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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?
http://www.zerohedge.com/news/citi-earnings-bloodbath-38-billion-123share-reported-earnings-really-05-billion-or-016share
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.
Again, Huh?
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!
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