The 150 or so people attending Miles Franklin’s “Q&A Rap Session” in
Chicago Friday night saw me, working on 2½ hours of sleep, get choked up when
describing the importance of BrExit; which last month, I deemed “the
most important – and Precious Metals bullish – election in history.”
And not just because in my view, it was history’s most globally relevant
act of political defiance – in that 7.3 billion people will all be
affected by the votes of a mere 30 million; but that it was done despite a
manically intense “anti-leave” propaganda and market manipulation
campaign. And equally importantly, my fervent belief that it marked the
beginning of the end of the gold Cartel. I’ll get to the former topic
momentarily; but first, given that my principal focus, as Marketing Director
of one of the nation’s largest bullion dealers, is Precious Metals, I’ll
discuss the latter.
To that end, consider that last weekend – when, before BrExit was
even considered possible by the mainstream, an unfathomably bullish COMEX
COT, or Commitment of Traders, report revealed that as of Tuesday the 14th,
the “Commercials” (i.e., Cartel members like JP Morgan) had taken their naked
gold short position to an all-time high level; and silver to nearly so; despite
prices having recouped essentially all of their post “FOMC
Minutes Attack” losses. When the report was first released last
Friday (the 17th), I immediately penned “finally,
the long-awaited Commercial Signal Failure is nigh”; regarding the
potential imminence of the Cartel being “blown out of the water” by a
the world’s “big money” smelling blood in the water; and consequently,
seeking to take delivery of the minuscule amounts of inventory remaining in
COMEX vaults.
When I subsequently saw this Friday’s report – discussed at length
in this weekend’s “BrExit
nightmare – what’s next?” article, I was 1,000x more confident that the
Cartel’s upcoming demise; in that, as of Tuesday the 21st, said
“Commercials” has MASSIVELY increased their already record level of gold
shorts, and taken their silver shorts to nearly their all-time high level – before
BrExit even occurred! In other words, before BrExit, it was
already becoming clear that the COMEX Ponzi scheme was on its last
legs. Let alone, after the Cartel’s desperately futile attempt
try to hold PMs down post-BrExit, causing “open interest” to surge by a mind-boggling 60,000
contracts, worth $8 billion, which quite obviously caused said shorts to
get MUCH larger. Not to mention, following today’s desperate, but as
yet futile, attempts to hold prices down. And just wait until the COMEX
actually opens!
To that end, the expected Central bank “policy response” to the, LOL,
“unexpected” BrExit vote, was as shocking as it was “awe-ful.” As,
starting with the Bank of England’s pledge to “commit” (i.e., print) $345
billion to support British stocks, bonds, and banks, dead in the water
Central bankers went on an unprecedented money printing and market
manipulation gambit. Which clearly didn’t work – as at $2.1 trillion,
Friday’s global equity losses were more than on any day in stock market
history. For example, the ECB “lent” $399 billion to Europe’s
dying banks, an amount essentially equaling the entirety of the 2008 TARP
bailout. And yet, the European bank stock index plummeted 13.5% anyway,
marking its worst-ever daily decline; ominously, led by the world’s largest
global derivatives purveyor, Deutschebank – i.e., the “Lehman
of Europe.” Which, like countless other European banks, fell 20% on
the day, to a new all-time low (I can’t even imagine how catastrophic
the losses it’s derivatives book took!). Which, I might add, is down another
8% this morning, as its final, globally-consuming death spiral commences.
In fact, things are so bad this morning – this, after what was undoubtedly
a weekend full of secret Central bank meetings, regarding how to manipulate
markets today – that the entire British bank stock sector was halted midday,
with stocks like Barclays and RBS down 10%-15%, and the British Pound and
Euro free-falling toward multi-decade lows. For example, Shinzo Abe
instructed Japans’ Finance Minister to watch currency markets “ever so
closely,” and “take steps if necessary” toward the goal of “market
stability.” Which ironically, means it will imminently take interest
rates more negative, as the Yen – i.e., the “funding currency” of the
globally destructive “carry trade” – is surging higher, counter to the
Yen-destroying goals of 20 years of ZIRP, and ten of QE. As for China,
the “cataclysmic,
financial big bang to end all bangs“ – i.e, the massive, world-destroying
Yuan devaluation I predicted last year – came one step closer to reality; as
this morning, the PBOC devalued the Yuan by nearly 1%, to its lowest level in
5½ years, in a move whose scope was second only to those of the 6%
devaluation over a week’s time last August.
Since this year’s worst-ever start to a year for global stock markets, I
have vehemently warned that “the world will not get through 2016 without a
cataclysmic financial event.” And my god, it’s arrived – in
spades. Per today’s title, what I have long forecast is coming to
fruition – as the politically, economically, and sociallyfragile European
continent is collapsing before our eyes (wouldn’t it be a hoot if the Euro
Cup final is Germany versus England?). Everywhere one looks, total
chaos is evident, including…
1. David Cameron resigning as Prime Minister of the UK, yielding a chaotic
power struggle within the opposition Labour Party
2. Scotland and Northern Ireland, which actually voted to “remain,” have
been thrown into political chaos – with Scotland threatening to secede from
the UK, and Northern Ireland proposing to reunite with its historical
arch-enemy (not to mention, a card-carrying PIIG), Ireland
3. No less than eight other EU members have declared strong interest in
having their own “leave” referendums; led by the now second and third largest
members, France and Italy.
4. As I expected, the anti-Euro Podemos Party was the big winner in
yesterday’s Spanish Parliamentary election; essentially, making Mariano Rajoy
a lame-duck Prime Minister, and introducing the possibility that 37-year old,
radically “anti-austerity” (read, “pro-default”) Pablo Iglesias will take his
place.
5. Die Welt, Germany’s third largest newspaper, called for Angela
Merkel’s resignation; as she, like Hillary Clinton – by association with the
vehemently pro-remain Barack Obama – was eliminated from the post-BrExit
political landscape as of Friday.
George Soros summed up the dire European situation perfectly, in espousing
“the catastrophic scenario that many feared has materialized, making the
disintegration of the EU practically irreversible. Britain eventually may or
may not be relatively better off than other countries by leaving the EU, but
its economy and people stand to suffer significantly in the short to medium
term…and the implications for Europe could be far worse.”
However, none other than the grand architect of modern hyperinflation,
“Maestro” Greenspan himself, intimated of the real problem. That
is, following his ominous statement that “the euro currency is the immediate
problem,” as “it’s failing.” In other words, his less articulated
belief, via intimation, that BrExit is just the “tip of the iceberg” for the
global financial system. Which is what I have been screaming from the
rafters of for years, in discussing the inevitable end game of the global
fiat Ponzi he led into existence nearly 30 years ago.
In other words, the global fiat cancer is in its terminal stage – as we
speak, killing off dozens of currencies in real-time, and catalyzing
explosive interest in escaping them for the time immemorial safety of the
only substances to have served as money throughout history, physical
gold and silver. Not to mention, the modern-day “twin
destroyer” of the fiat regime, Bitcoin.
My friends, if the clarion call to PROTECT YOURSELF isn’t loudly blaring
now – no matter where you live – I don’t know what will. As history’s
largest, most destructive fiat Ponzi scheme is collapsing before our eyes –
and quite soon, in my view, it will be too
late to do so.
