It’s Friday morning, and the astounding long, massively broad list of
“PM-bullish, everything-else-bearish” headlines since Wednesday afternoon’s post-FOMC
Audioblog is incredible to behold. Which is why it’s never been
more obvious that Precious Metals are the imploding fiat Ponzi’s “canary in
the coal mine”; “Achilles’ Heel”; and all other similar analogies, metaphors,
and comparisons combined. Or, for that matter, the “enemy” of all financial
markets – which since 2011 in the West, and 2015 in the East, have been
commandeered by desperate, dying governments.
To no avail, I might add, as the average global currency is at, near, or
well below previous all-time lows; whilst commodity prices are at
multi-decade lows, led by the world’s most important industrial product,
crude oil, which is about to breach $40/bbl as I write; sovereign yields are
at all-time lows, with many below zero; and aside from “last to go” markets
like the blatantly manipulated “Dow Jones Propaganda Average,” most equities
have been in bear markets for the past year-plus. Worse yet, to achieve
such “positive” results, already record-high debt levels have been increased
exponentially; whilst the world has been cast into a state of expanding
political and social revolution, which will parabolically expand as
the “99%” whose lives have been compromised by such maniacal, self-serving,
suicidal policies fight back.
Yes, the game is truly over – although the dénouement, of exploding
Precious Metal prices, has yet to wash over TPTB’s best laid plans like a
tsunami. True, gold prices have reached, or are very close to, record
highs in the vast majority of global currencies. However, until it
breaks out in the land of PM suppression, the United States of Criminality;
taking silver with it; the powers that be will continue to destroy our lives
further, by hyperinflating currencies toward their final resting place in
Davy Jones’ currency locker.
To wit, yesterday alone, we saw Deutsche Bank’s stock, just one day after
a horrifying earnings report – which all but guarantees its inevitable
downgrade to junk status – fall to within a dollar of the all-time low
achieved in last month’s post-BrExit crash. Which, I might add, will
unquestionably be breached if it fails the ECB’s “stress test” tonight –
assuming, of course, the results aren’t fraudulently altered to defer
Deutsche Bank’s, and the entire European banking system’s, certain
death. Heck, Bank Monte Paschi, Italy’s third largest bank, is so
obviously going to fail, it is desperately seeking a bailout today,
with the results mere hours away.
Sticking with the theme of a collapsing Europe, Catalonia’s Parliament
voted to secede from Spain Wednesday, taking 25% of the dying, massively over
indebted PIIG’s tax revenue with it. But don’t worry, there’s nothing
to see here. Then, this morning, it was reported that Eurozone 2Q GDP
“growth” – you know, before the impact of the June 23rd
BrExit referendum – plunged to just 0.3% on an annualized basis; whilst
“inflation,” despite an historically high European cost of living, was just
0.2%, giving the ECB the “all systems go” to continue destroying the Euro, in
“whatever it takes” fashion. But don’t worry, such results were “in
line” with expectations, so all’s well.
Around the world, the Nigerian Naira, used by 175 million citizens of
Africa’s most populous nation, is on the verge of Venezuelan-style
hyperinflation. In China, stocks are plunging anew; in Australia and
the UK, Central banks are expected to cut rates in the coming weeks – in the
latter’s case, to zero or below. And in Turkey, possibly the most
dangerous geopolitical hotspot on the planet, has in its post-“coup” world,
transformed from a borderline civilized nation, to a pro-Islamic dictatorship
run by a murderous, psychotic madman.
Here in the States, whilst the treasonous criminal Hillary Clinton was
nominated for the well-deserved humiliation and legacy destruction she will
suffer at the hands of Donald Trump, Ford Motor’s stock plunged, after
signaling the end of the biggest auto production – and sub-prime auto lending
and leasing – bubble in U.S. history, per the quotes in its earnings report
that “we don’t see growth…in the near-term” and “the U.S. industry has
started to plateau.” This, with auto inventories at all-time highs,
suggesting an inventory-to-sales ratio already near 2008’s spike top high will imminently surge –
yielding massive corporate losses, and equally massive layoffs in the years
to come. This, amidst an 18-month streak of year-over-year durable
goods order declines, for the nation at large – which will plunge to Hades
once the aforementioned, psychotic rate of superfluous auto inventory is shut
down like a winterized sprinkler faucet.
For that matter, an hour from now, second quarter GDP will be
announced. Which incredibly, the “Street” expects to be +2.6%, despite
the aforementioned, ongoing plunge in durable goods orders. Not to
mention, factory orders; industrial production; retail sales; corporate
earnings; and now, commodity prices and currencies as well. But wait,
just yesterday, less than 24 hours from the release, the Atlanta
Fed’s “GDP Now” estimate was slashed from 2.4% to 1.8% (in reality,
such figures should have negative signs in front of them) – based
not just on Wednesday’s miserable, minus 4% durable goods number, but
yesterday’s trifecta of “worse than expected” economic data, including weekly
jobless claims, the Kansas City Manufacturing Index, and the international
trade deficit. Throw in the tell-tale signs of collapsing high-end real
estate markets and sales at Christy’s auction house, to give but a few
examples, and you can see just how close the U.S. to finally ending the, LOL,
third longest “expansion” in its history. And why, I might add, the
title of Wednesday’s post-FOMC audioblog was “the
Fed died today.” AND WOW, WOW, WOW – AS I EDIT, 2Q GDP
“GROWTH” WAS REPORTED TO HAVE BEEN A MEASLY 1.2%, VERSUS “EXPECTATIONS” OF
2.6%. WORSE YET, 1Q GDP “GROWTH” WAS REVISED FROM 1.2% TO 0.8%!
Amidst this gloom and doom – which I assure you, is just getting
started, the PPT “dead ringer” the “Dow Jones Propaganda Average” higher –
whilst gold was again capped at $1,350 ounce; and, more importantly, silver
at the Cartel’s “ultimate line in the sand” at $20.50/oz. Which, as
I’ve discussed ad nausea since the Independence Day Eve surge – will utterly
destroy the Cartel when broken, as it represents its 50 month moving
average. NOTE: AS I EDIT, GOLD’S BACK UP TO $1,348, AND
SILVER $20.35/OZ.
Which brought us to last night’s “most important Bank of Japan meeting
ever”; in which, it was expected that Kamikaze – I mean, Haruhiko – Kuroda
would support Shinzo Abe’s psychotic $265 billion fiscal stimulus initiatives
with its own bazooka monetary stimulus. “Unfortunately” for the “1%”
desperate for the Yen to be vaporized instantly, he “only” decided to double
the BOJ’s lunatic equity monetization scheme. I mean, it’s been ten
months since we learned the BOJ owned 52% of all Japanese equity ETFs;
and four months since it was reported the BOJ was a top ten holder
of 90% of the 225 Nikkei stocks. Yet, that apparently wasn’t enough, as
starting now, the BOJ is doubling its annual equity ETF purchases
from $30 billion to $60 billion. My friends, this is pure,
unmitigated insanity, as 1) the cost of living in Japan, already one of the
world’s most expensive nations, despite the “deflation” it is purported to be
suffering, will surge further; 2) as I wrote in April’s “myth of QE
to infinity,” the BOJ will soon run out of stocks to buy; 3) per May’s “communism,
the ultimate end game,” the Japanese government will shortly become a
significant – and in some cases – majority stockholder in countless, diverse
corporations. This, amidst an economy already in free fall, as
evidenced by nine months of dramatically falling exports, before the
current commodity price plunge (see today’s horrifying ExxonMobil earnings
release), and post BrExit European contraction has even set in. And oh
yeah, the Japanese “demographic
hell” that will only cause citizens’ spending to plunge further,
particularly now that the Yen is being devalued, against real items of value,
at an historic rate. Which is probably why, despite 20 years of zero –
and now, negative – interest rates; and the aforementioned, psychotic levels
of QE, the Japanese stock market remains 60% below its 1989 peak. Which
is particularly scary given that the nation’s debt/GDP ratio is approaching
300%, its currency is being hyperinflated, its economy is collapsing, and
said demographics will exacerbate all of these horrifying trends.
But LOL, what did the Yen do upon this announcement? Yep, it surged
higher – yet again, proving the BOJ’s credibility has died; just as
we saw when the Yen rose after negative interest rates were “unexpectedly”
announced in February. Side note – yet again, proving what I
have said all along about Precious Metals “relationship” to the
“all-important” dollar/yen exchange rate – as despite the Yen rising, gold
and silver were viciously capped when they tried to surge following this
violently PM-bullish announcement.
To that end, I have pounded the table all year of how no matter what the
BOJ does, they will not be able to weaken the Yen further against the dollar
– despite the fact that essentially all other fiat trash will
continue to free fall against the, for now, “reserve currency.” The
reason being, that despite the fact that a collapsing Yen will only destroy
Japan quicker, this is what the BOJ wants. And since the BOJ
has destroyed itself after two decades of monetary lunacy, the markets won’t
allow this to happen – principally because the Yen, as the “funding currency”
of global “carry trades,” will face relentless upward pressure as these
trades are “unwound.” And by unwound, I mean “max pain” for the
thousands of hedge funds and institutions being bankrupted by their idiocy, in
following the Central bank Pied Piper too long. I mean, just read what
industry insiders are saying about what it’s like investing in today’s
(rigged, overvalued) financial world, despite the “Dow Jones
Propaganda Average” trading at a record high (in nominal terms, excluding
survivor bias).
“We have never had so many traders saying, we are totally lost.”
- Andrew Garthwaite, Credit Suisse Chief Strategist
“Watching the epic battle scene in this season’s penultimate episode
of Game of Thrones should give investors a sense of how it has felt to manage
money during some periods over the past year.”
- Dan Loeb, Manager of Third Point Partners, one of
world’s largest hedge funds
Boo hoo, cry me a river, Andrew and Dan. You’ve
had the Fed, PPT, ESF, and every manipulative organization on the planet
supporting your stupid trades, in massively overvalued securities, for the
past two decades. Meanwhile, we’ve been prudently investing in the
right place, for the right reasons, but been punished by equally vicious manipulative
suppression. But do you know what? It is us in the bull
market now, and you on the way to the poorhouse. Not that I
look forward to the scary world directly ahead of us; but at least I know
that I, and Miles Franklin Blog readers who have prepared
beforehand, will be saved. And for those that haven’t yet done so, I
vehemently ask, what on Earth are you waiting for?
