There’s a good reason I spent the entirety of yesterday’s article
discussing the blatancy of the past week’s market rigging’s; as clearly, TPTB
are hell bent on “reversing” the ugliest annual start of currency, commodity,
and equity trading in global history – no matter that the very same issues
that catalyzed it, have decidedly intensified. To wit, in
yesterday’s “very,
very last to go,” I espoused that, aside from the same, prototypical gold
and silver price suppression algorithms we have observed for years…
“On a day when everything else plunged – from equities; to commodities,
currencies, and economic data – the “Dow Jones Propaganda Average” was simply
NOT ALLOWED to decline. Notice the seven “DLITR,” or “don’t let it turn
red” supports at Friday’s close, before it final succumbed to red ink around
1:00 PM. Followed by an immediate “hail mary” rally to push it back to
unchanged. Which, when that also failed (as oil plunged to the day’s
lows), the PPT orchestrated a second, far more egregious “hail mary” – in
which the Dow surged 200 points in less than 30 minutes time.”
Well, I could just as well have written the same of yesterday’s manipulations
– again, on a day when oil plunged (below $30/bbl at one point); as Treasury
yields plunged, and not a shred of positive news was to be found. I
mean, take a look at yesterday’s Dow and gold “trading,” compared to
Monday’s, if you had even the slightest doubt of what I’ve been writing of –
and quantitative proving – for the past decade…
These patterns – such as the Dow “dead ringer”; and “key Cartel attack
times” like 2:15 AM EST, 8:20 AM EST, 10:00 AM EST, and 12:00 PM EST – have
become as ubiquitous as snow during winter. And yet, essentially no one
seems interested, or motivated enough, to discuss them. Except, of
course, the handful of TRUTH seekers who, with each passing day, are becoming
more and more popular. Such as, for example, John Hathaway, whose
brilliant article yesterday, “Paper Gold – Utopia for
Analysts,” described exactly what’s going on, and exactly
why it will fail.
To that end, this morning has again started with the ubiquitous,
middle-of-the-night stock surge that has accounted for all the Dow’s
gains over the past decade, despite yet another massive energy inventory
build; nary a blip higher in the CRB Commodity Index; and oh yeah, another
Chinese stock market decline – this time, 2.4%, to within earshot of
August’s lows.
Of course, the POTUS gave his – thankfully, final – “State of the Union”
address last night; which, like Fed meetings, are, without exception, “key
attack events” for the Cartel, and “key support events” for the PPT.
Not that he said anything material, other than attempting to put “lipstick on
the pig” his Presidency has been – like pretending the economy has
“recovered,” when quantitatively speaking, 93% of America’s 3,100
counties are worse off than when he took the oath of office. And for
the coup de grace, in a statement that millions of dollars’ worth of
taxpayer-funded personnel likely pored over for weeks, he warned that we
shouldn’t “fear the future.”
Which sounds great on paper – certainly for the “1%” he’ll undoubtedly
join on the “retired President’s tour.” Unless, of course, the annihilation
of your financial future is already cast in stone – as is the case for the
vast majority of Americans, who have no jobs, certainly not of the
“breadwinner” variety, and/or no savings. And certainly for the global
commodities industry – which even Obama knows is the world’s largest revenue
producer, and largest source of debt. Which, care of his unwavering
support of hyper-inflationary fiscal policy – and appointment of Janet Yellen
to do the same in the monetary world – has ballooned to its highest level in
history.
In last January’s “direst
prediction of all,” I laid out why the world will be awash in commodities
– and essentially all forms of industrial infrastructure – for years,
if not decades to come. The driving force behind my views – that
years of hyperinflationary monetary policy and Wall Street financial
engineering are the primary source of the world’s ills – was David Stockman’s
“Great Deformation” thesis; which he brilliantly reprised yesterday.
In the ensuing 12 months, the global economy has truly imploded – with the
CRB Index down nearly 35%; the Baltic Dry Index at an all-time low; and
essentially all measures of trade, and trade finance, in historically
dangerous places. To that end, the average currency has plunged to, or
below, its previous all-time low; and the economic outlook is imploding – as
highlighted by last night’s report by S&P, opining that the corporate
credit outlook is its worst since the 2008-09 crisis. Heck, even energy
demand is declining – an extremely rare event, which has
onlyoccurred once in the past three decades. Yep, you guessed
it, in 2008.
In other words, the energy industry is toast; and shortly, may be
reduced to mere embers. To that end, If Jimmy Carter had given a
speech like Obama’s back in 1980, warning energy industry CEO’s to “embrace
the future,” it would have been one of the most infamous in U.S. history – as
directly afterwards, the energy industry went into a vicious 15-year bear market,
that was just ending when I became a Wall Street oilfield equipment,
services, and drilling analyst in 1996.
Only this time, global oversupply is vastly worse; with record
inventories, falling demand, and the imminent onset of vast Iranian
production increases. Moreover, with all major producers –
sovereign and corporate alike – in dire financial straits, there’s no chance
that anyone will take their foot off the proverbial “gas pedal” (no
pun intended), as they desperately attempt to pay their (unpayable)
bills. In other words, the wave of energy-related – or for that matter,
commodity-related – bankruptcies that has already commenced
will likely be far larger, broader, and destructive than the 2007 “subprime”
mortgage crisis. Which, I might add, occurred in a world with vastly
lower debt; and Central banks that still had “ammunition” to “kick the
can”; i.e, the historic levels of money printing that have put today’s economy
on the brink of Armageddon.
Thus, if Wolfe Research is correct, that fully one-third
of the entire global energy industry is at risk of default within the next
12-18 months, there’s NO WAY the world will be able to avoid a near-term crisis
far worse than 2008. To wit, the 134 publicly-traded oil and gas
companies in the U.S. and Canada alone have seen their debt burdens
balloon from $190 billion in 2010 – yes, just five years ago – to $353
billion today. And that’s just a tiny subset of the world’s energy
industry. Let alone, the dozens of sovereign nations that have
built up trillions of energy-related debts!
So yes, my friends, we are flying headlong into the economic “storm
of the century” – which, in my view, has already started. Thus, if you
want to bet against the power of an F-5 economic tornado; against Central
banks’ time-tested response of hyperinflationary monetary policy; and against
thousands of years of human experience, in which only Precious Metals
have survived such episodes, be my guest. To the contrary, if you
decided that “Economic Mother Nature” will inevitably “win” – as she always
does – Miles Franklin would be honored to help you “bet” on her.
