What a difference a day makes!
Amazing how a well-planned PAPER attack can cause
such short-term decimation of one's net worth and sentiment, and how quickly
the damage can be reversed when REALITY sets back in, as has been the case
for the entire 12-year PM bull market. Admittedly, Cartel attacks have
been much more frequent and intense in recent years,
particularly since "D-DAY" on November 9, 2010 when they first
experienced a tangible fear that the imminent PHYSICAL melt-up might
be upon them. However, EVERY TIME such attacks have occurred since
1999, gold and silver prices have recovered to hit new ALL-TIME HIGHS, and
this time will be no different.
Yesterday morning, Jim Sinclair sent out the
following dispatch, highlighting that gold negativity reached "epic
levels" last week, validating the various, heavily oversold
fundamental, technical and sentimental indicators presented in my recent
RANTS. I have been reading Sinclair for eight years, and have NEVER
seen him so besieged by suicidal PM longs - and believe me, I've seen all his
posts, including when the Cartel smashed silver to $8.00/oz in late 2008 (no,
it wasn't "margin selling" or "long liquidation").
Negativity In Gold Reaches Epic Levels
I am not saying PM mining shares cannot rise, and to
the contrary have repeatedly stated my expectation they will rise sharply
when the Cartel is broken, at least until the first hint of windfall
taxes and/or nationalization fears arise. However, the reason for this
"epic negativity" is NOT gold and silver themselves but the mining
shares, which as noted repeatedly have dramatically underperformed the
metals since 2006.
If my PM holdings were still heavily weighted with
shares, I too would be suicidal after watching what the relentless,
naked-shorting U.S. government algorithms and sinister Canadian
investment bank shorting schemes accomplished this Fall, but with my 100%
weighting of unencumbered, unfinanced,PHYSICAL gold and silver,
I am not bothered one bit. Frankly, I spend more time obsessing over
the PPT's Dow-supporting machinations than Cartel PM suppression, as lower
gold and silver prices simply make it easier help more people PROTECT
themselves with lower-cost purchases.
Yesterday's year opening Dow surge was clearly a
PPT-planned strategy, "OPERATION INSTILL CONFIDENCE," and given the
momentum change achieved in buying up stock futures so aggressively during
the thin holiday trading conditions in December, pushing the Dow up on the
first day of January was a non-brainer. Furthermore, the Cartel knows
the damage inflicted by "OPERATION PM ANNIHILATION II" -
financially, technically, and sentimentally - has left gold, and
particularly silver, heavilyoversold, and thus knew to back off while
the PM sector drifts back up. Heck, as I've been noting for weeks now,
the COMEX silver "commercial" short position has fallen to its lowest
level in ten years, so you can judge for yourself what JP Morgan believes
the price is likely to do.
The Prince of Thieves -
I remember Goldman Sachs being short enormous
amounts of PAPER gold in the Tokyo futures market circa 2003-2006, making it
seem as if they'd never go long. But gradually they covered their entire
position, and in the ensuing years gold more than tripled. Not that JP
Morgan has the ability to hold silver down indefinitely (they DON'T!), but
like Goldman's ephemeral gold short position, eventually JP Morgan will see
the writing on the wall and turn its silver short position to the long side,
perhaps this year if the COMEX is not destroyed by other means.
Biggest Silver Surge In Over 3 Years
Anyhow, gold started the year by rising 2.3%,
modestly exceeding the Cartel's 2.0% cap limit that has characterized 99% of
ALL TRADING DAYS over the entire 12-year bull market. They still fought
gold the entire way, first at EXACTLY 3:00 AM EST, then at EXACTLY the 8:20
AM EST COMEX open, and finally at the "cap of last resort" at
EXACTLY 12:00 PM, as gold CANNOT rise like ANY other commodity, such as crude
oil which rose 4.5% or silver, which erased essentially ALL of 2011's 9% loss
with a 7%+ gain in the first day of 2012.
And if you think I'm kidding, try to picture the
media frenzy if GOLD were allowed to rise 7% in one day. Such movements
occur with regularity in essentially ALL other commodities, not to mention
insolvent bank stocks, but have not occurred ONCE in the 12-year gold
bull. A 7% gold increase yesterday morning would have amounted to a
$110/oz, bringing it to back to nearly $1,700/oz, causing every "black
box algorithm" to turn positive, every fence-straddling, technical
analysis reading newsletter writer to go long, and the media to proclaim
inflation an emerging problem. In other words, the market is so
fragile, it cannot handle even a DAY devoid of Cartel and PPT activity,
although in time we will see just that, as they won't be able to hold back
the dam forever.
Of course, I would have bet EVERYTHING I owned that
gold would be trashed overnight, particularly as it is sitting right around
the KEY ROUND NUMBER $1,600. And voila, look at this morning's
Could there possibly be ANYONE of unbiased mind left
on Earth that can't see what I see, starting with gold being pushed back
below $1,600/oz in the ultra-thin trading hours following the NYSE close, to
the sudden, sharp plunge at EXACTLY 3:00 AM EST when gold made a parabolic
surge to new highs, once again pushing it below the KEY ROUND NUMBER of
$1,600/oz. I'm sure you can guess that silver was simultaneously
stopped cold just below the KEY ROUND NUMBER of $30.00/oz, and is
dramatically underperforming gold as we speak with absolutely no material
news, or major market movements, this morning.
Remember, the Cartel has several other rules, as
highlighted in my "CARTEL SECRETS REVEALED, PARTS I and II" RANTS
from last June. To start, "all great days must be followed by
horrible days," and secondly, if either gold, silver, or the shares,
have a very strong day of outperformance, they must immediately underperform
the very next day. Not that I KNOW what will ultimately occur today, as
I'm writing at 7:00 AM EST this morning, but I have seen these
"rules" enforced countless times over the past decade, particularly
in front of a non-farm payroll employment number, as is scheduled for
"fudge patrol" on Friday.
Cartel Secrets Revealed - Andy Hoffman, Baby Bull Twits
Cartel Secrets Revealed Part 2 - Andy Hoffman, Baby Bull Twits
As for the "news" of the day, again I see
a whole lot of the same. Stagnant global economic activity
weakly disguised by MONEY PRINTING, escalating financial woes, and the
progressively louder beat of war drums. The scariest article is the one
below, showing sovereign debt issuance for 2012 forecast at more than $8
TRILLION, 90% of which emanates from the so-called "world leaders"
of the G-7. As in America, the idiots running Europe have heavily
weighted national debt with short duration bonds, which can see EXPLOSIVE
yield surges at any time, as was the case in 2011, and today in
soon-to-be bankrupt Hungary.
Euro Declines After Bund Auction, Hungary CDS Soars To Record, Massive
New Issue Discount In UniCredit Stock Sale
Picture having no savings and no job, and a mortgage
on 90% of the (declining) home value due in TWO YEARS, instead of a 30-year
mortgage. THAT is why European and U.S. sovereign debt is un-payable,
and why the Fed, ECB, BOE, and SNB will maintain their ZIRP (Zero Interest
Rate Policy) forever, at least until the system inevitably COLLAPSES.
Global Bond Issuance To Top A Staggering $8 Trillion In 2012
Meanwhile, not a single article about the
U.S. debt ceiling since last week's headlines that Obama would
"ask" for the debt ceiling to be raised by $1.2 TRILLION on
December 30th. Here we are a week later, and yet no one
CARES that we are about to breach the limit, let alone the inevitable
approval of a MASSIVE $1.2 TRILLION increase following the $0.9 TRILLION
increase in the Fall that has already been gone through.
US Closes 2011 With Record $15.22 Trillion In Debt, Officially At
100.3% Debt/GDP, $14 Billion From Breaching Debt Ceiling
Oh, wait, here's some breaking news. Obama
decided to wait until his two-week, TAXPAYER-FUNDED luxury vacation in Hawaii
to deal with this trivial issue, and thus will likely submit the $1.2
TRILLION debt ceiling increase request later today. Wow, what an
incredible amount of news coverage, given that a $400 BILLION increase in
August caused a U.S. debt rating reduction, soaring gold prices, and a
plunging Dow. Again, does ANYONE of sound mind really still believe
financial markets are not rigidly controlled?
Obama Will Delay Debt-Limit Increase Request, Official Says
Adding to the inevitability of near-term inflation
fears, minutes from the Fed's December's policy setting meeting were
published yesterday, noting "a number of FOMC members saw possible need
for further easing."
FOMC Minutes: Fed To Start Releasing Official Fed Funds Rate Forecasts
But that's not the half of it, as that was the 2011
crew of misfits, considered far more "hawkish" on inflation than
the 2012 crew (FOMC voters rotate each year), featuring several major
inflation "doves" and just ONE with any hawkish leaning, the
same "Jeffrey Lacker" who made his most dovish comments to date
just weeks ago.
Here Is The Real Biggest News Out Of The FOMC Today
And the Fed certainly should be "dovish,"
as no matter how the Washington/Wall Street/MSM (Mainstream Media) "axis
of evil" tries to spin the U.S. economy, it SUCKS. I still recall
the hype about "record Black Friday sales," which I heavily refuted
based on assumptions that people are simply doing more holiday shopping that
weekend than in prior years, principally due to UNPROFITABLE, deep
discounting campaigns by DESPERATE retailers.
As it turns out, I was 100% correct, as not only
were DECEMBER retail sales much worse than expected, and early comments from
U.S. retailers dour, but now we're seeing record returns of
holiday gifts, presumably from "giftees" equally desperate for CASH
to pay bills. As a rule of thumb, "sales" in today's economy
have as much meaning as "page clicks" in the internet days of
yore. PROFITS keep companies in business, and deep discounting only
hastens a retailers path to BANKRUPTCY!
And Now The Hangover: Retailers Face Record Returns Of Holiday Gifts
Not to mention, I love all the "sentiment"
and "diffusion" indices published by the government, often based on
methodology either unexplained or unknown. Not to mention, such indices
have nearly ZERO predictive value, as proved by a long-term chart of
"consumer confidence" I published last week, showing consistent
public confidence at economic "tops," particularly when government
handouts of PRINTED MONEY are initiated, such as "cash for
clunkers" and "home buyer tax credits," or times of propaganda
hype about "patriotism," such as in the aftermath of 9/11 ("do
your duty and go to a Broadway show or shop on 5th Avenue").
Moreover, does anyone notice how such indices tend
to counter-intuitively rise just as the economy is at its worst, particularly
during holiday shopping seasons? Or how only rising indicators
are published by the media, as opposed to those, like the one below, that
languished for MONTHS?
Dow Jones Dec Econ Sentiment Index Nearly Flat, At 41.9
No matter what they say, do (i.e. PRINT MONEY), or
falsely report, the REAL U.S. economy is weakening by the minute, and REAL
employment and income will continue to fall toward the global mean for years,
if not decades. This is why public hatred toward politicians and
bankers, and gun sales for that matter, are at record levels, and why Ron
Paul is surging in the polls despite every effort to denigrate him,
such as the current, pathetic Republican Party mandate for all its
candidates, no matter how despised or disgraced, to call Ron Paul
"unelectable" any chance they can get.
Yes, Ron Paul, who with eleven Congressional terms
has been elected more than any Presidential candidate in recent
history, has by far the most experience, the most sane views, and came in a
close third in last night's Iowa Caucus, is "unelectable."
Keep it up, GOP, and you will find Nightmare Obama in office another four
The Ministry Of Propaganda Declares Ron Paul "Unelectable"
No matter how you slice it, the U.S. government WILL
default on its debt by nonpayment, military force majeure, or
hyperinflation, EXACTLY why they are steadily increasing the inevitable
Iranian war drums. A military force majeure is the best option
for any government desperate to maintain POWER, attempted 100% of the time
throughout history by militarily strong nations such as America.
US Re-escalates, Responds To Iran Warning
U.S. bankers singlehandedly destroyed the
worldwide financial system, using campaign contributions to take over
Washington and get Glass-Steagal repealed in 1999, and subsequently creating
a global derivatives network intimately tying the fortunes of ALL
major Western nations, and SEVERAL Eastern nations as well.
Exposing American Banks' Multi-Trillion Umbilical Cord With Europe
The U.S. no longer exports ANYHING except worthless
fiat DOLLARS, printed both overtly and covertly, resulting in
massive GLOBAL inflation...
Guest Post: A Punch to the Mouth - Food Price Volatility Hits the World
...and endemic financial BANKRUPTCY.
Yet, the doting MSM and "investment
community" STILL fail to understand what is going on, or, for that
matter, to even try.
Would A Ponzi By Any Other Name Smell As Bad?
But they WILL understand, be it in 2012 or sometime
shortly afterwards! Per the excellent article below, it once appeared
the Portuguese Escudo would remain the "world's reserve currency"
On The World's Reserve Currency: What's Past Is Epilogue
...and then the Spanish peseta...
...and the Dutch guilder...
...and the French franc...
....and the British pound...
I think we ALL know which country will be added to
the top right of this table in the coming years. Thus, listen to Jim
Rogers and have your children learn Mandarin, and to RANTING ANDY by
PROTECTING YOURSELF with PHYSICAL GOLD and SILVER, FOOD, and OTHER LIFE
Today's RANT topic, "DILUTION, AMERICAN
STYLE," has nothing to do with the dollar, mining shares, or anything
financial. Instead, it describes the decline of American culture,
which in many ways has spread to the world round. I believe excessive money
printing, harkening to the abandonment of the gold standard in 1971, is the
root cause of the "dumbing down" of America, in which commercialization
long ago surpassed innovation and quality as the nation's defining
traits. Whether it's the ten new flavors of M&Ms with different
colored packages, millions of mindless SPAM messages invading my computer and
cell phone each day, or the explosion in meaningless, unearned births in
College Football "Bowl Games," the universal impact, and
consequently societal damage, of amoral, exploitative commercial practices is
Two recent observations inspired this RANT, although
this topic has disturbed me for years, in a significantly more
far-reaching way than the limited scope of this piece. The first was
the realization that so many meaningless College Bowl games have been created
in recent years, SOLELY for the purposes of generating revenues. To
prove this point, of the 72 teams playing in a record 36 Bowl games this
year, 22 had records no better than one game over .500, including seven below
The second thing that got me thinking relates to a
favorite topic, and pastime of mine, Word games. In some ways, a
follow-up to my December 6th RANT, LITERATI, but don't hold that
against me when you read the section below about the "sequel
cancer" that has overtaken American movies. What got me irritated
is the explosive growth in "words" in the Official Scrabble
Dictionary, barely recognizable from the first edition published in
1978. When my wife informed me that za, qi, and a host of
previously slang or other "non-words" have now been included, it
made me think of how diluted the language has become, and how game companies
have catered to lower cultural denominators to bring in new players, even if
such "catering" means the most respected Word game in the world
literally making up words.
In LITERATI, I wrote of the online
cheating tools developed by programmers, which have essentially destroyed the
concepts of competition, education, and critical thought. Online gaming
can be extremely stimulating, but like its evil brethren, gore-soaked games
like Grand Theft Auto and Tour of Duty, such tools now evince
much of the same negative emotions and instincts. And now, thanks to
"new words" like za and qi, children and adults alike
are rewarded for cheating and diluted education.
In other words, Americans have become so accustomed
to "winning," they don't realize they aren't winning at all, much
as a $100,000 salary doesn't mean much today thanks to the 5+% annual
inflation created by the Federal Reserve. When I was a kid, a score of
100,000 on a pinball machine was easily top score, whereas today
pinball machines award scores of a BILLION or more for the same
results. Likewise, no longer is 300 the standard of a strong Scrabble
score, now closer to 450 when adding slang possibilities such as za
and qi. Inflation permeates our lives in more ways than we can
imagine, and no one is happy to have its dumbed down constituents boiled in
it more than the BANKERS destroying our lives through the Federal Reserve
printing presses. Gee, I wonder when a perfect bowling score will be
raised to 600!
I could write for HOURS of the myriad ways this
blight expresses itself in American society, but don't have either the time
or inclination to do so, particularly relating to America's top cultural
cancer, reality television. Fortunately, I don't need to, as
nowhere is the dilutive impact on culture more prevalent than MOVIES, where
essentially ALL new releases focus on pure commercialization, to the point
where ALL box office winners are superhero/epic war/vampire flicks, sequels,
or animated garbage that parents feel obligated to take spoiled children to.
Below is a list of the "25 most anticipated
movies of 2012," including a whopping 14 sequels, the overly-hyped
reissue of Titanic, and a new "commercialization cancer,"
the creation of sequels of age-old stories to cash in on brand names.
It's bad enough that the remake of Clash of the Titans was butchered
last year, but now we will be treated to Wrath of the Titans to make
sure the original concept is gored beyond comprehension. Moreover, in
the spirit of the horrific Red Riding Hood "remake" last
year, which turned it into a werewolf story, American children will now get
to see "gorified versions" of children's classics such as Hansel
& Gretel and Snow White.
As for sequels, it's one thing to add Batman
movies, now renamed The Dark Knight to fool you into believing the
stories are any different, as Batman is a staple of American
culture. But now they're making The Avengers, a sequel of sorts
to the horrific Thor, Captain America, and Hulk movies,
in which even Robert Downey Jr. was pimped into joining, so as to permanently
destroy any remaining integrity in the Iron Man franchise. And
then you have sequels of long-dead movies such as Men in Black, made
simply because creative juices were long ago "sucked dry" from
American culture by Vampire movies, of which four grace 2012's top 25.
Of the six movies not characterized as sequels, reissues, or
remakes, two are vampire movies, two futuristic, gory war movies, one a
Quentin Tarantino thriller, one an animated children's film, and one a chick
flick. I don't think I've EVER wanted to see a chick flick before
Most Anticipated 2012 Films - Ranker
When I peruse through the premium cable movie
channels, which Comcast gives me for free because their business model is
being decimated by competition, I rarely find anything worth watching,
even in the "Just In" section of Pay-Per-View. However, I see
scores of new horror films, as well as another expanding cinema
cancer, the remaking of forgotten, low-budget 1980s horror films such as Friday
the 13th, Halloween, and Nightmare on Elm Street, and
still older horror films such as House of Wax. The
advertisements don't even bother to tell you they are remakes, as the
producers figure dumbed down American teenagers won't care that these
once-novel ideas have been stolen in the name of a producing the ultimate
low-budget films, ones that already have scripts. It is
SICKENING how low the entertainment industry has sunk, but not as low as the
GLOBAL business world in general, per the "World's Most Lucrative
Business Markets" article below.
There is no doubt in my mind that Central Bank MONEY
PRINTING played a major role in the explosive growth of each and every
item on this list, starting with the ironically-named "Defense"
industry to illegal businesses such as drugs and prostitution. Too much
money has destroyed culture as rapidly as it decimated the banking system,
the middle class, and the world's cumulative ethics and morals, but
particularly in America, the so-called "role model" to billions.
The World's Most Lucrative Business Markets
Sometimes I write with a specific point in mind,
often related to a particular financial issue, but sometimes I just
RANT. I am very happy with my life, but equally unhappy with what has
befallen America in my lifetime, which ironically commenced a year before the
gold standard was abandoned. The underlying message is still there, to
PROTECT YOURSELF from the inevitable, across-the-board increase in social,
political, and economic risk, although my method of describing it is
I am saddened greatly by the dilution of American
culture - which has spread around the world like a cancer - but more so as I
view its root cause to be the "get rich quick" mentality and
"welfare society" lifestyle enabled by the lure of printing
One would think things couldn't get worse, but what
will happen when the dollar's "reserve currency" status is
In Rome, they fed Christians to the lions, and in
Berlin, Jews to the concentration camps.
PROTECT YOURSELF, and do it NOW!