by Andy Hoffman, Miles Franklin:
On this, an absurdly over-hyped “Fed Day” – in which Whirlybird Janet and her minion will at best sound stupid; and at worst, trigger a global market meltdown; I thought it would be the perfect time to summarize how far the “good guys” have come in the war against financial evil, ignorance, and omission. Which I’ll get to momentarily. Before a few comments on said Fed decision.
Frankly, I’ve spoken too much already of the idiocy of the Fed-led propaganda scheme to attempt to “save face” by instituting an infinitesimal, meaningless “one and done” rate hike. And thus, good riddance to the upcoming 2:00 PM EST FOMC announcement, before it even arrives. And don’t forget for asecond that no matter what drivel Yellen spews, the story remains the same. “Quantitatively” speaking, ZIRP has been an unmitigated failure of epic proportions – not just in the States, but the entire world. To that end, the sheer comedy of Obama giving a press conference yesterday hyping the “recovery” that isn’t was too much to bear. And when he ended it by bragging of how the “stock market has doubled in the past six years,” I nearly lost my lunch.
No Barack, there has decidedly NOT been a recovery, here or anywhere. To the contrary, things are dramatically worse than the day you took your oath of office. Just as they will the day Donald Trump, Hillary Clinton, or Jeb Bush steps down in 2020. In a nutshell, David Stockman’s description of 80 months of U.S. ZIRP – and the 700 other global rate cuts that accompanied it, as the “final currency war” accelerated – is as DEAD ON as it gets.
“Two decades of cheap, nearly limitless credit and other forms of capital have saddled the world economy with staggering levels of excess capacity in energy, mining, manufacturing, transportation and distribution. But like all crack-up booms in commodities and capital goods, this central bank driven deformation has now, inexorably, morphed into a relentless deflation.”
In fact, this is the last data point the Fed will see before making its “historic” decision…
Which is EXACTLY why the Fed must maintain zero interest rates “to infinity” – well, that, and the relentless Chinese selling of U.S. Treasuries that is driving rates higher, and America deeper into recession. Not to mention, relentless, covert money printing and market manipulation – such as the yesterday’s equity “dead ringer” algorithm, and paper gold “Cartel Herald” algorithms at the 12:00 PM “cap of last resort” yesterday and “2:15 AM” today?
Moreover, when “Economic Mother Nature” and her “unstoppable tsunami of reality” overpower the Fed’s best efforts to rig markets covertly, they will have no choice but to step up overt manipulations like Quantitative Easing. And FYI, several readers sent me thisfabulous commentary of the myriad failures of the Fed, QE, and all things Central banking. A better 20 minutes of financial education you can’t spend, in my view – other than reading the Miles Franklin Blog, of course.
But enough on that for now; as at this point, Thursday morning at 10:00 AM EST, there’s nothing left to say. By 2:00 PM EST, the Fed will have, one way or another, tightened the noose around its own neck – as well as the world’s other 180 or so Central banks. And rest assured, I’ll be up bright and early tomorrow to produce an Audioblog relating the gory details.
For now, however, let’s speak of “happier” topics. Such as the incredible progress the once meek “GATA Army” has accomplished through the past 15 years, in educating the world of the economic horrors wrought by decades of relentless money printing, market manipulation, and propaganda – made possible only by the maniacal, but thankfully suicidal, suppression of gold and silver prices. First, by covertly dishoarding official reserves – like the U.S. Treasury’s fabled 8,133 tonnes of gold; and subsequently, suppressing paper prices via derivatives, naked shorting, fraudulent accounting, and relentless propaganda.
Back in 1998, Bill Murphy and Chris Powell started GATA – i.e., the “Gold Anti-Trust Action Committee” – in response to “mysterious” gold trading following the 1998 financial crisis. Specifically, surrounding the collapse of the infamous, ironically-named hedge fund, Long-Term Capital Management. No one paid much attention to GATA back then, but when gold and silver bottomed two years later, and started an inexorable 11-year march higher, interest in what GATA had to say expanded globally. Its Dawson City, Yukon conference in August 2005 put GATA on the geopolitical map, when Vladimir Putin’s “right hand” Economic Advisor, Andrey Bykov, followed up his appearance by calling it the “finest conference I ever attended.” Bykov was also in attendance to GATA’s August 2011 conference at the Savoy in London; i.e., the finest conference I ever attended – capped off by the fantastic speech of Andrew Maguire, the most influential “whistleblower” our sector has seen. Not to mention, its perfect timing – as S&P’s historic stripping of the U.S.’s triple-A credit rating occurred that very week. And don’t forget the March 2010 CFTC hearings debating the merits of positions limits on metals like gold and silver (which of course, were not enacted) – in which Bill Murphy, Harvey Organ, and Adrian Douglas delivered crushing blows to the Cartel, for the entire world to see.
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