It’s Monday morning, and the Yen/dollar exchange rate is unchanged from
Friday’s close. Thus, gold and silver should be unchanged, too – right?
Which I say facetiously, as the premise I wrote about Thursday,
based on 15 years of tick-for-tick Precious Metal experience, is again proven
true. Which is, the “trading relationship” between Precious Metals and
the Yen/dollar – just like their fundamental relationship – is pure
fiction. At least, the ridiculous notion that the Bank of Japan’s
attempts to destroy the Yen – with, say, “helicopter money,” is LOL, “bearish”
for gold and silver.
Frankly, it doesn’t take rocket science to see that when the Cartel has
the (temporary) upper hand – which, per yesterday’s
article, in which I highlighted the “commercials”’ record short position,
they are in desperate seeking – they create a “whatever is down” algorithm
scheme, in which paper PM prices are conveniently linked to whatever the
day’s “decline du jour” might be. Which in turn, enables the added
benefit of a dumbed down, in many cases captive MSM to purposely – or in some
cases, inadvertently – spew the anti-PM propaganda they so desperately rely
on. Such as, for instance, if oil prices decline, saying “gold is down
due to a broad commodity decline.” Or, if stocks are down (will that
ever be allowed?), “gold down due to deflation.” Or, if the yen is
down, “gold down because the carry trade is safe, so risk-off assets are
being sold.” Or, if bonds are down, “gold down, because the economy is
strong, and the Fed will raise rates.” Or heck, if bonds are up,
good old “gold down, due to deflation.” Etc, etc., etc.
Why am I so agitated this morning – as if I haven’t been put through the
Cartel ringer (literally) thousands of times already? Because every
time prices are blatantly smashed “decline,” the so-called “good guys” are
out in force with their “short-term bearish, but long-term bullish” calls –
utilizing everything from “technical analysis”; to “proprietary analysis” –
like yen/dollar relationships; toward their universal goal of selling
newsletters, of being viewed as an “expert.”
Heck, I’m essentially 100% sure that one in particular plays this game
with the thought process of “the Cartel typically wins; so, in order to
appear less ‘gold-buggish,’ I’ll continue to assume historic patterns will
prevail – but neglect to give a specific reason, so as to maintain a
newsletter-subscription-price-worthy aura.” In other words, my friends
– particularly now that we are in a bonafide Precious Metals bull market, in all
fiat currencies – it’s time to, for the first time, resist the urge to
believe some new “reason” exists for short-term weakness.
To the contrary, today’s weakness could not be more obviously motivated –
particularly when considering that “Sunday Night
Sentiment” raids like last night’s, occur essentially every week…150 of
the past 156 Sundays, to be exact. Just like the equally “sixth sigma”
attacks at “2:15 AM”
EST – 668 of the past 770 trading days, to be exact; and heck, the 4:00-5:00
PM EST post-NYSE “aftermarket,” in which PM prices are “walked down” roughly 90%
of the time.
Which was, the aforementioned, all-time high, “off the charts” commercial
short position in silver, coupled with a nearly all-time high short
position in paper gold. Just as it was during late May’s “FOMC Minutes
attack” – which as I predicted,
miserably failed; when the Fed, coupled with their manipulative partners, the
Cartel henchman that call themselves “bullion banks” – worked together to
create a spread a lie that the economy was finally “recovering”; and thus, a
June rate increase was being considered. Which of course, didn’t happen
– as, to the contrary, the June FOMC statement was the most dovish of
Whirlybird Janet’s tenure.
Heck, no other market so much as budged when last night’s raid occurred,
despite a weekend of “PM bullish, everything-else-bearish” news flow, like
U.S./IMF/China dissension at the G-20 meeting; a major Islamic terror attack
in Germany; the realization that Portuguese banks, like the Italian banks,
require a bailout; and intensifying negativity towards the massively
oversupplied crude oil market, which is again down sharply this
morning. And oh yeah, the forced resignation of the head of the
Democratic Party, Debbie Schultz-Wasserman, on the eve of the Democratic
Convention, due to Wikileaks-exposed emails showing that she clearly
spearheaded a campaign to smear Bernie Sanders, and thus ensure a Hillary
Clinton victory. And how did the Democrats respond – other than, LOL,
accusing “the Russians” of leaking the emails? I kid you not, by
appointing Schultz “Honorary Chairman” of the Clinton election
committee! Remember, what Wall Street fears most – and Precious Metal
markets desire most – is a Donald Trump victory, given the massive
uncertainty it would bring. And if the utter collapse of the Democratic
Party – on the eve of the DNC – doesn’t increase
the odds of a Trump victory, I don’t know what will.
And not only is an FOMC meeting scheduled for Wednesday; but LOL, so is
Deutschebank’s second quarter earnings report, which will force the 100-plus
taxpayer-funded lackeys sitting in on the FOMC meeting, to have their
red-line pens on call. Throw in the fact that a second Cartel “key
attack event” occurs this week – i.e., Tuesday’s COMEX August options
expiration day, through Friday’s “first notice day”; not to mention, Friday’s
Bank of Japan policy meeting, in which it may specify Shinzo Abe’s
“helicopter money” plans; just as the latest round of potentially damning
Italian bank “stress test” results will be unveiled; and you can see why the
Cartel is so aggressively, and blatantly, on the offensive.
Let alone, with stock market valuations at all-time high levels, as
corporate earnings continue to disappoint; and sovereign yields disappear
further into the “financial roach motel” that is negative interest
rates. And for those that actually believe the Fed may pull another
“FOMC Minutes Attack”-like round of propaganda, by pretending a September
rate hike is “on the table,” rest at ease. Oh, I assure you they’ll
suggest as much, in the most opaquely vague Fedspeak imaginable (i.e., “if
economic conditions improve to our satisfaction, we’ll consider it”).
However, with the global economic implosion expanding (including an
accelerating plunge in what were supposed to be “transitorily” low oil
prices); worldwide political stability crumbling; and oh yeah, a Democratic
election victory to assure, the chances of a Fed rate hike, in my view, are
zero. Not to mention, the fact that, as discussed in last
Monday’s Audioblog, there is no real historical correlation – nor should
there be – between nominal interest rates and Precious Metal prices.
And oh yeah, the fact that the current Precious Metal bull market commenced
the very week the Fed “raised rates” last December!
In a nutshell, PM holders are yet again being forced to endure the same
manipulative ignominy they has dealt with for the past 15 years – just as in
March, May, and the run-up to the “guaranteed” Bremain result in June.
For those holding physical gold, silver, and platinum, it should be
“no sweat,” as there’s not a chance you’ll be selling – even if your anger
level, like mine, rockets sky high. For those that don’t, you’re being
handed a fantastic opportunity to protect yourself whilst the political,
economic, and monetary world crumbles around you. So don’t waste it, as
one day soon, you’ll be kicking yourself for not having acted on one
of the last remaining opportunities to preserve your assets’ purchasing power
– which in most parts of the world, is a ship that long ago sailed. And
truth be told, it could “sail” from “civilized” nations like the U.S. any
day, at any time.
