Perhaps I should stop writing about the daily
action, as the government LOCKDOWN on all financial markets, including
stocks, bonds, currencies, and PAPER gold and silver, has officially reached
No matter how bad the economic news, outlook, and
fundamentals, the stock and bond markets are ALWAYS supported, while PAPER PMs
are ALWAYS capped. Thanks to endless futures buying with freshly
PRINTED MONEY, particularly since the commencement of Global Meltdown II last
Fall, the Dow rises nearly every day.
Yesterday (Thursday) alone, we saw an
"unexpected" surge in jobless claims, as I predicted now that the
holiday, part-time retail jobs season is over...
Houston, We Have Recoupling - Initial Claims Back Over 400,000 (Post
Next Week's Revision), Retail Sales Ex Autos Worst Since Early 2010
..."unexpectedly weak" retail sales,
confirming my decidedly contrary view that the holiday season would be
Retail Sales - M/M change
Retail Sales less autos - M/M change
Less Autos & Gas - M/M Change
...an "unexpected" widening of the trade
gap, portending still larger budget deficits...
November trade gap widens, biggest since June
...the certain bankruptcy of Sears, one
of America's oldest, most iconic firms (and with it, Kmart?)...
Sears Noose Tightens As CIT Leaves Company Cold With No Vendor
Egan-Jones Downgrades Sears To Lowest Rating Above Default
...and ominous storm clouds above the United States
of Debt, which I expect to return to the headlines when the debt ceiling
debate re-emerges next week...
Obama Sends Request To Congress For $1.2 Trillion Debt Ceiling
34 facts of US debt that should set America on fire with anger
Not to mention, the ongoing torrent of assorted "horrible
headlines" from around the globe, such as rapid deterioration of the
China Enters The Danger Zone
...the U.K.'s untenable debt burden, surpassed by
NONE when combining sovereign obligations with those of its profligate,
essentially unregulated banks...
UK Debt Infographic: All
You Need To Know
...desperate measures by the U.S. government (i.e.
MONEY-PRINTING) to prevent the rising "poverty class" from openly
Fannie Mae unveils new forbearance program for unemployed
...and, of course, the intensifying drum beats of
war, per the alarming article below...
Jim Rickards - War With Iran has Begun, Gold
to Break $2,000
Consequently, the PPT worked tirelessly to prevent
the Dow from declining...
...while QE-supported Treasury bonds were
essentially unchanged following a "putrid" 30-year auction, where
the Federal Reserve was likely the ONLY significant buyer...
Bill Gross Vomits All Over "Putrid" 30 Year Bond Auction
...and PAPER gold prices were CAPPED at the PM Fix
at EXACTLY 10:00 AM EST, as the head of the ECB ("Goldman Mario")
vehemently called for indefinite MONEY PRINTING...
Draghi sees substantial downside
...one of the world's largest oil exporters heads
for a potentially debilitating strike...
Systematic Shutdown Of (2.4MM Barrels Per Day)
Nigerian Oil Ahead
...and calls for Greek DEFAULT grew louder, from
both powerful European politicians...
Merkel Party Lawmaker Says Greece Must Leave
...and the market itself!
Market Implies Greek Devaluation To 1530 Drachma Versus Euro
Yesterday morning at roughly 9:45 AM EST, I was
speaking to a professional technical analysis who specializes in interpreting
what "the market" is telling us. Gold had been rising all
morning on the aforementioned slew of PM-bullish news, and, equally
importantly, the "rubber band effect" of being pushed below its
equilibrium level during last month's "OPERATION PM ANNIHILATION
II." He stated that gold looked like it was "approaching
resistance," to which I replied "you're damn right it's about to hit
resistance, as it's nearly 10:00 AM EST." Gold is NEVER allowed to
build substantial upside momentum, so after three straight (albeit capped) up
days, I was sure the Cartel would fight to push gold below the KEY ROUND
NUMBER of $1,650/oz. And, to nearly the SECOND, I was once again right.
...and right again this (Friday) morning, on cue at EXACTLY 3:00 AM (at
EXACTLY $1,650/oz), EXACTLY the COMEX open at 8:20
AM EST, and EXACTLY the PM FIX at 10:00 AM EST, with the Dow barely budging
during all three PM WATERFALL DECLINES!
More specifically, check out these COMEX-only charts, which should tell you
all you need to know about what the Cartel was up to the last two days at
EXACTLY 10:00 AM EST, when global PHYSICAL trading ends for the day!
The short-term technical feedback "the
market" is telling him emanates from CARTEL ALGORITHMS, coupled with the
response of thousands of "black box" trading programs (such as his)
trained to sell PAPER gold WITH the Cartel, precisely why the PM market so
easily becomes "overbought" and so rapidly
"oversold." It truly amazes me how even "PM
experts" are brainwashed into believing "the market" is an
efficient pricing mechanism where "buyers" and "sellers"
meet. Thanks to unlimited official intervention, "the market"
has become nothing more than a government-controlled casino, in which
the house always wins!
Fortunately for PM investors, the 12-year
"trend is your friend." PHYSICAL demand will ultimately undo
the Cartel, whose unwinnable task grows more daunting each day. The
nonsensical attack on gold that pushed it below its 200 DMA last month
FAILED, as gold has already recaptured this level, while silver has moved
back to the KEY ROUND NUMBER of $30/oz. PHYSICAL PM demand rises
sharply each time the PAPER price is inordinately attacked, creating MASSIVE
SUPPORT LEVELS that I believe will be nearly impossible to materially breach,
such as the $1,500-$1,600/oz level for gold and
$26-$30/oz for silver.
Gold Bar Premiums In Asia Rising Again On Physical Demand
KWN - Silver Eagle Sales Are Exploding, "Demand is Shocking"
Jim Sinclair certainly believes so, per the quote in
his latest interview, "the accordion chop we've seen in the last month
or two is over, and the downside risk of buying gold on reactions is now
Jim Sinclair - 5 Major US Banks Could Fail From Derivatives
...as does his esteemed colleague Alf Field, who not
only discusses his technical conclusions below (which I'm less interested in)
but an excellent synopsis of COMEX gold manipulation. "The
house" can infinitely increase its shorts, making them nearly unbeatable
in the PAPER markets. However, "the house" doesn't have the PHYSICAL
metal to back up its PAPER shorts, and thus a fatal Achilles Heel.
PROTECT YOURSELF, and do it NOW!
BREAKING NEWS, as I prepare for
publication. I guess I'll have to address this in my next RANT, but
stay tuned, as Global Meltdown II could resume at any moment, perhaps
Friday The 13th Is Here: Eurozone Sources Say Several Countries May
Face Imminent Downgrade By S&P
European Market Response: Spring Clip In Italian, Spanish Auctions
NATURE VS. NURTURE
It's Thursday afternoon, back at the airport with a
long wait before my flight home to Denver. It seems like I'm always
typing, but I love what I do, and know the weekends will eventually
arrive. With the large distribution network now available to me, I
feel a responsibility to educate as many as possible while the window
to PROTECT ONESELF remains open, and to document our leaders' criminal activities for posterity, to ensure what
is happening today NEVER again occurs.
While discussing such criminality at dinner last
night, I recalled a thought gestating within my head for some time, and
quickly wrote it down lest I forget. Long-time readers know my
obsession with HUMAN NATURE, particularly responses to adversity, such as the
ongoing, accelerating economic collapse. Actually, the two
events that jumpstarted the current depression were the
internet bubble's implosion in 2000 and the commencement of George Bush's
"War on Terror" in 2001, but thanks to "Maestro"
Greenspan's MONEY PRINTING acumen, the Day of Reckoning was
postponed until 2008 by the world's largest real estate bubble.
I have spent the past five years writing
of accelerating criminality amongst TPTB, i.e. failed bankers and politicians
that failed their companies, families, and nation by prioritizing GREED above
all else. It's unfair to characterize these monsters as the sole
source of the problem, as so many others contributed through errors of both
commission and omission, but BY FAR they are the most responsible.
While clearly better off than the majority of
Americans, I have been victimized equally, and through the experience increased
my resolve to act prudently, ethically, and morally. Since the economy
peaked in 2007, and with it - thanks to the Cartel - mining stocks, I have
witnessed the worst humanity has to offer, particularly in my business
dealings, yielding my transformation into RANTING ANDY. The meaning of
life lies in one's ability to contribute to the world, and I believe
WRITING what others fail to say is the most effective conduit for me to do
When I see such sociopathic behavior, particularly
from entrusted stewards of the public, it is hard to avoid wondering if such
acts are the product of NATURE, NURTURE, or both. After all, bankers
and politicians are not inherently criminal; conversely, their roles in
society, when performed judiciously, are vital to growth, peacefulness, and
prosperity. Heck, as a 20-year, Wall Street trained financial analyst,
I, too can be considered a "banker" by trade, so why have I not
succumbed to these same stresses?
Ergo, who do we believe, Charles Darwin or John
Several theories have bounced around my head over
the years, starting with the "FARGO" explanation I have writing
about in numerous RANTS. In other words, such thoughtless, injurious
behavior results from being stuck in a trap - often self-inflicted - that
cannot be escaped without treachery. A handful of "elite"
bankers have escaped their sins via white-collar, government-supported crime,
but the average person, such as William H. Macy's character in Fargo,
just digs his hole deeper. Likely, a significant proportion of the
population believes they can escape their pasts via crime or sociopathic
behavior, while many others view it is their only option.
Irrespective, as the bankers and politicians were inordinately responsible
for today's crisis, they no doubt have a disproportionate amount of sins and
failures to undo or, at the least, cover up.
Another possibility, albeit not applicable to the
masses, is the corrupting force of POWER, such as that bestowed on
"leaders" such as Greenspan, Ben Bernanke, Bush, Obama, and
"moguls" such as Jamie Dimon, Warren
Buffett, and Bill Gross. Gerald Celente
expertly, and continuously, points out that such "luminaries" are
human by birth, and Keystone Kops by accomplishment, no matter how
revered by the blind, hero-worshipping masses.
Some, like Alan Greenspan, are smarter than others,
which in hindsight makes them the most dangerous, while others, such as Ben
Bernanke, are mental midgets handed the keys to the realm by others still
dumber. Some, like George Bush, are handed power via their name,
and others their ethnicity when the nation is desperate for
"change." Some were once respected businessman, like Jamie Dimon, or in Buffet's case investment gurus, while
others, like Bill Gross were lucky enough to be in the right place at the
On the subject of Gross, it looks like America's top
"fund whore" is at it again, betting with YOUR MONEY on what
the Fed will do. Like Greenspan, he may have once been brilliant, but
long ago abandoned all principles of ethical behavior in the pursuit of a free
lunch. He was miserably wrong in taking HUGE mortgage bond
positions in the mid-2000s, and consequently spent the late 2000s groveling
for the bailouts that ultimately saved his job. Next, he
"bet" billions of OPM (other people's money) that Treasuries would
collapse despite unlimited QE, losing miserably yet again. And now he
is "betting" on additional QE, once again, I'm sure, ready to
launch a multi-faceted lobbying campaign for another free lunch.
Pimco Doubles Down On All In Bet
Fed Will Monetize MBS
Irrespective of their disparate backgrounds, today's
"elites" have become classic sociopaths, their undeserved power
having transformed them from decent human beings to profit-thirsty monsters.
Thus, the burning question - was Darth Vader BORN to be a Sith,
or was he driven to the "dark side" by the deaths of his mother and
wife, the disrespect of his master, and the stress of being labeled "the
Another great example of power's corruption is the
National Inflation Association, or NIA. When it first came to my
attention two years ago, it appeared to be a social organization mandated to
PROTECT people from the inevitable ravages of hyperinflation. Their
written commentaries were fantastic, and videos second to none I had ever
seen. I was proud to watch their skillfully produced documentaries
about the causes and ramifications of the economic meltdown, and thankful for
one of the few glimpses of decency emanating from the financial community.
Alas, the principals behind the NIA had a shady past
of stock promotion, and once their content became "viral" material,
started using their bully pulpit to promote small cap stocks, initially in
sectors deemed to be inflation-sensitive, but later in far riskier sectors
such as "social networking," which they have been pumping lately
with a ferocity as great, or even greater, than anything they'd discussed
regarding inflation. It greatly disappoints me to watch the NIA's fall
from grace, one of the few groups I deemed to be true peers in the task of
publicly challenging the establishment, but therein lies
the corruption of POWER.
And one final note on the topic, I see my old
nemesis Peter Schiff is spouting off again about the NIA, as if he is some
kind of crusader fighting for the public good. While a brilliant man, I
find him to be one of the most revolting characters in the financial
community, the ultimate self-promoter, who desperately wants in to the
"Republican machine" so that he, too, can rule the masses as an
"elite." If fact, in his recent tirade about the NIA - of
which I agree regarding the stock promotion criticism - he seems more
concerned about refuting their "Romney Con" video than the NIA's
stock pumping. Sickening!
Oh well, I could write about this topic for hours,
but I think you get the point. Time and again, I have written that my
most valuable skill is seeking out the "good, smart" people, i.e. those with
both the intelligence and motive to help you. I have spent my entire
career seeking out such people, and directly attribute my ability to thus far
survive to such individuals, and hopefully to thrive in the
Whether it's NATURE or NURTURE that prompts man to
the "dark side" during times of adversity, we'll never definitively
know. Forrest Gump would say it's "both," and wiser words
could not be spoken.
In the upcoming difficult times, TRUST will be among
the most valuable commodities one can possess, so BEWARE of those coveting
what you value.
PROTECT YOURSELF, and do it NOW!