.e. the most blatantly PM-bullish
news imaginable? Following YEARS of gold having essentially ZERO
correlation with the "dollar index" (to the point that I literally
don't watch it anymore), you'd think even "top
analysts" might start to write intelligently.
Why Has Gold Been Down?
When I went to bed last night, gold was
above $1,625/oz, yet again within a few bucks of
its 200 DMA of $1,627/oz. When I awoke, my initial instinct was to
write about the overnight activity without looking at it. I was
100% sure it was again capped at 3:00 AM EST somewhere around the 200 DMA,
and of course I was correct, per below. That said, with the NFP fudge
report due out in the morning, gold is often left alone by Cartel traders to
lull them into a false sense of security. The Cartel's only real
concern was the same parabolic surge risk they face each day,
particularly with so many "black boxes" focused on gold's 200
DMA. As I write, just 10 minutes before the COMEX open and 20 before
the NFP report, gold is sitting in the low $1,620s and silver the $29.30s.
I don't believe the NFP report matters
one whit to the markets, even if it is a big "upside surprise." I
believe last month's "OPERATION PM ANNIHILATION II," coupled with
the spiritual acceleration of PPT support activities,
have entirely decoupled market movements from reality, removing essentiallyall "causation" between the stock
market, PAPER PM prices, and news flow. Thankfully, the PM sector is
violently oversold, and thus I am hard-pressed to believe the downside here
is material, although trust me the Cartel will attempt to scare PAPER PM
Even the mainstream media is regularly
reporting market manipulation, even if the core of
such operations - the PPT, ESF, and gold Cartel - have thus far
avoided the spotlight. Central bank money printing to support stocks,
bonds, and currencies has finally become "common knowledge," and
it's only a matter of time before it is understood that ALL markets are
rigged, including GOLD AND SILVER!
Heck, even the Federal Reserve itself is
revealing its secrets, such as ex-Fed governor Kevin Warsh,
who for the second time this year allowed a degree of "passive
aggression" toward his former employer to subtly expose it. There
can be no doubt his comments intimate the Fed and other central banks are
manipulating gold, particularly in light of comments he sent to GATA about
gold swaps several months back.
But walk away, media, there is nothing
to see here!
Ex-Fed Governor Warsh
again confirms gold price suppression
BREAKING NEWS: As I expected, the
NFP number was "better than expected" at 200,000 vs. the 150,000
consensus. This misleading news is likely based solely on
"seasonal adjustments" and part-time holiday hiring, as well as the
aforementioned "fudge patrol" that will accelerate until the
November elections, such as reporting yet another "unexpected" drop
in the unemployment rate due to falling labor force participation.
At 200K, Expected At 155K; Unemployment Rate Drops To 8.5%, Labor Force
Participation At Lowest Since 1984
And what's this?
What a shock, not a "massive
beat" at all, due to the very same "seasonal factors" I have
cited for several weeks.
Beat? Not So Fast - Morgan Stanley Warns 42,000 "Jobs" Bogus Due To
Rate Is 11.4% With Realistic Labor Force Participation Rate
Also as I expected, the immediate impact
on gold was muted. I see the beginnings of the typical Cartel ploy of
letting gold initially rise a few bucks to draw in a few suckers before a big
paper slam, EXACTLY what we've observed for years and EXACTLY what Andrew
McGuire reported to the CFTC regarding Cartel "signals" of imminent
post-NFP report PM slams. However, in light of the EXTREMELY oversold
levels the Cartel took PAPER gold and silver to during last month's
"OPERATION PM ANNIHILATION II," I am hard pressed to believe
additional attacks while have significant staying power.
A London trader walks the CFTC through a
silver manipulation in advance
Before I move to my RANT topic, a few
tidbits to add regarding gold and silver.
I'm not sure why I'm even giving him
print space, as he is such a waste of a human being, if I'm to be so generous as affording him peer status. Dennis Gartman is the biggest jerk in the newsletter community,
a Cartel-paid shill on the level of Jeff Christian and Jon Nadler, who has
been as WRONG about his gold calls as anytrader in history.
By the way, I'm not kidding - he has really been that bad.
Moreover, he is a pathological liar and
serial misleader, and anyone that listens to his "advice," or
better yet PAYS for it, deserves the losses they will certainly engender,
particularly if they invest in the horribly underperforming "Horizons Gartman ETF."
Flip Flops Again, Now Sees Bull Market For Gold: Time To Sell Everything?
Next, a bit of heartwarming analysis
from the antithesis of Dennis Gartman, one
of the true "smart, good guys," James Turk, who compares silver's bull market to the early stages of Apple
Computer's meteoric rise. Once silver breaks its downtrend at the
$35-$37/ounce level, he states, the universally panned, yet decade-long
outperforming white metal could surge to $70/ounce within three months.
I have not a care, nor trust in, such
technical analysis, but I couldn't agree more with the possibility of this
occurring later in 2012!
James Turk -
Gold is Great, But Silver is the Next Apple
And finally, keep your eyes on the Sprott Physical Silver Bullion Trust (ticker PSLV), whose
premium to Net Asset Value (NAV) has gone berserk in the past three
weeks, EXPLODING from mid-December's 15% level to nearly 29% yesterday,
blowing significantly past the fund's ALL-TIME HIGH of 26%, per the tables in
the link below. I'm not yet sure what the market is saying about
PSLV, a fund I have eminent trust in, but it is certainly something BULLISH!
Keep your eyes on gold's 200 DMA at
$1,627/oz, the ONLY thing the Cartel is focused on
right now. Ignore the "jobs report", the European Crisis, and
EVERYTHING else. The battlefields are currently at $1,627/oz for gold and the VERY KEY ROUND NUMBER of $30/ounce
THE SINGLE-CELLED OPTION
Options are like Amoebas.
At least, they were in 1973 when the
"derivatives" business was single-celled, a simple zygote prior to
mitosis. Not a naturally-produced zygote, but a synthesized,
contagious "test tube baby," genetically altered with
"financial Ebola" to poison global markets, destroy cultures, and
inflict DEATH via bankruptcy.
Oh the simple days of college, when a
naïve, ambitious, 20-year old RANTING ANDY was taught the
"Black-Scholes" option pricing model, utilizing a stupid formula to
attempt the transformation of living, breathing objects like stocks into
Attempting to "value" options
with a formula is akin to defining the primary enigmas of classic philosophy
- LIFE, LOVE, and TRUTH. In other words, there is no way to shoehorn
option valuation into a formula, as such value can only be determined by the
beholder. Yes, you can "value" the time left on an option,
but time value has the same fatal flaw as most cash flow
analysis. That is, the "discount rate" is completely and
utterly dependent on arbitrary assumptions amidst fluid market
Statistically, the odds of
profiting from a long options position are about the same as that of a
typical Wall Street M&A deal being a success; FAR BELOW 50%!. The
reason, of course, is BOTH mergers AND options contracts were created by
CRIMINAL Wall Street banks, with the sole purpose of stealing your
money. At least in Las Vegas, chance occasionally works in your
favor, but in challenging the Wall Street-rigged markets, you will ALWAYS
By now, it should be painfully clear the
world rewards fraud, amorality, and sloth, particularly
in New York City and London, the two cities most responsible for the GLOBAL
financial catastrophe unfolding before our eyes. TBTF banks are bailed
out and criminal politicians re-elected, while the growing "welfare
society" frowns on those supplying its needs, but embraces the rights of
the worthless. Just like Atlas Shrugged, but in REAL LIFE.
Black and Scholes were given Nobel
Prizes for this formula, which more than any in the global economic realm has
caused misery, pain, and losses for the unsuspecting public, at the hands of
ruthless sociopaths running Goldman Sachs, JP Morgan, and the like.
When retail traders lose their life's savings in rigged markets they
are left penniless, while Goldman Sachs and JP Morgan are bailed out from
their mistakes with freshly printed, tax-payer funded capital, the reward for
channeling years of illicit profits into campaign contributions.
The Black-Scholes model was immediately
embraced by salivating New York mafia dons, and immediately after its 1973
publication, Wall Street created the Options Clearing Corp, or OCC, enabling
the spin-off of the Chicago Board Options Exchange, or CBOE, from the Chicago
Board of Trade. Back then, option contracts on just 16 stocks were
traded, rising to a still modest 68 stocks in 1980.
The options business remained nascent,
but when the stock market's 20 year stagnancy ended in 1981, simultaneous
with the emerging "Computer Age," Wall Street smelled fresh
blood. At that point, the cancerous "financial engineering"
cult was born, with its first victim the SINGLE-CELLED OPTION. Thus, in
1983 the first "second derivative security" was born, the Index
Option. Now investors could bet on financial indices themselves,
which in turn were bets on the cumulative direction of their individual
components. Back then, just three options exchanges existed - in
Chicago, Philadelphia, and New York - and essentially all options business
was left to "professionals" trading with house money. Betting
incorrectly might cost you your job, but not your personal finances.
The house could always absorb the losses, which were limited by the then
small market size.
However, as the 1981-1999 bull markets
gained steam, and Wall Street more powerful, new classes of investors were
born, particularly MUTUAL FUNDS that relied on equity and fixed income
indices to limit "alpha," and thus seek protection in
numbers. Hedge funds also joined the party, yielding exploding
interest in index investing, and with the growing size of such investment
pools came increased acceptance of index options to
Index options were so successful,
particularly calls as they became tremendously profitable during the
18-year bull market, that Wall Street grew far richer and stronger, hungry
for "fresh meat" to satisfy its fee-generating appetite.
Consequently, in 1990 "LEAPs", Long-Term Equity AnticiPation Securities,
were introduced, yielding larger premiums due to their longer-terms, and thus
higher Wall Street fees. I suspect millions in LEAP contracts
became worthless in the early 1990s mini-bear market, billions in the
early 2000s "Tech Wreck," and trillions since Global
Meltdown I commenced in mid-2008.
Unfortunately, the first 20 years were
just a prelude to the CATASTROPHIC financial damage of the next 20, when Wall
Street commandeered the U.S. government and mastered the art of
pilfering the public. By 1996, the Federal Reserve-led equity bull
experienced meteoric growth in online investing, driven, of course, by
the rapidly expanding tech bubble. Cab drivers became self-professed
experts on Cisco, Intel, and Microsoft, while savvy money managers became
aware of the terms "B2B" and the "internet."
Schwab, Ameritrade, and E-trade became household names, yielding the dawn of
"day-trading" and similar risky financial activities amongst the
Wall Street utilized the combination of
rising stock prices and public market participation to create its own trading
platforms, far more expensive than "discount brokers" but
potentially more lucrative, offering hundreds, then thousands of exotic
trading alternatives, including a broad swath of "derivative"
securities such as stock options, index options, and LEAPs. The tech
bubble fueled this growth like kerosene on a fire, and by the year 2000
"derivative contracts" became ubiquitous in both the retail and
institutional realms, with millions of option-derived contracts
trading on thousands of equity, fixed income, and other securities.
Enter the Glass-Steagal
By 1999, Alan Greenspan's mad scientist
experiment in the emerging field of "hyper-monetary policy" had
created a tech bubble so large that Wall Street became rich enough to
literally take over the world. And I should know, as I spent that time
working as a sell-side analyst at Salomon Smith Barney in New York
City. Cumulatively, Wall Street profits grew so large, it was inevitable
they'd use them to purchase political favor, if not cabinet positions themselves.
In hindsight, Bill Clinton's appointment of Robert Rubin as Treasury
Secretary in 1995 was the "shot heard round the world" in the
annals of banker/politician commingling.
In reality, Ronald Reagan started this
trend in 1981 when he hired Donald Regan as Treasury Secretary, directly from
his CEO position at Merrill Lynch. But Wall Street was not rich and
powerful in 1980; to the contrary, it struggled through the throes of a
vicious recession and decades of stagnant stock prices. Conversely, in
1995 Wall Street was on the rise, and Clinton's hiring of Goldman Sachs' CEO
harkened a dangerous era in which powerful sociopaths, with an agenda
directly in conflict to its constituents, had taken power.
Immediately, Rubin spearheaded an effort
(behind the scenes, of course) to bolster the power of his "peeps"
in New York, clearing the way for repeal of the Glass-Steagall
Act in 1999. Glass-Steagall, one of the best
laws EVER created by Congress, emerged from the Great Depression, prohibiting
the commingling of investment and commercial banking activities. A root
cause of the 1929 crash and 1930s Depression was bank profligacy with
depositor funds, and Glass-Steagall's raison d'etre was the removal of such blatant conflicts of
interest. Thus, when it was repealed in 1999, it was like issuing Wall
Street a "license to kill."
By then, the SINGLE-CELLED OPTION had
divided several times, becoming significantly more complex and differentiated.
Not only was it growing, but thanks to the exponential learning curve
of Wall Street's "financial engineers," was being injected with
"derivative steroids" in increasingly large doses. Options
were exciting "games" for small investors, but futures were
more lucrative because they could be used to manipulate entire markets.
Not surprisingly, today's covert, virulent Gold Cartel (as opposed to
the more overt, benign version of the 1960s London Gold Pool) was born, as
were numerous manipulative organizations, particularly an amped-up,
omnipresent incarnation of the "President's Working Group on Capital
In other words, Wall Street learned that
REAL profits were not earned by successful trading markets, even with
the leverage afforded by futures and options, but to manipulate the
markets themselves with multi-layered derivative instruments. Now
that Wall Street has successfully bought its first President, George W. Bush,
the sky was the limit as far as the capital - political and financial alike -
that could be committed to such endeavors.
Contributors to George W. Bush
Around that time,
"over-the-counter" derivatives were dreamt up by the cleverest, yet
most amoral, of the financial wizards. Not only could markets be
manipulated with second and third derivative financial products such as
exchange-listed "options on futures", but via unlisted,
off-exchange products traded by "dark pools," i.e. unregulated,
opaque, virtually untraceable funds with ambiguous sources of funds and
equally ambiguous agendas.
Thus, the birth of "Weapons of Mass
Financial Destruction," the very same "derivatives" that
plaster the news pages each day when referring to the root causes of today's
GLOBAL financial collapse. To this day, fewer than a handful of
people, including those that use such products, have any idea how such
"derivatives" function, much less the daisy chain ramifications of
The table below depicts the meteoric
growth of "OTC derivatives" from the time Glass-Steagall
was repealed until 2008, when the market rose from virtually nothing to more
than $600 TRILLION in notional value. Current estimates suggest this
market is somewhere between $800 TRILLION and $1 QUADRILLION, but it is
difficult to generate a truly accurate figure due to the lack of transparency,
particularly in attempting to "net" the myriad cross-exposures of
Despite this "business" being proved
to be outright, lethally dangerous FRAUD by the all-out collapse of the
world's largest OTC derivative guarantor, AIG, it continues to grow,
estimated to have grown by 15% in just the first half of 2011 alone
(2H 2011 figures have yet to be released). U.S. taxpayers funded the
"derivative bailout" through inflation, as the insolvent Federal
Reserve was forced to print trillions of dollars to make whole the
counterparties to failed derivative contracts with AIG, Fannie Mae/Freddie
Mac, Lehman Brothers, and others, both on and off the radar screen, and is
obviously be the "buyer of last resort" for any and all future
Once Wall Street had fully poisoned the
U.S. financial markets, it expanded its reach into municipalities such as
Jefferson County, Alabama, which recently filed the largest ever Chapter 9
bankruptcy filing thanks to toxic derivative contracts sold to it by JP
Morgan, and ultimately the U.S. government itself, via the Federal
Reserve. Consequently, the Fed no longer utilizes "standard
monetary policy" such as daily repurchase agreements through its New
York office, but complex, "off balance sheet" swap and lease
activities that all but a tiny handful of "elites" on earth are
Finally, after it had cast its evil,
irreversible spell on the entirety of America, Wall Street injected its
financial cancer overseas, luring unsuspecting countries into the derivatives
trap with promises of "free profits" and "financial
independence," much as it did to Jefferson County, Alabama. The
earliest adopters were naïve "rubes" such as Iceland and
Greece, but ultimately ALL of Europe was sucked in, and thanks to the
unbreakable chains of interdependence, there is NO WAY to free oneself
outside of outright default, yielding higher interest rates, hyperinflation,
political upheaval, and ultimately, WAR.
THIS is the current state of the world,
and NOTHING will fix it - EVER. The inevitable result is
catastrophic, unmitigated collapse of the largest financial HOUSE OF
CARDS in global history. Only EXPONENTIAL money printing growth will
keep it alive, but the more toilet paper that enters circulation, the quicker
the onset of HYPERINFLATION. Once this contagion is unleashed, which I
now believe will go GLOBAL - even in China - it will be clear to ALL sentient
beings that ONLY a gold standard will enable the financial world to be
reborn, and ultimately saved.
In today's dollars, my
price target for gold is, at a minimum, $15,000-$20,000/ounce to
simply account for OVERT money printing in the United States alone, and for
silver, a ratio to gold of no more than 1:15. However, today's
dollars are depreciating rapidly, yielding a real, growing
possibility of hyperinflation, in which circumstance the "price" of
Precious Metals will be immaterial compared to the necessity of simply
Since the unnatural fertilization of the
SINGLE-CELLED OPTION in 1973, nearly to the year Nixon abandoned the gold
standard in 1971, the derivatives business has essentially grown infinitely.
Fortunately, it now feeds SOLELY on PRINTED MONEY, which is becoming
"scarce" due to increasingly rapid devaluation. In the
ultimate "Catch-22" dilemma, the more fuel it consumes, the less
energy it receives, until eventually the fuel no longer sustains life.
Thus, the "derivatives
monster" has become too large and unwieldy to survive, thus rapidly
nearing its death, and with it the current global financial
system. They say it is impossible to remember one's experience within
the womb. Fortunately for future generations, the experience of the initial
SINGLE-CELLED OPTION is forever preserved for posterity.
PROTECT YOURSELF, and do it NOW!