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The Final Currency War, Part lll-China’s Revenge!

Andy Hoffman, Miles Franklin:

“When gold goes above $1,430, we whack it.”  This, one of the hundreds of blatantly collusive “chat” messages between UBS and Deutschebank gold traders between 2004 and 2013, per this article from the PM communities’ newest champion, Allan Flynn of the “Comex we have a problem” blog.  Who, as was the case a week ago, when he publishedequally damning communications regarding the relentless manipulation of silver during that period, has uncovered all the evidence anyone could ever need to prove Wall Street has been involved in suppressing prices for more than a decade.

Eventually, the ringleader of this hideously criminally, globally-destroying “game, the U.S. government “Exchange Stabilization Fund” – whose “backstop” of such operations is what gives these traders such “confidence” in their hideously illegal, and patently dangerous actions – will be outed by similar leaks, I have no doubt.  That said, this “smoking gun” evidence is proof enough for the world’s big money – the vast majority, from nations whose currencies are being decimated; thus, increasingly desperate to hedge their wealth – to act, be they individual, corporate, municipal, or sovereign – from the explosive money printing guaranteed to accelerate in 2017 – the “year of money printing” – and beyond; as history’s largest, most destructive fiat Ponzi scheme races through its terminal, maximally-destructive phase.

Heck, even Harry Dent admitted he has been flat out wrong about his “deflationary” stock market crash prediction – in stating that “between late 2014 and November 2016, all of my research pointed to signs that the end was near…with the Dow was set to shed thousands of points in short order.”  And yet, it didn’t Harry, go figure.  He of course didn’t admit the realreason was the same government manipulation of stocks – via the covertly operating “President’s Working Group on Financial Market”; that covertly suppresses Precious Metals and Foreign Exchange Rates via the “Exchange Stabilization Fund”; and supports bonds via the Fed’s “Open Market Operations” committee.  My guess is he’ll never admit manipulation in any market, given that it invalidates his (and countless dozens of other newsletter writers’) life’s work; but at least, he’s coming clean on the fact that his advice has been wrong – as it will inevitably be in his latest gold-bashing tirade, when the aforementioned manipulation is inevitably overcome by the reality exploding physical premiums are suggesting to be imminent.

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Good for Bill Holter for uncovering what Martin Armstrong said in 2010-11 whilst still in prison – and at the time, a close friend and confidant of his partner Jim Sinclair – of how gold and silver would eventually explode in price.  Particularly silver, the “most manipulated precious metal of the entire group”; which is “routinely played with by the NY crowd”; and yet, “anybody you says such things is immediately attacked with venom”; as “silver is the playground for the CLUB.”  And yet, given that the exact same “footprints” that suggest this manipulation is prevalent now more than ever; let alone, admissions by Deutsche Bank, UBS, and soon-to-be-others; with damning evidence everywhere, as noted above; Armstrong – like Dent – himself “attacks with venom” anyone who dares claim Precious Metals are suppressed.  And worse yet, claims it “doesn’t matter” anyway.  Gee, I wonder what caused him to change his tune – so violently, to boot – right about the time he was released from prison.

Yes, “fake news” is the meme of the day – having taken over the political scene via the hideously criminal liberals’ attempt to commandeer the Presidency; just as “fake news” commandeered the economic scene years ago – in reporting fraudulent economic data, and describing rigged financial markets as “freely trading.”

Regarding the former, consider that simultaneous with what I described in Thursday’s epic, 51-minute Audioblog, of how “soft” U.S. economic data (like the rigged; and irrespective, statistically insignificant  diffusion indices), are increasingly diverging with hard data – like Wednesday’s hideous retail sales, industrial production, mortgage application, and inventory data; and yesterday’s catastrophic U.S. Housing Starts report (one day after the National Association of Homebuilders reported an explosion of “confidence,” to levels last seen at the top in 2005); this article emerged of how the exact same thing is occurring in Europe.  Not that such manipulation is anything new – per what I discussed in November 2014’s “lie to end all lies.”  However, at this, the blow-off top of history’s largest, Central bank and government-manipulation fostered bubble; whilst global trade collapses; political and geopolitical tension explodes; and dozens of fiat currencies implode; we have truly reached an Orwellian stage of flat out LIES, like none witnessed since, well, Nazi Germany.

Consider that in January 2014’s “3.0% – ‘Nuff said,” I vehemently espoused that the government would do anything to prevent the key round number of 3.0% on the benchmark U.S. Treasury yield from being breached to the upside – including the publication of “unexpectedly” weak jobs reports – given how rates above that level would annihilatehistory’s largest debt edifice.  Which, in the case of the U.S. national debt, was “just” $17 trillion then – a mere three years ago – compared to $20 trillion today.  Which, I might add, must be addressed in just three months, when the “suspended” $20.1 trillion “debt ceiling” becomes unsuspended, just in time for Trump to start lobbying for the budget-busting tax cuts and fiscal stimulus that have not a chance of being enacted – despite being the basis for the dotcom-like “Trump-flation” rally that has taken stocks, and base metals, to their most overvalued levels ever.

The below chart depicts my correct prediction that January 2014’s 3.0% ten-year yield would represent the (temporary) top; compared to where rates are today – at 2.6% as of yesterday’s close, nearly double the 200-year low of 1.4% hit in the BrExit aftermath.  However, given the all-out collapse of housing starts; mortgage applications – to post-Lehman lows; and the massive, parabolically surging, global addiction to low rates, given the explosion of debt in recent years; a three-plus percent Treasury yield – combined with the dollar explosion that is annihilating the vast majority of fiat currencies – including the Euro, Yen, Pound, and Yuan – would represent a worldwide financial fusion bomb, relative to the potential hydrogen bomb just three years back.

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However this time, I’m not so sure the U.S. government – i.e., the ringleader of the global bubble economy – will be able to staunch the explosive upward pressure on interest rates; which this week breached their post-2008 downtrend, now that the “bond vigilantes” have awoken- realizing that hyper-inflationary money printing is about to explode.  If they can’t, said fission bomb will detonate in 2017, causing Precious Metal prices to explode.  And if they can, it will be because the deflation said “powers that be” so desperately sought to avoid washes over the aforementioned, historic debt edifice like a tsunami – yielding equally devastating political, economic, and monetary consequences, and an equally explosive Precious Metals rally.  Which is exactly why governments are launching the draconian decrees I warned of in Wednesday’s “money printing and draconian government actions will define 2017” – like the psychotic “cash bans” and capital controls that will catalyze equally explosive Precious Metals demand which – how do you like that – I apparently first warned of in 2013, here and here.

The Orwellian “fake news” phenomena has spread so rapidly, and virally, that people are no longer questioning my “taste” in publishing articles like September’s “was Goebbels right?” – in which, I discussed the outright LIE, coming apart further with each passing day, of OPEC’s propagandized “production cut.”  So much so, that no less than the President of the United States, yesterday, gave a press conference overtly accusing the Russians of hacking American electoral and Democratic Party databases, with not a shred of evidence to support such allegations against our self-described “most dangerous geopolitical foe” – which just happens to be staunchly allied with our most dangerous economic foe, China.

The latter of which, “coincidentally” devalued the Yuan to its lowest level in nine-years yesterday – to within mere basis points of the key psychological level of 7.0/dollar that will surely yield dramatic capital flight from China, whose government is already selling U.S. Treasuries en masse to generate desperately needed cash to staunch this monetary avalanche.  Thus, confirming the “final currency war” I first warned of four years ago – which as I warned last week, is as much against you as foreign governments – has gone thermonuclear.

This, the same day China’s press warned of a potential invasion of the “Republic of China” – i.e., Taiwan – mere days after Donald Trump had the audacity to violate the “One China” policy by acknowledging Taiwan’s existence.  Not to mention, as China’s own Treasury market crashed so hard – destroying 18 months of gains in one trading session – prices were halted, the direct result of the U.S. dollar and Treasury yield explosion the Fed put into hyper-drive with Wednesday’s “terminal policy error,” of indicating it might raise rates three times next year, instead of the “expected” two (as if the Fed, which raised rates once this year, after forecasting four rate hikes less in January, has any clue what will occur); prompting rates to surge anew, and breach the aforementioned nine-year downtrend line.

Oh, and did I mention that, also yesterday, the Chinese government, which has been just as angry at Donald Trump (and Barack Obama) for meddling in its South China Sea policy, seized a U.S. underwater drone, in a blatant act of aggression – that Trump has already responded to, in equally aggressive fashion – that could dramatically increase the already surging geopolitical tensions between the world’s two leading economic powers?

“Final currency war” is on the verge of taking very, very nasty turns – on every imaginable political; economic; monetary; and I can only hope and pray otherwise, military; front.  This, as said draconian decrees – and hyper-inflationary money printing – are set to explode.  First, to try and avert the inevitable collapse of what remains of the dying global fiat currency regime; and subsequently, to desperately try to maintain power, and steal whatever wealth can still be stolen from the world’s 99%.  Which is why, more than ever – especially here in the United States of Market Manipulation, where the epicenter of Precious Metal suppression has yielded the most undervalued gold and silver prices, on no matter what metric you choose to measure them, in generations; and perhaps, ever.

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2 comments to The Final Currency War, Part lll-China’s Revenge!

  • Ed_B

    ““When gold goes above $1,430, we whack it.” This, one of the hundreds of blatantly collusive “chat” messages between UBS and Deutschebank gold traders between 2004 and 2013…”

    They need to get whacked with a 10-year prison sentence… and not in one of those country club prisons. That would be a good lesson for them and others of their ilk. When we start seeing this, we will know that we finally have a “Justice Dept.” and not merely a “Just Us Dept.”

  • Ed_B

    “So much so, that no less than the President of the United States, yesterday, gave a press conference overtly accusing the Russians of hacking American electoral and Democratic Party databases, with not a shred of evidence to support such allegations against our self-described “most dangerous geopolitical foe” – which just happens to be staunchly allied with our most dangerous economic foe, China.”

    Was it really so long ago that Barack Obama scorned Mitt Romney for saying that the Russians were our adversaries and that it wasn’t 1985 any more? What an idiotic comment from someone who is not competent to run a hot dog stand, let alone a great nation. I thought that when I first heard it during one of their debates and it is just as true today as it was then. Obama just doesn’t get it. He never has and likely never will.

    “Oh, and did I mention that, also yesterday, the Chinese government, which has been just as angry at Donald Trump (and Barack Obama) for meddling in its South China Sea policy, seized a U.S. underwater drone, in a blatant act of aggression…”

    This is not an act of aggression. It IS an act of piracy on the high seas. Doing that should have resulted in an immediate halt in all trade with China until the drone was returned and a public apology was issued.

    In the future, US shipping should have a US Navy escort when traveling through waters known to be the operating areas of pirates. The same is true of the waters off the coast of Somalia and Iran.

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