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Peace of the Rock
Published : December 08th, 2011
5571 words - Reading time : 13 - 22 minutes
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It's still Wednesday evening, and for those of you trying to figure out how I write so much, I have no kids, a wife that works three nights a week teaching ballet, and a habit of waking up shortly after 4:00 AM.  More importantly, I love what I do, particularly writing this blog.

 

Before I start, below is a link to an archive of RANTING ANDY audio interviews, which will be updated each time I have a new appearance, such as the two-hour spot tonight on John Stadtmiller'sNational Intel Report, which can be listened to live at 5:00 PM EST.  Kudos to Miles Franklin's resident computer whiz, Laura Drake, who edits the two daily blogs and creates all its graphics and functionalities.

 

Interviews and Appearances Archive - Miles Franklin Blog

 

The first thing I want to do is go over today's BLATANT market rigging, particularly that of the PPT, which has never been more conspicuous in its goal of supporting KEY ROUND NUMBERS and portraying a picture of "economic stability," particularly as regards the prospects for a "solution" to the European debt crisis.  Readers know there is no solution, and NEVER will be.  Math 101 tells you the Western world's debts can never be repaid, and each day these debts continue to grow.  Just google "U.S. debt clock", "German debt clock," etc., and you'll see that, no matter what the Fed, ECB, BOE, BOJ, and SNB leaders say or do, the debts continue to rise at accelerating rates, soon to become exponential.

 

Think about it.  Last week's announcement that the Fed would provide unlimited, low interest loans simply means borrowers took on HUGE amounts of additional debt, making the overall problem that much worse.  As I noted in yesterday's RANT, in thefour days following this announcement, European banks took on an additional $52 BILLION of debt, hardly what I'd call a "solution" - in fact, to the contrary, it just makes things worse.

 

Early this morning, we were treated to yet another barrage of bad news, the same bad news that has NOT SUBSIDED ONE BIT despite last week's GLOBAL QE announcement, and WILL NOT SUBSIDE until the entire system collapses - BANK ON IT!  I continue to vehemently maintain we will NEVER see a credit upgrade in this GENERATION for a bank or sovereign nation, just a steady stream of downgrades that, eventually, will become a raging, uncontrollable torrent, likely sometime in 2012.

 

First we see the desperation of the Japanese government, whom I only mention because Japan is still the world's third largest economy.  How it is still a factor in the global economy is beyond me, as it has, BY FAR, the most per capita debt, the worst demographics, and a nuclear holocaust that will continue for generations due to suicidal engineering decisions.  The Bank of Japan is the only financial institution as inept as the Federal Reserve, and only the nation's saving culture prevents it from disappearing into oblivion. 

 

Ah, a saving culture, if only America understood that concept.  Saving money makes up for so many ills, just like a 30-foot putt makes up for three bad irons.  Unfortunately, America is the anti-saving culture, which has already taken it to second-world status, on its way to the third world.  As bad as Japan is, and things will get dramatically worse in the coming decade, America will pass it on the downside, as thanks to Japan's savings its citizens will likely avoid hyperinflation and somehow survive the all-consuming Western economic conflagration.

 

Today, Japan announced it is reconstituting its GDP calculations to make the numbers look better.  America, home of the "world's reserve currency" and, consequently, a level of arrogance rivaled only by the Romans and Nazis, is the "gold standard" of data manipulation, which believe it or not started with "Saint Bill" Clinton long before America's structural problems were common knowledge.  However, the Japanese government has in the past resisted the urge to LIE to its citizens about its financial condition, until NOW.  This pathetic act of desperation shows how low Japan has sunk from its standing of undisputed industry titan in the 1970s and 1980s, a sad reminder of how "irrational exuberance" and poor financial management destroyed one of the world's great economic empires.

 

When All Else Fails, Change The Math: Japan To Fudge GDP Calculation, Will Add Up To 2% To GDP

 

Next, an attempt on the life of Deutschebank's CEO, Josef Ackermann.  Hardly market moving news, but it demonstrates how the public is coming to despise the bankers that have destroyed their economies.  Too bad it wasn't Lloyd Blankfein, Ken Lewis, or Jamie Dimon, but for all I know Deutschebank has perpetrated an equal amount of evil on Europe as the former three criminals in America.

 

Attempt Made On Deutsche Bank Head's Life: Explosive Package Addressed To CEO Intercepted, ECB Return Address Given

 

It was inevitable the BANKRUPT American Airlines would see its stock surge on "rumors" of deals to save the company.  Despite soaring earnings, mining stocks are always under pressure due to the gold Cartel, but find me a bankrupt company, particularly a bank or other criminal financial enterprise, and wildly bullish speculation is guaranteed. 

 

No matter that the American Chapter 11 filing has caused surging yields across the junk bond sector, or that derivative bombs have since exploded left and right.  The few remaining "market participants" (i.e. NOT government or HFT computer algorithms) still are clueless as to the REAL state of the economy, and fraud of the markets, and thus still focus principally on the "trade of the day," even if such trades involve taking huge positions in companies that declared bankruptcy last week.  (NOTE while proofreading Thursday morning - AMR stock down 30% as the aforementioned "rumors" didn't pan out)

 

Jump Risk Jumps After American Bankruptcy, Sends Junk Plunging As Massive High Yield Refi Cliff Approaches

 

Next, the "bombshell" that S&P is not only reviewing 17 Euro Zone nations for potential downgrades (including Germany), but the European Union itself.  I say "bombshell" in quotes because it should not be surprising that the "parent" of a group of bankrupt children is bankrupt itself.  The Dow immediately dipped on the combined impact of this bad news, and thus it appeared the PPT would actually allow it to decline for once...

 

S&P Warns It May Cut Most European Banks, European Union Itself

 

I mean, heck, American retail investors have pulled money out of the stock market for the past 15 WEEKS, but somehow the Dow continues to rise.  In fact, while the Dow surged on the "good news" that the Fed would lend unlimited TAXPAYER DOLLARS to any and all European deadbeats for next to no interest, actual market participants were selling in droves.  THAT is your "President's Working Group on Financial Markets," i.e. the PPT, in ACTION!

 

In Past Week Americans Pull The Most Money From Stock Market Farce Since US Downgrade, Despite Market Surge

 

Yet again Dow futures were up for the ENTIRE PRE-MARKET SESSION as the PPT performed its daily chore of "setting the tone" for the day, while, AS ALWAYS, I ran on the stair climber this and watched gold under severe pressure.

 

Notice how, yet again, all that pre-market Dow Futures propping was erased at the market open, but how the early losses were erased equally quickly, resulting in the Dow being held at just above breakeven (the red line) ALL AFTERNOON while the rest of the world's markets sank, INCLUDING all of Europe.

 

 

And then, what a shock, yet another HAIL MARY rally at day's end, in this case supposedly catalyzed by the most asinine rumor yet, a $600 billion European bailout by the very same IMF that has been vehemently against such action from DAY 1. 

 

No matter that it was denied minutes later, as the PPT is going hog wild in its attempt to mislead investors that last week's GLOBAL QE announcement and tomorrow's MAJOR EU SUMMIT will somehow achieve some type of "solution" to the European debt crisis - you know, the crisis THAT HAS NO SOLUTION.

 

One thing I do know is the ECB is highly likely to lower rates tomorrow from 1.25% to 1.00%, its second rate reduction in a month, and the strongest evidence yet that gold and silver prices will shortly go parabolic.

 

Update - Denied.... And Here Is Today's Completely Idiotic Rumor

 

Which is EXACTLY why they continue to be pressured, every second of every minute of every trading day, as seen by yesterday's trading activity.

 

PAPER gold prices, which yet again rose in Asian trading, yet again peaked at EXACTLY 3:00 AM EST, and yet again were walked down into the COMEX open.  To the Cartel's bemusement, gold took off at the COMEX open, and thus needed to be STOPPED COLD at EXACLTY 10:00 AM, as always, when it experienced its DAILY WATERFALL DECLINE.  It then shocked the bad guys by rising anew, but was held well under the 1% daily cap limit, while silver, of course, was pummeled and the mining stocks held to miniscule gains.

 

And look at that.  For perhaps the tenth time in the past week, gold experience a brick wall at the KEY ROUND NUMBER of $1,750.

 

 

Not only is the world expecting the ECB to cut interest rates, and the two-day EU summit to produce a "solution" to the debt crisis (i.e. an agreement to PRINT UNLIMITED MONEY), but word emerged that Germany is planning mandatorybailouts, which would be still more bullish for Precious Metals.  As I wrote yesterday, I am 100% certain that last week's Fed MONEY PRINTING orgy was exactly the same, a mandatory acceptance of Fed overnight swap financing to the most distressed banks, such as Credit Agricole, in EXACTLY the same manner that TARP was forced on U.S. banks at gunpoint by Hank Paulson.

 

EuroTARP Cometh: Germany's Schauble To Pull A "Paulson" Will Force Banks To Take Bailout Funds, Handelsblatt Says

 

I guess we'll just have to see what happens in the morning.

 

Before we get that far, and eventually today's RANT topic, I have a few non-sequitur tidbits you might be interested in, starting with the ongoing movement to make silverlegal tender in the world's largest silver producer, Mexico. 

 

Per the excerpts in Tuesday's RANT from James Clavell's Gai-Jin, silver has a long, storied history of being a primary monetary metal, particularly in Mexico.  Hugo Salinas Price, at 79 years of age, is one of the leading financial denizens of Mexicanhistory, not to mention a major GATA supporter.  For many years, he has spearheaded a movement to re-monetize silver in Mexico, and appears to be getting very close. 

 

Keep your eyes and ears open, as this story will not go away, and could wind up being a major silver catalyst in 2012.  Not surprisingly, while the majority of Mexicansand Mexican politicians support this bill, the BANK OF MEXICO vehemently opposes it!

 

Hugo Salinas-Price: What Every Politician Needs to Know About Silver

 

Next, I want you to read this very sad article regarding the ramifications of MF Global (i.e. Jon Corzine) STEALING BILLIONS from its clients with GOVERNMENT BACKING.  Not only are financial investors such as Gerald Celente locked out of their funds - likely forever - but so are FARMERS and other tradesman who dependon futures transactions for their daily business operations.  Do not be surprised if MF Global's demise doesn't directly correlate with SOARING agricultural prices in 2012, as well as, potentially, food shortages. 

 

Oh, by the way, another business that relies on the futures markets to make it possible for the public to buy its products, and thus PROTECT THEMSELVES against inflation - is the bullion industry.  Without functional futures markets, PHYSICAL gold and silver will become a "cash and carry" business, making it nearly impossible to purchase in size.  Thus, for those of you waffling about trading your depreciating fiat currency for REAL money, I'd advise you get off that fence QUICKLY.

 

MF Global fallout delays U.S. farm seed, land deals

 

But don't worry, there's nothing to see here, as Corzine just testified to Congress that he "simply does not know where the money is."  Who wants to bet Congress' ultimate ruling is the MF Global collapse was nobody's fault, simply "poor decisions and bad luck," and that by mid-2012 Obama will be cashing his next campaign contribution check from Corzine?

 

Corzine "Simply Does Not Know Where The Money Is" - Presenting Jon Corzine's Complete Testimony To Congress

 

Before I leave the topic of MF Global, one of the most vile Wall Street theft's of all time, I want you to be aware of the below study of industry-wide "re-hypothecation," the highly UNETHICAL, DANGEROUS, and borderline ILLEGAL means in which brokerage firms utilize client collateral to collateralize their own, proprietarytransactions.  In other words, double-counting assets, much as global Central Banks are mandated (by the IMF) to do when accounting for gold reserves that have been leased or swapped out.

 

Per the below article, this disgusting, IMMORAL practice should be 100% ILLEGAL, as clients are nearly always unaware of it.  My guess is client "permission" is granted somewhere deep in the fine print, in mumbo-jumbo legalese, upon initially signing one's brokerage account agreement.  "Re-hypothecation" is apparently common Wall Street practice, which not only puts YOUR assets at risk, but YOUR brokerage as well, given the enormous LEVERAGE it creates by borrowing money based on assets that have been collateralized MULTIPLE TIMES, i.e. double-counted.

 

Re-hypothecation is the reason the investment bank Jeffries & Company is being forced to sell itself, why others such as Lehman Brothers failed, and likely why MF Global did as well.  It should be no surprise, by the way, that the spawn of the devil himself, JP Morgan, leads THE WORLD in re-hypothecating client collateral (i.e. the STOCKS and CASH in your accounts), and why ANYONE keeps an account at their banks is beyond me.  Oh well, if one of my heroes, Gerald Celente, was dumb enough to put his money in COMEX futures, at a firm that emerged from the ashes of the REFCO scandal in 2005, run by a former head of Goldman Sachs AND U.S. Senator, I guess the rest of the populace has no chance to figure it out.

 

Zerohedge on Why Jefferies is MF Global's AIG

 

And for those of you that don't recognize REFCO, prior to its collapse in October 2005, the firm had over $4 billion in approximately 200,000 customer accounts, the largest broker on the Chicago Mercantile Exchange (sound familiar?).  None other than GOLDMAN SACHS took them public in August 2005, selling unsuspecting suckers - er, investors - $583 million of stock in an IPO valuing the company at $3.5 billion. 

 

And then, in a situation eerily similar to MF Global today, Refco entered crisis on Monday, October 10, 2005 when it announced its Chairman and CEO, Phillip Bennett, had hidden $430 million in bad debts from the company's auditors and investors.  In an internal review that weekend, Refco discovered a receivable owed to the company by an unnamed entity that turned out to be controlled by Mr. Bennett, in the amount of said $430 million.  Apparently, Bennett had been buying bad debtsfrom Refco to prevent it from needing to write them off, and was paying for the bad loans with money borrowed by Refco itself.

 

Refco went bankrupt a week later, the fourth largest filing in U.S. history, defrauding thousands of investors of BILLIONS of dollars, and a month later was sold to Man Financial (i.e. MF Global), from a field of numerous, aggressive bidders.  Goldman and a litany of underwriters including Credit Suisse, Bank of America, and Deutschebank received a cumulative "slap on the wrist," and MF Global was handed the reins of one of the greatest corporate Ponzi schemes in financial history, the RE-HYPOTHECATION of client funds from brokerage accounts, particularly futures accounts utilizing MAXIMUM LEVERAGE.

 

At least it took Bennett 17 years to get caught pilfering client funds, while in Corzine's case it took just ONE.

 

Refco Underwriters Settle Securities Suit For $53M

 

Back to gold, I'll bet you didn't know that Indian households own 18,000 tonnes of gold, or 11% of the roughly 160,000 tonnes mined throughout history.  India has historically been the world's largest gold buyer, and something tells me the REAL number is far higher than 18,000 tonnes. 

 

Indian households hold over 18,000 tonnes of Gold

 

When global gold demand simultaneously EXPLODESin 2012, you can bet the Indians will be fighting tooth and nail for every last ounce, from households to the highest levels of government...

 

India buys 200 tonnes of IMF gold

 

And one more note on gold before I shut down for the night.  Actually, I need to rest up, as at 11:15 PM tonight I have a soccer game!

 

This is no trivial tidbit, but further evidence of the MASSIVE rigging job perpetrated by the gold Cartel daily on the New York COMEX futures exchange.  As I've noted numerous times, James McShirley is to COMEX statistics what I am to COMEX pictorials.  He has been analyzing this "crime in progress" for a decade, having presented the sum total of his evidence to an enthralled audience at the GATA conference this August in London.

 

He has "written the book" on how rigged COMEX trading is, particularly following the London Fix at 10:00 AM EST, and today updated his data for both 2011 and the prior five years.  As you can see below, the numbers require no qualitative support.  Through an eleven-year bull market, gold prices have barely risen in the New York PAPER market, and rise sharply with such infrequency, you'd think gold is in an eleven-year bear market.

 

Readers, I whole-heartedly encourage you to read this data carefully, so you can realize how suppressive the Gold Cartel has been in the PAPER market, and thus how imperative it is to shift your investments to the REAL, PHYSICAL markets!

 

Update on London fix data Comex data up to 12/7/11

 

I recently updated my 5 year data on the disparity between the London PM fix vs. the AM fix, along with a 2011 update on Comex capping . The patterns are nothing if consistent.

 

 

For nearly a 6 year period there has been ZERO chance of gold exceeding 4% gains on the PM fix, and only an 0.4% chance of gold gaining 3%. Furthermore even 2% gains only had a 1.49% chance of happening. Even that is misleading, for if you throw out a couple weeks of volatility in both 2008 and 2011 gold virtually NEVER exceeded 2%. The 369% gains in gold from 2006 to 2011 came in spite of the PM fix having nearly an 85% chance of either being lower, or marginally higher.

 

 

We had the rarest of rare phenomenon in gold trading this year- TWO days that exceeded 3%. This has only occurred 6 other times since 2006, with all of the others occurring in 2008. Of the 8 days that gold gains exceeded 2% 4 were in fact very close to +2%. In a year that saw gold rise 34% (+$488 at the peak) gold never had a single day exceeding 2% until August 6th, and only 7 thereafter. Most unusual (or not?) they were mostly all clustered around, and shortly after GR 2011 London. The same was true for +1% days. Of the 32 days that exceeded 1% all but 4 occurred after August 5th. This confirms once more that the biggest gains in gold occur in very sharp, short bursts and are almost always missed by the general public. These Comex closing prices do not reflect the numerous trading days gold rallies stopped at exactly 1% or 2% and then were held in check. I can find no other commodity that trades with prices that are limited on a daily basis by a specific percentage. 
James Mc

 

Until tomorrow morning...

 

OK, it's Thursday morning, and we could be in for an interesting day.  At least, as interesting as the PPT will let it be given the monstrous, two-day "do or die" European summit starting today to supposedly decide the fate of the world (like we haven't heard same a half dozen times this Fall).  The ECB did in fact cut interest rates from 1.25% to 1.00%, it's second such decrease in a month, and my guess is these 1.00% funds will be force fed down the throats of a dozen or more "zombie banks" in the hope of buying enough time to pay themselves huge, taxpayer-funded bonuses and figure out additional ways to consolidate global POWER at the expense of the unsuspecting, dumbed down populace.

 

ECB Cuts Rates By 25 bps, As Expected

 

I see the Cartel is playing their same games as usual, capping PM's surges following the violently bullish ECB MONEY PRINTING announcement, and instilling yet another of their suppressive games, per my RANT from Monday afternoon:

 

  1. NO SIMULTANEOUS STRENGTH - Gold, silver AND the PM shares are NEVER allowed to all act strongly together.  Usually only one can act strong at a given time, and sometimes two, but NEVER all three. 

 

In other words, no more than two of the three asset classes - gold, silver, and PM shares - are EVER allowed to act unusually strong simultaneously.  Tuesday we saw silver much stronger than gold, yesterday gold was very strong but silver was sat on all day, and today silver is strong but gold is barely treading water.  I've been watching this "Cartel rule" for a decade, one of their best methods of demoralizinginvestors, and thus preventing them from making the PHYSICAL PM purchases that represent TPTB's most obvious "Achilles Heel."  The only way to beat the Cartel is to BUY physical metal and thus strain their ability to hold down the PAPER price, and a good rule of thumb, on any given day, is to buy the metal showing the aforementioned relative weakness.

 

And speaking of gold, below is a must-read article by Jeff Clark of Casey Research, highlighting a point I have discussed ad nauseum for years.  The gist is that one must fight through a lifetime's worth of dogma - or better put, PROPAGANDA - that one's net worth be calculated in "dollars", "Euros", or any other fiat currency.  By now, most readers understand that only PHYSICAL gold and silver have been, and always will be, MONEY; and if that's the case, shouldn't ITEMS OF REAL VALUE, such as food, energy, clothing, and housing, be calculated in terms of GOLD and SILVER as well?

 

I'm sure most of you are aware of the "Dow/Gold Ratio," one such measure that is circulated often around the PM "shadow world."  But are you truly aware of its meaning?  Most use it to gauge which market is doing better, but conversely it can be used to measure how the Dow has performed when priced in gold.  This is a topic I'll be discussing in length during my webinar next week, just as Jeff Clark does here when he "prices" various stock indices in gold.

 

It took me nearly a decade to make the transition in my mind as to what my "net worth" was (ounces, NOT dollars), and by the end of our lifetimes I believe themajority of the world's population will think likewise.  Some, such as the Indians, already do.  Once you do get over that "mental hump," it will make periodic Cartel smashes that much easier to stomach, knowing your "net worth" hasn't changed AT ALL because the Cartel naked shorted COMEX gold futures contracts and GLD shares. 

 

Start Thinking in Terms of Gold Price

 

I've used the analogy of Neo in The Matrix many times before, when he initially plays right into Mr. Smith's hands due to his inferior mental acuity, and thus inability to understand the powers of his mind, or, more specifically, that it exists in "The Matrix."  Eventually, he has a "EUREKA MOMENT," and realizes how easy it is to defeat the evil, seemingly invincible Mr. Smith.

 

Watch this scene, readers.  YOU ARE "THE ONE"!

 

 

It took me awhile to find that clip, and while doing so I see "Goldman Mario" Draghi just gave his ECB press conference.  As I noted yesterday, the market was hoping he'd

"loosen financing regulations for member banks, including the acceptance of more, and lower quality bonds as collateral for loans."  And for the second time today, he didn't disappoint, all but SHOUTING how dire the financial condition of Euroland actually is.  Heck, he even stated that "fiscal consolidation is unavoidable," i.e. Europe will COLLAPSE as is, and thus the PIFIGS and other weak nations must surrender their sovereignty to a group of "elite bankers" in Brussels, led by "Goldman Mario" of course.

 

ECB's Mario Draghi Press Conference Live Webcast

 

And wouldn't you know it, the Cartel is MANIACALLY DEFENDING the KEY ROUND NUMBER of $1,750, for the 21st TIME in the past WEEK.  Yet again, gold surgedthrough $1,750, on massively gold-bullish news, but was only ALLOWED to remain there for MINUTES before the Cartel attacked again, to the tune of $35 in FIFTEEN MINUTES!

 

 

And yes, it is in fact the 21st TIME in the PAST WEEK that gold has been capped at EXACTLY $1,750/oz, or driven below that level within MINUTES of piercing through.  Count for yourself, and keep in mind that ALL 21 ATTACKS OCCURRED DURING COMEX HOURS, including November 30th...

 

 

...December 1st...

 

...December 2nd...

 

 

....December 5th...

 

...December 7th...

 

 

....and today, December 8th...

 

Good thing I'm writing this in real time, as apparently the market is now upset that Draghi has not announced NEW, massive ECB bond purchases (as if they're not doing that already COVERTLY).  Also, he apparently compared Europe's financial situation to LEHMAN BROTHERS right before it collapsed.  Yes, readers, LEHMAN BROTHERS!  Now do you understand why they announced last week's GLOBAL QE initiative, and why gold has been pushed back from $1,750 EVERY TIME IT HAS PIERCED THAT LEVEL, within MINUTES?

 

Market Snapshot: Flip Flop.... Update - And Plunge On Bond Purchases, IMF, Lehman Comments

 

Euro CDS Spike As Draghi Shatters Rumorville

 

For those keeping score, on news that the financial system is on the verge of collapse, and with it FIAT CURRENCIES such as the Euro, Dow futures were held to a 150 point decline, or 1.2%, while PAPER gold was taken down $35/oz, or 2.0%, and PAPER silver $1.00/oz, or 3.0%.  To add insult to injury, the most economically sensitive commodities have also outperformed PMs, with crude oil down just 1.8% and copper 0.9%.  Yes, that is how TPTB manage situations, by propping the Dow and attacking PAPER gold and silver, not uncoincidentally right after the COMEX open, during a DRAMATIC revelation that in a free market would have the opposite effect.

 

Based on the "blunt force trauma" of this Fall's "OPERATION PM ANNIHILATION" (undertaken for EXACTLY the reasons noted above), many gold investors have been demoralized, and thus SCARED to pull the trigger on new purchases of PHYSICAL metal.  Likewise, hordes of "potential investors" have once again been "held at bay" by this attack, but fortunately for the "good guys," these potential investors are still there waiting on the sidelines, ready to pounce the SECOND the Cartel shows weakness. 

 

When viewed through the prism of reality, this Fall's Cartel-induced decline is just a BLIP in the INEXORABLE BULL MARKET, which is just getting warmed up.  The Cartel KNOWS $1,750 is not far from this summer's high of $1,920, and in turn the KEY ROUND NUMBER of $2,000 which will LAUNCH the bull into its next stage, one where the global public starts to FEAR the ramifications of NOT owning PHYSICAL gold and silver.

 

That is why they are fighting gold's current surge TO THE DEATH with naked shorted PAPER, PAPER, PAPER!  And If you think this volatility (i.e. Cartel attacking) is intense, just wait until the "Euro Summit" is concluded tomorrow with yet more promises of ALL OUT MONEY PRINTING.

 

 

Those reading my RANTS should be crystal clear on the state of the world, and subsequently the key role PHYSICAL gold and silver play in global finance, in my view the linchpin of all things economic.  Abandoning the gold standard in 1971 is what caused the economic collapse that will consume everything in its path, andonly a return to the gold standard will enable the PLANET to survive the coming decades, i.e. without a nuclear holocaust.

 

All you have to do is look at the above chart, depicting gold MORE THAN DOUBLING since the GLOBAL ECONOMIC CRISIS commenced three years ago, not to mention the SURGES in gold during key crisis points such as FEBRUARY 2009 and AUGUST 2011.  In both cases, the Cartel went ALL-OUT to quell such "uprisings" with MASSIVE amounts of NAKED SHORTED PAPER gold and silver DERIVATIVES, such as COMEX futures and GLD shares, but gold fought through those, and all other artificial caps to reach new all-time highs. 

 

Which is EXACTLY what will happen this time around, and the next, and the next. 

 

And why you need to utilize the scant remaining opportunities, such as you are being afforded today, to buy PHYSICAL gold and silver at bargain basement prices before SUPPLY runs out, as it has already done TWICE this year, the first time in late April when silver prices approached $50/oz, and the second in late September when silver fell to $30/ounce.

 

And finally today's RANT topic, which seems inappropriate given the lack of PEACE being afforded the "good guys" this morning, but irrespective will hopefully INSPIRE you to take appropriate actions to PROTECT YOURSELF from the evil aiming tosteal your assets and destroy your livelihood.  That topic is "PEACE OF THE ROCK," a silly play on words from Prudential Insurances' old ad campaign.

 

In the mid-1990s, I ran a share house in Montauk, NY, at the tip of the South Fork just east of the Hamptons.  Montauk is one of the most beautiful places in America, a summertime mecca for fisherman, college students, and hard working New Yorkers looking for well-deserved R&R.  My best friends in the world emerged from eight summers in Montauk, as did my future wife.  Nothing made me happier than embarking Friday night from Manhattan, usually by car but sometimes the Long Island Rail Road or Hampton Jitney, to my wondrous fantasy world of friends, parties, and beaches.

 

But of all the wonderful aspects of my trips to the "East End," the one that stands out is the bike riding.  I have been an avid bike rider since a little boy, having easily logged 30,000 miles in my still young "career."  I have biked on diverse terrain through wildly varying weather conditions, in numerous states and countries, but nothing exceeds a flat, open road on a hot, summer day.  And nowhere did I enjoy such adventures more than the East End of Long Island, where each Saturday I explored new, exciting, beautiful roads, some of them busy, some deserted.  My business career had just started, and I had as much optimism about Wall Street asanything I can remember.  My whole life was ahead of me, and nothing symbolized my preferred path better than the sunny, tree-laden, open roads at the tip of Long Island.

 

Of all the East End's "nooks and crannies", by far my favorite was the Montauk Lighthouse.  Built in 1797, it has served as safe haven to fogbound fisherman for more than two centuries, and during World War II a lookout for potentially invading German submarines.  I cannot recall the amount of Saturday bike rides I took to the lighthouse, but I can "feel them" deep inside my soul - the hopefulness, optimism, and sheer PEACEFULNESS of approaching its STRENGTH, BEAUTY, and PROTECTION.

The road to the lighthouse ended just to the left of this picture, of which a dirt path meandered from the parking lots to the beaches below, as well as the sturdy rock wall surrounding the lighthouse, protecting it from the erosion that will ultimately consume it.  The rock wall is barely visible in this photo, which I purposely chose for this reason.  This is where I found "The Rock," a sanctuary I spent close to an hour on each Saturday morning sitting upon, pondering the weight of the world.

 

When the millennia passed, we all rejoiced at surviving Y2K.  Unfortunately, that day marked the beginning of the end of America, as well as my summers at Montauk, which I last visited in 2001.  Life got considerably more difficult in the "aught" decade, which sadly will be viewed as the "good old days" compared to what is coming in the 2010s.  I'm thankful for the good fortune I've had compared to most, but irrespective have worked harder than ever to fight the tide, which is rapidly becoming a raging tsunami.

 

I expect the culture of America, and much of the Western world for that matter, to be unrecognizable to the boy riding the long, winding roads of the East End from 1994 to 2001.  And fortunately, that boy has grown up to become RANTING ANDY, one of the few sources of honest, frank advice in an increasingly corrupt, violating world.  What inspires me is empowering people to erase what they have been erroneously taught for decades, so they too can face reality and make the decisions required to avoid the oncoming, unstoppable collapse of the global financial system.

 

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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