It’s early Saturday morning, and it took me ten minutes to sift through the ten pages of “PM-bullish, everything-else-bearish” headlines gathered since my last article was published Wednesday evening. To that end, I cannot recommend more vehemently the podcast I did with Michael Krieger of libertyblitzkrieg.com on Thursday, regarding the outlook for the “post-inauguration world” that commenced yesterday morning.
Now that candidate Trump has become President Trump, the world as we have known it is about to dramatically change – starting with the imminent death of the ridiculous “Trump-flation” meme cooked up on Election Eve, when his “surprise” election, despite the best rigging efforts, forced the “powers that be” to double down on what was an already historic level of market manipulation, to convince the masses that in fact, Trump’s election was a “good” thing; as opposed to the “game plan” for their until then expectation of a Hillary victory; i.e., manipulating markets to foster the equally ridiculous propaganda meme that a Hillary election was “good,” and a Trump election “bad.”
Which in both cases, entailed goosing the “Dow Jones Propaganda Average” with dead ringer, hail mary, and DLITR, or “don’t let it turn red” algorithms; and conversely, suppressing paper gold and silver with its massive repertoire of time-tested “cap and attack” algos – as listed in last week’s “12:00 PM EST cap of last resort.” That said, the 17-year Precious Metals bull continues to inexorably advance – particularly in the world’s 180 or so non-reserve currencies – with both metals having recaptured their 50 day moving averages, of $1,183/oz and $16.75/oz, respectively; with the far more meaningful 200 DMA’s, at $1,268/oz and $17.88/oz, just a “hop, skip, and jump” away. That said, gold’s 200 month moving average also happens to be $1,268/oz – at a time when physical demand is exploding, and supply set to dramatically decline; whilst silver’s is $18.82/oz, a level that is already close to being achieved in the Eastern Hemisphere, given persistently huge physical premiums in China (and likely, India).
Now that Trump has been inaugurated, 2017 has “officially” arrived – as starting Monday, the “hope” of a new, better world will be replaced with the reality of the worst global economy of our lifetimes – and the soon-to-be-recognized fact that nothing Trump says or does can fix it. Let alone, his fictional “plan” to create 25 million jobs and 4% real GDP growth, whilst lowering taxes for all Americans, repealing Obamacare, and reducing the budget deficit. Which clearly the financial markets are already hinting at – “Dow Jones Propaganda Average” goosing notwithstanding – given that interest rates refuse to materially rise, even as Treasury bond selling by foreign governments hits unprecedented highs. To that end, does anyone else see the “coincidence” that the bellwether 10-year Treasury yield is having such trouble piercing the 2.5%, as discussed in last week’s “2.5%, ‘nuff said?” Perhaps, because the historic bubbles America’s Fed-created ZIRP addiction have caused, are serially deflating.
This, despite Janet Yellen claiming the U.S. is essentially at “maximum employment” – despite a record 95 million people falling out of the labor force; real wages at multi-decade lows; and multiple jobholders, an all-time high. Pitiful levels, I might add, that must weaken in the coming years, due to the historically ugly demographics I have discussed for years. Not to mention, the world’s leading demographic expert, Harry Dent – who unfortunately, is also one of the world’s leading “non-experts” in Precious Metals. To that end, his latest commentary regarding America’s horrifying demographic predicament, set to worsen dramatically in the very near-term, is must read material.
And then there’s the dollar, which as of yesterday will no longer be supported by the “strong dollar policy” fabricated by Robert Rubin in 1995 – which in essence, entails nothing more than gold and silver price suppression; as we learned yesterday – care of yet another timely WikiLeaks disclosure – all the way back to the gold standard’s abandonment in 1971; and relentless, Goebbels-eque propaganda, despite fiscal and monetary policy that was anything but dollar-supportive.
As I espoused earlier this week, the “inflationary genie” was permanently let out of the bottle on Monday, when Trump inadvertently put the gold Cartel “on notice,” by unequivocally stating the dollar was “too strong”; and thus, needs to be overtly weakened. Which New York Fed President Bill Dudley not-so-subtly agreed with on Tuesday, setting the stage for Whirlybird Janet to “seal the deal” by re-joining the “final currency war” later this year – as evidenced by her damning, and laughably paradoxical statement this week, that despite the core CPI now being above the Fed’s 2% “target” for more than a year, “inflation” will not reach 2% until the “next couple of years.” And by the way, if you want to understand the propagandized fallacy of how currency debasement doesn’t benefit, but harms nations, I can’t recommend this article enough.
The ”final currency war” is about to take on epic proportions, now that the European Union is on the brink of collapse; the “Land of the Setting Sun” has descended into economic oblivion; post-BrExit “hope” is imploding; and even the mighty Chinese are admitting to their lowest GDP “growth” in the three decades such data has been published. Which, as we again were reminded of last week, is as upwardly rigged as any on the planet. Throw in the other giant pink elephant in the room – of how OPEC’s “production cut” is not enough to offset inexorably weakening supply/fundamentals, both in the U.S. and overseas, and it couldn’t be more obvious that the downside to the world’s largest revenue-producing industry is far greater than the upside; or that hyperinflationary monetary policy adjustments are coming shortly, as suggested by Bank of Canada Governor Stephen Poloz on Wednesday.
I mean, what part of the ECB last month “unexpectedly” extending QE through the end of 2017 – and earlier this week, following this hyper-inflationary action with the following statements, could more loudly scream of Mario Draghi’s intentions to destroy the (already dying) Euro?
*DRAGHI SEES NO CONVINCING UPWARD TREND IN UNDERLYING INFLATION
*DRAGHI SAYS UNDERLYING INFLATION PRESSURES REMAIN SUBDUED
*DRAGHI SAYS RISKS TO ECONOMIC OUTLOOK REMAIN ON DOWNSIDE
*DRAGHISAYS GOVERNING COUNCIL READY TO INCREASE (QE) SIZE AND/OR DURATION, IF “THE OUTLOOK BECOMES LESS FAVORABLE,” OR IF “FINANCIAL CONDITIONS BECOME INCONSISTENT WITH FURTHER PROGRESS TOWARDS…SUSTAINTED…INFLATION”
The way I see it, the inevitable collapse of history’s largest, most destructive fiat Ponzi scheme has never been more imminent – although arguably, it has already occurred in dozens of nations whose currencies have already dramatically declined. Which is why, in recent weeks, I have predicted that 2017 will go down in the history books as a year of money printing, draconian government actions, and monetary revolution.”
Yesterday’s official arrival of the “post-inauguration world” will unquestionably catalyze a sobering dose of reality – as graphically depicted below, of how the 15-year highs in U.S. economic “hope” generated in the “pre-inauguration world” are about to be violently dashed…
…whilst simultaneously, the Precious Metal bull market – which has been “held in check” since the Cartel’s “point of no return” manipulation proclamation in 2011 (albeit, not so much in the world’s other 180 currencies) – is on the verge of a significant, upward advance.
