RANTING ANDY – HUMAN NATURE, PART I It’s Monday morning, and I’m sitting in the Spokane, Washington Airport with several hours of downtime, and lots on my mind. It’s incredible how much has occurred in the 24 hours since I hit “send” on my last RANT, “DESPERATELY SEEKING GOOD NEWS”, but in the fast-motion train wreck that is the global economy, it is hard to BLINK before a new wave of “horrible headlines” emerge.
Before I get to the subject of this RANT, I need to “take out the garbage,” as so much has accumulated in the past day, fitting PERFECTLY with yesterday’s motif. Please bear with me, as Spokane Airport has BOINGO Wireless, the world’s worst internet service, which will make it difficult for me to post links.
This morning, I see Citibank reported the same type of fraudulent “earnings” as JP Morgan did on Friday, taking a HUGE accounting gain based on the fact that it’s bonds have fallen in value (due to a weakening economy), as well as a HUGE accounting gain based on a reduction in loss reserves (due to a strengthening economy)! Huh?
Readers, the REAL EPS for Citibank this quarter was $0.16, not $1.23 as reported, so the annual EPS run rate is roughly $0.60/share, not the bogus $5.00/share as reported. In other words, the fraudulent/bailed out/government-owned/ 1-for-10 reverse split Citigroup stock is trading at a REAL P/E of nearly 50! Gee, I wonder what will happen to C buyers in the coming months.
I also see “European regulators” are preparing to ban shorting of sovereign CDS contracts.
How on earth can this be done, and how exactly can you short something that cannot, by definition, be borrowed? This is clearly more jawboning than anything else, attempting to scare “speculators” away from the CDS markets, as if that will do any good. In late 2008, when short selling of U.S. financial stocks was banned, they proceeded to plunge 40%, on average, in the ensuing weeks. I wonder how that’ll turn out.
Not to mention, it appears the CFTC will finally be voting this week (as soon as TOMORROW) on “position limits” in the PAPER metals markets. Big deal, I say! That and $5 won’t even get you a coffee at Starbux these days. Open Interest has plunged to its lowest levels in years, as have the so-called “Commercial Shorts”, who somehow, if you believe the garbage published by the CME, managed to cover tens of thousands of contracts while prices PLUMMETED.
Does anyone really believe that’s what happened? Puuhhlease! I’ve been reading the COT reports for years, and in recent years that data is so tainted, it has ABSOLUTELY ZERO relationship to the real world. Not to mention, how could they cover so many contracts when 98% of the entire PLUNGES were compressed into three DEATH STAR attacks totaling no more than an hour of trading time?
My advice – Ignore ANYTHING published by the CFTC, including ANYTHING from its “good cop” Bart Chilton. The Cartel runs the CFTC, and the head of the CFTC, Gary Gensler, is yet another former Goldman Sachs partner. End of Story.
But have no fear, readers, The game WILL end soon, when PAPER raids like THE ONE depicted below (TODAY, as a matter of fact) are ignored completely by the PHYSICAL market. PHYSICAL premiums are as high as I can remember, despite the fact that gold and silver prices are at the high end of their historical trading ranges, which is very bullish. Moreover, I predict such premiums will go MUCH, MUCH higher in the coming months and years, until finally the fake COMEX PAPER prices are rendered irrelevant.
This morning, I sat on my Frontier Air flight with CNBC on, listening to a bunch of dolts argue how much bailout was required to save the system, and who will step up to do it. Will it be the EFSF, the IMF, the EU, or the Fed?
Blah, blah, blah.
These “agencies” are one and the same, led by the owner of the “global reserve currency”, the U.S. government, and will continue to print money exponentially to try and kick down the road, until one day (VERY, VERY SOON) there will be no more road left.
As I sat on the plane, I watched gold hang around the unchanged mark while the Dow sat at -160 for some time. Then, out of the blue, at EXACTLY 12:00 PM EST, yet another DEATH STAR attack, as depicted below. First, a capping just a few dollars below the key ROUND NUMBER of $1,700 just after 3:00 AM EST, and then the 12:00 DEATH STAR attack – same old, same old.
Then, with the Dow trading at -220, gold miraculously (i.e., against Cartel wishes) ran up to just -$4.00, but incredibly PLUMMETED AGAIN to its lows while the Dow sat still in the -200 to -220 range for the past half-hour (of course, as always, the RIGGED mining stocks were down more than the broad market, which is why I won’t own them).
Last month, in the same manner as we saw at the peak of GLOBAL MELTDOWN I in February 2009, gold exploded higher while the Dow plunged, showing its TRUE NATURE. In both cases (in this case starting the SECOND the Labor Day holiday was over), the Cartel stepped up its efforts to MAKE SURE gold and silver were not widely understood to be the SAFE HAVEN investments they have been for the past 6,000 years, and WILL CONTINUE TO BE for the next 6,000.
Of course, if you own GLD on leverage or with other people’s money, or the mining stocks (particularly the RIGGED large-caps), you will not reap the benefits of that safe haven status when you need it most. Instead, you will probably lose your savings, and/or your business.
I hope you have by now gone through my exhaustive DAILY COMEX MANIPULATION PICTORIALS for the past two years, as anyone that has but will not admit how suppressed PAPER gold and silver are, should UNSUBSCRIBE from my writings NOW.
Apparently, I have unknowingly stirred up a “successful, veteran gold trader” who has made a career of trading alongside the Cartel’s illegal activities, just as Andrew McGuire did until he realized it wasn’t right, and took a stand against the CRIMINAL Cartel. Traders like the one I just referenced are financial sociopaths, in my view, no different than Lloyd Blankfein of Goldman Sachs, who says he is “doing God’s work” in raping and pillaging humanity. It is HUMAN NATURE to “see no evil” and “hear no evil”, particularly if you are financially benefitting from your willful ignorance.
To say the gold market, which REGULARLY exhibits 5+ standard deviation declines, but NEVER even two standard deviation increases, amidst an 11-year continuous bull market, is NOT manipulated is pure insanity. And if your JOB has been to trade gold for decades, as this gentleman purports, than you truly are either blind, disingenuous, or part of the Cartel.
Geez, in YESTERDAY’S RANT alone, I listed no less than a half-dozen QUOTES from CENTRAL BANKERS from the Fed, the BOE, the BIS, etc., ADMITTING to suppressing gold prices, yet that is not good enough for this “experienced trader.” His argument is there is “not enough liquidity” in the markets, hence the volatility, and even cites Platinum and Palladium trading from 5-10 years ago as proof.
What the heck?
What does Palladium trading in 2000 have to do with gold trading in 2011? Moreover, Palladium is barely a Precious Metal, and only 6 million ounces of it are mined each year, compared to 80 million ounces of gold and 730 million ounces of silver. Palladium barely has a market, while GLD and SLV ALONE trade tens of millions of shares per week.
Gold and silver have plenty of “liquidity”, and would actually BENEFIT if there were less, given that it is now common knowledge that the FRAUDULENT PAPER MARKETS are leverage by 100x, compared to the amount of ACTUAL METAL underlying them.
I am CERTAIN I know the gold market of the past decade as well as ANYONE on earth, and unlike that anonymous “veteran trader”, who lurks in the shadows casting aspersions on the righteous, I am out in the open NEARLY EVERY DAY putting my reputation on the line, as well as my blood, sweat, and even in the past, tears, to fight for what’s RIGHT and help readers PROTECT THEMSELVES from the EVIL Cartel and the slightly less evil “hangers-on” that justify their misdeeds with lies and rhetoric.
Given that my colleagues will be here in the next 30 minutes, I do not have enough time to get to the planned subject of this RANT, which was to give extensive commentary on an article I read this weekend depicting how HUMAN NATURE is responsible for the UNFIXABLE financial mess the world is in, and how HUMAN NATURE will lead us down the worst possible path, i.e. the one that will MAXIMIZE the prices of REAL MONEY, PHYSICAL GOLD AND SILVER. Lucky for you, as you have something to look forward to later this week. I feel VERY strongly about this topic, and look forward to RANTING about it.
The reason I am skipping it, for now, is that I read another commentary this morning which demonstrates, coincidentally, the flaws of human nature. It is written by yet another pathetic “analyst” who not only cannot understand WHY gold and silver have been in a bull market for the past decade, but doesn’t even understand the DEFINITION of inflation.
He states we are going into a period of “deflation” due to demographics, economic collapse, and debt repayment, and thus gold and silver will fall in value. If we weren’t amidst another Cartel attack on PMs this month, I wouldn’t even respond, but many fear he is right when they see Cartel ALGOS taking down GLD and SLV with the Dow.
“Deflation” means a contraction of the money supply, which as I have demonstrated EXHAUSTIVELY, is not only not happening, but quite the contrary. I have demonstrated, ad nauseum, charts, charts, and still more charts showing the EXPLOSION of “money supply” by governments worldwide, as they attempt to paper over problems long enough to stay in power and maintain the perks of leadership.
The problem with this misguided policy, however, is that dollars, Euros, and Pounds are NOT MONEY! They do not meet the definition of money (finite in supply, accepted universally, etc.), and with each dollar printed become LESS LIKELY to maintain their fleeting status as “money.” EVERY fiat currency in history has collapsed, and NONE have lasted as long as the current dollar-based regime, which only has occurred because of the coordinated global efforts of powerful politicians and bankers.
But where has it gotten us?
To the brink of ruin, where essentially EVERY individual, institution, municipality, and sovereignty is hopelessly in debt while GLOBAL economic activity is collapsing, along with the equity and real estate bubbles everywhere. The ONLY policy response, here in the States and elsewhere, will be to “Inflate or Die”, as so succinctly put by Richard Russell a decade ago. In fact, the ONLY thing supporting stock markets the past few weeks (aside from MASSIVE PPT buying) has been HOPE that the Fed, ECB,IMF, EU, or G-20 will step in with enough PRINTED MONEY to hold off the four horseman just a bit longer.
This weekend, the G-20 failed to make ANY money-printing announcements, so the markets are in a tailspin today. But the PPT will likely come in to save us again, buying Dow futures while its paid shills (such as Warren Buffett) promise the ECB will announce new QE on October 23rd, or perhaps the G-20 on November 2nd, or the Fed at its next meeting, blah, blah, blah.
The ONLY way to prevent a Greek default is MASSIVE money printing, which will be HYPERINFLATIONARY. Conversely, if Greece defaults, the Euro will IMMEDIATELY collapse due to the daisy chain of CDS and bad debt hell that will result, which will also be HYPERINFLATIONARY (particularly in the PIFIGS nations). In either case, the U.S.’s massive financial problems will then quickly move into the crosshairs, and no matter what “policy response” is taken, the status of the dollar will be questioned, causing gold and silver to soar.
I mean geez, don’t these “deflationists” realize GOLD was THE best performing asset in the 1930s, when deflation really did occur (because a gold standard prevented the government from printing money). Of course, “Mr. Wonderful,” FDR, STILL devalued the dollar against gold, and then tried to STEAL it from the people (don’t worry, not a chance that could happen today, as gold is a GLOBAL market, and I’d bet no more than 10% of ALL the world’s gold resides in the U.S., including NONE, OR NEXT TO NONE, in Fort Knox).
The sooner people realize that PHYSICAL gold and silver are MONEY, the sooner they will realize how easy it is to PROTECT THEMSELVES from the maelstrom of HYPERINFLATION about to hit them (assuming they buy BEFORE supplies run dry).
If you buy (or short) STOCKS, you will probably lose your shirt.
If you buy BONDS of any kind during a period of declining creditworthiness, you will probably lose your shirt. Heck, if you short T-BONDS, you are fighting against OVERT QE, and will probably lose your shirt, too.
If you buy Real Estate….nuf said.
If you speculate in commodities, even the very agricultural products that sustain life, you will likely lose your shirt because these PAPER markets are also rigged, and run on MARGIN with limitless NAKED SHORTING.
Only PHYSICAL gold and silver (and PHYSICAL food and energy, for that matter), will PROTECT YOU, and given what I see coming down the pike in the very, very near future, you should be focused 100% on PROTECTING your assets, NOT building them!