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Amazing how the world
“resets” each morning, a fresh new day with endless
possibilities.
TPTB aim to limit such possibilities
via an endless litany of “committees”, “facilities”,
and otherwise “dark pools” of PRINTED MONEY utilized to manipulate
markets, and at times it appears they can accomplish anything they
wish. However, no matter how sophisticated their technology, how deep
their connections, and how limitless their printing presses, reality always
trumpsillusion. Economic Mother Nature has never been
denied her due, and certainly WILL NOT be denied now. As they say,
“the bigger they come, the harder they fall.”
Before I start today’s RANT,
below is an interview I taped yesterday with the affable Kerry Lutz of the Financial
Survival Network:
Andy Hoffman Interview with Kerry Lutz: Financial Survival Network
Hopefully, you will listen to my
two-hour spot on John Stadmiller’s National Intel Report tomorrow
at 5:00 pm EST,
as well as read the excellent introduction totoday’s Miles Franklin Daily Blog, written by our
firm’s founder, David Schectman.
Back to the real world; it appears the
honeymoon for last week’s GLOBAL QE announcement by the Federal Reserve
is about OVER.
While at the gym this morning, watching
the usual Cartel gold suppression (top tick at EXACTLY 3:00 AM EST, Dow/Gold
x2 ALGORITHMS, etc.), I thought about the nature of last week’s
coordinated dollar swap announcement. When it came out, stocks took off
on the INSTINCT that any and all MONEY PRINTING is beneficial, even though,
of course, all the previous MONEY PRINTING has been a
colossal failure. The PPT was certainly amidst the initial surge, but
as noted in prior RANTS, the fact that “HAIL MARY” rallies were
required both Tuesday andWednesday told me a lot about what the
market really thinks of such “improvements,” and
in fact the market has faded nearly every afternoon since. Each
evening, Dow futures are goosed and gold leaned on to “set the
tone” for the next day, but my sense is there is no real investor belief that
anything has changed.
True, sovereign yields declined in
Europe this week, but was the cause truly a measly 50 basis point reduction
in Federal Reserve overnight lending to insolvent banks? I mean,
c’mon, the ECB lowered interest rates last month from 1.50% to 1.25%,
yet two weeks later the system was on the verge of collapse, so much so that
the ECB is expected to again drop rates TOMORROW by another 25 basis
points. In other words, short-term ECB funding rates had already been
reduced by as much as the Fed “overnight swap rate” last week, so
how can the Fed move be considered anything more than a modest monetary
change?
You want the answer, well here it
is. THE SYSTEM WAS DAYS, IF NOT HOURS, FROM IMPLOSION LAST WEEK!
As you can see below, since the Fed
dollar swap interest rate cut last week, USAGE of the facility EXPLODED, to
the tune of $52 billion immediately. This article states
that “expectations” were that no more than $10 billion would be
used, but in actuality the number was more than 5x this amount.
European Banks Dash For Fed Cash As Dollar Swap Usage Soars, Funding
Squeeze Now Shifts To Euros
In other words, those setting
“expectations” weren’t aware of the PANIC going on behind
the scenes, which has been rumored to be the imminent collapse of
Credit Agricole. However, from inside sources, such as those secured by
Jim Willie, hands down the best newsletter writer in the business, there were
potentially “20 Lehmans” lined up to fail last week, which
obviously necessitated theunprecedented, impromptu meeting of the
world’s seven largest Central Banks, and ultimately the decision to
reduce interest rates on the Fed’s dollar swap facility.
Don’t be fooled by the name of
the below link, an excellent interview with Jim Willie. He talks about
a variety of topics in it, but the author of the blog this is posted to
highlighted Willie’s comments about JP Morgan, MF Global, and the
COMEX. Earlier on in the interview, he talks about the “20
Lehmans,” a view that makes complete sense to me.
JP Morgan prevented a Comex default by stealing funds from MF Global
accounts just before they were due to take physical delivery of gold and
silver
Again, the amount of
the interest rate cut isn’t the story here, but the dramaticincrease
in the facilities’ usage. I believe these Central
Banks met, and acted, so suddenly because the system was about to implode,
and in the same manner as the TARP handouts three years ago, FORCED the most
insolvent banks to take tens of billions of overnight “loans,”
which is probably why the $52 billion of usage was the LARGEST, MOST INTENSE
CONCENRATION OF SUCH LOANS SINCE….DRUMROLL PLEASE…THE WEEKS
SURROUNDING THE LEHMAN COLLAPSE!
We Just Had A “Rerun” Of Bear Stearns: When Is Lehman
Coming?
This morning, we have confirmation that
last week’s SUPER POW-WOW was all about mushrooming insolvency,
as the ECB announced it is considering further measures to ‘loosen
financing regulations’ for member banks, including the acceptance of more,
and lower quality bonds as collateral for loans, EXACTLY
what the Federal Reserve Bank has done in America with its own cadre
of walking dead…
ECB Confirms Shadow Banking System In Europe In Tatters
…and additional “rescue
facilities” to bail out failing banks. Let’s just ignore
the fact that the first “rescue fund,” the EFSF,
was DOA, when we consider the possibility of a second fund.
My god, the desperation is getting intense!
FT Releases Mother Of All Rumors
The CONTAGION spreading around Europe
will spare NO ONE in its wake, from the PIFIGS (PIIGS plus France) at one end
of the spectrum to “healthy” Northern nations such as Germany,
Austria, and Denmark at the other.
Rotten Contagion To Make Landfall In Denmark: CDS Set To Soar As Hedge
Funds Target Country
Full Text Of S&P Warning On AustriAAA
Much ado is being made of the latest
dire, urgent, “life or death,” drop-dead important European
Financial Summit, scheduled for tomorrow, but frankly, as noted yesterday, I
have no idea what exactly they are talking about. I’ve read
snippets about austerity, unified European government, EU treaty changes, and
near-term financing options. However, to me it sounds like yet another boondoggle
aimed solely at buying time before the ultimate collapse.
December 9 European Union Summit: Solution to the eurozone crisis or a
fudge?
As stated eloquently in the below
article about the summit:
Many EU leaders seem to actually
believe Treaty changes are important. The reality is the market could
care less about treaty changes. The market cares about only one thing,
that the ECB will announce new, bigger, more aggressive sovereign purchases.
Europe Doesn’t Get It – ZeroHedge
Yes, readers, it ALWAYS comes down to
the same thing, HOW MUCH MONEY WILL THEY PRINT? Which is probably why,
despite the Cartel’s best efforts yesterday AND today, gold rebounded
abruptly and sharply (although you can see the earlier capping at EXACTLY
3:00 AM EST).
The rest of the world was relatively
quiet overnight, unless of course the potentialepicenter of World
War III moving to “war alert” is considered “important.”
Iran Moves Forces To War Alert
Here in the States, the name of the game
continues to be CORRUPTION, as alwaysfocused on the BANKERS and
POLITICIANS that have stolen America’s legacy,destroyed its
finances and reputation (as well as thousands of soldiers’ lives),
and delegated America’s future to the third world.
Aside from the earlier interview with
Jim Willie, where he focuses on COMEX crimes committed by JP Morgan and MF
Global, we see JPM and its cronies actually SUING THE CFTC over its proposal
to instill position limits on COMEX futures trading. Don’t worry
Blythe, those limits will NEVER be instituted, and even if they were, it
would only be on PAPER, whereas “behind the scenes” JPM et al
will still have free reign to create all the illegal, naked short positions
they like!
Wall Street, CFTC Face Off
And one final note on U.S. political
corruption, if you want to be sick to your stomach. My ears are still
ringing from the 60 Minutes piece two weeks ago about how
insider trading, in the stock market, real estate, and essentially EVERYTHING
is perfectly legal for Congressmen! How kind of
them to respond to the fly-by-night media scrutiny of this vile practice by
actually taking time out from such shady dealings to hold a hearing on
the matter.
Live Hearing On Whether Insider Trading By Congress Should Be Illegal
Who wants to bet the issue is dropped
without a vote, the MINUTE Congress realizes the press has moved onto
something bigger and more interesting to America’s dumbed down masses
(such as the article below)? Way to go New York Times!
On Black Friday, Pepper Spray Carried the Day
The day is still young, but it looks
like my forecast regarding the European crisis recommencing is on target,
pending the results of tomorrow’s joke of an “economic
summit,” of course…
Spanish Spreads Jump Most Since July As Italy 10Y Breaches 6% Again
Of course, at EXACTLY 10:00 AM EST, as
always, with absolutely ZERO movement in the Dow, all of gold’s
aforementioned gains were erased by the gold Cartel.
Keep buying, my friends, as the
opportunity to buy PHYSICAL gold under $2,000/oz and silver under
$50/oz will likely not last through the first half of 2012.
You have been afforded yet another gift by the Cartel, as it scrambles to
alter PERCEPTION of the collapsing EuroZone and hold Wall Street up long
enough to pocket hefty, taxpayer-funded bonuses next month.
The PHYSICAL market is their Achilles
Heel, and it is up to you to expose it!
Today’s RANT topic pertains to
one of my favorite movies of the recent past, M. Night Shyamalan’s Sixth
Sense. In it, Haley Joel Osmont has a unique talent, or better put, curse,
in that he can “see dead people.” In this famous scene, the
unsuspecting Bruce Willis doesn’t realize that he himself is one of the
dead…
http://www.youtube.com/watch?v=ZSNyiSetZ8Y
When I ponder the state of the world, I
believe that I, too, can “see dead people,” and that they, too,
do not realize they are dead. Readers of my RANTS probably have that
gift as well, or alternatively, the Cassandra’s Curse. To us,
ferreting out fraud comes naturally, effortlessly, as simple as adding two
and two. The evidence is everywhere, the results proof in and of
itself, but unfortunately facts do not hold an important
place in our world, at least not anymore.
Fear not, REALITY always trumps
ILLUSION, and it won’t take much for the world’s masses to cumulatively “see
dead people,” too. I believe a LOT more people do than the media
reports, as once again can be seen by the proof of their
actions. Skyrocketing PHYSICAL gold and silver demand, bank runs across
Southern Europe, the spreading “Arab Spring,” Occupy Wall
Street, and numerous other initiatives PROVE that Osmont’s character is
not as fictional as one would believe.
“The dead” are amongst us
in many forms, from the brain-dead masses to morally
dead politicians to financially dead banks and
sovereign nations, and in time will be exposed for all to see. Sadly,
much of this motley group of fools, thieves, and tyrants are no different
than Bruce Willis’ character, in that they, too, cannot see they are on
borrowed time.
But TIME is exactly what ticks against
them, as “kicking the can down the road” only works so long as
road remains to kick the can down.
PROTECT YOURSELF, and do it NOW!
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