It’s Monday morning; and despite every “cap” and “attack” algorithm
imaginable, gold has rallied more than $50/oz in the past week, and silver
nearly $1.50/oz. That said, even Zero Hedge, by far the world’s best
alternative news outlet, cannot get past its eternal “blind spot” towards the
most blatant, world-destroying manipulation of all. To wit, it posts
dozens – if not hundreds – of articles discussing every market
“intervention” but Precious Metals; despite dramatic evidence proving such,
including countless admissions spanning not just years, but decades.
Consequently, I wasn’t surprised to see its mindless headline this morning,
of “gold jumps despite stronger dollar.” I mean, my god, the gold price
has had essentially ZERO correlation with the dollar index for the past
decade – as it rightfully shouldn’t, given that the “dollar index” simply
refers to the dollar/Euro and dollar/Yen exchange rates. In last year’s
“if
a nuclear bomb destroyed Europe,” I discussed how it matters not how the
dollar performs against other fiat trash – but to the contrary, how it stands
up against real items of value like gold and silver – over the
long-term. And yet, Zero Hedge still succumbs to the propagandists’ #1
gold myth!
To that end, the ECB and BOJ – issuers of the two largest currencies in
the dollar index – are amidst the most maniacal money printing schemes of all
time; which is probably why Yen-priced gold is at nearly an all-time high,
and Euro gold not far behind. In fact, in the vaunted “BRICS” – where more
than 40% of the world’s population resides – gold prices, on average, are
just 5% below the all-time highs established between 2011 and 2013. That is,
except China, due to the PBOC’s suicidal pegging of the Yuan to the dollar.
Eventually, as we have discussed ad nauseum, said peg must be broken –
yielding exploding Chinese, and worldwide, gold prices. To wit, if the peg is
broken without China simultaneously disclosing its massive gold
holdings, the Yuan will plunge, yielding skyrocketing Yuan-priced gold.
Conversely, if China simultaneously announces its gold holdings, prices will
likely rise parabolically – as the entire world realizes gold is no longer
the “speculative investment” it has been propagandized to be for four-plus
decades; but instead, the real money it’s represented for thousands of
years.
That said, Zero Hedge not only consistently misses the giant pink elephant
that is Precious Metals suppression, but the fact that the dollar is
decidedly NOT strengthening! I mean, yes, the dollar index is up a measly
0.5% this morning. However, in the past month – despite an imminent “Grexit“; expanding Abenomics; and a spate of
similarly “dollar positive” news flow, the dollar index has plunged 7%, to
levels not seen since January. And thus, the international gold bull market depicted above
remained in a holding pattern, even as “dollar-priced gold” has crept higher. Clearly, the Cartel is
laboring under the pressure of a collapsing global economy, exploding
worldwide money printing, surging international gold demand, plunging COMEX
inventories, and the rapidly spreading realization that “peak gold” is upon us.
Not to mention, the ominous storm cloud hanging above the entire world;
i.e., the massive, exponentially growing mountain of debt now estimated to
exceed $200 trillion. Which, by the way, incorporates
only the amount visible to investors – excluding “off balance sheet”
debt (like the $5 trillion owed by nationalized entities like Fannie Mae and
Freddie Mac); “unfunded liabilities,” such as pensions,
social security, and Medicare requirements. And of course, countless
trillions of over the counter derivatives; “shadow
banking” liabilities; “peer to peer” loans; and who knows what else.
As the Toronto Global and Mail put it this weekend, said “global
debt binge casts a shadow over the fragile recovery”; getting it 100%
correct, other than the silly notion of a “recovery” that only exists in
Washington, Wall Street, and MSM propaganda. And frankly, “binge” doesn’t do
justice to the worldwide financial hell Central banks have wrought since the
unprecedented fiat Ponzi scheme launched in 1971 broke in 2008 – as
sovereigndebt alone (again, the “on balance sheet” portion only) has
skyrocketed by 76% since; whilst total worldwide debt/GDP has surged from
269% to 286%. And don’t forget that in recent years, nearly all countries,
the U.S. included, have “adjusted” GDP calculations higher to prevent
this ratio from rising – by including all manner of non-productive
investments, “intangibles,” and illegal, non-tax generating “businesses.” On
an absolute basis, I wrote of the incredible $57 trillion of global debt
incurred since the 2008 crisis in February’s “inevitable global sovereign debt collapse“;
and now that mainstream publications like the Globe and Mail are
writing of it as well, it’s just a matter of time before the entire world
realizes we are headed for the largest, most comprehensive debt default – or
hyperinflation – in global history.
As for the “tectonic market shifts” I warned of last week,
this morning’s renewed Treasury bond plunge – the third such episode in two
weeks – highlights how precariously the aforementioned, unprecedented debt
edifice sits, as even the slightest rate increase will destroy the
global economy like a nuclear bomb. Predictably, 99% of the financial
community – and for that matter, Westerners in general – has not a clue
what’s coming, as demonstrated by the fact that yet again, every
single economic data release this week is predicted to improve. To that end, they’re
already “0 for 1″ – as the massively upwardly-biased National Association of
Homebuilders’ “Housing Market Index” not only didn’t rise as expected, but
instead plunged. And this, just two days ahead of publication of the
April 29th FOMC meeting “minutes” (likely to be doctored to
account for current market conditions); and four days before Whirlybird Janet
gives a heavily scrutinized speech on the Fed’s present “economic outlook.”
OK, now on to more “fun” topics; like the king of financial propaganda,
the Economist, yet again making a call that in hindsight, will be as
unequivocally wrong as its “drowning in oil” article of March 1999 – in
which it claimed oil would fall from its then price of $10/bbl to $5/bbl over
the “long-term.” Instead, it nearly bottom-ticked the oil bear market to the week,
before it surged 15-fold over the ensuing nine years. Trust me, I know the
story well – having been an oilfield service equity analyst at the time,
suffering through the same misery I have endured as a Precious Metal advocate
since 2011.
Now, let’s fast forward to Sunday, December 1st, 2014 – the day
after ”Lady
Macbeth” Thomas Jordan of the Swiss National Bank successfully duped the
Swiss people into rejecting the “Save our Swiss Gold” referendum. That night,
gold and silver prices were smashed to $1,140/oz and $14.10/oz, respectively
– prompting MSM ringleader Yahoo! Finance to on Monday herald the end of the
gold “super-cycle,” just hours before PM prices surged, ending the day
at $1,205/oz and $16.50/oz, respectively. However, at least Yahoo! had
the common sense to shut up afterwards – as opposed to the Economist,
which two weeks ago, with gold and silver trading at $1,165/oz and $15.90/oz,
respectively, posted an article even more devoid of logic than 1999’s
“drowning in oil.” In their view, gold prices were, for all intents and
purposes, permanently “buried.”
Unlike “drowning in oil,” gold’s “burial” story was not on featured on the
front page. However, the Economist went out of its way to find a photo
“representative” of gold’s death; and in true propagandist form, this is what they came up with – with
an equally depressing by-line suggesting “an ever more marginal existence.”
Which it certainly has been for gold miners – and likely will be even after
prices surge, when worldwide governments nationalize everything in sight.
That said, the premises of the article are so outlandish, it’s hard to
even think about such lunacy without laughing – let alone, to write
about it. To wit, not a single point made has even the remotest link to
reality – from a supply, demand, economic, demographic, cultural, or monetary
perspective. Which is why, thankfully, I don’t need to personally take
this propagandist drivel apart point-by point – but instead, can point you to
Pater
Tenebrarum‘s dissection of it in his aptly titled article, “a proven contrary indicator.” Which, frankly,
is EXACTLY what I expect this article to represent – as if the Economist innately
seeks to maximize its humiliation.
This weekend, someone posted a comment on the Miles Franklin Blog’s investor
forum that “we all know manipulation is going on. But if it can’t be stopped,
why worry about it?” Why? Because such manipulation not only can, but always
has been stopped; and in this case, it’s not just gold and silver prices
that are way out of whack, but all financial markets. Inevitably – and
perhaps, imminently – the mirage portrayed by the bastardized progeny of
unprecedented global money printing, market manipulation, and – as depicted
by the aforementioned Economist article – propaganda, will be
destroyed in epic fashion. And when it is, only those who were wise enough to
see through it – and prepare for what’s coming – will be in a position
to financially survive; let alone, thrive.
Hopefully, you will be one of the lucky few that joins the “new 1%”
of the coming monetary age. And also, they you recognize that the road to
such “utopia” will be extremely scary. Remember, gold and silver are not
“investments” held with hopes of “appreciation”; but to the contrary, the
only time-honored methods of shielding your savings, and insuring them
from political, economic, and financial cataclysm. Miles Franklin has been
selling such protection for decades – and would be honored to have the
opportunity to earn your business.