RANTNG ANDY – Despite all the drama last week, in the big picture not a thing has changed, nor can it be by the actions of mere mortals. The global fiat currency system has failed, the END GAME has arrived, and all that remains to be seen is the timing of, and method which, the system permanently crashes.
Who cares if Standard & Poor’s and Moody’s put the U.S.’s AAA rating on credit watch for a downgrade? Does anyone really listen to these biased, paid-off shills anyway, and does anyone with even a handful of brain cells really think the U.S. is a triple A credit to start with?
Who cares if Greece is bailed out or not? Will it be any more or less solvent if the EU prints more money and gives it to banks holding Greek debt, and will Greece’s economy improve any more than it did (NOT AT ALL) from the first bailout?
Who cares if the debt ceiling is raised or not, or if there are $2 trillion, $3 trillion or $5 trillion of back-end weighted spending cuts over the next decade, when the current ACTUAL deficit is close to $2 trillion PER YEAR, rising exponentially?
Readers, NONE of these things, or anything else economic or financial, matters in the slightest, as essentially ALL Western nations are flat broke, and even more insolvent than they are bankrupt (hidden by government-sanctioned accounting chicanery). Moreover, unemployment, housing, construction spending and retail sales are plummeting while inflation is streaking higher, ensuring that overall economic activity continues to spiral downward, no matter what the outcomes of the above (and all other) current events.
In other words, ALL THAT MATTERS IS WHICH STRAW BREAKS THE CAMEL’S BACK, AND WHEN IT OCCURS!
As for the answer to the latter two questions, no one knows the answer, and frankly the answer could be something no one has even thought of yet. Look at the Oslo bombing yesterday, for instance, an event that no one could ever have ever anticipated. One never knows, so all we can do is PREPARE for the END GAME, and as I noted in a recent RANT, “The END GAME is NOW (July 8th, 2001) – ARE YOU PREPARED?”
Now that my preamble is finished, back to the topic of today’s missive, the “half-life” of our friends in the gold Cartel. Readers should be crystal clear by now that I believe GOLD AND SILVER MANIPULATION is the cause of all the world’s financial ills, starting with abandonment of the gold standard in 1971 and the continuing with the ongoing price suppression that has enabled the dollar standard to grow far beyond its bounds.
In my view, the gold Cartel’s actions are THE MOST IMPORTANT ACTION IN THE ENTIRE FINANCIAL MARKET, as if they took even ONE HOUR off for a coffee break (at, say, 12:00 PM EST), the prices of gold and silver would go parabolic and expose the last vestiges of hope in the minds of investors, politicians, and the media. And I truly mean ONE HOUR, that’s all it would take.
By now, everyone has seen the video of SLV options trading exposed in my July 19th RANT, “VIDEOTAPE OF GOVERNMENT ALGRORITHMS SUPPRESSING SLV.” If not, here it is again, as you really need to watch to understand how much control GOVERNMENT COMPUTERS have over PAPER gold and silver securities. I have been watching this activity in GLD and SLV for many years, but now it occurs all-day long in the large-cap mining stocks as well, thanks to the heightened manipulation that commenced November 9th, 2010, or “D-DAY” as I call it.
In fact, I have become so dispirited by the omnipresence of GOVERNMENT COMPUTERS, that I have completely exited all investments in large-cap mining stocks, to which I will never return, EVER! Years of abuse and losses at the hands of the Cartel’s illegal actions have led me to realize that Precious Metals are not INVESTMENTS, but MONEY. That is why nearly my entire portfolio is now in bullion, with my only other mining investments in the Canadian closed end funds CEF and GTU, as well as several selected JUNIOR MINING STOCKS which I view to be grossly undervalued. Junior miners are not infiltrated by GOVERNMENT COMPUTER ALGORITHMS, and thus meet my criteria of avoiding any and all investments that are!
Earlier this week, I was chastised for being overly confident in the outlook for the Gold Cartel being destroyed. The accuser correctly noted that the Cartel/PPT/ESF, etc., has unlimited capital and not a shred of regulatory oversight (they ARE the regulators), which I wholly concur with. Moreover, he noted, they will NEVER, EVER stop attacking until they are defeated, much like the Black Knight in “Monty Python’s Holy Grail”, who would not stop fighting, even when his arms and legs were cut off.
Again, I completely agree with these statements in every way, and the aforementioned ALGORITHMS are the equivalent of the knight fighting with just one limb left, a last, desperate attempt to stave off the inevitable.
But the key word is INEVITABLE, as NO GOVERNMENT IN WORLD HISTORY has every prevented its fiat currency from being destroyed, nor has ANY GOVERNMENT IN WORLD HISTORY succeeded in holding gold and silver prices down for more than a few years, particularly in a situation such as today’s where the fundamentals for paper currencies have NEVER been worse while the fundamentals for gold and silver have NEVER been better.
I mean, geez, the “London Gold Pool”, an OVERT fund (led by the U.S. government, of course) was an official entity with a stated goal of holding gold prices at $35/oz during the 1960s armed with thousands of tons of actual Central Bank gold and a mandate to methodically hit all bids at $35.01. Irrespective, the London Gold Pool lasted just a measly seven years before it collapsed in 1968 under the weight of massive physical buying that swamped official selling by the Fed and other Central banks (read the quotes from Fed Chairman Martin in the below link).
Investors are always terrified by “official actions” due to the potential for short-term losses when they are implemented (with printed money, of course), such as the March G-7 decree to prop up the dollar against the yen following this year’s catastrophic Japanese tsunami. And once again, to go off on a tangent, how warped has this world become when a tsunami destroys a major economic power, and yet the global political response is to SMASH that country’s currency?
Welcome to the world of the “carry trade”, i.e. the most massive, FAILING, derivative trade of all time!
And by the way, for everyone that was so worried that the “official G-7 intervention” would be able to support a market, let’s see if the yen has actually fallen against the dollar as desired.
Oops, I guess not!
The intervention was announced on March 18th when FXY spiked to the 125 level, and less than two months later yen buyers started to take on the “all-powerful G-7 Yen Cartel.” Another perfect example of “three taps and out”, and here we are in July with the yen surging through the G-7 “line in the sand” created with TRILLIONS of PRINTED YEN, making 125 the new SUPPORT level, and a very formidable one at that. No different, by the way, from the MASSIVE Gold Cartel capping (with BILLIONS of PRINTED DOLLARS) at $1,550/oz, a resistance level which was finally destroyed by unrelenting, global physical buying, turning $1,550 into a massive SUPPORT level which, in my view, has little, if any, chance of being materially pierced.
Anyhow, back to the ability of the “all powerful Cartel” to maintain an orderly market, and thus the status quo (of criminals in Washington and on Wall Street destroying the country and stealing all its remaining wealth).
Remember, no fiat currency system has lasted much longer than 40 years, and we are currently in year 40 of the current GLOBAL fiat, Ponzi Scheme regime. No matter how powerful the government in charge, and how many “puppets” it has around the world supporting its policies (which in this case include the Japanese, Europeans, and even the Chinese, whom are fearful of a dollar collapse given that they have $3.3 TRILLION of them in reserve accounts), the fundamentals ALWAYS win out. Yes, you may die before they do, which certainly has been the case for elderly investors this past decade, but we have now entered the END GAME per my recent RANTS, and thus it is only a matter of time before the current version of the London Gold Pool, or the G-7 Yen intervention, or frankly ALL the bailouts to date, lose their effectiveness completely and collapse under their own weight.
This RANT is about the OBVIOUS SIGNS, aside from general economic fundamentals, that the Gold Cartel is on their last legs, and fittingly likely to be finished off FOREVER by the viral spreading of presentation materials from the GATA Gold Rush Conference in London on August 4th – 6th (www.gatagoldrush.com).
As you all have seen by now, I have been keeping track of SURGING GOLD DEMAND via the below chart of what I term “Cartel Physical Crises.” The first was in November 2010, when silver first surged to the $30 level, and the seventh this past Tuesday, when gold first reached $1,600 in response to the heightening debt ceiling crisis (and you know what my views of this crisis are, per my July 9th RANT, “DEBT CEILING DEBACLE, THE DEATH BLOW TO AMERICA”).
TIME INTERVAL BETWEEN EVENTS
|D-DAY||November 9, 2010||CARTEL PHYSICAL CRISIS #1||
|SUNDAY NIGHT PAPER SILVER MASSACRE||May 1, 2011||CARTEL PHYSICAL CRISIS #2||
|3:40 PM SILVER PRICE SMASH||June 1, 2011||CARTEL PHYSICAL CRISIS #3||
|OPERATION POST FED PM/OIL ANNIHILATION||June 23, 2011||CARTEL PHYSICAL CRISIS #4||
|GOLD BREAKS OUT IN EUROS – DESTROY IT NOW!||July 11, 2011||CARTEL PHYSICAL CRISIS #5||
|BERNANKE ADMITS QE3 COMING/PHYS OFFERING||July 13-18, 2011||CARTEL PHYSICAL CRISIS #6||
|DEBT CEILING CRISIS PM ATTACK #1||July 19-20, 2011||CARTEL PHYSICAL CRISIS #7||
|DEBT CEILING CRISIS PM ATTACK #2||July 21, 2011||CARTEL PHYSICAL CRISIS #8||
As you can see, the prices of PHYSICAL gold and silver have RELENTLESSLY marched forward, and have now threatened to go parabolic on no less than seven different occasions in the first half of 2011, including six in the past six weeks! Each “EVENT” involves a major, premeditated Cartel PAPER attack on gold and silver, each has occurred at an increasingly shortened time interval due to the insatiable growth in demand, and each has miserably failed in record time.
Boy, I remember as recently as 2009 when a major Cartel attack would take WEEKS, or even MONTHS, to be overcome, whereas now it only takes a matter of HOURS! And not only that, but today’s attacks are vastly more calculated (think the “bin Laden death news” during the SUNDAY NIGHT PAPER SILVER MASSACRE) using vastly greater sums of money (billions of PM derivatives) and vastly more complex, modernized weapons such as the aforementioned GOVERNMENT COMPUTERS that spend every second of every trading day offering BOGUS, NAKED SHORTED paper gold and silver futures, options, ETFs, and large-cap mining shares into the markets. But despite all these WMGDs and WMSDs (Weapons of Mass Gold and Silver Destruction), they are not only failing to even dent the PHYSICAL (or even the PAPER!), prices materially, they aren’t even able to keep prices down for more than a few HOURS before they are swamped by demand.
This is not to say they won’t keep trying (per the Black Knight video above), particularly during “important events” (facetious) like when a debt ceiling agreement is made (although I think they’ve already overplayed that card already), but I have 99.9% confidence that the aforementioned $1,550 support level on gold will be impenetrable, and that the Cartel should be far more worried about gold piercing $1,700 this month than you should be about gold falling through $1,550.
In other words, the “half-life” of Cartel attacks on PAPER gold and silver have declined at an EXPONENTIAL rate, to the point that they now lose their toxic “radioactivity” in a matter of hours!
Readers, I can only continue to SCREAM, at the TOP OF MY LUNGS, for you to PROTECT YOURSELF from what’s coming, as, per my recent RANTS, the END GAME is here, NOW!