I have some profound thoughts early on this cold Saturday morning, of just how much destruction the world’s “powers that be” – using the “weapon of mass destruction” known as fiat currencies – have wrought on seven-plus billion people. Which more than ever, appears closer to being “counter-attacked” than ever before. On any given day, dozens of instances of what’s wrong are readily apparent, causing the understanding of why this has happened to increase exponentially – particularly as the “fake news” media has been exposed for the lying, sociopathic, regime-supporting institution it has become; whilst conversely, “alternative media” outlets like the Miles Franklin Blog become more popular, due to the mere virtue of speaking TRUTH.
And the same goes for financial “markets,” which have become so over-the-top manipulated, that – like the election, which Donald Trump essentially won with a campaign slogan of “rigged” – even the average person, who has little or no capital invested, is starting to realize it. And while they don’t yet understand Precious Metals are the most rigged of all, as proven by not only Deutsche Bank traders’ hideous, recently-disclosed “chat” sessions; but the biggest smoking gun of all – the WikiLeaks uncovered communique between the UK and U.S. governments of late 1974, confirming the COMEX futures market was launched for the sole purpose of suppressing prices; billions of Chinese and Indians certainly understand the massive premiums they are currently paying for physical gold and silver, versus the fraudulent “paper price” set in the New York and London markets. This, despite the fact that just a tiny percentage of Americans and Europeans actually own physical Precious Metals.
Yesterday’s “trading,” on a day when the NFP employment report was an unadulterated disaster (much lower than expected “jobs,” a record amount of able-bodied citizens not in the labor force, and essentially all “growth” in the lowest-paying, in many cases part-time job categories). This, following a four-month, nearly $500 billion borrow-and-spend campaign by the Obama Administration, in an ultimately futile attempt to secure a Hillary Clinton presidency. To that end, the NFP report was just one of three miserable data points yesterday – as simultaneously, it was reported that the trade deficit “unexpectedly” surged, whilst November factory orders not only dramatically plunged, but would have declined 75% from October is not for a 101% increase in military aircraft orders. You know, the ones that are so egregiously overpriced, and equally egregiously over-budget, Donald Trump has been tweeting about how their production should be halted.
No, the “Dow Jones Propaganda Average” didn’t surpass the arbitrary, nominal level of 20,000 said powers that be are so desperate to push it over – but given the aforementioned litany of terrible economic data; amidst rising interest rates and a surging dollar index; watching it rise in prototypical “dead ringer” fashion was the most obvious dead ringer of all, that a “market” in U.S. stocks no longer exists – to the point that not only does this algorithm, which I first pointed out five years ago, show up on nearly all daily charts, but weekly ones as well, as below. Meanwhile, the fervor to suppress Precious Metal prices on the COMEX has become so powerful, “they” literally attack them multiple times each day – such as yesterday, when prices should have surged higher; but instead, were “capped and attacked” five times.
If any sentient being actually still believes Precious Metal prices aren’t relentlessly suppressed, take a look at the charts of the last three days gold attempted to significantly rally – December 29th, January 3rd, and January 5th; in each case, stopped cold by the “Cartel Herald” algorithm that has capped every gold rally for the 15 years I have been watching; in each case, at the 12:00 PM EST “cap of last resort” I first identified a decade ago. By the way, note that on each of these three days – as well as 90% of all trading days for at least the past four years, “trading” started the day with gold being taken down at the “2:15” AM open of the London “pre-market” paper session. Which again, I highlight not to whine, or be sour grapes, but to inform you that, without a doubt, what we are witnessing in “paper markets” of all kinds, has nothing to do with fundamentals, and everything to do with manipulation. Let alone, when essentially all Central banks are “monetizing” bonds; and some, like the Swiss National Bank and Bank of Japan, are officially buying stocks, too.
And then there’s the currency markets, which are so egregiously rigged, Central banking policy has been commandeered by the overarching goal of winning the “final currency war.” In other words, the proverbial “race to the bottom,” under the politically motivated, and entirely fallacious, assumption that a weak currency yields prosperity. Which, aside from being logically inconsistent, is dramatically refuted by centuries of empirical evidence.
Today’s principal topic was catalyzed by this very topic – given how the Chinese, in as blatant and stark a manner as possible, have manipulated the Yuan in epic fashion in recent weeks, culminating in Thursday’s attempt to squeeze offshore Yuan shorts by driving up margin costs to unprecedented levels. Which, while causing the “biggest Yuan surge ever,” amounted to a measly 20 basis points, from a record-low 6.98/dollar on Tuesday to 6.78/dollar Thursday – seven of which were recouped in Friday’s trading, to close at 6.85/dollar. Which, I might add, represented an all-time low the night Trump was elected, a mere two months ago. When, following the dollar’s subsequent post-election surge, the PBOC deemed it necessary to start dramatically devaluing the Yuan – as I have long predicted – to the point of the 7.0/dollar abyss it nearly breached Thursday.
Bitcoin’s crash from the hyper-speculated level of $1,165 on Thursday ($1,250+ in China!) to the $890 level as I write, was also driven by fear of the PBOC – which “urged Bitcoin investors to act rationally” (but “irrationally” in stocks, bonds, and real estate, of course); highlighting how, while Bitcoin may be the future of day-to-day, transactional money, in its early stages it remains far more volatile than existing currencies – partly due to its dynamic, corruptive role in the monetary realm; and equally so, its extremely thin “float,” given that just 16 million have been mined – of which, at least two million have been permanently lost, and at least a half dozen more hoarded. That said, putting said “crash” into perspective, when Bitcoin first surpassed $890 two weeks ago, it represented an all-time high market capitalization. And no, when Bitcoin hit $1,165 on Thursday, it was not “as valuable as gold,” given that gold’s equivalent “market cap” – based on the all the gold mined throughout history – is around $7 trillion, versus just $15 billion for Bitcoin.
Again, the reason I am speaking of Bitcoin so often lately is NOT to encourage speculation – given that not only can it be extremely volatile, but it is still in its early stages of development and uptake. To the contrary, even believing in it as strongly as I do, it represents roughly one-eighth of my physical Precious Metals investment, a ratio I have no intention of changing any time soon. To the contrary, I’m discussing of it in the context of today’s principal topic; i.e., the “death throes” of fiat “money” – as I assure you, Bitcoin’s ascent to an all-time high whilst fiat currencies serially crash, negative interest rates and “QE to Infinity” proliferate, and “cash bans” expand virally, is no coincidence. Which, I might add, is exactly what Precious Metals would be doing, too, if they weren’t so egregiously suppressed, due to Central bankers’ age-old belief that gold and silver represent the primary threat to their world-destroying fiat currency monopolies.
Except that, per last week’s MUST READ “why Bitcoin will make gold and silver go up,” I believe the rapidly spreading understanding of Bitcoin’s unparalleled day-to-day transactional capability – particularly in light of the fact that most Bitcoin trade occurs outside the purview of sovereign tax authorities – will cause governments to rapidly start to consider Bitcoin, not Precious Metals, their primary monetary threat; and consequently, shift a greater percentage of their “manipulative focus” to it. In that environment – let alone, considering historically tight physical market fundamentals – gold and silver will be far more capable of re-capturing the vital financial role they have incomparably played for thousands of years; not as “money,” per se – but history’s best, and essentially only, reliable store of monetary value. Which, in a world where said “final currency war” has gone nuclear; amidst the aforementioned, multi-decade manipulation scheme that has relentlessly suppressed prices, dramatically increases the odds that the “most undervalued Precious Metal prices of modern times” experience a generational price explosion.
As for the PBOC (i.e., the “most dangerous, destabilizing force on Earth”) – and its lunatic, Keystone Kop-like response to a collapsing economy; serially deflating asset bubbles; and potentially, mass debt defaults; it can only end badly – and likely, shortly – as is the case with essentially all the world’s “leading” fiat currencies. I mean, what part of the Euro’s nearly 14-year low – as the world’s largest trading bloc sits on the brink of collapse; or the Yen’s overt hyperinflation; the Fed’s irreversible $4.5 trillion balance sheet; the British Pound at an all-time low; and nearly all other currencies on the edge of oblivion; as worldwide debt levels go parabolic; speaks otherwise?
Last but not least will be the ringleader of all monetary destruction, the Federal Reserve; when, not if, they are forced by such hideous political, economic, and monetary crosswinds to re-join the “final currency war – likely, sooner rather than later – fostering the dollar’s own final death throes. And with them, the guaranteed liberalization of Precious Metal prices, to levels that irrespective of nominal prices, will represent massive, likely unprecedented real gains against essentially all asset classes.