RANTING ANDY – In many ways, I have to thank TPTB for their past decade of stupidity, although I’m quite irritated to not be at the gym again.
It is very hard to get ahead in the business world, and very rarely (in any aspect of life) can so few be privy to the “investment of a lifetime” before the masses arbitrage the opportunity away. I learned about gold and silver in May 2002, when I purchased my first shares of Newmont Mining at roughly $12/share (don’t own them anymore). It took just a few months of analysis to realize Precious Metals would be the greatest bull market of my lifetime, but I had to search long and hard to find the type of data I required, given that essentially NO ONE was writing about it.
At the time, I was a successful sell-side energy analyst at Smith Barney, but in that field had literally DOZENS of competitors, and a decade later that number has risen to the HUNDREDS. The energy bull market has paralleled Precious Metals very closely in time frame and scope, yet the ENTIRE investment world covers energy while NO ONE covers mining. When I left Salomon in February 2005, having diligently waited for the fourth round of post-9/11 layoffs so I could keep my vested Citigroup stock (which I sold that day), I sought to become a sell-side Precious Metals analyst here in the States.
With no help at all, I created an entire database of Precious Metals data, financial models for a dozen companies (NEM, RGLD, HL, CDE, to name a few), and an entire 100-page coverage initiation report, which if it was ever published could have served as an industry primer for generations to come. I subsequently set up interviews with no less than ten sell-side firms across the country, pitching them that gold and silver were in the early stages of a bull market, and thus a Precious Metals sell-side platform could build a huge market share advantage in America, where not a single sell-side firm had a dedicated PM analyst (some, like my beloved Salomon Smith Barney, had a “Metals analyst” that covered both base and precious metals, but none had a dedicated PM analyst). I had several second and third interviews, but not a single job offer, as senior management always backed off at the last second, afraid of being publicly bullish on gold and silver, the “anti-investments.”
That was 2005, six years ago, and here we are in 2011. Gold was $400 then, and nearly touched $2,000 last month. Yet, from my count, there are still just TWO sell-side analysts in America covering Precious Metals, one at Dahlman Rose (Adam Graf, a very smart guy), which happens to be one of the firms I interviewed with in 2005, and the other at Global Hunter, whom was just hired this summer (Jeff Wright). Of course, since 2005, perhaps 1,000 new analysts entered the FINANCIAL sector to cover banks, brokerages, and mortgage finance companies, but then again back in 2005 many of those same firms were still hiring analysts to cover the dead internet sector. If that story doesn’t tell you how far we are from a bubble in gold and silver, or how disconnected the investment industry can be from reality, I don’t know what possibly could.
To my initial point, this utter stupidity by the supposedly smartest minds on Wall Street allowed me the time to become an expert on the sector, and 100% invested in it, which is exactly where I’ve been since that fateful NEM trade in mid-2002. Many brilliant minds crafted my learning process, such as Richard Russell, Jim Sinclair (I first saw him speak in February 2004), Bill Murphy, and Ted Butler, and many more lesser minds taught me what NOT to consider important.
Along the way, to quote Indiana Jones from “The Last Crusade”, I’ve nearly been “incinerated, drowned, shot, and chopped into fish bait.” The Cartel has done EVERYTHING in its power to destroy, discredit, bankrupt, vilify, embarrass, and shun me from my peers, viciously attacking the sector virtually every day, at an increasing level of intensity and illegality with each passing year. When I think of the literally dozens of times I’ve had to desperately sell mining shares to PROTECT myself from the next round of PM Armageddon, only to scramble back in days later for fear of missing “the big one”, it’s amazing to consider I’ve made it through the decade intact, both financially and mentally (ONLY possible by my ownership of PHYSICAL gold and silver, which have ZERO impact on my brokerage statements when they decline). Of course, I’ve been transformed by the experience into RANTING ANDY, PM superhero, something the Cartel could not have dreamed possible, and intend to continue using my knowledge of their doings to help people PROTECT THEMSELVES as the GLOBAL FIAT CURRENCY SYSTEM passes through its final days.
On the topic of RANTING ANDY, I believe my greatest “PM superpower” (aside from identifying the “good, smart guys” in the business) is my understanding of what the dimwitted “leaders” of Washington and Wall Street are up to, and what it means. The timing of this Fall’s GLOBAL COLLAPSE was easy to foresee, in that the Cartel/PPT/ESF tactics have shown an EXPONENTIAL increase in DESPERATION and SLOPPINESS, starting with the intensified gold market manipulation (“D-DAY”, “SUNDAY NIGHT PAPER SILVER MASSACRE” – killed bin Laden, you’re kidding me, right?, and now the “DEATH STAR ATTACKS”). Economically, the politicians and Central Bankers have gone out of their way to look like blithering idiots, such as Bernanke telling “60 Minutes”, quivering lip and all, the Fed does not print money, or Ron Paul that gold is not money. Or how about the debt ceiling debacle, Obama’s jobs bill “ultimatum”, or the Solyndra scandal?
Across the pond, we have non-stop prattle about Greek bailouts, the Swiss National Bank selling its gold and devaluing the Franc, and the Bank of England, as always, agreeing to ANYTHING America does, following it down the drain like a loving lap dog (not to insult all the smart, loving lap dogs like my Giselle – half Maltese, half terrier). In Japan, a nation PERMANENTLY DESTROYED by Mother Nature (the media doesn’t write about Japanese radiation anymore), efforts to devalue the Yen have reached spiritual levels, which STILL don’t work.
This summer’s gold explosion was similarly easy to forecast, as was the decline of the global economy into MELTDOWN II, which CANNOT AND WILL NOT be reversed. This is the END, the TITANIC MOMENT HAS PASSED, and we are UNDERWATER AND SINKING with the velocity of four decades of ruinous monetary and fiscal policy driving us inexorably to the icy bottom. This Fall WILL be the last period of “normalcy” in the Western World for generations to come, which is why I have been writing missives at an exponential rate the past six months.
Now, to the topic of this RANT, DESPERATION ON G-20 ISLAND.
Last Friday, the G-7 group of losers met to REACTIVELY figure out ways to fool the market into believing all was well. Just two days earlier, the Fed, ECB, BOE, and SNB agreed to an essentially UNLIMITED line of credit to ALL Western banks, but unfortunately the market didn’t buy it, so they put out a DESPERATE, HASTY, and VAGUE communiqué stating the following platitudes:
Central Banks stand ready to provide liquidity to banks as required.
We will take all necessary actions to ensure the resilience of banking systems and financial markets.
In days of yore, when the GREENSPAN AND BERNANKE PUTS were in place, and even during MELTDOWN I three years ago, such a powerful, broad-based statement from TPTB would have moved markets dramatically to the upside. Remember, we have been taught “DON’T FIGHT THE FED”, and in fact just this summer I was told by a broker that he bases client recommendations on what the Fed is doing, as, in his words, “Bernanke is the most powerful man in the world.”
But this stance didn’t work AT ALL, with the markets simply treading water Monday and Tuesday, hoping and praying the world’s most powerful man would save the day on Tuesday afternoon at 2:15 PM EST.
Unfortunately, and as I forecasted, he didn’t. It wouldn’t have mattered what he said, short of a HYPERINFLATIONARY, multi-trillion dollar QE announcement. ALL WESTERN MONEY-CENTER BANKS ARE BANKRUPT, and the reason their liquidity has dried up is because capital is FLEEING the system into REAL ASSETS like gold and silver, and of course U.S. TREASURIES thanks to QE (remember, the Fed said they will now purchase an additional $400 billion of long-term T-bonds). What is going on in gold and silver the past two days has NOTHING to do with these trends, it is simply an ALL-OUT PAPER ASSAULT to prevent the END GAME PM EXPLOSION that once and for all destroys confidence in ALL paper currencies.
The Fed announcement obviously failed to improve sentiment, instigating the worst stock market sell-off since MELTDOWN I. One can SEE, HEAR, and FEEL the FEAR from market participants, Wall Street, and politicians alike, as the “silver bullets” have all been exhausted. DESPERATION is front and center, as TPTB are being called on their bluffs, their helplessness, and their stupidity. As I have noted this past week in several RANTS, ALL that is left now is PRINTING MONEY TO MANIPULATE MARKETS!
The PPT is working overtime to support the stock market market, and the Cartel has broken every rule of financial physics in its maniacal goal of knocking down PMs, but nothing is working. Jawboning doesn’t work anymore, or “liquidity injections”, or even “all necessary actions” by the G-7, and now that the Fed meeting has passed, the market doesn’t even have any such “positive inflection point events” to hope for.
Sure, the ECB can boost the size of the EFSF, but the Germans already tipped their DESPERATION regarding this matter (could it be Deutschebank’s HUGE exposure to French banks?) when they announced this week that, in a sudden about face from their vehement opposition just a week earlier, they strongly support expanded EFSF powers to essentially bail out anyone, anytime. And obviously the markets DON’T CARE!
When I have an idea for a new RANT, I send myself an email as a reminder. As I got ready for bed last night, I sent “G-20” to myself. I KNEW the Wall Street polyanas would look past the recent OFFICIAL INTERVENTION FAILURES (such as the aforementioned G-7 statement and subsequent actions), focusing on how the G-20 meeting, which starts TODAY (Friday) and goes into the weekend would save the day.
But before I could even turn my computer off, I saw that, in an AMAZING ACT OF DESPERATION, the G-20 had already issued a communiqué, BEFORE THE MEETING EVEN STARTED! And in it, said essentially the EXACT SAME THINGS as the G-7 communique from last week!
Unfortunately, just a few hours later China and Japan quashed rumors/hopes that they would save the day with blank check bailouts (as if even THEY have that kind of money), so I woke up to see yet another bloodbath in banking shares (and, of course a much worse smash in Precious Metals, which WOULD have been dramatically higher if not for the coordinated attack by the Cartel).
In fact, silver is now DOWN 20% IN THE PAST 24 HOURS, yet again the WORST PERFORMING ASSET ON EARTH during a financial crisis which SHOULD yield exponential demand for REAL MONEY. This smash is now officially MORE INTENSE than the SUNDAY NIGHT PAPER SILVER MASSACRE in May, yet another demonstration of TPTB’s DESPERATION to averting the gold and silver MANIA which will, once and for all, END their reign as the world’s elite.
Just 10 minutes until the opening of U.S. markets, where the PPT is once again keeping stock futures down LESS than ANY OTHER MARKET on earth. Per last night’s RANT, currency market are again going haywire, wreaking havoc on international trade and, thanks to the dollar’s bastardized vacuum of strength, yielding increased inflation overseas which will not take long to manifest itself in additional “Arab Spring” type unrest.
And now that the G-20 has played its hand BEFORE the markets opened, there will be NOTHING LEFT to support them (particularly BANK STOCKS) if their bluff is CALLED. In other words, if the markets have another bad day today, I believe the ULTIMATE SUNDAY NIGHT SPECIAL might be trotted out this weekend, the ULTIMATE BAZOOKA to push stock markets back into submission (not that that will necessarily improve the more important CREDIT MARKETS).
Such a bazooka would likely entail an UNPRECEDENTED (there’s that word again) JOINT RESOLUTION between THE G-20 MEMBERS TO INJECT TRILLIONS OF DOLLARS/EUROS/POUNDS/YEN/YUAN into the markets to “stabilize” them, i.e. the ULTIMATE MONETARY WEAPON, which would instantly transport the Western World to the HYPERINFLATIONARY END GAME I have been warning of for the past two years.
Perhaps the PPT can provide a stay of execution with the untold BILLIONS it plans to COVERTLY inject into the stock market today (I’d bet more printed money will be spent on stock futures than on ANY day in HISTORY), but given the IRREVERSIBLE, ACCELERATING collapse of the Western banking system, I wouldn’t bet heavily on it. If they can, big deal, the system will just come down next week, or next month, certainly by early 2012 in my view. But if not, it will represent the GREATEST DEFEAT IN PPT HISTORY, making today, from my jaded eyes, THE MOST IMPORTANT DAY IN STOCK MARKET HISTORY (at least until Monday). Not to mention, it will dramatically weaken the Cartel’s dominant position over PAPER gold and silver.
To conclude, I believe even my most disbelieving readers, as well as a growing proportion of the population at large, are starting to realize this perfect storm of politician/banker hubris may actually have destroyed the system for good, and once a large enough critical mass believes it, ALL FORMS OF CENTRALLY-PLANNED MANIPULATION will fail, including the PPT, ESF, Gold Cartel, and all bailout mechanisms.
That tsunami may reach our shores MUCH quicker than anyone could have imagined, and when it does, the time to have PROTECTED YOURSELF will have ENDED.