Ranting Andy: 2008 Revisited

RANTING ANDY – Yesterday’s Fed announcement, as I expected, was just more of the same.  Bernanke had HOPED and PRAYED that economic data would come in “better than expected” in the weeks leading up to the “QE or not QE” meeting, which would have yielded more options as to the range of bullsh-t he could spew and get away with.  Without a shred of doubt, the Fed will continue to print money at an accelerating pace to try and paper over the massive dislocations that earlier printing has produced.  In fact, it was already a fait accompli that unpublished money printing would skyrocket, it was just a matter of what the published strategy would entail.

Unfortunately for the Fed, economic data has not only declined in recent weeks, but literally COLLAPSED into a heap of dust.  Each successive datapoint, despite being ‘cooked’ by Big Brother, has been worse than the last, to the point that even the average person realizes we are headed back into the economic abyss.  There aren’t words to describe how bankrupt every aspect of American society is right now, and with the economy again in freefall, this predicament is compounding at an exponential rate.  Consequently, the Fed’s published policy statement was more dovish than anticipated, starting with Bernanke’s comforting quote:

“We don’t have a precise read on why this slower pace of growth is persisting.”

To the following, dreadfully bearish statement:

“The Committee continues to anticipate that economic conditions–including low rates of resource utilization and a subdued outlook for inflation over the medium run–are likely to warrant exceptionally low levels for the federal funds rate for an extended period.”

In other words, as I and anyone with half a brain has maintained, the economy is collapsing, with no hope in sight, either now or, frankly, EVER for the United States that we have known throughout our lives.

Given this acknowledgement, as well as the Fed’s blatant disregard for inflation, it is pretty obvious that QE will indeed continue forever, as it MUST given the fatal exposure to toxic mortgage and other assets on the balance sheets of essentially all banks, particularly the Fed itself.  Yes, they engineered an “emergency” IEA meeting this morning to announce that a number of countries will be tapping their Strategic Petroleum Reserves to take down prices in the near-term, as obviously the plan all along has been to try and engineer a “deflationary panic” to justify more PUBLIC money printing, i.e. QE3.

Of course, none of this noise will change the fact that Western economies (particularly the U.S.) are imploding, with none of these developments even slightly negative for gold, in fact the contrary.  Actually, there hasn’t been any “negative news” about gold in years, and there won’t be any time soon.  The only reason we are seeing pressure on gold and silver this morning is the same Cartel machinations as always, this time particularly coordinated around the Fed meeting as TPTB knew beforehand (and I’m sure told JP Morgan, Goldman Sachs, etc.) that the policy statement would be dovish.

Actually, all you have to do is look at the COMEX charts for the last two days to see exactly where the “gold decline” came from, and I’m sure you won’t be surprised one bit:

First, yesterday’s action, the day of the big Fed meeting when all they did was say exactly what they were expected to say, which, as always, is massively gold bullish.  Gold builds up momentum all week, although of course, it only moves up a few bucks at a time due to the non-stop PAPER capping, hitting $1,558 at EXACTLY 12:00 PM EST, just $12 or so from the all-time high.  Then the usual capping all day long, and the even more usual LATE DAY Cartel attacks after the Fed makes money-printing statements. 

 

Today, gold down modestly all night despite the planned “shock and awe” IEA oil supply increase (which is not the slightest bit “gold bearish”, by the way), until BAM – the second the COMEX opens at 8:20 AM EST the PAPER price plunges $10, followed by another $10 just minutes later.  It takes weeks to rise $20 thanks to the capping, but like we’ve watched hundreds of times over the years, weeks and even months of gains can be extinguished in the PAPER market when a coordinated naked shorting raid takes place.

 

Remember, the Cartel/PPT know all too well the predicament they are in.  The U.S. economy is rapidly collapsing, and thus easy (read: hyperinflationary) monetary and fiscal policy MUST continue full speed ahead to avoid an all-out instantaneous collapse.  But commodity prices have been soaring, with gold, the most important (when unmanipulated) inflation barometer on earth having the gall to essentially reach an all-time high yesterday, just as the esteemed Bernank was planning to speak. 

The gold rush, when it becomes widespread, will wash away the propaganda and rigging like a tsunami, and thus increasingly desperate measures (which I have chronicled) have been taken to attack PMs, such as the 11/09/10 “D-DAY” intraday silver margin increase, the 5/01/11 SUNDAY NIGHT SILVER PRICE MASSACRE, the 6/01/11 LAST SECOND SILVER ATTACK (see below), and now today’s “FED MEETING/IEA OIL CATASTROPHE.”

 

Isn’t it funny how gold is ALWAYS waterfall declining, essentially every day now?  Yet somehow it keeps coming back and hits new all-time highs (never rising more than 1% in a day, of course).

Anyhow, to the point of this article, the reason the evil ones are so desperate is because we ARE on the verge of MELTDOWN II, only this time it will be much worse because the money-printing/propanda/fraudulent accounting/political stiffarming has been spent, and this time around it is not the BANKS that will be the center of the collapse (don’t worry, they’ll still be there), it is the GOVERNMENTS themselves.

They KNOW this is happening (NOW, not in a year or two), and are thus DESPERATE to try and engineer the same type of “deflationary scare” as in 2008-09 (which included a violent, illegal paper attack on gold and silver, contrary to the propaganda that PMs sold off due to “liquidation”).  They need to maintain the PERCEPTION that gold and silver are just “industrial commodities” and that only the “dollar” and Treasury Bonds are safe havens, which is why they are attacking so hard right now.  Gold has been rising for weeks while stocks have declined, so they will do ANYTHING they can to turn those perceptions around.

But they will fail, no matter how hard they try to attack.  This time around, the world’s smart money will not be deceived, knowing full well that the END GAME this time around will be the failure of fiat currencies to maintain value against REAL MONEY, so it is only a matter of time, in my view a 99.9% chance THIS YEAR (never say 100%), before the paper rigging game ends with soaring gold and silver prices.

As always, I can’t warn enough about the dangers of PAPER precious metals investments such as GLD and SLV, nor conversely about the merits of owning REAL, PHYSICAL gold and silver, as well as a healthy stockpile of food and other life necessities.

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7 Responses to Ranting Andy: 2008 Revisited

  1. ANDY: ANOTHER GREAT COMMENTARY. THANK YOU.
    COMMENT AND PERHAPS NAIIVE QUESTION: INASMUCH AS IT APEARS THAT THE CARTEL IS DESPARATE, WHAT PREVENTS THEM FROM ATTACKING THE PMS CONTINUOUSLY DAY AFTER DAY IN A SIMILAR MANNER AS IN THE PAST TWO DAYS THUS DRIVING THE PRICES TO INCREDIBLY LOW LEVELS? WHY HAVEN’T THEY DONE SO ALREADY? WHO IS BIG ENOUGH TO STOP THEM? WOULD APPRECIATE ANY COMMENTS YOU MAY WISH TO OFFER.

    • Ranting Andy says:

      John,

      They have spent every day of every week attacking PMs for nine years, and per my writings (and plain sight) have dramatically stepped up their efforts in 2011 as the END GAME nears.

      Believe me, they have thrown everything (illegal) possible at the PMs, and won’t stop until they are broken, which they will be soon enough.

      Just make sure you are prepared to PROTECT YOURSELF.

      a

  2. ANDY: AS A CLARIFICATION TO MY RECENT POST I SHOULD RESTATE MY QUESTION: WHY HASN’T THE CARTEL SUPPRESSED METALS PRICES EVEN MORE THAN THEY HAVE ALREADY, BY DRIVING GOLD TO $800 OR LESS, SILVER TO $18 OR LESS. WHAT PREVENTS THEM FROM DOING THIS AND WHY HAVEN’T THEY ALREADY DONE SO? WHY HAVENT THEY TRIED TO CRUSH PRICES TO LEVELS THAT WOULD ONCE AND FOR ALL DISCOURAGE ANY ONE FROM EVER INVESTING IN THE METALS AGAIN FOR ALL TIME? I CANNOT UNDERSTAND
    WHAT STOPS THEM. IT IS A PUZZELMENT. CAN YOU COMMENT? THANKS.

    • Ranting Andy says:

      They HAVE tried, over and over, but the PHYSICAL market is too strong for them , and will only get stronger, MUCH STRONGER.

      • Thank you for taking the time to answer. I am relatively new to this business and sometimes can’t determine for myself why some conditions exist.
        Much appreciated.

        John in Philadelphia

  3. Matt says:

    Great article. Could you explain the dangers of the paper market such as slv and gld? If the metal price rises, why wouldn’t those Etfs as well? In what situation would they not reflect the spot prices? Sorry to seem ignorant, but I don’t get the dichotomy.

  4. Ranting Andy says:

    They will rise just fine (although at an increasingly lesser rate) until the market understands they DO NOT hold the underlying gold and silver that they claim.

    When that occurs, holders of SLV and GLD will be hit hard.

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