by Andy Hoffman, Miles Franklin:
As we commence what could be an historically “PM-bullish, everything-else-bearish” week, the Cartel of course “started us off” with the 178th “Sunday Night Sentiment” attack of the past 187 weekends, followed by the 804th “2:15 AM” raid of the past 921 trading days – “Cartel Herald” algorithms and all. This, as the supposedly all-important “dollar index” remained at the multi-week low hit Friday afternoon, following the LOL, “strong” jobs number. Which of course, I state in “quotes,” given how in reality, little about said report is positive at all. That is, if you even believe it’s true, which it decidedly isn’t.
For the “technical analysis junkies” amongst you, the odds of repeated “sixth sigma” patterns recurring in a freely trading market (you know, the type in which technical analysis is valid); let alone, the “dead ringer” and “hail mary” patterns that support the “Dow Jones Propaganda Average” each day; are ZERO. And again, I cannot emphasize enough, that the reason I continually bring this to your attention is to empower you to see through the lies and understand the truth; so in turn, you can make informed investment decisions, amidst one of the most potentially inflectionary periods in history.
Yes, a potentially historic week, with the Ides of March representing its focal point – on which, the Fed will likely put a bullet between the world’s eyes by raising rates into an historically weak economy; a dramatically destabilizing political environment; and a monetary system on the brink of collapse. This, as their excuse of rising inflation contrasts with a decline of the CRB Commodity Index to its post-election level; and most notably, the world’s most important commodity, crude oil – whose rapidly unfolding, post-OPEC deal collapse is setting the stage for a massive global deflationary wave. Heck, the “crowned Saudi prince” is “coincidentally” meeting with Trump today, presumably to ask for the U.S.-led “oil PPT” to “double its efforts” to prop up crashing oil prices. Not to mention, the U.S. “debt ceiling” will become hard-coded on that same date, at roughly $20 trillion; whilst a Dutch election that will likely set the stage for France’s “Big Kahuna” election a month later is held. This, as the UK’s “Article 50” will likely be officially triggered, catalyzing its official exit from the European Union. Which in turn, may yield a second Scottish secession referendum – given that Scotland, unlike England and Wales voted decidedly against the BrExit.
Specific near-term news aside, the point I want to make is that we are living in an increasingly Orwellian world each day, where Atlas Shrugged-like characters are delivering “fake news” at an exponentially increasing rate; which in most cases, they actually believe! Which sadly, due to the immutable, irreversible laws of “Economic Mother Nature,” will end just as catastrophically as all such fantasy economies and monetary systems always have, as in Atlas Shrugged itself. At which point, no more than a percent or two of the population will be prepared, given an unfortunately flaw of human nature, which causes people to believe the lies, and dismiss the truth.
To emphasize my point, I’m going to list a handful of the most egregious propaganda, spin, and “mistruths” from this weekend alone – and subsequently ask, who do you trust – the lies, or your own eyes?
- Donald Trump littered his campaign speeches with references to “phony” job numbers; a “big, fat, ugly” stock market bubble; and the Fed’s – and specifically, Janet Yellens’ – ineptitude. However, now that he’s President, he claims the “strong” (i.e., fraudulent) jobs numbers and “surging” (i.e., rigged) stock market reflects on his policies. And oh yeah, the Fed is “doing a good job.”
- As Congressional debate about the “Trumpcare” bill commences, in what will unquestionably be, in Trump’s own words, a “bloodbath” if (when) it’s not enacted, House Minority Leader Pelosi espoused that “the American people and Congress have a right to know the full impact of this legislation before any vote is considered.” This, from the same woman who in 2007, claimed “we have to pass (Obamacare) so that you can find out what’s in it.”
- From the man who promised the most “transparent” Presidency ever, we learned that not only was he likely wiretapping his party’s biggest political threat – Donald Trump; but under his watch, per the shocking WikiLeaks “Vault 7” disclosures, his CIA has been surveilling essentially everything every American is doing.
- In a world where we’re told that social media has become the voice of the people, we learned that at least 15% of all Twitter accounts are “fake” – created to give the same false impression of momentum as HFT “spoofing” algorithms do in stock, bond, commodity, and currency markets; and oh yeah, unbacked papergold and silver futures and options contracts.
- We’re also told by the powers that be that “the Russians” are the real hackers, despite the fact that no hard evidence of such has yet been uncovered – as espoused yesterday by UK Foreign Secretary Boris Johnson, who unequivocally stated “we have no evidence the Russians are actually involved in trying to undermine our democratic processes.”
- We’re told that millions of new “waiter and bartender” positions are being filled – pitiful wages notwithstanding” – whilst simultaneously, U.S. restaurant sales are in freefall. Also, that American consumers are increasing spending whilst retail earnings, earnings outlooks, prices, and employment are plunging; and housing market are “strong,” despite plunging home sales, mortgage applications, and rents in bubblicious markets like New York and San Francisco. And subsequently, that the economy continues to “recover” – to the point that rate hikes are required (irrespective of how meaningless such gestures would be) – despite 1.9% fourth quarter GDP growth, and current 1Q estimates closer to 1.3%. And did I mention that government tax receipts plunged in February to their lowest level since…wait for it… the summer of 2008?
- The ECB, just one day after a policy statement featuring the ominously hyperinflationary statement that “the Governing Council continues to expect the key interest rates to remain at present or lower levels for an extended period of time, and well past the horizon of the net asset purchases,” put out a blatantly obvious “trial balloon,” when “sources” reported that “some ECB rate setters raised the possibility of rate hikes before the end of QE”; albeit, with the caveats that no actual QE end was proposed (remember, it was just extended until at least year-end) and that such discussions were “brief, without broad support.”
- OPEC, and all “oil PPT”-related parties continue to tell us the crude market is “balancing,” despite surging production, record inventories, declining demand, and weak “deal” compliance; and oh yeah, plunging prices.
- Both the Chinese government and World Bank last week warned of dramatically weakening global economic growth and financial stability, whilst the Fed tells us America’s “third longest ever” expansion must be cooled with policy tightening. Which LOL, is the only thing the Fed has ever said that I agree with – as per the title of an article I wrote 18 months ago, the “only financial event that could be more cataclysmic than a significant Yuan devaluation” would be Fed policy tightening into historic economic weakness. Which in turn, will inadvertently catalyze said cataclysmic Yuan devaluation, and dramatically cool economic activity.
- We’re told stocks are “cheap” despite historically high valuations, falling earnings, unprecedentedly weak earnings quality, and record insider selling. And conversely, that Precious Metals are “expensive,” despite record demand, falling production, and record low above ground, available-for-sale inventories. Not to mention, the persistent $1/oz premium physical silver is trading at in China, above COMEX paper silver prices at the COMEX.
- We’re told Deutsche Bank is “fine,” just as it announces yet another massively dilutive $10 billion capital raise. Which I’m sure will “cover” the losses on trillions of opaquely “priced” assets and derivatives, both on and “off” its balance sheet.
- Simultaneous with the Fed’s expected rate hike – which in turn, will accelerate the dollar’s suicidally destructive strength versus other fiat toilet papers, Treasury Secretary Mnuchin will re-iterate Trump’s “too strong” dollar comments at the G-20 meeting; by warning that “the U.S. won’t tolerate countries that engage in currency devaluation to gain an edge in trade.”
Sadly, I have another half dozen or so items I could add to this list – which in the interest of brevity, I’m going to ignore for now. However, one final point I feel compelled to make, is in regards to the ongoing, accelerating war between Precious Metal and Bitcoin “maximalists”; both of whom, refuse to acknowledge that these “twin destroyers of the fiat regime” are not mutually-exclusive enemies, but allies in the same fight, against powers that be who have destroyed the world with centralized fiat currency.
On the one hand, we have some of the PM industry’s greatest minds calling Bitcoin “tomorrow’s Beanie Babies” and “Nintendo Virtual Foolishness”; and on the other. the greatest Bitcoin minds claiming gold “lost its use case with the invention of the metal detector”; that “European Central banks will dump their gold when the Euro collapses”; and my personal “favorite,” from this weekend, that derivatives are not suppressing, but supporting gold prices!
Hey, everyone is entitled to believe what they want – such as, per the title of my SGT Report podcast fromlast week (which I had no part in creating) that the Rotchschild’s “know something” about what’s coming on the Ides of March. I mean, 382,000 people have watched it already – compared to the roughly 30,000-50,000 that listen to my monthly SGT podcasts, when not given such a conspiratorial title. That said, all I ask is that you decide what to trust based on a careful review of the available evidence.
From my experience, only what I can see with my own eyes is worth risking my capital on. And what my own eyes are telling me, is that the global economy and monetary system are collapsing of their own weight; and subsequently, that “markets” being unnaturally manipulated away from their true equilibrium levels, will inevitably – and perhaps, imminently – be dramatically “revalued.”
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