“Gold ends weaker, amid lack of fresh, bullish news.” This
was the headline yesterday afternoon, at one of the world’s “leading Precious
Metal websites.” I won’t name it, but put it this way. Anyone who
doesn’t know this sector would be incredulous if I they learned where such
drivel emanated from. And anyone that does, would recognize the source
immediately, by its time-honored traits of negligence; passive-aggressive
negativity toward the product it supposedly supports; and generally speaking,
journalistic laziness and analytical cluelessness.
To that end, here’s the entirety of the article. Which, given the
myriad “PM bullish, everything-else-bearish” news swarming the investment
world on an hourly basis; not to mention, the Cartel suppression responsible
for 100% of said “weakness”; perfectly illustrates the “precious metal
equivalent” of today’s dumbed down, anti-PM media.
“Gold prices ended the U.S. day session modestly lower Monday. Some
lessening concerns about a big German Bank’s liquidity took buying interest
away from the safe-haven metal. Traders and investors are now looking for
fresh news to drive the precious metals markets. December Comex gold was last
down $3.20 an ounce at $1,313.80. December Comex silver was last down $0.349
at $18.865 an ounce.
The German Deutsche Bank saw its shares stabilize late Friday
following reports that the U.S. government will impose a much smaller fine on
the bank than the marketplace had expected. However, that news has not been
confirmed and the big German bank’s financial woes are still aplenty. World
financial markets will still be watching Deutsche Bank very closely. Markets
in Germany were also closed for a holiday Monday. China’s markets are closed
all this week for the National Day Break holiday.
U.S. economic data released Monday include the U.S. manufacturing PMI,
construction spending, and the ISM manufacturing report on business. This
data was a mixed bag and had little impact on the precious metals markets
today.”
First off, let’s get the obvious out of the way. Markets don’t
require “fresh, bullish news” to rise – as if that were the case, the “Dow
Jones Propaganda Average” wouldn’t be trading near an all-time high, when
essentially all “fresh data,” for as long as I can remember, has been
decidedly bearish. Or London’s FTSE-100, which is closing in
on all-time high despite the Pound, in the wake of yesterdays confirmation of
an official BrExit timetable, plunging to a fresh 31-year low. Great
for the “1%” receiving the Bank of England’s 0% capital, and owning the
financial assets backed by one of the world’s most aggressive QE
schemes. To that end, gold rose sharply in Great Britain Pounds
yesterday, but I guess that’s not “fresh” or “bullish” enough to be
considered. Following the thought, manipulated markets could
care less if news is “fresh” and “bullish,” given that government
interventionists care not a whit about fundamentals, technical, or any other
traditional valuation metric.
Next, the incredulity of someone – anyone – looking at today’s
news flow, and not considering it “fresh” and “bullish” enough to support
higher Precious Metal prices. Much less, the inane – and frankly,
surreal – comment regarding “lessening concerns about a big German bank’s
liquidity.” I mean, what part of the outright refutation of Friday’s
blatantly obvious lie about a DOJ settlement – which, even if it occurred,
would be dramatically negative for Deutsche Bank’s liquidity – can be
construed as “lessening concerns” about its liquidity? Let alone, when
simultaneously, Deutsche Bank was sued by the Italian government for
fraudulently hiding losses at the also soon-to-be-bankrupt Banke Monte
Paschi, Italy’s third largest bank? Not to mention, DB’s looming S&P
downgrade to junk status, which is all but certain to occur in the coming
months.
And about that “mixed bag” of U.S. economic data…To start, construction
spending was an unmitigated disaster, unexpectedly posting its first
year-over year decline in five years. As were automobile sales, which
declined year-over-year despite record “incentive spending” (read, discounts)
and massive “inventory” (read, unwanted car) growth. Not to mention,
freefalling heavy truck orders – which have always signified
recession; a collapsing Restaurant Performance Index; and oh yeah, huge
downgrades of the Atlanta Fed’s “GDP now” and the IMF’s U.S. GDP “growth”
forecasts.
Meanwhile, the PMI and ISM manufacturing indices were barely above the
“recessionary threshold” of 50 – goosed data and all – featuring the weakest
growth rate in three months, and the lowest new orders total in nine
months. In the words of the Chief Economist of HIS Markit, which
publishes the PMI data, “manufacturing growth slowed to a crawl in
September, suggesting the economy is stuck in a soft-patch, amid widespread
uncertainty in the lead up to the presidential election.” Which
says it all, other than the ridiculous conclusion that it has anything to do
with the election. I mean, we’re seeing freefalling economic activity
through out the globe; and I assure you, even here, the vast majority of
business owners could care less who wins.
However, what they most certainly care about is how to pay off the
exploding debts they have incurred at an unprecedented rate, due to a
combination of government-fostered false hopes and “cheap” money. To
wit, the biggest debtor in global history, the U.S. government itself, just
concluded its 2016 fiscal year last week, having added an incredible $1.42
trillion to the national debt, the third largest annual increase ever.
Trailing only, I might add…wait for it…2008 and 2009, when a devastating
financial crisis caused the government to spend (printed) money like drunken
sailors to bailout every member of the “1%,” at the expense of everyone
else. However, in 2016 there was no crisis, whilst the “evil troika” of
Washington, Wall Street, and the MSM continued to tell us of how strongly the
economy was “recovering,” as the stock market rocketed to new highs.
And yet, the world’s “strongest” nation is an additional $1.42 trillion in
the hole.
I mean, how can so much debt be piled on during such “good times” – to the
point that, I kid you not, the 7.5% debt growth blew away the spending,
relative to GDP, of the most ambitious U.S. government spending sprees in its
240 history. Such as, the 6.7% of GDP spent on FDR’s “New Deal”
infrastructure plan in 1933, the 4.8% of GDP spent on bailing out the
financial sector in 2008, and the 4.3% spent to rebuild Europe via 1948’s
“Marshall Plan.” Again, there were no such spending programs in 2016,
so how on Earth can debt grow that fast – particularly when interest rates
have been suppressed to 200-year lows? By fraud, of course – and the
increasing usage of untrackable “off balance sheet” entities. As, per
this damning chart, the national debt has risen by $4 trillion more than the
cumulative budget deficits of the past 13 years; no more so than in 2016,
when the difference was an astounding $800 billion.
Then there’s Europe, where hundreds of millions are watching their
currencies be destroyed by the BOE, ECB, and SNB, as their economic,
political, and social situations implode. In Italy, this Fall’s
Constitutional Reform referendum will likely result in the resignation of the
pro-EU Prime Minister; whilst in France, August’s exploding unemployment
rate, to a fresh 20-year high of 10.5%, has prompted speculation as to what
will occur if Francois Hollande lives up to his promise to not run for
re-election if the rate stays above 10%. Meanwhile in Greece, where the
inevitable GrExit catastrophe looms larger with each passing day, police
sprayed tear gas at marauding crowds of angry pensioners, distraught about
having their pensions cut as part of the new fiscal year budget announced
last night. And oh yeah, the last I looked, the U.S. didn’t even have a
new fiscal year budget, despite the new fiscal year having started on
Saturday. Meanwhile, Spain has no coalition government, Catalonia is
pushing forward with its secession plan, and the anti-EU Alternative for
Germany, Podemos (Spain), National Front (France), and Five-Star (Italy)
parties are poised for major election gains in the coming 12 months
Oh, and did I mention that the U.S. government unilaterally cut of
diplomatic discussions with Russia yesterday, regarding the expanding Syrian
conflict that may well result in World War III? This, after accusing
Putin of humanitarian atrocities, and John Kerry suggesting “military
options” might be considered against one of the world’s leading nuclear
superpowers. Military options? Really? For that matter, why
on Earth are we in Syria in the first place, and who is our actual
enemy? Not to mention, why are we sending more troops to Iraq?
“Fresh, bullish news” indeed!
And what’s that I see, hot off the press? India’s Central banks just
“unexpectedly” cut rates this morning, representing the 102nd
Central bank rate cut of 2016 – compared to 101 in 2015, with three months to
go. I mean, what could possibly be less “fresh” and “bullish” than an
unexpected act of currency debauchery by the government of the world’s
largest, most gold-loving, currency-hating population? Let alone, just
as its seasonally strongest buying season – the Indian wedding season – is
commencing.
Or the increasingly obvious fraud of last week’s OPEC “production
cap.” Which frankly, was nothing more than a poorly conceived, and even
more poorly executed, lie. Or the increasingly cantankerous rhetoric in
what may well be the most game-changing election in U.S. history? Or
continually declining corporate earnings estimates? Or…or…or…
Last but not least, the aforementioned, giant pink elephant in the room –
which is, the maniacal level of price suppression that has been taken to
hyperbolic levels since the year’s high water price marks, directly after
June’s BrExit vote. Since then, the global political, economic, and
monetary environment has deteriorated so significantly, the “necessity” to
increase the level of market manipulation has gone parabolic. Which is why
we are seeing such egregiously blatant rigs on a daily basis – like Deutsche
Bank stock, which miraculously levitates despite not a shred of positive
news; or paper Precious Metals, which the Cartel is attacking with
impunity. Such as this morning’s “sixth sigma” attacks at the COMEX
open (I “can’t wait” to see how many billions’ worth of paper contracts were
thrown at them this time), with literally no other markets budging. Oh
well, I guess this is what happens when no “fresh, bullish news” is around to
support prices.
My friends, I cannot emphasize enough just how “fresh” and “bullish” the
PM news actually is, and has been. Or, for that matter, how
dramatically more so it will become in the coming months, as history’s
largest, most destructive fiat Ponzi scheme implodes. Which is why,
when such ridiculously blatant Cartel raids come around, you should view them
as the manna from heaven they are. In my view, given the aforementioned
“fresh, bullish news,” it won’t be long before the physical demand
surge such paper attacks engender is realized, with a vengeance!
