It’s Wednesday morning – and my head is not only spinning from the
swarming, worldwide tsunami of “PM bullish, everything-else-bearish” news;
but the most egregious – and ultimately, self-defeating – market manipulation
of all time.
As for said “news,” just how much uglier can it get? Between
exploding rent, healthcare, and now gasoline prices (despite some of the
ugliest energy supply/demand fundamentals imaginable); collapsing economic
data (Target joined the ranks of retailers reporting abysmal earnings, and an
even weaker outlook); and a renewed plunge in nearly all commodities (except
“oil PPT” supported crude); currencies; and even stock markets (particularly
China); it couldn’t be clearer that if the “Big One” isn’t already upon us,
it’s arrival has never been closer.
As my good friend Craig Hemke writes in thisexcellent
article, an “Epic Battle” for control of Precious Metals prices – which the
physical market must, and will, win – has begun, as the COMEX
“commercials” have quite obviously “gone for broke,” in an historic attempt
at throwing “good” fiat currency after bad. Which ironically, only digs
them deeper into the historic supply/demand hole they’ve created for
themselves, by causing an unprecedented
explosion of physical demand; the “untimely” onset of peak
production; and the collapse of above-ground inventories to record lows.
To wit, the “commercials’” record paper gold and silver short positions, amidst
record open interest (read, naked shorting). This, mere weeks after
Deutschebank admitted the PM market is suppressed; whilst the Shanghai
Fix was launched to compete with the Western criminals. In other words,
the “New York Gold Pool’s” days are numbered; as every imaginable fundamental
factor – from an extreme supply/demand imbalance, to negative interest rates
and parabolic money printing – are going against it. Heck, even JP
Morgan admitted that a “new, and very
long gold bull market” has commenced; as quite obviously, it’s becoming
impossible to ignore the raging PM bull market.
Heck, even after the desperate efforts to reverse the past two days’
Cartel-killing “key reversals” – including Monday’s comically blatant
“dumping” (read, naked shorting) of $2.3 billion of paper gold when it
threatened to approach $1,300/oz; and today’s equally obvious COMEX-opening
raid; gold prices in nearly all currencies are near, at, or above previous
all-time highs.
Don’t believe me? Well here’s a list of how various, key currencies
are doing this morning relative to gold. As whilst the “powers that be”
try to pretend the Fed is, LOL, preparing to raise interest rates – whilst
economic data collapses, interest rates are plunging, the yield curve is
historically flat, $10 trillion of global sovereign bonds are trading at
negative yields, next month’s “BrExit”
vote has the potential to lurch financial markets into chaos, and money
markets themselves are predicting no such action until mid-2017, currencies
around the world are freefalling. As you can see, not only is gold up
in most currencies today; but compared to previous all-time highs
(invariably, from 2011-12), prices are doing just fine. And I assure
you, it’s not just the selected group of highly watched currencies below
where gold is surging, but allcurrencies.
And again, I cannot emphasize more how institutional PM demand is
exploding – even here in the United States of Fiat Currency Fraud. This
is why gold ETFs had more inflows in the first quarter than at any time since
the 2008-09 crisis (when global physical supply “sold out”); why mining
stocks are surging; and why the premiums on closed-end funds, which I have
exhaustively written of for months, continue to rise.
To wit, Sprott’s PSLV silver fund has already digested its recent
offering, causing it to again trade at a premium to Net Asset Value; whilst
its PHYS gold fund is trading at its highest premium in three years; as the
much larger Central Fund of Canada, ticker CEF, closes in on trading at a
premium itself. In other words, there’s going to be a LOT more institutional
buying in the coming months; such as, for instance, the State of Texas, which
is rushing to complete the first state-owned,
state-run gold depository!
Regarding today’s publication of the “minutes” of the FOMC’s April 27th
meeting – which are invariably, and unquestionably, doctored in consideration
of market conditions at the time of publication, the Fed will clearly be
“playing with fire” if it attempts to peddle anything other than the
aforementioned economic and financial market facts. And the scary thing
is, that amidst such carnage, even the Fed’s own, suppressed inflation
statistics are surging – creating a toxic, stagflationary cocktail that at
some point soon, must be addressed. And since higher interest
rates are an absolute impossibility – to the contrary, negative rates are far
more likely – it shouldn’t be long before whatever remaining shards of hope
in the Fed’s ability to “control” the economy and markets will permanently
die. At which point, if you haven’t secured your personal stash of real
money already, it will be forever too late.
