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Nature vs Nurture
Published : January 16th, 2012
2488 words - Reading time : 6 - 9 minutes
( 2 votes, 5/5 ) Print article
 
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Keywords :   Crusader | Fail | None | Paper Gold | Prosperity |

 

 

 

 

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 "epic proportions." 

 

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 terrible...          

 

Prior

Consensus

Actual

Retail Sales - M/M change

0.2 %

0.4 %

0.1 %

Retail Sales less autos - M/M change

0.2 %

0.4 %

-0.2 %

Less Autos & Gas - M/M Change

0.2 %

0.4 %

0.0 %

 

...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 Financing

 

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 Increase

 

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 Chinese economy...

 

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 revolting...

 

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 risks

 

...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 Eurozone

 

...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 cancelled"... 

 

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.

 

Gold Correction is Over

 

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 NOW!

 

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 Triggered


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 so.

 

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 Locke?

 

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 right time.

 

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 chosen one?"

 

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 future. 

 

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!

 


 

 

 

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Andy Hoffman

Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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