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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:
- 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...
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