Unprecedented Catastrophe

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Published : May 17th, 2017
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Category : Opinions and Analysis

You wouldn’t know it from what I do for a living – but generally speaking, I am as optimistic a person as you will find.  Just ask anyone who knows me, regarding essentially all topics.  However, I’m also a realist, which is why I’m so good at what I do.  And given this blessing/curse, as well as relentless analysis and an inexorably logical mind, I’ve been able to forecast the economic devastation that has unfolded over the past two decades better than most – partly due to said “gifts,” but mostly the extremely rare trait of seeing things for what they are; and reporting them as such, no matter how people want to hear it.  As they say, “none so blind as those who refuse to see”; and in my experience, for a variety of reasons ranging from conflict of interest to plain old human nature, the vast majority have little interest in the truth.

To that end, it’s been 28 years since my financial career commenced, with a college internship at Paine Webber in Albany, New York, selling 6% Certificates of Deposit that few had any interest in.  Each day since, the fabric of the global economy has relentlessly weakened – to the point that today, it is on the verge of an epic, generational collapse unlike anything witnessed in modern times.  Consequently, when the “powers that be’s’” unprecedentedly destructive acts – in the name of destroying the “99%,” for the benefit of the 1% – inevitably, spectacularly fails; the “world as we have known it” will no longer be recognizable.  Frankly, I’ve run out of superlatives to describe what I believe is coming to the “first world” – just as it has already has in the majority of the second and third.  But suffice to say, “unprecedented catastrophe” – politically; economically; socially; and most importantly, monetarily – captures this sentiment with crystal clear precision.

I mean, what part of the “dead ringer” algorithm have I not properly described – like last night’s Chinese version, as commodity prices continued to plunge; the Chinese yield curve inverted for the first time ever; Goldman Sachs speculated that China is lying about its relentlessly hemorrhaging capital flows; and horrifying economic data, from around the world, continued to pour in?

This, after the “Dow Jones Propaganda Average” surged for no apparent reason; extending its historic streak of (PPT-orchestrated) “low volatility,” on a day featuring a litany of PiMBEEB headlines from a plunging, recessionary Empire State Manufacturing Index; to the expanding chaos surrounding James Comey’s firing – and economic chaos from history’s most destructive, soon-to-be-repeated ransomware attack.  Not to mention, NATO provocatively announcing a permanent buildup on the Russian border; California’s (insolvent) government forecasting that CALPERS, the nation’s largest pension fund, needs to double its financial contributions within six years; North Korea successfully testing a new, long-range ICBM; the State Departement accusing Assad of mass, genocidal murder; and the Washington Post accusing Donald Trump of leaking top secret information to the Russians.  This, as interest rates rose and the dollar plunged to new post-Election lows.  True, Saudi Arabia and Russia “agreed” to continue their (thus far completely failed) production cuts for another nine months; subject to approval from ten-plus nations later this month, of course – which “theoretically,” could prevent the (oil-PPT supported) crude oil price from its imminent rendez-vous with a world-destroying 30-handle.  However, simple math tells us these, too, will fail miserably – which frankly, even a reasonably intelligent seven-year-old could understand.  And how about that?  Said “announcement” couldn’t even get crude to trade above $50/bbl!

This morning, stock futures are again calling a higher open, despite commodities badly breaking down; whilst the dollar is at a fresh post-election low (actually, the dollar index officially breached Election Day’s “Trump-flation” bottom).  And oh yeah, Ford Motor announcing that it will be laying off 10% of its 200,000 person worldwide labor force.  Kind of makes you realize what a LIE the whole “bring jobs back to America” farce was back in January – which I, alone amongst the financial community, vehemently called out for the propaganda it ultimately was.  Then again, in a world of near-record auto inventories – taking the inventory/sales ratio to its highest level since the 2008 Financial Crisis; exploding lease terminations, guaranteed to destroy car prices; surging auto loan defaults and plunging demand; should we really be surprised?  But don’t worry, buy stocks with “dotcom valuations in a Great Depression Era”’; and oh yeah, sell paper gold and silver at the same time of day, via the same algorithms.

And of course, cap them – again, via prototypical “Cartel Herald” algorithm – at the “2:15 AM” EST open of the ultra-thin London “pre-market” paper trading session, for the 839th time in the past 958 trading days; particularly when, for the second straight day, gold threatens to re-capture its 200-week moving average of $1,239/oz.

Which I assure you, will eventually be re-taken – particularly in light of last weeks, I kid you not, largest-ever hedge fund dumping of paper gold.  Yet again, after having been suckered by the “commercials” (i.e. Cartel) – who as I write, are aggressively covering their shorts.  Oh, and did I mention that nearly 5% of all COMEX-registered gold was withdrawn yesterday?  Or that Chinese physical silver premiums, care of the past month’s blatant COMEX paper raids, have surged to $1.30/oz?  Or that, joining Peru and Mexico before it, the world’s fourth largest silver producer, Chile, announced that first quarter silver production plunged 26% year-over-year?

Yes, my friends, “unprecedented catastrophe” is the best way I can describe what’s coming; ostensibly, entirely due to the handiwork of a few hundred Central bankers over the past four decades – since they all sat silently when Richard Nixon abandoned the gold standard, commencing history’s largest, most destructive fiat Ponzi scheme.  Which sadly, is collapsing as we speak, more rapidly with each passing day.

To wit, global debt has nearly quintupled since the turn of the century – and this is just the “on balance sheet” type.  Let alone, the $500-plus trillion of  “weapons of mass financial destruction” known as “derivatives” underlying it.

Meanwhile, a decade of zero (and negative) interest rate policy; as well as “quantitative easing” that as I write, is at a record $250 billion/month globally (again, just the “on balance sheet” portion); has created financial bubbles more egregious than any in history.  This, at a time when unequivocally, the global economy is in its worst state in generations; whilst debt is at its highest, parabolically-rising level ever; demographics have never been more ominous; and political and social unrest is at a post-War high, at a time when “99%” of the world’s 7.4 billion people are angry.  And did I mention “dotcom valuations in a Great Depression Era?”

This, as Precious Metals are at, unequivocally, their lowest inflation-adjusted prices of modern times, amidst a dying fiat monetary system at the edge of the abyss.  Heck, in a sign of what’s to come; as the world serially shuns the worthless scrip Central banks have been destroying for years; a Vancouver home was put up for sale yesterday, priced in the other “twin destroyer of the fiat regime” – Bitcoin.

In other words, the opportunity – and necessity – of protecting your portfolio with the only assets to have proven their ability to preserve wealth throughout history has never been greater.  And hopefully, if you do consider the purchase and/or storage of Precious Metals, you’ll call Miles Franklin at 800-822-8080, and give us a chance to earn your business.

Data and Statistics for these countries : Chile | China | Georgia | Mexico | Peru | Russia | Saudi Arabia | All
Gold and Silver Prices for these countries : Chile | China | Georgia | Mexico | Peru | Russia | Saudi Arabia | All
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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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