RANTING ANDY – By now, it’s pretty obvious financial market manipulation has been stepped up to historically UNPRECEDENTED levels. Not just in Precious Metals, which have been VICIOUSLY attacked in every instance of political and financial upheaval, but stocks, bonds, and currencies as well.
PAPER Gold and silver have been decimated with an intensity making the May silver attack look like child’s play, while the world’s most unattractive asset, the U.S. T-Bond, soars to the stratosphere via “Operation Twist”, i.e. QE3 by another name. Moreover, the currency pits have deteriorated to a point where volatility is exceeding that of stocks themselves, a shining beacon of the final stage of fiat currency decimation.
Of course, at the center of it all is the most urgent of all manipulations, PPT support of the Dow Jones Industrial Average. Yes, gold will eventually be the Achilles Heel that destroys paper currencies, but the Dow is the most critical tool in the Behavioral Finance toolbox, an index which simply CANNOT be allowed to plummet at the rate of the rest of the world’s markets.
We all know the PPT was created in 1988 as a stopgap in case of extraordinary market declines, and those of us watching financial markets for a living are well aware it has morphed into a 24/7 operation to support the stock market, in any and all scenarios. We have all watched “Hail Mary” rallies for the past decade, which have cumulatively reduced the Dow’s volatility dramatically, and for the most part made it impervious to major declines. But today’s PPT is far more sinister and omnipresent, as EFFICIENT in supporting the Dow with HFT ALGOs as it is in attacking Precious Metals.
My well-telegraphed expectation of this Fall’s catastrophic financial collapse is coming to fruition, and as discussed in recent RANTS, it appears the ONLY remaining weapon of TPTB is to PRINT MONEY and MANIPULATE MARKETS, desperately hoping to influence public PERCEPTION enough to buy a bit more time. Apparently, some are calling me a “gloom and doomer”, which I find insulting as my goal is to tell the TRUTH, not to cheer readers up. I have never been paid to write my missives, which were circulated many years before I became RANTING ANDY, and have absolutely no agenda other than to help peoplePROTECT THEMSELVES. Perhaps Cassandra’s curse will remain throughout my life, but for those betting against my macro calls, here are some other things I have forecast in the past decade:
The internet crash
- The real estate crash
- The dollar crash
- The banking crisis
- The Precious Metals bull market
- On DAY 1 (DURING Bush’s March 2002 speech), the fraud of the Iraq War
Yes, I’m tooting my horn a bit, but again I make no financial gains for what I write, and have no ulterior motives. In other words, the “gloom and doom” is it is the best way of describing what I see. Unfortunately for my detractors, the aforementioned list makes it very dangerous to bet against me, and unfortunately for all of us, TRILLIONS of dollars are about to be destroyed, and billions of lives shattered across the world.
Despite the best efforts of TPTB to buy more time to kick the can down the road a tad further, PRINTING MONEY will NOT WORK this time. I couldn’t care less if the German Parliament votes to extend the powers of the EFSF (in other words, to PRINT MORE MONEY), or if the Fed initiates a formal, $2 Trillion QE3 tomorrow morning (don’t worry, it’s coming SOON). The game is OVER, and anyone that believes the end result of GLOBAL FINANCIAL CRISIS II will be another 2-3 year reprieve for bankers and politicians, is simply NOT using common sense.
The flashpoint of destruction increasingly looks to be Greece, despite its insignificance in nearly all facets of the global economy. Plain and simple, Greece is the poster child for abuse of the fiat currency system, the perfect representation of the dying United States in Atlas Shrugged. Once a proud nation, Greece has been infiltrated by evil bankers that stripped it of its assets and set it up for a colossal, hyperinflationary collapse, ironically the perfect Greek tragedy. Unfortunately, in today’s interlinked world of global finance, Greece’s problems are EVERYONE’s problems, and more importantly the problems likely to expose the DOLLAR-BASED FIAT CURRENCY SYSTEM as the PONZI SCHEME it is. All one needs to do is read the late-breaking news below about the near societal collapse going on in Greece to realize it is a dead man walking, a financial corpse soon to be put out of its current misery and into another, much worse misery.
Unlike many others, I am NOT misrepresenting the term PONZI SCHEME, which refers to a system requiring increased capital injections by greater fools to survive. The 2008-09 meltdown was the last opportunity for the Western bankstaz to inject PRINTED FUNDS en masse without engendering BOND DEFAULTS and HYPERINFLATION, as CONFIDENCE still remained in the ability of politicians’ and bankers’ to “save the day” with their superior intelligence and crisis management skills (facetious). Heck, until this Fall, people still listened to Bernanke’s drivel about his expert understanding of depressions.
Unfortunately, those days are now OVER, dead and buried forever.
In my “MATH 101” RANT this morning, I referenced the below link, quoting a top S&P official’s view of the European EFSF mechanism. The parasitic, conflicted rating agencies, much like the post-Fed Greenspan, realize it is time to flee the sinking ship (i.e. “THE TITANIC MOMENT”), and are thus willing to sacrifice lucrative fees in lieu of preserving some semblance of reputation for the post financial collapse world, FINALLY telling the TRUTH about what the currently proposed round of SUICIDAL MONEY-PRINTING will mean for Europe and, by extension, the ENTIRE WESTERN FINANCIAL SYSTEM.
I just saw a CNN poll that only 15% of American citizens TRUST the government, a percentage I expect to fall to single-digits by year-end, and ZERO a year from now. If TRUST in the government is lost, how long will it take for TRUST in the UNBACKED, FIAT CURRENCY SYSTEM to last?
And that, readers, is the point of this RANT.
With very few exceptions, the American public has TRUSTED its government, in nearly every political, economic, and social situation over its two-plus centuries of existence. I can’t speak for Europeans, but I do know about the spirit of the U.S.s, among the world’s proudest nations.
Americans have long revered their political, economic, and military leaders, essentially taking their consensus decisions as gospel. But that has dramatically changed since the turn of the Century, not uncoincidentally when decades of economic profligacy, irresponsibility, and poor decisions finally caught up to us. The nation has spiraled downhill since then, but still the word of Bush/Greenspan, Obama/Bernanke, and the nation’s “leaders” were taken at face value.
While America’s jobs fled overseas en masse, the internet and real estate bubbles kept the population appeased in the early part of the decade, as did the bailouts and accelerated entitlements in recent years. However, the negative wealth effect of the internet and real estate CRASHES, and subsequently the sinister impact of monetary INFLATION on the latter, have finally demoralized the public for good, and thus I have NO DOUBT that this Fall’s economic PLUNGE will be the final straw for CONFIDENCE in the American political and economic systems.
The current GENERATION of Americans, and Europeans alike, are witnessing devastating declines in income, assets, purchasing power, and, most importantly, HOPE. That lack of hope is what will trigger the next phase of GLOBAL FINANCIAL MELTDOWN, likely taking out the last pillars of CONFIDENCE in the phantom pillars of debauched, FIAT currencies such as the dollar, Euro, pound, and Swiss Franc.
Only gold and silver will survive the economic conflagration, even if TPTB are able to knock their PAPER prices down a bit further in the near-term. The Cartel’s Achilles Heel will be demand, for REAL, PHYSICAL metal, which will trade at increasingly large premiums to the fraudulent PAPER prices until the whole scam implodes.
Call me Cassandra, but I call it as I see it. And as I see it, my forecast of GENERATIONAL economic calamity is right on target.