RANTING ANDY – And the saga continues, as we grow closer and closer to the END GAME, the total collapse of essentially all fiat currencies against REAL ITEMS OF VALUE, be they of monetary significance (gold/silver) or survival value (food and other life necessities).
After two more days of mind-numbingly bad economic data and higher than expected inflation data, it should be increasingly clear to even the most unversed in economics that Washington, Wall Street, and their evil hybrid clone the Federal Reserve have destroyed America, with the pace of destruction clearly turning hyperbolic since the financial crisis commenced nearly three years ago.
Hopefully, those reading my RANTS of the past two weeks have been paying close attention to the daily Kitco charts (I hate to even mention that criminal firm’s name, but they do have good charts) to see if my predictions were right about COMEX manipulation, which of course they have been EVERY SINGLE DAY, as they ALWAYS are.
The point connecting these paragraphs is that the U.S. and nearly all Western industrialized nations are entering “hyperstagflation” (I wonder if that term will gain traction), and after three years of zero interest rates, massive economic stimulus, and fraudulent corporate and government accounting, the ONLY ammo TPTB have left to prevent the oncoming, inevitable currency collapse is to MANIPULATE the PAPER prices of gold, silver, and mining stocks, so as to keep the unsuspecting public (although more suspecting each day) from realizing they are frogs being boiled in a spaghetti pot.
As you all know by now, I spend each morning at the gym from roughly 5:30-6:30 MST, where it is impossible to turn off the CNBC screen on the wall. I watch it to prove my daily thesis about pre-market gold manipulation, which has been proven amply since I started watching at this time roughly six years ago, and occasionally the subtitles when bad economic news comes out to watch how they try to spin it.
After today’s horrific Empire State Manufacturing Index (as if NY manufactures anything anymore) and higher than expected “core” CPI, I saw a guest shill say there would be no QE3 unless the U.S. suffers both a “recession” and a “deflationary scare”, which almost made me fall off the treadmill laughing, like Astro on the Jetsons. First of all, anyone that thinks we ever left the 2008-09 recession is either misguided or disingenuous, as the only reasons the U.S. has been able to “print” positive GDP growth was massive fiscal and monetary stimulus (i.e. money printing) and fraudulent accounting (government, corporate, and inflation statistics). Unemployment has continued to soar throughout the entire “recovery” (excepting government hiring and the phantom “Birth/Death Model”), while real estate prices have continued to plummet each month, with no end in sight. And all this occurring with the government holding interest rates at ZERO with QE, TARP, TALF, and every other stimulant acronym you can think of.
Not only that, but now the stock market, despite 24/5 propping by the PPT, is declining along with the economic data. With unemployment only worsening, the U.S. over its debt limit (stealing from Federal pensions to pretend it is not), and QE2 scheduled to end in two weeks (at least the overt part they publicize), you can see the quandary the U.S. government has put itself into, especially because they have been playing chicken with the global investment and political communities by continually stating that they will end QE on June 30th (LOL). If this deadly concoction does not perfectly embody “recession plus deflation scare”, I don’t know what EVER will.
Now for the fun part. It really is hilarious just how far the Cartel/PPT/government will go to try and convince the sheeple that “deflation” (i.e. any time the stock market or oil prices fall for five minutes) is somehow not only bad for Precious Metals, but MUCH WORSE for them than anything else. That was what the 2008-09 PAPER induced smash was about, and that what the 5/1/11 SUNDAY NIGHT PAPER SILVER MASSACRE was about, too. The first 5,000 years of human history would seem to disagree, but let’s not mention that trivial fact given the limitless power (facetious) of the Cartel/PPT/government.
Unfortunately, as I’ve noted DOZENS of times in recent years, it is the PHYSICAL market that sets the REAL price of gold and silver, and that premiums between PAPER and PHYSICAL gold and silver prices have widened to near record levels in recent months, whether during the sharp PM rise in March/April or the PAPER PM massacre in May/June (after which, by the way, gold is still just 3% below its all-time high). In other words, REAL WEALTH is measured by holding unencumbered PHYSICAL gold and silver, which is untouchable by the Cartel, no matter how hard they try to attack GLD (which has no gold), SLV (which has no silver), and mining shares with naked shorting, HFT algorithm attacks.
Moreover, for month’s now the COMEX silver “inventory” has been declining, showing that demand for REAL silver has been exploding despite the continual attacks on PAPER silver, and in fact, fell below 100 million ounces yesterday for the first time in many, many years (see link below).
Furthermore, of the now 98.8 million ounces of silver “inventory” on the COMEX (which I parenthesize because I don’t believe any statistic EVER published by the government), just 27.9 million ounces are held in the “Registered” category, which theoretically means it is owned by bullion dealers, while the great majority of 70.9 million is in the “Eligible” category, in other words already owned by COMEX customers and thus not available for delivery.
So that means that, at the current COMEX fraudulent paper price of $35.60/oz, all that’s standing between the current position and a COMEX silver default (yielding instant $100+ silver prices) is a measly 27.9 million ounces x $35.60/oz, or a measly $993 million of paper money. Given that the U.S. fiscal deficit is currently projected at $1.5 TRILLION for 2011 (and that excludes “off balance sheet” expenses like the three wars and unending FNM/FRE bailouts), that means that U.S. money printing is running at the rate of $1.5 trillion / 365 days = $4.1 billion PER DAY, and thus $993 million EVERY SIX HOURS!
And by the way, particularly directed to two of my esteemed friends who have been recently betting on when a “COMEX silver default” will occur, the default has ALREADY OCCURRED, because we now know that essentially every COMEX contract is now settled with cash (or, incredibly, equally fraudulent SLV shares), and often at dramatic, premium prices to the closing COMEX contract prices. In other words, silver was not delivered as promised, so that “bet” should be, at the least, a push, IMO.
There are more than 1,000 billionaires in the world, many of who live in the Eastern Hemisphere, and literally tens of thousands of governments (think BRIC, Arab, etc.), corporations, endowments, and wealth funds with $993 million to spare, many of whom are worried a wee bit about what a currency collapse might do to their wealth. I believe many of these individuals and organizations are rapidly accumulating precious metals, and probably some have made inquiries into how to acquire the said COMEX silver, if it even exists, which I highly doubt (how can there be ANY inventory left after the massive, worldwide run on PHYSICAL silver we’ve seen this year!!!!!).
To conclude, keep watching the daily Kitco charts to see the unending manipulation of PAPER gold and silver prices, but when you see those tactics start to fail (such as if gold or silver start to rise sharply AFTER 12:00 PM EST), you will know that PHYSICAL SILVER CRISIS #3 is upon us. PHYSICAL SILVER CRISIS #1 was quelled on 11/09/10 with an intraday silver margin increase, and #2 on 5/01/11 with the SUNDAY NIGHT PAPER SILVER MASSACRE. But I am willing to bet my reputation that PHYSICAL SILVER CRISIS #3 will NOT be quashed with fraudulent paper attacks, and when those inevitable attacks fail, silver will have officially moved into PHASE 2 of its bull market, one that will see the massive 30-year resistance level of $50/ounce turn into an even more massive support level.
And, oh yeah, this event will coincide with a dramatic decline in confidence in fiat currencies, and consequently surging price inflation of REAL ITEMS of VALUE such as precious metals, food, and other life necessities.
I do not think I can scream any louder to PROTECT YOURSELF NOW, and do it with REAL, PHYSICAL ITEMS of VALUE!