It’s Monday morning, and man do I have a lot to talk about!
Frankly, Merriam and Webster need to create new adjectives to describe the
idiocy governments, Central banks, and corporations alike are exhibiting – as
at this point, moronic, suicidal, tragic, and catastrophic
are starting to be overused. Not that their moronic, suicidal,
tragic, catastrophic actions are any different than those of the governments,
Central banks, and corporations of yore. However, never have
such entities been exposed to such destructive “weapons of mass destruction”
– financial and otherwise; and thus, never before have so many people
been put in harm’s way. And never, of course, has a fiat Ponzi
scheme been utilized not just locally, but globally.
To start, let’s discuss the Greek “bailout” that never was. Which,
as I predicted when propagandists decided Greece was “saved” this summer, is
“coming
apart at the seams.” That, and the rest of the PIFIGS (PIIGS plus
France) – from Portugal’s historic political coup; to France’s exploding “war
on terrorism” – amidst its highest-ever joblessness; the imminent secession
of Catalonia, Spain’s wealthiest province; and Italy’s exploding debt burden,
to name a few. In Greece, where its “leaders” blatantly disregarded the
people’s “OXI”
vote to austerity five months ago, in lieu of handing what’s left of the
dying nation to predatory lenders, the only “bailouts” have been payoffs of
principal and interest payments to the “Troika”; with not a penny going to
destitute Greek citizens or corporations. Or, for that matter, its banks.
Which, in this weekend’s “hijacking” by Western vulture investors, were
essentially “sold” for a song. To that end, what I have long deemed the
“world’s most important stock” – at least, before the past three months’
all-out commandeering of equity markets by desperate governments – the
National Bank of Greece will officially be de-listed today, after having
fallen from a “reverse-split adjusted” 2007 high of $703.00/share, to
Friday’s $0.16/share. In other words, Greece is officially dead – which
is probably why social unrest is exploding; and likely in the next 12 months, a political
coup will occur, which is far more “anti-austerity” than Syriza, and far less
likely to default on the nation’s unpayable $600+ billion of debt.
Next, the historic,
global economic collapse – expanding further each day, with no breaks for
“holidays.” Notwithstanding two new“copper and zinc PPT” efforts
to boost collapsing base metal prices since Friday’s close alone, the global
commodity complex continues to implode under the weight of nearly two decades
of Central bank-fostered, Wall Street-abetted oversupply – pushing thousands
of corporations, municipalities, and sovereign nations to the brink of
default. Which, I might add, will likely become a far more imminent event
after OPEC’s bi-annual meeting on Friday; at which, it is highly unlikely
they will deviate from their current “strategy” of “maintaining market
share”; i.e., pumping as much oil as possible, in a desperate attempt to pay
their own explodingbills. This quarter, hundreds of
high-cost producers – like the entire U.S. shale industry – will see last
year’s above-market hedges expire. Thus, the imminent parade of
bankruptcies and “high yield” and “leveraged loan” defaults will commence, to
the tune of at least hundreds of billions of dollars – with no one to “bail
them out.”
And no nation is suffering more than the “Land of Debt and Smog” – whose historic, Communist-engineered financial
and equity bubbles’ collapses are accelerating with each passing day.
Which is probably why the globally cataclysmic
devaluation of the Yuan is quietly being stepped up; whilst the “Chinese PPT” works overtime to
mask the Red Collapse with nearly daily, “Western style” “hail mary” equity
rallies – such as today’s, which transformed the “follow up” of Friday’s 5.5%
Shanghai Exchange plunge from a 3.2% loss to a 0.3% gain – yielding surging
equity futures in other PPT-supported markets as well. Of course, the
ominous fact that dozens of non-PPT-supported markets are collapsing – like
the vast majority of Asian equities and currencies – is apparently not worth the
MSM’s time.
That said, essentially all of China’s – and by proxy, the world’s
– economic problems are rooted in the monetary “leadership” of the
Federal Reserve. Which, as issuer of the “reserve currency,” has
exported more debt, inflation, and social unrest than all other Central banks
combined. And whilst the moronic, captive media focuses on when the Fed
will turn responsible by “hiking rates,” the collateral damage of such acidic
propaganda is corroding what’s left of the global economy. Exploding
debt; collapsing trade; skyrocketing social and geopolitical unrest; and of
course, the “surging dollar” – which in essence, is simply the “liquidity
vacuum effect” resulting from global economic Armageddon.
To that end, HOORAY for Michael Pento – who this weekend, discussed this
very topic here, in light of the ugly currency market
movements ahead of Thursday’s likely QE and NIRP-expanding ECB meeting. In which, he validates
exactly what I wrote in September 2014’s “if
a nuclear bomb destroyed Europe.” Which is, that just as the Fed’s
proposed “interest rate hikes” should have ZERO
impact on Precious Metal prices, the “surging dollar” has NOTHING to do with
“U.S. strength.” That is, if today’s plunging Chicago and Milwaukee PMI
indices could be considered “strength” in the first place.
Which, of course, is the polar opposite adjective of what I’d use
to describe the U.S. economy. Even the MSM can’t dispute that this has
been the third straight quarter of declining corporate earnings; or the worst macroeconomic
environment since 2009; the highest levels of individual, corporate,
municipal, and sovereign debt ever; or the largest-ever Central bank
balance sheet. Certainly not when potential Presidents-to-be are
proposing massive, printing press-funded fiscal spending increases – like the
$275 billion infrastructure Hillary Clinton proposed this weekend. Which
laughably, pales in comparison to Bernie Sanders’ $1 trillion
infrastructure spending proposal from last week.
That said, nothing Washington, Wall Street, or the MSM can
fabricate will be able to mask the fact that this weekend’s “Black Friday”
sales were an unmitigated disaster, of epic proportions. For months, I
have predicted that even last year’s “worst holiday season since 2009” would
be considered “boom times” compared to what was coming this year – which is
exactly what major retailers like Walmart, Macy’s, Nordstrom, and JC Penney
espoused this Fall. Well, even I was shocked to see Thanksgiving
and “Black Friday” sales were down a whopping 10% year-over-year – presaging a holiday spending
bloodbath, in the quarter where most retailers generate all their
annual profits. Heck, even the “National Retail Foundation’s” list of
excuses were laughable – as if its press-release writers were stoned
or drunk while writing them.
Which is why, yet again, I can only ask “is the Fed that stupid?” –
to even consider raising rates, amidst an unprecedented, global
economic collapse in which the U.S. is suffering as much as anyone
else. Let alone, as the aforementioned “surging dollar” is all but
destroying corporate profits – as well as whatever still remains of America’s
collapsing manufacturing base. Let alone, to do so in such a tiny,
middling amount – which, if executed, would have ZERO positive economic
impact; and an ENORMOUS negative impact – on economic activity, corporate
earnings, global inflationary trends; and oh yeah, financial market
valuations. The latter of which, as I have long espoused, is the only
thing the “too big to fail” bank-owned Fed cares about. In other
words, as I wrote three months ago, a Fed rate hike would be the “only
financial event as potentially cataclysmic as a significant Yuan devaluation.”
The answer, of course, is that the Fed is that stupid – as in light
of their horrifying track record, it is impossible to conclude that
the so-called “smartest financial minds in America” are anything more than a
troop of moronic Keystone
Kops. Each day, charged with “kicking the can” a few feet further,
with unprecedented levels of money printing, market manipulation, and
propaganda – until inevitably, the historic, global fiat Ponzi scheme
they lord over implodes under its own weight.
And nowhere are the hideous results of their machinations more obvious
than in the rapidly destabilizing Precious Metals suppression scheme that
their “partner,” the U.S.-government led “Cartel” – or as I refer to it, the
“New York
Gold Pool” – resides over. As Bill Holter masterfully described it
this weekend, the “ugly truth” is being understood by millions of new
“observers” each week – as relentless paper raids, such as Friday’s $1.9
billion “notional” gold futures dump at the COMEX open, and last night’s
123rd “Sunday
Night Sentiment” raid of the past 128 weeks, are being seen for the
frauds they truly are.
To wit, global above-ground physical inventories have never been
lower – in the COMEX’s case, just one-twelfth of the aforementioned
$1.9 billion of “paper gold” that hit the market within minutes on
Friday morning, the thinnest trading day of the year. Whilst, in the
words of ETF Securities’ Mike McGlone, the extended period of gold futures
backwardation is “unprecedented.” In other words, the paper markets
themselves are now intimating the extreme physical tightness depicted by
record global demand and collapsing production. Trends which,
unquestionably, will dramatically accelerate as worldwide money printing
lunacy explodes in the coming months and years. Heck, even Bitcoin prices
have been rising lately, as global fear of fiat currency devaluation
accelerates. Thus, signaling the imminent stampede into any alternative
to dollars, Euros, and Yen has commenced. Which is exactly why physical
gold and silver demand is at record levels; and exactly why “TPTB” are
fighting so hard to mask it with increasingly blatant, mining
industry-destroying, physical demand-catalyzing paper price
suppression. Which, unquestionably, will be overwhelmed in the
not-too-distant future.