by Andy Hoffman, Miles Franklin:
It’s Tuesday, on one of the rare “calm before the storm” days when headlines are thin – and manipulated markets thinner; when frankly, it makes more sense to slow things down than make them more complex. Yes, something dramatic, and market moving, could occur by the time I finish writing – but for now, I’m going to be a bit more “big picture,” and a bit less headline-specific; which is quite ironic, given that today’s principal topic refers to a single, ominous headline.
When I think about how much energy I’ve expended fighting the gold Cartel for 14½ years, it’s hard not be proud of my efforts. I truly believe I’ve helped people in many ways – and in practicing what I preach, have been “along for the ride” in every imaginable way. Unquestionably, the Miles Franklin Blog has become a “thought leader” in the economic alternative media, and you are the reason it has thrived – in taking our words to heart, and relaying them to others. For that, we thank you heartily; as do hundreds of thousands of truth seekers the world round, who all have the common goal of protecting their net worth from the ravages of monetary inflation. Which, unfortunately, will worsen parabolically in the coming years – as history’s largest, most destructive fiat Ponzi scheme, – like the thousands before it – collapses.
To that end, we stand today at the precipice of the ultimate monetary end game. With the world unequivocally amidst its weakest economic era since the Great Depression – featuring massive oversupply of commodities, end-user products, and many service providers; amidst history’s tallest, and parabolically growing, mountain of debt; with fiat purchasing power at its lowest in generations, with nowhere to go but down; it’s difficult to even propagandize the case for “recovery,” let alone prosperity. Yes, selected stock and bond markets – i.e., those supported by Central bank money printing and monetization – have managed to rise faster than inflation, for now. However, everywhere else the economic landscape is in ruins. Even “1%” real estate has started to decline, with no better example than the post-BrExit property crash in London. And in time, be it via hyperinflation or 2008-style crash, historically overinflated financial assets will be the big losers.
Conversely, the price of real items of value will maintain, and in many cases increase in real terms – particularly “need versus want” items, like food, shelter, healthcare, and insurance. However, man cannot preserve purchasing power with food or shelter – so throughout time, he has desperately sought the “precious” few asset classes demonstrating monetary properties. Of which, only physical gold and silver have stood the test of time. Platinum, too, demonstrates most of these properties, even if, due to its scarcity, it has never been used as money. And in modern times, only Bitcoin has been able to demonstrate such properties, even if its history is less than a decade long.
All fiat currencies fail in time, given that they, by definition, are Ponzi schemes. And given the particularly destructive impact of this, the only fiat regime to engulf the entire planet simultaneously; let alone, amidst an age of financial engineering, which has enabled those running the scam to leverage ill-fated bets by many multiples, I have ZERO doubt Precious Metals will be the last men standing when the dollar, Euro, Yen, and other fiat currencies lose their purchasing power entirely. Moreover, as discussed in the “real end game…” three weeks ago, the resulting political, economic, and social damage will likely be so dramatic, I don’t believe governments will ever be trusted to issue currency, even if backed by gold. Which is why, whilst gold, silver, and platinum will unquestionably store purchasing power for generations to come – with a turbo-charged “kick,” when the Cartel is broken – I believe the future of actual money, from both a transaction standpoint and in some cases, like Bitcoin, a purchase power storage standpointas well, will be crypto-currencies. But that’s another story, for another day.
In the meantime, we are amidst a turning point in history – when economic activity is plunging, political regimes in disarray, fiat currencies crumbling, and physical Precious Metal re-asserting its monetary value, despite a barrage of money printing, market manipulation, and propaganda unlike anything seen in history. Which quite obviously, is on its last legs, like the dramatic “grand finale” of a fireworks display.
In the case of financial markets, the efforts to support “last to go” markets like the “Dow Jones Propaganda Average” are unfathomably blatant – as even Wall Street is starting to question the historic disparity between financial asset valuations and fundamentals. And as for Precious Metals, Economic Mother Nature and her “barbarians” are clearly “at the gate” – as evidenced by their relentless surge – which started, ironically, the week the Fed “raised rates.” In both metals, physical demand is at all-time high levels; whilst production has peaked – likely, for years to come; and above-ground inventories, particularly in relation to said record demand, have never been lower.
Given these insurmountable, and rapidly strengthening fundamentals, the Cartel – i.e., governments desperate to protect a status quo in which the fiat currencies they create give them untold wealth and power – is laboring like never before. Certainly, more than at any time in the 14½ years I’ve been watching their every move. Which is why, last weekend, I boldly predicted their imminent demise.
Not that it matters for the vast majority of readers, as my advice – to acquire physical metal – is no different today than in the past. However, in espousing such a view, I am clearly trying to emphasize my belief that the end game is truly nearing – not just for the gold and silver Cartel, but the aforementioned, globally destructive monetary status quo. To that end, watching the Cartel desperately try to prevent its “Achilles Heel,” silver, from taking out its 50 week moving average of $20.50/oz – and seeing theinevitability of their efforts being overwhelmed, is as scary as it is exciting.
As for gold, the Cartel knows that, like silver, this Friday’s COT report – of “commercial” trading activity as of today’s close – could break them. As in, if they are again forced to report an increase to their already “off the charts” record naked short positions, it will likely be “game, set, and match” when markets open Sunday night. As they nearly were the last two Sunday nights, when silver surged to $21.10 and $20.70, respectively, before the Cartel was able to “manage” them lower by Monday morning. Clearly, they are maniacally focused on not only trying to “paint” $20.50 as insurmountable resistance for silver, but turn $1,350 from technical support to “resistance.” That said, I think so much of the world’s big money is onto their scheme by now, it’s difficult to believeanyone can’t see the rigging anymore – particularly when Cartel lackeys like Deutschebank and UBS recently it. And oh yeah, amidst the worst economic environment in generations; and a full-blown monetary crisis, in which currencies are crumbling, interest rates below zero, Central bank monetization schemes going parabolic, and political regimes falling.
Which brings me to today’s topic, a perfect “culmination” of the aforementioned thoughts – of the rapidly approaching “end game” of fiat currency, and Central bank, destruction; followed by a new, terrifying world of change – monetarily, politically, and otherwise. Which is, Zero Hedge’s story this morning that “global stocks surge on rising hopes of Japan Helicopter Money.” Yes, the final, nuclear salvo has finally been launched by the world’s Central banks…
Led by, appropriately so, a man who recently compared his printing press’s efforts to levitate Japan’s economy to Peter Pan, and the man synonymous with Helicopter Money.
“I trust that many of you are familiar with the story of Peter Pan, in which it says ‘the moment you doubt whether you can fly, you cease forever to be able to do it.’ Yes, what we need is a positive attitude and conviction.”
-Haruhiko Kuroda, Governor of the Bank of Japan
“The effectiveness of anti-deflation policy could be significantly enhanced by monetary and fiscal authorities. A money-financed tax cut is essentially equivalent to Milton Friedman’s famous ‘helicopter drop’ of money.”
-“Helicopter Ben” Bernanke, Former Chairman of the Federal Reserve
I’d say I’m in shock – and awe – of Wall Street, Washington, and the Mainstream Medias’ cumulative belief that this insane, and as yet undefined, addition of another $100 billion of Bank of Japan printed “money” will somehow “work,” when efforts to print tens of trillions before it have miserably failed. Let alone, at a point in history when global currencies are at all times lows – except, ironically, the Yen, as the globally destructive “Yen carry trade” is unwound; whilst debt levels are so high – particularly in Japan – that the net “benefit” from each additionally borrowed currency unit is negative.
But hey, who am I to question the time immemorial flaws of human nature? I guess I’ll just be happy to be amongst the “1%” who are intelligent, and free-thinking enough to avoid such “mental incongruence”; and to use such ability to protect myself. As should you, too – as like Luke Skywalker says in Return of the Jedi, “the force runs strong in my family,” and you, too have it. But above all, realize that time is of the essence – as in my very strong view, the “systemic failure” this headline portends, is not just inevitable, butimminent.
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