RANTING ANDY – OK all, as Jim Sinclair says, “the end is here, and it is NOW.” After today’s off-the-charts horrific employment number (which somehow I predicted yet all the genius’ on Wall Street missed), I am officially proclaiming – no, SCREAMING – that the END GAME for the purchasing power of the dollar and other worthless currencies like the Euro and Pound is NOW!
Not six months from now, not next year, not in two years. No, the can has been kicked to the end of the road, where a giant, endless wall is now standing (think the band at the end of Animal House).
I know some of you have heeded my warnings about PROTECTING YOURSELF from the rapidly oncoming onset of hyperinflation, and to those people congratulations. But the majority of my readers, and essentially ALL of the Western World have not, and thus will be on the short end of the GREATEST WEALTH TRANSFER OF ALL TIME, i.e. from those holding assets in the form of PAPER and REAL ESTATE to those holding REAL ITEMS OF VALUE such as PHYSICAL GOLD and SILVER.
Despite every possible Cartel/PPT/government/media effort to manipulate markets and minds, the END GAME has arrived, and I can say with near 100% certainty that you will see the results of the END GAME in your daily lives as the second half of 2011 progresses (i.e. higher prices, unemployment, social unrest, and of course the massive outperformance of gold and silver in the markets).
Precious Metals have been the best performing asset class, WORLDWIDE, for the past decade, yet thanks to the aforementioned propaganda (and constant paper attacks) most people don’t know this yet. In fact, the average person probably thinks gold and silver are “risky” while dollars are “safe”, and even if they thought otherwise wouldn’t have the slightest idea how to purchase them. But for 5,000 years gold and silver have preserved their value, outlasting every fiat currency that has EVER EXISTED! As I have written countless times, the U.S. itself has already lost not one, not two, but THREE fiat currencies to hyperinflation already (the “Continental” following the Revolutionary War and both the Union and Confederate dollars during the Civil War), but these currencies don’t hold a candle to the granddaddy of all paper Ponzi schemes, the current incarnation of the WORLD RESERVE CURRENCY U.S. DOLLAR!
In numerous RANTS this year, I have, in excrutiating detail, described the absurd measures of market manipulation taken by the Cartel/PPT this year to maintain some semblance of status quo while the Western World melts down. The U.S., Europe and Japan are watching their economies collapse, their municipalities flirt with bankruptcy, and their currencies plummet against commodity prices, and each day a new data point emerges to drive the point home further. Things not only are getting worse, but have NO CHANCE of getting better in our GENERATION. Yes, I’ll repeat that – for essentially the remainder of our lives, we will watch the standard of living of the current “superpowers”, particularly the U.S., decline…not by a little, but a LOT.
TPTB in Washington and New York, as well as their pathetic puppets in London, have NO HOPE of reversing the dramatic decline in economic activity that has principally occurred due to decades of THEIR OWN HORRIBLE TRADE, FISCAL, and ECONOMIC POLICIES. Again, for those that listen to the dolts on CNBC, the shills in the Wall Street Journal, or the outright criminals at major brokerage firms and within your beloved government, I said NO HOPE!
Actually, I made this same statement in 2005 about the dangers of an imminent popping of the housing bubble, but back then no one listened to me, saying I was stupid not to buy a house because “you get a mortgage deduction” or “houses will never go down in price”. And in 2000, when I sold the last non-Precious Metals stock that I will likely EVER own, and in March 2002 when I screamed at Bush during his Iraq War speech that he was a liar and that Iraq would become the next Vietnam.
And no, I’m not trying to gloat, I’m trying to say that in a sea of nonsense, very few choose to embrace the truth.
Was it rocket science to think internet stocks were a bubble? Heck, I was a sell-side oilfield service analyst at the time, and our bankers were FORCING us to write about the INTERNET to try and join the internet gravy train.
Don’t believe it? Than read the attached report, which I WROTE FOR SALOMON SMITH BARNEY in 2000 upon the DEMAND of our investment bankers. We were within DAYS of taking an “oilfield internet” company called Petroleum Place public for $2 billion in April 2000 when the bubble popped; yes, that is how far Wall Street bankers will go to rip people off. Heck, we were even FORCED to write a blurb about “Shell – website unnamed” in an effort to get the deep-pocketed Shell’s business. And yet, to this day, that report has had more fame than ANYTHING I’ve ever written! What does that tell you?
Was it rocket science to think housing was a bubble in 2005, when literally EVERYONE I knew was not only buying houses for no or low money down, but immediately refinancing them to put in “improvements” such as new kitchens? I am telling you that every person I knew in NY (I lived on Long Island at the time) was calling me STUPID for not buying a house back then. In Long Island, one of the most expensive (and difficult) places to live in the States, houses are overpriced, have massive property taxes, and on average are 60+ years old (and thus in need of much repair). However, I was called STUPID by FRIENDS and FAMILY for not buying. I pointed out the aforementioned FACTS, as well as the FACT that if/when Wall Street collapses (which I knew it would), it would suck out all of the money funding the Long Island real estate market, but to no avail.
Was it rocket science to think the Iraq War was a sham? I mean, c’mon on people. I worked at CANTOR FITGERALD from 1993-96, and was working on floor 105 during the first bombing in May 1993. I also was across the street at Salomon on 9/11, and watched those people jumping 100 floors to their deaths (many my old Cantor colleagues), so NO ONE is more sensitized to the aftermath of that horrible day. Irrespective, I KNEW there was no way of proving that Iraq, or Saddam Hussein, had anything to do with it, much less to demonstrate he had WMDs ready to use on America. I also KNEW from being a Vietnam buff that any such unprovoked attack would be a failure, not to mention from simply reading about the Russian experience in Afghanistan just 15 years prior.
And, most importantly, is it rocket science to conclude that PRINTING ZILLIONS OF DOLLARS, EUROS, POUNDS, YEN, AND YUAN will cause massive inflation? When I went all-in, as in 100%, to Precious Metals investments in May 2002 (after being 100% in cash for the prior two years), I thought it was the biggest slam dunk of my career. And this was when the dollar had only just peaked, and global CONFIDENCE in the U.S. was at record highs. Was I really brilliant for guessing that years of loose monetary policy, as well as the countless “Made in China” labels showing up everywhere, would eventually translate into a weakening dollar against ITEMS OF REAL VALUE. Ah, the “Strong Dollar Policy” days….
Look, anyone that KNOWS me realizes I am actually a quite humble person, particularly regarding the aforementioned predictions. I don’t believe it took rocket science to make them, but it did take a psychological mindset that counters the norm. I have learned A LOT about the good, but mostly evil, nature of mankind in the past five years, but most importantly I’ve come to better understand mass psychology, and it’s pretty simple….
Even during good times, mankind is genetically programmed to “see no evil, hear no evil”, even when it is right under their noses. And I mean RIGHT UNDER their noses, as in SCREAMING in their FACES. That is why the Holocaust happened, and the Crusades, and why people choose to listen to Bush/Obama, Greenspan/Bernanke, Paulson/Geithner, and even the very same criminals on Wall Street that caused the financial crisis, only to be BAILED OUT WITH YOUR MONEY! I mean, I’m hearing that Geithner is leaving this summer (as the rats continue to jump ship), and that the #1 contender for his vacant Treasury Secretary position is none other than Jamie Dimon, CEO of JP Morgan! And this following Rahm Emmanuel’s replacement as White House Chief of Staff earlier this year by William Daley, also of JP Morgan! These are the very same people who have DESTROYED AMERICA, yet not a peep from anyone in the land that they are joining the co-criminals at Goldman Sachs in running the government.
No one seems to care that each day a new instance of fraud and corruption is exposed, or that rampant money-printing has caused soaring inflation despite a cratering economy, or that Congress continues to spend money on ITSELF while stealing from you, while their cronies at the Fed take bribes from Wall Street so they continue to print more money, and destroy America a little more each day. Or that QE1 + QE2 + all the “hidden QE” has not enriched ANYONE except Wall Street, to YOUR DETRIMENT.
America should be ANGRY; ENRAGED, in fact, as are the people MENA (Middle East/North Africa), the PIIG nations in Europe, and even Britain where mass demonstrations occurred last month. But they are not, principally because the dollar has not yet fully collapsed.
Those other nations do not have the world’s “reserve currency”, so their respective governments don’t have the means to feed them, and that is why they are rioting.
But in the U.S., the dollar still has some semblance of value (albeit rapidly diminishing) because its creditors are collectively scared to be the first to jump ship and dump their dollars in a disorderly manner (thus risking the value of their remaining dollar reserves). But rest assured, the game of musical chairs will end soon, most likely in 2H 2011, and at that point the U.S. government won’t be able to print enough food stamps to feed its unemployed (by the way, JP Morgan makes a fortune printing and processing the food stamps!).
And if you think the debt ceiling saga won’t end badly (just three weeks left), you obviously REALLY don’t want to see or hear evil. This could be the tipping point for the global financial system, but no one seems to care!
Despite all the attacks on Precious Metals this year, which as noted above I described in minute detail in my recent rants, gold is at or close to an all-time high in essentially every currency. U.S.-priced gold, the most manipulated market of all, is just 2% below its late April ALL-TIME HIGH, and equally importantly, Euro priced gold, which has been capped at E 1,080 for the past YEAR, is just now starting to break out, likely ushering a whole new era of fear-based buying across the pond (just closed at E 1,082).
Again, words cannot properly express the ALARM I am feeling now, as the entire Western World Ponzi Scheme teeters on the brink of tumbling into the abyss. History is on the side of my conclusions, which are that those not PROTECTED with PHYSICAL GOLD, SILVER, and OTHER REAL ITEMS OF VALUE such as FOOD will suffer the consequences of dozens of previous generations.
Is that enough to make you act?
P.S. This week was probably the FIRST WEEK in the NINE YEARS I have been watching Precious Metals that GOLD WAS HIGHER EVERY DAY OF THE WEEK! Not a good sign for the Cartel, which will surely crumble in the second half of this year under the weight of mounting economic, fiscal, and monetary pressures. And when I say crumble, I mean the END of the PAPER MARKETS as a pricing mechanism for gold and silver. In fact, I think the criminals in Washington, NY, and London have so tainted the paper markets with fraud, that FUTURES PRICES MAY BE ABOLISHED PERMANENTLY IN THE GOLD AND SILVER MARKETS, or at least for a generation. And when that happens, physical gold and silver will not even be AVAILABLE, let alone at any price close to the current levels. Aside from the REAL THING, perhaps certain closed-end bullion funds will be able to protect you (such as CEF, GTU, SVRZF, PHYS, and PSLV), and perhaps SELECT online PM ownership groups such as goldmoney.com. But that’s IT, and you’d BETTER HAVE YOUR GOLD AND SILVER POSITIONS IN HAND when this event happens, as you won’t get a second chance!