This just isn’t fair! I mean, there are so much, dramatically
escalating, exponentially expanding “horrible headlines” to discuss, I could
literally tape a 30 minute Audioblog each day, and still not
appropriately cover all the terrifying, wildly Precious Metals-bullish
material. Especially following a weekend, when in this case I have 48
hours of new material since my last article.
Like, for instance, the fact that one of Hillary Clinton’s “private
server” emails proved what many have speculated on for years; i.e.,
that a principal catalyst – if not the principal catalyst of America’s
2011 invasion, and destruction, of Libya was to steal its $7 billion worth of
gold. Which, in my mind, was undoubtedly sold surreptitiously,
to “kick the strong dollar can” a few months further. And I cannot
emphasize “a few months” more, given that global physical gold demand has
been so strong, said $7 billion was likely hovered up by governments, Central
banks, and large investors in short order – to NEVER again see the light of
day.
Back to the “horrible headlines,” how about the now public fact that, in reality,
only 11,000
actual “jobs” were created in December, compared to the 292,000 “seasonally
adjusted” positions fabricated by the BLS. Or North and South Korea on
the brink of war? Or Saudi Arabia and Iran? Or this weekend’s massive
anti-Moslem protests in Germany – which itself, is on the verge of political
anarchy? On that topic, I might add, suffice to say that Germany, no
matter how much it’s “reformed” in recent decades, remains the world’s most
hated nation – having started two World Wars; driven the European Union into
the ground; and oh yeah, defrauded millions of auto buyers, via Volkswagen’s
“Diesel-Gate” scandal. Trust me, if the “glue and band-aids” holding
Europe together falls apart – which Germany’s political leadership most
certainly is – the European Union, Commission, and currency itself aren’t
long for the Earth.
To that end, the Netherlands’ upcoming vote on the European-Ukrainian
association treaty; or the UK’s inevitable “BrExit” vote; Catalonia’s
expanding secession movement; a Greek “bailout” failure; or a related surge
in anti-Euro sentiment in Portugal, Spain, Italy, or France – among others –
could each single-handedly plunge Europe into chaos. And with
each passing day, as the global economy collapses further, Europe’s
“migrancy” crisis will only worsen. In turn, expanding the global “war
on terrorism”; which, when all is said and done, may well bring about the
type of “leaders” that made Germany infamous – like Donald Trump, for
example. Which is why, more than ever, the urgency to PROTECT yourself
has never been stronger!
Still on this weekend’s news, miserable Chinese economic data, confirming
four years of deflation, catalyzed yet another equity crash – with the
Shanghai Exchange plunging 5.3% this morning, and Shenzhen 6.6%, amidst
cratering commodities, currencies, and money market liquidity. To that
end, PBOC Yuan intervention has become as blatant as its “National Team’s”
stock market intervention; the former, comically attempting to slow the devaluation
they initiated; and the latter, despite having purchased $300 billion
of stocks in the past year alone, failing as spectacularly as the Federal
Reserve’s mythical economic “recovery.” Which, by the way, I’ll return
to momentarily.
As for commodity markets – EGAD! As I write early Monday morning,
crude oil is down to $32.50/bbl, whilst “Dr. Copper” – or as I deemed it two
years ago, “Dr. Death” – is below $2.00/lb for the first time in seven years,
enroute to breaching 2009’s spike bottom low of $1.40/lb; which, I might add,
is the same price copper traded at 27 years ago! Perfect timing, I
might add, as hundreds of base metal miners are undertaking their year-end
operational reviews and reserve/resource revisions as we speak. Which,
upon their conclusion in the coming weeks, will likely yield massive write-downs,
mine closures, and capital expenditure reductions.
To that end, recall that in October 2014’s “Miles
Franklin All-Star Silver Panel Webinar,” I espoused that global silver
production could eventually plunge 25%-50%, given that nearly 60% of silver
production is the byproduct of copper, lead, and zinc mines. Next,
recall last month’s “horrible headline that stands out above the rest” – of
how U.S. silver production plunged 20% year-over-year in September. On
that note, consider Steve St. Angelo’s article yesterday, describing
how said trend continued in October, prompting him to forecast what is rapidly
becoming “common knowledge”; i.e., “peak silver” (and gold) have decidedly
arrived. To that end, here’s what he wrote to me this weekend.
Which, I might add, will only add to the suspense of the upcoming “2016
Silver Update Webinar” I’ll be hosting on January 27th – featuring
David Morgan and Chris Marchese of Silver-Investor.com, and Miles Franklin’s
own Andy Schectman.
“I believe I am updating my forecast on silver production going
forward. I was more conservative, and thus thought the decline would be
slow and steady. However I now believe we can experience a Seneca Cliff
in global silver production. So, in that vein, you may turn out to be
correct.”
Which brings me to today’s principal topic, regarding three words we are
about to hear increasingly often, from countless global political, economic,
and financial “leaders” – i.e., “we were wrong.” To the contrary, the Miles
Franklin Blog can claim the polar opposite, having warned of everything
from collapsing economies, commodities, and currencies; to surging money
printing, Precious Metals demand, and political, geopolitical and social
unrest.
To wit, even I was awed by San Francisco Fed President John
Williams’ admission this weekend – mere days after ex-Dallas Fed
President Richard Fisher admitted the Fed purposefully inflated a
stock market bubble – that the Fed was “wrong” when it predicted a drop in
oil prices would be a “big boon for the economy.” This, from a man who last
week, arrogantly patronizing listeners in a CNBC interview with media-propagandist-in-chief
Steve Liesman, claimed the “U.S. economy is in good shape,” and “three to
four rate hikes this year sounds about right!”
Better yet, after said “admission,” he went right back to his lying,
nation-destroying ways, in espousing that – get this – “consumer spending has
been growing faster than you would otherwise expect.” Really? I
mean, you’d have had to have some mighty low expectations to consider the
worst holiday spending season since the height of the 2008 financial crisis “better
than expected.” To that end, for the entirety of 2015, retail sales are
negative, for gosh sake. As are industrial production, corporate
capital expenditures, factory orders, and durable goods orders – that is, if
you exclude government military spending, which just had its largest
one-month surge since…drum roll please…9/11!
My friends, if there was ever a damning statement of central
planning failure, it is this one. And trust me, many others are coming
– from the end of the Fed’s now 14-month belief that falling oil and export
prices are “transitory”; to its three-year-plus propaganda of economic
“recovery”; to labor market “improvement”; or its comical belief that CPI
inflation is destined to exceed the Fed’s 2% target in the “medium-term.”
Perhaps a negative 4Q GDP print will do the trick, in finally causing such
words to translate to hyperinflationary actions. Or
perhaps a massive bankruptcy; or an accelerating market plunge; or a
terrifying geopolitical event. Or heck, a Cartel-busting Precious
Metals surge! But rest assured, where there’s smoke, there’s
fire. And when one after the other, Fed governors themselves, past and
present – including “Maestro” Greenspan himself – are starting to “jump ship”
and turn traitor on their colleagues, you know we’re closing in on not only
the inevitable “Yellen Reversal” – when the Fed is forced to admit its
failure – but the hyperinflationary policy responses that every Central bank
in history have undertaken amidst the final, hyperinflationary phase of their
respective fiat currency Ponzi schemes. Which is why, more than ever,
the urgency to PROTECT YOURSELF has never been stronger!
