by Andy Hoffman, Miles Franklin:
If you didn’t listen to the “Emergency Audioblog” I scripted Tuesday night, on essentially zero hours of sleep; you’re in for a treat. As today, you will get my streaming consciousness in full force, given my staunch belief that, per the title of said Audioblog – and podcast – the END GAME, of the powers that be’s’ control over financial markets; and history’s largest, most destructive fiat Ponzi scheme; has arrived.
Last night, I planned on writing of “the Cartel’s greatest fear”; i.e. the destruction of the their record silver short position, the “Achilles Heel” market with perhaps the tightest supply/demand balance of any commodity. This, in response to Steve St. Angelo’s fantastic article this weekend, highlighting how the already historically bullish silver chart – inadvertently “created” by years of price suppression – is on the verge of issuing the ultimate buy signal.
To wit, silver’s ultimate bottom was nearly precisely at its 200-week – not day, but week – moving average of roughly $14.50/oz – which ironically, occurred the very week the Fed “raised rates” in December. More importantly, its rapidly rising 50-week moving average – which silver crossed below during April 2013’s “alternative currency destruction” raid (during which, the Fed’s “we’re going to raise interest rates” propaganda commenced) – is on the verge of being breached to the upside, at $20.50/oz, for the first time since 2009, when silver was $12/oz. And before it 2004, when silver was $6/oz.
Which is exactly what the Cartel first sniffed Monday night, when silver opened “limit up” in Asian trading, to more than $21/oz. Which no doubt, will be reflected in tomorrow’s COT report, depicting a further, dramatic move down the naked shorting rabbit hole to hell. Since then – as highlighted by this morning’s blatant COMEX-opening raid – they have literally “gone for broke” – no doubt, dramatically increasing its record naked short position amidst an utter blizzard of PM-bullish news – which will in turn, be revealed in next week’s COT report. In other words, “Economic Mother Nature” is no longer on the defensive – and quite soon, she will overrun the criminals attempting to subvert her, yielding silver’s inevitable “ultimate quadruple top breakout.” To that end, following up what I have written of this topic three times in the past month – the latest, last week – Craig Hemke did a superb job yesterday, in illustrating just how rapidly the Cartel’s manipulative walls are caving in.
That said, I was sidetracked from focusing principally on this topic by a veritable tsunami of worldwide “horrible headlines” – encompassing the most dangerous political, economic, and monetary environment in generations. Starting with Europe – where as I expected, BrExit’s ramifications are tearing the continent, and its currencies, apart. In Italy, the next “killer referendum” is upcoming in October – when the Italian people, who in last month’s elections made the anti-EU “Five Star Movement” the nation’s most powerful political party, can vote out mainstream lackey Matteo Renzi as Prime Minister, essentially guaranteeing an “ItalExit” referendum in the not too distant future.
That is, if its beleaguered banking system doesn’t collapse first – which at this point, I’d give a 50% chance of occurring before even Deutschebank. Which as I write Thursday morning has plunged to yet another all-time lows. To that end, Renzi actually, in full public view, performed the equivalent of “political blackmail” yesterday, in essentially telling the EU that if it doesn’t subvert its own rules and bailout the Italian banks, Deutschebank’s derivatives book will blow Europe sky high. Which it will, of course, when it inevitably “blows.” That said, Europe’s financial fate is set in stone no matter what goes first, so Renzi’s reckless statements matter not a whit. I mean, take a look at this chart of European bank stocks breaking below the “whatever it takes” low of July 2012, if you want to know how just close we are to global banking oblivion.
Then there’s Hillary Clinton’s “acquittal” yesterday, highlighting the total breakdown of law the world is witnessing, amidst the final stage of economic collapse. Normally, I don’t comment about politics at all. However, in reading how she got away with at best, felonious negligence; and at worst, treason; I realized just how near we are to the U.S. government losing all public faith. Not un-coincidentally, at precisely the time the same thing occurs to the Federal Reserve.
And of course, the collapsing economy – which due to history’s best money-printing excuse ever, BrExit – is being completely ignored; from yesterday’s report that heavy truck orders plunged to six year lows; to an exploding trade deficit due to the surging dollar; to the biggest ever monthly surge in commercial real estate loan delinquencies; to the national debt increasing by nearly $100 billion in a single day; to a PMI Service Index screaming recession. Perhaps this is why global sovereign yields are at all-time lows, with roughly half trading at negative yields, in anticipation of QE to Infinity. Which shortly, the U.S. Treasury market will approach itself, whether or not the Fed officially declares negative interest rate policy. Heck, as I write, money market “bets” on a 2016 Fed rate hike are roughly ZERO; whilst bets on negative interest rates are up to roughly 33% for 2016 – i.e., this year; and 55% for 2017!
Let alone, the catastrophic economic collapse in China – by far, the largest economic and financial bubble in global history. This, as the PBOC continues to inexorably devalue the Yuan, in a process that will unquestionably accelerate as the global currency crash continues; until finally, the full brunt of the “upcoming, cataclysmic, financial big bang to end all big bangs” – i.e., a massive Yuan devaluation – is unleashed. Seeing China’s government announce this morning that, like the U.S. government in 2013, it intends to goose its already historically manipulated GDP data with non-productive “output” like R&D spending, I realized just how close the entire world is to calling out governments’ ridiculous economic lies on masse. Such as May’s “FOMC Minutes Attack” propaganda, in which the Fed intimated it was considering a June rate hike – only to not only NOT raise rates, but publish the most dovish statement of Whirlybird Janet’s tenure. Which, I might add, was validated in spades by yesterday’s release of the June 15th “minutes” – in which not only were the FOMC governors as cumulatively dovish as at any time since the 2012 launch of QE3, but actually used the world “uncertain” 31 times!
And then there’s the giant “pink elephant” in the room; i.e, the unprecedented, parabolically-rising DEBT the world has incurred due to four-plus decades of unfettered money printing and financial engineering; which cumulatively, is destroying the world as we speak. To that end, I this morning watched Grant Williams’ must see documentary this morning – “Crazy – A Story of Debt” – which still has me bristling, more than two hours later. In it, Williams consolidates everything I have said and thought about why the end game is so close. Thus, it would be a shame to pass up this opportunity to empower yourself further by watching it. To that end, the only other third party narratives I can recall advising readers to watch in recent memory were “BrExit, the Movie” and Stefan Molyneaux’s “Truth about BrExit,” given how strongly I felt about the cases they made for the “leave” faction to win. In this case, however, the “winner” will be Economic Mother Nature herself; potentially, just as imminently as the UK “leaves” following publication of the aforementioned narratives.
Speaking to Miles Franklin’s President and Co-Founder, Andy Schectman, last night, he noted how “post-BrExit” business was very brisk, but not even close to last summer’s manic “pre-Shemitah” buying. Which shows just how reluctant the masses are to whole-heartedly grasp the horrifying financial outlook, even if it validates what they are experiencing now. This, as institutional Precious Metal demand has rocketed higher, as evidenced by explosive buying of paper PM proxies like ETFs and mining shares, and record levels of physical buying outside America. You know, where gold, in the average currency, is at an all-time high.
In other words, it truly feels like the “biggest financial iceberg in history” is DEAD AHEAD; and despite warning signals blaring as loudly as possible – like plunging interest rates, currencies, and bank stocks; surging gold and silver prices; and exploding anti-establishment political movements; the majority of those who still can protect themselves are freezing like a deer in headlights.
What will be the trigger to end the whole charade once and for all, now that BrExit exposed just how vulnerable everything has become? Will it in fact be something right in front of our eyes, like the collapse of Deutschebank, the Italian banks, or even a UK bank like Royal Bank of Scotland? Or tomorrow’s NFP employment report, either via what it should be; i.e, dramatically below expectations; or what it could be; a BLS-fabricated “strong” number, permanently destroying the report’s near-dead credibility? Or heck, this weekend’s Bitcoin “halving?” Or the actual Shemitah “debt jubilee” prophecy, scheduled to arrive by September? “Clif high”’s computations forecast the chaos to commence this month, and perhaps he’ll be right. But even if not, it’s difficult to believe the Global Fiat Currency Titanic won’t smash into said “iceberg” by year-end.Help us spread the ANTIDOTE to corporate propaganda.
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