Last week, “Admiral Sprott” was asked what the Precious Metal bull market
was like in 2000-11. He replied that it was as painstaking as today,
with the Cartel seemingly “winning” more days than it lost. Having been
fully invested in the sector since mid-2002, I concur 100% – as even during
the “best of times,” it was sheer torture. Of course, until 2008, my
portfolio was entirely comprised of highly volatile mining shares – largely,
exploration and/or development companies – so the stresses of Cartel-created
volatility were that much more powerful.
Today, not a thing has changed – except my Precious Metal portfolio,
comprising roughly 90% of my liquid assets, is 100% physical metal, with my
only “financial asset” being a 1% position in Bitcoin. Thus, the stress
I feel during today’s Cartel attacks – which per the “manipulation mantra” I
coined circa 2005, “each day worse than the last,” has not let up one bit –
is more muted. But just a little, as after 14½ years of watching the
government – er, Cartel – attack my net worth, livelihood, and sanity, I’ve
built up a lifetime’s worth of anger.
Consider, for example, that not only have we been forced to endure “Sunday Night
Sentiment” attacks in 152 of the past 158 weeks, but 28 of 30 this
year, when Precious Metals have been the world’s best performing asset
class. Not to mention, “2:15 AM” raids on 87% of
all trading days over the past three years – which I assure you, is no lower
a percentage this year. As well as relentless “caps and attacks” each
and every day – such as yesterday’s prototypical “Cartel Herald”-catalyzed
raid, at the “key attack time #1” of 10:00 AM EST (when global physical
markets close). When – what do you know – silver approached its
50-month moving average of $20.45/oz. Which, as I have been noting for weeks, is the
Cartel’s “ultimate line in the sand.”
However, in large part due to my decision to switch my investment to
physical metal – partly in 2008, and wholly by 2011; plus perseverance,
belief, and survival instinct – I’ve slept the “sleep of the just,” in not
just my investment decisions, but how I’ve communicated my beliefs to the PM
community. Many of you, too, have survived the worst – each of you, in
your own personal way – and for that, I salute you. And for those new
to the game, congratulations on not only joining history’s greatest bull
market in its still early stages, but having missed the vast majority of the
aforementioned “manipulation stress.” As, in my view, the “end game” of
an all-out loss of Cartel – and generally speaking, “powers that be” –
control is approaching rapidly, no matter how hard they try to subvert
reality.
Which, per today’s provocative title, I’ll get to momentarily. As
first, I’d like to present a brief list of topics from yesterday alone;
each one of which, has the potential to “break the Cartel’s back” under the
right circumstances. Let alone, the “September 30th event I’ll end
today’s article with. Like, for instance…
- Oil prices plunging anew, after lowly, non-OPEC Oman
refused to attend the informal September 27th oil producers meeting in
Algiers; essentially, killing the latest “production cut” propaganda
before it had a chance to spread
- A report by Germany’s leading “think tank” that the
“world’s most systematically dangerous institution,” Deutsche Bank,
would run out of capital entirely during a realistic “stress test”; and
thus, it should be nationalized immediately.
- Monday’s shocking Bank of England open market
operations, in which it failed to receive enough offers for bonds it
sought to monetize with no price sensitivity. Miraculously, Tuesday’s
offer was 5x oversubscribed. However, it doesn’t take a rocket
scientist to surmise it was rigged with fake bids – with the world’s
“big money” well aware that Monday’s failure suggests an increasing, worldwide
belief that “QE to Infinity” has arrived.
- Which is probably why global yields plunged anew – with
Italy’s 10-year bonds leading the ranks of the insane, as their yields
turned negative despite its banking system – and political stability –
on the verge of collapse; amidst the highest debt load, outside of
Greece, in all of Europe.
- The Bank of Japan, in an act of outright fear, actually
leaked the outline of its September policy statement, to assure
investors it has no intention of taking its foot off the
hyperinflationary pedal, despite having ordered a “comprehensive
analysis” of its prior monetary easing efforts (which of course, will
depict massive, systemic failure).
- The aftermath of Tuesday’s horrifying U.S. productivity
numbers – which were compounded tenfold yesterday, when the BLS, or
Bureau of Labor Statistics, admitted that, like its GDP and Personal
Income “adjustments,” which it last week admitted overstated reported
results, its real wage calculations for the first 2016 were overstated by
a whopping 5%! Combined, such data – let alone, the credibility of the
clueless, biased government agencies producing them – delivered a massive
blow to a Fed desperate to find data to support its fraudulent
“recovery” meme.
- A report by Standard & Poor’s that, due to the
massive buildup of (Fed-engendered) debt, U.S. corporations are as
vulnerable to default as at the height of the 2008 crisis. Heck, take a
look at this horrifying chart of what the major
oil companies have done alone, in taking their cumulative net debt
from “just” $40 billion at the end of 2012, to $140 billion today!
- Turkey, which itself is on the verge of a crushing debt
downgrade, moved further away from NATO, and toward the West’s “top
geopolitical foe,” Russia, in the wake of the horrifying fake coup that
solidified the “Hitler-esque” Recep Erdogan’s power, in one of the
world’s most dangerous, volatile regions.
- New Zealand’s rate cut, the 667th Central bank cut since
2008, depicted the reality that all Western nations will soon
have zero, or below, official interest rates.
- Increasing instability around the Democratic Party,
featuring new emails damning the Clinton foundation, and the mysterious
death of the DNC’s supposed Wikileaks informant.
- No other than Bank of America predicting that tomorrow’s
July retail sales report will not only be far worse than expected, but
significantly negative
Which brings me to today’s principal topic; i.e., the potential event on
September 30th, at precisely 4:00 PM EST, that could commence the end game of
financial market – and by proxy, gold Cartel – collapse. At least, in
the words of Jim Rickards, who in this dire warning, claims that at that time, “a
new kind of world money goes live…which, when it does, could unleash a
devastating crash for the U.S. dollar and a massive implosion of U.S. stocks,
and send gold soaring as high as $10,000/ounce.”
Yes, I know it is a marketing promotion. However, as I wrote on June
14th, of his “zero hour”
prediction that the Fed’s June 15th meeting would mark a key buying
opportunity for gold (which was $1,290/oz at the time), any time someone
takes such a bold, time-focused stance, I pay attention. Particularly
when it’s someone as visible as Jim Rickards – who frankly, spends more time
marketing his views than anyone in our sector. Including, even…me!
He hasn’t yet clarified his view, and I’m sure he’ll do so in a public
conference call sometime next month. However, it’s quite obvious what
he’s referring to, given that he has spent more time speaking of SDR’s, or
“Special Drawing Rights,” than anyone in the financial community.
Which, as of October 1st, will for the first time include in its currency
“basket” the Chinese Yuan – joining the U.S. dollar, the Euro, the UK
Pound, and the Japanese Yen as a de facto “reserve currency.”
Long-time readers know I have little regard for the SDR; as essentially,
it’s a basket of fiat trash combined, and administered by, the toothless
IMF. I’m not sure why anyone would ever want to use it; and frankly,
the IMF’s credibility has never been lower. However, my guess is that
he believes China’s government will use the occasion of the Yuan’s official
SDR acceptance to alter its fiscal, monetary, and/or political policies.
How, I don’t know. And how it will cause financial markets to crash,
and gold to soar, I’m not sure either. Does it mean they’ll announce
their true gold holdings? Or stop shorting paper gold to hold the price
down, as many – including myself – believe they may have been doing in recent
years? Or is it something else I’m missing entirely?
Frankly, I have no idea, and I look forward to his explanation. As
frankly, outside of those purporting biblical, astrological, or “web bot”
methodologies – whose failures can be explained away by the “vagaries of the
universe” – such a bold financial prediction, from such a well-respected
financial figure, has the potential to make the forecaster look pretty stupid
if it doesn’t pan out.
So far, Rickards is “1 for 1” in such predictions – although frankly, it
wasn’t much of a stretch to believe the June 15th FOMC meeting would be an
upside catalyst for gold. Heck, I predicted so much myself.
However, this is a far bolder prediction, with far direr ramifications –
so clearly, Rickards is putting his reputation on the line. If he’s
right, it will be too late to protect yourself shortly afterwards. If
not, said “end game” will arrive sooner rather than later anyhow. But
either way, I’m looking forward to September 30th, to see if indeed, the “end
game” he forecasts unfolds.
