It’s Thursday morning, and I think I’m going to take a week off from my
Audioblog – particularly given the 40-minute, all-topics-included podcast I
did with Kerry Lutz yesterday.
As for next week, I’ll play it by ear, given that I have a busy podcast
schedule as well. To that end, I have a lot to write of today – on this
bi-annual OPEC meeting day; in which, UGGGHH!, yet another “production
freeze” rumor was circulated yesterday to boost a flagging oil price – which
has a ZERO chance of occurring (as validated by the “no action” communique
issued as I edit). But even if it did, it wouldn’t change oil’s horrible
supply/demand fundamentals a whit; as absent hyper-inflation, I believe
oil prices have nowhere to go but down.
To that end, isn’t it “funny” how historically under supplied Precious
Metal markets don’t “respond” to real, fundamental data – like peak
production, collapsing inventories, supply disruptions (particularly,
platinum), or the prospect of mass base metal mine closures, where two-thirds
of the world’s silver emanate from? Don’t worry, my friends, they will
– in a BIG way – in due time; as when the Cartel inevitably, and hopefully
imminently, is swamped by “Economic Mother Nature,” an historic lack
of supply will be, in the long-time words of Miles Franklin’s President
and Co-Founder Andy Schectman, the factor that defines Precious Metal
markets.
It’s also an ECB meeting day – of which nothing material occurred, as the
ECB is currently in “wait and see” (for its previous schemes to fail further)
mode. And an ADP employment report day as well (“in line” with weak
expectations), ahead of tomorrow’s, LOL, “most important ever” NFP jobs
report. And how about this? Of all the “chutzpah” I’ve
encountered, it’s difficult to top the IMF – which today, published a “white
paper” concluding that “austerity” policies do more harm than good.
Then why, pray tell, do they continue funding an imploding Greece with
“bail-outs” – to pay only bankers, like themselves – under the
condition of further austerity concessions; which are not only (per their
conclusion) destroying Greece’s ability to generate capital, but aren’t even
being adhered to? In other words, validating the mathematical certainty
of a near-term (as in, the next 12 months) GrExit. Which, if Europe
is still in tact by then, will surely prove every bit of the death blow it
was feared to be when Greece first becamse a “PIIG” six years ago. No
thanks to Mario Draghi – who, when still working with Goldman Sachs, helped
to engineer the “off balance sheet” debts that have put Greece, and by
extension Europe at large, at the precipice
of collapse.
Here in the United States of Economic Implosion, yesterday’s data couldn’t
have been uglier. Weekly mortgage applications fell 5% – as Sam Zell
revealed he’s selling everything not nailed down, in anticipation of a
2008-style real estate crash. The PMI and ISM Manufacturing Indices
both came in barely above 50; and construction spending “unexpectedly”
plunged 1.8%, when it was “supposed to” rise 0.6%. And as for auto
sales, the worse case scenario has come to pass – in the form of last month’s
“credit surge” equivalent of “Cash for Clunkers II,” which caused a brief
spike in leases and liar loans, yielding a post financial crisis high in the
inventory to sales ratio, and May sales plunges like the 18% crash at General
Motors. But don’t worry, the Atlanta Fed’s “GDP Now” predicts 2.8%
second quarter GDP growth. I mean, why not just go “full Chinese,” and
say GDP is growing at 6.7%, when it is in fact contractingby
that much? And by the way, do you know what the current money market
“odds” of a June Fed rate hike, LOL,
are? Drum roll please…a whopping…22%!
More than ever, the only thing holding America’s – and effectively,
the entire world’s – shrinking economic stability together are the
PPT, Fed, and Exchange Stabilization Funds’ ability to manipulate “last to go” markets like
the “Dow Jones Propaganda Average” and paper gold and silver. Sam Zell
is selling
real estate; institutions are selling stocks at an historic
rate; the Chinese are dumping Treasury bonds; and physical gold and
silver demand is at a record high, amidst an environment of plunging
production and vanishing above-ground inventories. Given these trends,
how much longer can this deception last, as the entire world becoming wise to
it – particularly when “Cartel henchman” like Deutschebank are admitting it?
Let alone, when those same market-distorting processes are destroying
the global economy, at an exponentially increasing rate. As for PMs,
you’d have to be a dolt to not realize the Cartel’s current “lines in
the sand” have been set at $1,220/oz and $16.00/oz, respectively.
Which, in due time, will be breached, en route to their inevitable surge to
new all-time highs.
And by the way, for those that claim the Yen/dollar is the principal
factor governing the stock market. Was it me, or did the Yen rocket
higher not only yesterday, but this morning – with the Dow doing absolutely
nothing over this period? In other words, as I have said all along,
such algorithms are set up to only benefit stocks, and damage Precious
Metals. So whilst a surging dollar/Yen, in today’s 100% rigged markets,
has (for now) assured surging stocks, the opposite hasn’t held true.
But again, I extremely confidently say, “all in due time”; as while the
manipulators may have the upper hand in “last to go” markets today – in the
long-term Economic Mother Nature always wins.
Which brings me to the most damning evidence of her dominance yet – i.e.,
the political and social revolutions caused by manipulative attempts to
subvert her immutable laws. To that end, the “referendum trend” is
clearly moving in the wrong direction – starting with last year’s Greek “OXI”
vote, and Catalonian secession vote. This weekend’s Swiss “Unconditional
Basic Income” referendum is not expected to pass – for the most part, due to
its utter outlandishness. However, it is my contention that it will be
a lot closer than than most anticipate, as the lure of the proverbial
“free lunch” is powerful, even in a nation as supposedly, LOL, “conservative”
as Switzerland.
However, all prior referendums don’t compare in importance, in my
view, to the June 23rd “BrExit” vote – which is exactly why I last
month penned “the
most important, and Precious Metal bullish,” vote in history.” The
reason I think so, is that never before has so much been at stake globally –
as simmering nationalistic trends, resulting from a Central-bank-destroyed
global economy, are at the point of violently boiling over. In my view,
a “leave” vote will catalyze similar movements worldwide; and lo and behold,
with each passing day the odds are rising, irrespective of recent
propagandistic efforts to purport otherwise. As in Switzerland, ahead
of the November 2014 gold referendum, the propaganda
and market manipulation leading up to the BrExit vote will be hot and
heavy. And frankly, the fact that UK Prime Minister David Cameron is
actually against it, demonstrates just how little today’s Western “leaders”
care about their constituents.
Clearly, evidence proving the EU has been a disaster for the UK is
incontrovertible. Economically, no better case can be made to “leave”
than the one-hour long, wonderfully produced “BrExit, the
Movie” – which I not only encourage all Britons to watch in the next
three weeks, but all Europeans. However, as I am learning quickly, in
my quest to understand the issues at large, it is unquestionably immigration(and
secondarily, the “migrancy crisis” that springs from it) that will determine
the vote’s outcome. And frankly, I find it difficult to imagine that
citizen’s of the world’s oldest, proudest, and in many ways most
sophisticated culture could vote any other way than to “leave.” As
frankly, the fate of their 2,000 year old society is at stake.
To that end, I yesterday watched a 50-minute podcast from the great Stefan
Molyneux, titled “The
Truth about BrExit.” Molneux, an Irishman who grew up in London,
knows as much about the key BrExit issues as the culture he grew up in – and
supplies indisputable facts to support it. Frankly, any Briton
that watches it, and subsequently votes to BrEmain, deserves his or her fate.
No matter what happens in the BrExit vote, it will be positive for
Precious Metals, irrespective of what “spin” is cast. A “stay” vote
only ensures the ongoing destruction of the European Union’s hundreds of
millions of citizens in slow motion; whilst a BrExit, despite being an
unquestionably positive step for Britons, will yield significant turmoil in
global currency and financial markets. As for me, I’m not “rooting” for
anything – certainly, not “Armageddon” –
other than the destruction of “99%-destroying” policies like the European
Union, and vile “leaders” like David
Cameron. And as for Precious Metals, there is NOTHING the powers
that be can do to stop the inevitable reclamation of their roles as the “Once
and Future Kings” of money (possibly, to be shared with Bitcoin
in the digital world of the 21st Century). And no place
would it be more fitting for a major step in this direction to occur, than
the land of Camelot itself.
