by Andy Hoffman, Miles Franklin:
Even for me, the level of anger I felt Monday evening was historic – to the point that, after having awoken at 3:00 am, penned “April 23rd – a potential turning point for the 99%,” and proceeded with the remainder of a very busy day (wait until you hear the Future Money Trends podcast I taped), I scripted the vast majority of Tuesday’s must listen Audioblog #191. The reason being, that Monday afternoon’s Cartel attack was so egregious; following a weekend when not only did Donald Trump take us to the brink of a second war in two weeks – which as I write, remains eminently possible; but a dollop of heinous economic data was released. Particularly, the February and March retail sales reports; which, cumulatively, caused the Fed to reduce its comically overstated 1Q GDP “growth” estimate to 0.5%. In turn, causing the money market “odds” of a June rate hike – you know, the one that was all but “guaranteed” last month – to fall below 50%. And oh yeah, the benchmark 10-year Treasury yield – which I vehemently espoused would NOT go above 2.5% – when “traders” were taking all-time high Treasury short positions – to plunge to a post-election low of 2.25%.
And the “best” part of said attack – which occurred at exactly the time-honored 2:00 PM “crybaby attack” time; following prototypical “Sunday Night Sentiment”; “2:15 AM”; COMEX-opening; and 12:00 PM “cap of last resort” caps and/or attacks; was that it was predicated on such an unbelievably ridiculous premise – perpetrated by perhaps the least trustworthy person in government – it strains credulity to believe anyone could believe it. I.e., as discussed in the aforementioned Audioblog #191, former Goldman Sachs stooge; and purveyor of one of America’s great taxpayer-bilking scandals – Indy Mac; i.e., Treasury Secretary Steve Mnuchin, via completely ambiguous comments about his boss’s blatantly obvious strategy of jawboning the dollar lower – to the point that Trump is actually considering re-appointing Janet Yellen next year, as long as she promises to deliver a “weak dollar” and “low interest rate strategy.”
Overnight Monday, PMs regained most of their Mnuchin/Cartel catalyzed losses – whilst the dollar index plunged to 99.9 from the 100.3 level it closed at, below the key psychological level of 100.0 it was trading at when Mnuchin “coincidentally” was trotted out to provide cover for the gold Cartel to attack. Meanwhile, the 10-year yield had fallen further, from 2.25% to 2.22%, before Tuesday morning’s horrific Housing Starts and Industrial Production data; which cumulatively, contributed to the biggest U.S. “macro data index” crash in seven years.
Which is why what happened next made Monday’s Cartel attack appear trivial. When, mere minutes before the time-honored “key attack time #1” of 10:00 AM EST – i.e., the “London Fix,” when global physical markets close for the day; “someone” dumped $3 billion worth of paper gold on the COMEX, with the sole purpose of driving prices down. Driven by, no doubt, what I discussed at length in the prior day’s Audioblog. I.e., preventing gold from breaching the 5½ year “downtrend line” the Cartel has inadvertently created since dollar-priced gold “peaked” in September 2011.
That said, for the first time in my 15 years of tick-for-tick Cartel watching, prices actually rebounded – and did so quickly – enabling gold to close the day higher, and silver just modestly lower. That said, the $5/oz gold gain – which as you can see below, was again capped by the 12:00 PM “cap of last resort” algo – was pitifully modest compared to what it should have done, given that the dollar index ended the day at 99.5; and the 10-year Treasury yield, 2.17%. Stocks’ losses were of course capped by the PPT, but the end of the fraudulent “Trump-flation” propaganda meme couldn’t have been more obvious; particularly in the historically overvalued base metal space, where the post-election bubble was pricked pretty sharply; as copper, nickel, zinc, lead, and iron ore plunged by 2%, 5%, 4%, 6%, and 5.0%, respectively.
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