THE IMMINENT ARRIVAL OF QE TO INFINITY, AND HYPERINFLATION, HAS ARRIVED
It’s 1:00 AM Saturday morning, and I’m writing this article with limited
lighting and just a few hours of sleep. Unfortunately, Giselle’s
inability to settle down amidst lightning and thunderstorms has caused me to
wake up – and consequently, I figured I’d pen a few thoughts about this week’s
historic events – particularly in the Precious Metal markets. And
doggone it, “take a bow” for having been so dead on about this year’s events!
To wit, back on May 18th, when the Cartel launched the “Fed
Minutes Attack” – by doubling up their historically high gold and silver
shorts, under the guise of an awkwardly telegraphed potential June rate hike,
I emphatically predicted it would miserably fail, in the longest,
most emphatic Audioblog I’ve ever published. Which couldn’t have
been more accurate; as following the issuance of the Fed’s most dovish policy
statement since the 2008 crisis a mere five weeks later, both gold and silver
had surged back to their pre-Fed Minutes Attack levels, whilst the COMEX
“Commercials”’ short positions hadn’t been reduced one iota. And thus,
when two weeks later – a week before BrExit – said short positions
were larger still, I theorized that the Cartel’s inevitable,
London-Gold-Pool-like demise was rapidly approaching. Which is why, on
June 20th – three days before BrExit – I penned “finally,
the long-awaited ‘Commercial Signal Failure’ is nigh.”
Switching topics, it was May 16th when I first characterized
the BrExit referendum as the “most
important – and Precious Metal bullish – election in history”, due to my
staunch belief that a “leave” result, as “unexpected” as it was at the time –
would catalyze a chain reaction of populist movements yielding the end of the
ill-begotten, ill-fated European Union and Euro currency. Meanwhile, on
June 13th, after watching Deutschebank’s stock dramatically
underperform the (itself rapidly deteriorating European bank stock index) for
several days, I penned “The
Lehman of Europe – Deutschebank- is on the verge of collapse.”
Followed by June 18th’s “upcoming,
historic silver shortage” – catalyzed by the aforementioned explosion of
naked “Commercial” shorts, and an unprecedented plunge in COMEX registered
inventories, to an all-time low of less than $400 million worth.
Frankly, my belief in an imminent Precious Metal surge – recall, I’ve spent
the past four months saying “it is not possible the world can escape 2016
without a catastrophic financial event” – did not even assume a “leave” vote;
which as it turns out, catalyzed the realization of the aforementioned
predictions.
And lo and behold, when the British shocked the world – delivering a death
blow to the powers that be, from the world’s Central banks; to Barack Obama
and Hillary Clinton; David Cameron; Shinzo Abe; Francois Holland; Matteo
Renzi; and Angela Merkel, among countless others – Precious Metal prices
surged like a bat out of hell. To that end, when the initial “leave”
victory became evident last Thursday night, gold surged from its pre-election
level of $1,255/oz all the way to $1,350, before being pushed down to
Friday’s closing level of $1,315/oz. Meanwhile silver surged from
$17.50 to $18.35/oz, before the Cartel “controlled” it back to $17.80 by
day’s end.
That is, until we saw the COMEX COT report last Friday afternoon,
revealing said “Commercials” had blown up their already record-high naked
short gold and silver positions further, before BrExit even
arrived. Which I discussed at length in Saturday’s “BrExit
Nightmare – What’s Next?; followed by Tuesday’s full-blown forecast of
imminent Cartel demise, titled “spread
the word – the Gold Cartel is in deep, deep trouble!”; catalyzed by
silver’s surge beyond the aforementioned post-BrExit high, even as the Cartel
continued to successfully suppress gold.
Well, what happened in the ensuing three trading days took even me by
surprise – as indisputably, the forces of “Economic Mother Nature” are swamping
the powers that be’s best laid plans to control sentiment via relentless,
unfathomably vicious propaganda and market manipulation.
Certainly, the post-BrExit surge in anti-EU sentiment should come as no
surprise – as no less than eight other EU members, including major players
like France and Italy, appear likely to hold similar referendums in the
coming years; or in some cases, months. As again, I cannot be more
vehement in my belief that the UK’s “leave” result delivered a fatal blow to
the European Union and Euro currency. Not to mention, establishment
politics the world round; as evidenced by Donald Trump’s post-BrExit polling
surge, irrespective of initial propagandist attempts to show otherwise.
However, the chain reaction of related, horrifying events has certainly
been far larger, and broader, than the powers that be could control – from
Puerto Rico’s bond default today; to the Italian banking system’s immediate
bailout requirement – which I wrote of on
Wednesday; to yesterday’s Austrian court decision to “re-run” last
month’s Presidential election, under the auspices that the surprise loss by
anti-EU Freedom Party candidate Norbert Hofer was due to vote rigging; to the
Mexican Central bank being forced to “unexpectedly” raise rates to stave off
runaway inflation; to plunging oil prices; and of course, the catastrophic
collapse in bank stock – led by none other than Deutschebank. In fact,
amidst the past three days’ comically blatant PPT stock market goosing –
occurring as U.S. mutual funds fled the market for the 16th
straight week – the single worst performing stock I see anywhere is
good old, soon-to-be-bankrupt DB. Which shouldn’t be surpising, given
that on Wednesday night, after Deutschebank was one of just two banks to fail
the Fed’s unfailable “stress test,” the IMF deemed it the “world’s
most systematically dangerous bank.”
And oh yeah, did I mention that an additional $1.5 trillion of global
sovereign bonds have seen their yields turn negative since BrExit – taking
the total above $12 trillion? I mean, just yesterday, U.S. Treasury
yields closed at their lowest-ever yield, whilst the stock market
completed a four-day, 800+ point, PPT-orchestrated rally! And not just
U.S. stocks and bonds, but European as well (aside from barely
breathing bank stocks), as the entire world is starting to discount the
“imminent arrival of QE to Infinity and hyperinflation.” Which would be
difficult NOT to do, given that on Thursday, not only did Bank of England
President Mark Carney (formerly of Goldman Sachs) say that further monetary
easing would be launched as early as this month, but ECB President Mario
Draghi himself (also, formerly of Goldman Sachs) hinted that the ECB’s
already historic QE program, of €80 billion/month, might be expanded
further. This, after Shinzo Abe “instructed” the Bank of Japan to do
the equivalent of “whatever it takes” to calm markets, whilst the Fed said it
would provide lines of credit to essentially anyone that wanted them. I
mean, think about it! The Bank of England’s official interest rate has
been 0.5% for roughly eight years, resulting in the UK having one of the
world’s highest costs of living. And yet, after the Pound plunged by an
incredible 12% in a mere week’s time, the BOE thinks that lowering rates
further – and likely, initiating a new round of QE – will help?
Or better put, that it won’t make things worse?
However, indisputably, the place the “imminent arrival of hyperinflation”
is being discounted most is Precious Metals, which rocketed higher in the
week’s final two days. Led by, you guessed it, SILVER, which rose
roughly $0.50/oz Thursday and $1.00/oz Friday, to a two-year high of
$19.75/oz. Gold, too, surged back to $1,342/oz, but still hasn’t
breached the post-BrExit spike high of $1,345/oz (trust me, it shortly will!).
However, the dramatic, Spring-2011-like silver surge – which has taken the
gold/silver ratio down to 68 (breaking two-year support at
the key round number of 70) – is where the epicenter of Cartel destruction is
occurring. And if Miles Franklin’s massive business surge this week –
led, of course, by silver – is any indication, said “upcoming, historic
silver shortage” could be upcoming far sooner than most can imagine.
And oh yeah, did I mention that this week’s COT report, published
yesterday just before the NYSE close, showed that the Cartel – er,
“Commercials” – initiated another 14,000 gold naked shorts through Tuesday’s
trading, and a whopping 7,000 silver short positions; to defend a dying
status quo that is stampeding over it like Keven Bacons’ “all is well”
character in Animal House? Which I assure you, will be reflected
in additional speculative, Cartel-challenging longs early next week, as the
end game of the most egregious PM suppression scheme in history unfolds.
Again, I cannot understate my belief that the BrExit referendum was the
most important – and Precious Metal bullish – election in history. And
that unquestionably, it has catalyzed a chain reaction of terrifying financial
events that will reverberate for generations to come. Including not
only the break-up of the modern gold Cartel – what I years ago deemed the
“New York Gold Pool” – but the spectacular, historic collapse of history’s
largest, most destructive fiat Ponzi scheme.
To which, I can only beg and plead for you to protect
yourself ASAP. At least, in the handful of nations where not only have
prices not yet reached new all-time highs, but supply is still readily
available, like the U.S.. And hopefully, that if you do, you give Miles
Franklin the chance to earn your business – particularly in today’s
extremely volatile market conditions; as trust me, Precious
Metal dealers are decidedly NOT “commodities.”