It’s Tuesday morning, on one of the rare “calm before the storm” days when
headlines are thin – and manipulated markets thinner; when frankly, it makes
more sense to slow things down than make them more complex. Yes, something
dramatic, and market moving, could occur by the time I finish writing – but
for now, I’m going to be a bit more “big picture,” and a bit less
headline-specific; which is quite ironic, given that today’s principal topic
refers to a single, ominous headline.
When I think about how much energy I’ve expended fighting the gold Cartel
for 14½ years, it’s hard not be proud of my efforts. I truly believe I’ve
helped people in many ways – and in practicing what I preach, have been
“along for the ride” in every imaginable way. Unquestionably, the Miles
Franklin Blog has become a “thought leader” in the economic alternative
media, and you are the reason it has thrived – in taking our words to heart,
and relaying them to others. For that, we thank you heartily; as do hundreds
of thousands of truth seekers the world round, who all have the common goal
of protecting their net worth from the ravages of monetary inflation. Which,
unfortunately, will worsen parabolically in the coming years – as history’s
largest, most destructive fiat Ponzi scheme, – like the thousands before it –
collapses.
To that end, we stand today at the precipice of the ultimate monetary end
game. With the world unequivocally amidst its weakest economic era since the
Great Depression – featuring massive oversupply of commodities, end-user
products, and many service providers; amidst history’s tallest, and
parabolically growing, mountain of debt; with fiat purchasing power at its
lowest in generations, with nowhere to go but down; it’s difficult to even
propagandize the case for “recovery,” let alone prosperity. Yes, selected
stock and bond markets – i.e., those supported by Central bank money printing
and monetization – have managed to rise faster than inflation, for now.
However, everywhere else the economic landscape is in ruins. Even “1%” real
estate has started to decline, with no better example than the post-BrExit
property crash in London. And in time, be it via hyperinflation or 2008-style
crash, historically
overinflated financial assets will be the big losers.
Conversely, the price of real items of value will maintain, and in many
cases increase in real terms – particularly “need versus want”
items, like food, shelter, healthcare, and insurance. However, man cannot
preserve purchasing power with food or shelter – so throughout time, he has
desperately sought the “precious” few asset classes demonstrating monetary
properties. Of which, only physical gold and silver have stood the test of
time. Platinum, too, demonstrates most of these properties, even if, due to
its scarcity, it has never been used as money. And in modern times, only
Bitcoin has been able to demonstrate such properties, even if its history is
less than a decade long.
All fiat currencies fail in time, given that they, by definition,
are Ponzi schemes. And given the particularly destructive impact of this, the
only fiat regime to engulf the entire planet simultaneously; let alone,
amidst an age of financial engineering, which has enabled those running the
scam to leverage ill-fated bets by many multiples, I have ZERO doubt
Precious Metals will be the last men standing when the dollar, Euro, Yen, and
other fiat currencies lose their purchasing power entirely. Moreover, as
discussed in the “real
end game…” three weeks ago, the resulting political, economic, and social
damage will likely be so dramatic, I don’t believe governments will ever be trusted
to issue currency, even if backed by gold. Which is why, whilst gold, silver,
and platinum will unquestionably store purchasing power for generations to
come – with a turbo-charged “kick,” when the Cartel is broken – I believe the
future of actual money, from both a transaction standpoint and in some cases,
like Bitcoin, a purchase
power storage standpoint as well, will be crypto-currencies. But that’s
another story, for another day.
In the meantime, we are amidst a turning point in history – when economic
activity is plunging, political regimes in disarray, fiat currencies
crumbling, and physical Precious Metal re-asserting its monetary value,
despite a barrage of money printing, market manipulation, and propaganda
unlike anything seen in history. Which quite obviously, is on its last legs,
like the dramatic “grand finale” of a fireworks display.
In the case of financial markets, the efforts to support “last to go”
markets like the “Dow Jones Propaganda Average” are unfathomably blatant – as
even Wall Street is starting to question the historic disparity between
financial asset valuations and fundamentals. And as for Precious Metals,
Economic Mother Nature and her “barbarians” are clearly “at the gate” – as
evidenced by their relentless surge – which started, ironically, the week the
Fed “raised rates.” In both metals, physical demand is at all-time high
levels; whilst production has peaked – likely, for years to come; and
above-ground inventories, particularly in relation to said record demand,
have never been lower.
Given these insurmountable, and rapidly strengthening fundamentals, the
Cartel – i.e., governments desperate to protect a status quo in which the
fiat currencies they create give them untold wealth and power – is laboring
like never before. Certainly, more than at any time in the 14½ years I’ve
been watching their every move. Which is why, last weekend, I boldly
predicted their imminent
demise.
Not that it matters for the vast majority of readers, as my advice – to
acquire physical metal – is no different today than in the past. However, in
espousing such a view, I am clearly trying to emphasize my belief that the
end game is truly nearing – not just for the gold and silver Cartel, but the
aforementioned, globally destructive monetary status quo. To that end,
watching the Cartel desperately try to prevent its “Achilles Heel,” silver,
from taking out its 50 week moving average of $20.50/oz – and seeing the inevitability
of their efforts being overwhelmed, is as scary as it is exciting.
As for gold, the Cartel knows that, like silver, this Friday’s COT report
– of “commercial” trading activity as of today’s close – could break them. As
in, if they are again forced to report an increase to their already
“off the charts” record naked short positions, it will likely be “game, set,
and match” when markets open Sunday night. As they nearly were the last two
Sunday nights, when silver surged to $21.10 and $20.70, respectively, before
the Cartel was able to “manage” them lower by Monday morning. Clearly, they
are maniacally focused on not only trying to “paint” $20.50 as insurmountable
resistance for silver, but turn $1,350 from technical support to
“resistance.” That said, I think so much of the world’s big money is onto
their scheme by now, it’s difficult to believe anyone can’t see the
rigging anymore – particularly when Cartel lackeys like Deutschebank and UBS
recently it. And oh yeah, amidst the worst economic
environment in generations; and a full-blown monetary crisis, in which
currencies are crumbling, interest rates below zero, Central bank
monetization schemes going parabolic, and political regimes falling.
Which brings me to today’s topic, a perfect “culmination” of the
aforementioned thoughts – of the rapidly approaching “end game” of fiat
currency, and Central bank, destruction; followed by a new, terrifying world
of change – monetarily, politically, and otherwise. Which is, Zero Hedge’s
story this morning that “global stocks surge on rising hopes of Japan
Helicopter Money.” Yes, the final, nuclear salvo has finally been launched by
the world’s Central banks…
Led by, appropriately so, a man who recently compared his printing press’s
efforts to levitate Japan’s economy to Peter Pan, and the man synonymous
with Helicopter Money.
“I trust that many of you are familiar with the story of Peter Pan, in
which it says ‘the moment you doubt whether you can fly, you cease forever to
be able to do it.’ Yes, what we need is a positive attitude and conviction.”
-Haruhiko Kuroda, Governor of the Bank of Japan
“The effectiveness of anti-deflation policy could be significantly
enhanced by monetary and fiscal authorities. A money-financed tax cut is
essentially equivalent to Milton Friedman’s famous ‘helicopter drop’ of
money.”
-“Helicopter Ben” Bernanke, Former Chairman of the Federal Reserve
I’d say I’m in shock – and awe – of Wall Street, Washington, and the
Mainstream Medias’ cumulative belief that this insane, and as yet undefined,
addition of another $100 billion of Bank of Japan printed “money” will
somehow “work,” when efforts to print tens of trillions before it have
miserably failed. Let alone, at a point in history when global currencies are
at all times lows – except, ironically, the Yen, as the globally destructive
“Yen carry trade” is unwound; whilst debt levels are so high – particularly
in Japan – that the net “benefit” from each additionally borrowed currency
unit is negative.
But hey, who am I to question the time immemorial flaws of human nature? I
guess I’ll just be happy to be amongst the “1%” who are intelligent, and
free-thinking enough to avoid such “mental incongruence”; and to use such
ability to protect myself. As should you, too – as like Luke Skywalker says
in Return of the Jedi, “the force runs strong in my family,” and you,
too have it. But above all, realize that time is of the essence – as in
my very strong view, the “systemic failure” this headline portends, is not
just inevitable, but imminent.
