On Thursday morning, whilst taping this week’s Audioblog,
I discussed how overnight, the PMI Manufacturing reports in China, Japan and
essentially all of Europe were not only miserable but well below
expectations. Heck, even the PMI report in the United States of Economic
Lies came in at just 54.7, down from 56.2 last month and well below
expectations of an increase to 56.5. In fact, it was the lowest
print in ten months, validating with this week’s slew of 4Q GDP estimate
downgrades. Which, by the way, were predicated on myriad factors from
weak exports, to declining capital investment and even “Polar Vortex 2.0.”
In other words, a broad mosaic of data suggesting America is succumbing
to its terminal debt addiction, amidst global economic weakness not
inappropriately compared to the Depression.
Consequently, the 10-year Treasury yield was on the verge of breaching the
Fed’s current “line in the sand” at 2.30% yet again, whilst stocks were in
danger of actually declining; and, for the third time this week, gold was
about to take out $1,200/oz. (after having been turned back by “Cartel Herald”
algorithms the prior two days, at exactly 6:00 AM EST).
Consequently, the U.S. government decided to go as “all-in” on economic
data manipulation as Japan has with its hyperinflation strategy. To
that end, recall when Forest Gump told the man at the bus stop that he owned
the Bubba Gump Shrimp Company; to which, the man replied “Boy, I’ve heard
some whoppers in my time, but that tops them all!” To a man, I’d be
more inclined to believe Forest could be a CEO than what the government
proclaimed this morning; i.e., the “Philly Fed” business conditions index not
only rose significantly from last month’s reading of 20.7 but exploded to
40.8. In other words, a ten standard deviation “beat” of the
consensus expectation of 18.0, whose theoretical odds occurring at just one
in 1.5×10^23. And not only did this “survey” print its strongest
reading since 199 but strongest new orders component since 1988!
I doubt anyone in the investment world believes that’s even remotely
true, particularly as it not only contradicted the PMI report published just
15 minutes earlier but essentially every real data point imaginable. I
mean in the past two weeks alone, it was reported that durable goods orders,
factory orders, construction activity and industrial production
declined in October, whilst retail sales rose a scant 0.3%. Throw in
the aforementioned, grisly international data and it’s difficult to believe any
increase occurred – let alone, of the magnitude this travesty of a report
depicted.
Of course, the “Dow
Jones Propaganda Average” was treated to its 20th straight “dead ringer”
algorithm – as it prepares to hyper-inflate, Venezuela-style.
However, a funny thing happened in the world of “recovery”; as not only
did Treasury yields decline, but closed just three basis points from the
aforementioned “line
in the sand” the Fed is so terrified
of. After all, it borders on comical that the Fed is
pretending to consider rate hikes – even if not for a “considerable time” –
when rates are plunging. Let alone, when rate declines occur as
their data cookers purport the “best economic conditions” since 1993; and oh
yeah, the “stock market” is trading at record highs.
Better yet, despite relentless capping and attacking – no less, with the
potentially Cartel-destroying Swiss referendum just ten days away; gold and
silver not only recovered yesterday’s Cartel orchestrated losses, but closed
at the day’s highs – setting up gold for a fourth attempt to take out
$1,200 in four days. Could we actually have three straight strong
Friday’s – which frankly, NEVER happens? Much less with the Swiss
referendum next Sunday?
For some time now, we have discussed how the “propaganda leg” of the “evil
tripod” of money printing, market manipulation and propaganda is permanently broken.
In other words, no matter what propaganda is reported, the world is starting
to realize the true state of the U.S. economy. For example, auto
sales cannot be characterized as “strong” when they are either leases
or subprime loan financed; let alone, amidst an environment of record “channel
stuffing.”
Zero Hedge
Better yet, the “sentiment” of trade organizations like the National
Association of Home Builders has as much credibility as a fox
in a henhouse; particularly when it explodes to multi-year highs when
both home sales and housing starts (in the latter case, principally rental
units) remain at recessionary levels.
And thus, the issue of the boy who cried wolf. At some point, people
stop listening; and in this case, global fixed income and commodity markets
decidedly aren’t buying America’s “recovery” propaganda. Not to
mention, the physical gold and silver markets, which are both
experiencing record demand. Given the reality that “Economic
Mother Nature” is revealing, it won’t be long before the money printing
and market manipulation “legs” break as well. And when they do, if you
haven’t already protected yourself with real money, you may never get
the chance; certainly, not at prices anywhere near today’s historically
suppressed levels.
