I wasn’t planning to write yesterday morning, before traveling to Phoenix
for last nights – as it turns out, wildly successful – “Q&A Rap
Session.” To that end, we will be announcing new meetings in Houston
and Chicago later this week, atop the Ft Lauderdale session already booked
for April 21st.
However, the onslaught of bearish PM “newsletter writer” articles in the
past week – of how the Fed meeting would validate the “commercials’” extreme
short position in gold and silver futures, I felt compelled to awaken at 3:00
a.m., on four hours of sleep, to write “the
COT’s don’t matter, Part II.” Which, after the Fed figuratively
“wet itself” with its pathetically childish – and decidedly
credibility-destroying – policy statement, was validated in spades.
Consequently, as I write early Thursday morning at 4:30 AM PST – again, after
four hours of sleep – gold, silver, and platinum have essentially recouped all
of their post-ECB, Cartel-orchestrated losses; setting PMs up for a
significant breakout in the coming weeks – potentially, catalyzed by silver’s
imminent “confirmation” of gold’s “golden cross” last month (50 DMA crossing
above its 200 DMA) as early as next week. And when it does, it won’t be
due to falsified “rumors” of “production cuts” – as the “oil PPT” is
attempting in the hopelessly oversupplied crude market; because, LOL, 15
years of Cartel price suppression has imposed “natural production cuts” on
the PM mining industry, yielding peak gold and silver. This,
amidst the highest physical demand of all time – as the hyperbolic
(read, hyper-inflationary) terminal stage of history’s largest, most
destructive fiat Ponzi scheme commences.
Equally vociferously, I have maintained that Central bank credibility is
DEAD, DEAD, DEAD; and thus, whether Janet Yellen opted to talk “hawkishly” –
by mistakenly believing the PPT’s historic equity and commodity short squeeze
suggested economic “recovery” (ironically, the same day economic bellwether
Caterpillar massively slashed guidance); or “dovishly,” by taking
future rate hikes off the table, it may well backfire on her best laid manipulative
plans. In other words, “policy error II” – which it decidedly turned
out to be, in catalyzing a massive dollar plunge; plummeting Japanese and
European stock prices (ominously, led by DEUTSCHEBANK); and oh yeah, surging
Precious Metal prices. And by the way, guess which “brilliant”
investment bank joined its miserable “top trades of 2016” call from January
(5 of 6 of which have already been stopped out); with its “short gold at
$1,200” call of February (about to be stopped out); with its “FOMC statement
will cause a dollar surge” call of yesterday (which has likely been
stopped out already)? Yep, Goldman Sachs – which I assure you, directly
or indirectly, is one of the “commercials” that took the massive COMEX gold
and silver short positions that are being annihilated as we speak; and at
some point, must be “covered,” as logic dictates.
To wit, Whirlybird Janet’s “unexpected” dovishness launched the “final currency
war” I first warned of three years ago into “hyperspace”; which will
undoubtedly be elevated exponentially when the BOJ meets next – as last
night, whilst the Yen surged despite Kuroda espousing his intention to
take rates as low as -0.5%, Japan reported its biggest plunge in exports to
the U.S. in five years. (UPDATE – as I edit, the BOJ just intervened in the
currency markets, to smash the Yen back down!).
Not to mention, the ECB – which one week ago, made the most
hyper-inflationary announcement in Central bank history; only to watch the
Euro surge due to 1) markets laughing in Draghi’s face; and 2)
Whirlybird Janet one-upping him yesterday. In fact, the Euro has surged
to multi-month highs since last week, whilst European stocks have
declined (again, led by DEUTSCHEBANK). And what’s this I see? The
top headline on Zero Hedge this morning is that Norway, too, cut rates this
morning – in the process, threatening to take them negative as well.
Gee, I wonder when we finally get the long-awaited, Cartel-catalyzed “short
squeeze” in Precious Metals that finally launches the dollar-priced gold bull
market into the stratosphere, as has already occurred in essentially all other
currencies.
To that end, gold is, on average, roughly 10% from its all-time
high nearly everywhere on the planet – and in many cases, well above previous
highs. Thus, given that prices in the world’s most heavily overprinted,
heavily overvalued currency are still 35% below their 2011 highs – and in
silver’s case, 70% below; as supply contracts, inventories vanish, demand
explodes; and oh yeah, said “commercials” are mega-short, whist the Fed goes
full-blown dovish; how long can it possibly be before dollar-priced gold,
too, dramatically surges? And with it, silver; platinum; and the odds
of critical industry-wide metal shortages?
As for what the Fed actually said, even I was taken aback at its
extreme dovishness – calling to mind San Francisco Fed President John
Williams’ smug prediction of “four rate hikes in 2016” just three months
ago. Which has already been refuted; and more likely, will be closer to
ZERO than four. To wit, the Fed’s “dot plot” – which financial markets
have been increasingly ignoring, in the ultimate repudiation of the
age-old mantra to “don’t fight the Fed” – now assumes just two rates hikes in
2016; which in my view, will not only not occur, but ultimately be replaced
by rate cuts into negative territory – particularly during an election
year, as Janet Yellen’s only chance of re-appointment lies with a Hillary
Clinton victory.
As for its pathetic “word cloud,” fabricated in a room full of more than
100 taxpayer-funded lackeys, the key changes could not have been more dovish
– specifically, the insertion of “business fixed investment has been soft”
and “global economic and financial developments continue to pose
risks.” Which, I might add, despite the mild tenor of the changes, are
cataclysmic in terms of their repudiation of the Fed’s unrelenting “recovery”
propaganda.
As for what happens next – TRUST ME, the Cartel will continue its “fight
to the monetary death” are long as it can – such as today’s pathetic
attempt to forestall the inevitable with its typical COMEX-opening cap and
attack.
However, now that Janet Yellen herself has “launched the final currency
war into hyperspace,” they will – and MUST – be defeated; potentially this
year, as they have in essentially all the world’s currencies.
And surely, dramatic news like this morning’s – that the world’s second
largest reinsurance company, Munich Re, have responded to NIRP by buying
huge amounts of gold, won’t help the Cartel’s case any. In other
words, the institutional demand surge I spoke of last
month, when no one else was, is accelerating; likely, providing the spark
that, once and for all, destroys the 21st Century gold
Cartel. Ushering in, I might add, what will likely be a very scary
world – in which those that haven’t PROTECTED themselves beforehand, will
“financially perish.”
