Last week, I wrote an entire article about
lying, invoking the name of history’s most infamous liar, Joseph
Goebbels. Come to think of it, it was the second such article in a
month, following September’s “who are worse
liars, politicians or Central bankers?”
The reason being, that the pace of global economic collapse has
accelerated so rapidly (see this morning’s horrific U.S. industrial
production report, restaurant
performance index, and heavy
duty truck orders), that the powers that be’s’ efforts to preserve the
dying status quo – that benefits less than 1% of the world’s population, at
the expense of all others – have resorted to lies, fraud, manipulation, and
propaganda so severe, and perverse, even Goebbels would blanche. And
likely, marvel at how much communication and market rigging technologies have
advanced in seven decades, to the point that practically nothing is
unachievable. At least in the short-term, until “Economic Mother
Nature” eventually wins, as she always does.
In it, I opined that “even the smallest lie often leads to far greater
evils,” so you can imagine the trouble that will result from today’s
unprecedentedly large ones. Like, for instance, history’s largest, most
destructive fiat currency Ponzi scheme; which necessitates exponential
expansion of the lie that your purchasing power will return. Until, of
course, all purchasing power is gone, as occurred in all fiat Ponzi
schemes throughout history. However, never have they all collapsed simultaneously,
which is exactly what we are headed for, in rapid fashion.
To that end, the “every day worse than the last” manipulation mantra I
uttered more than a decade ago has officially gone parabolic – shortly, to
graduate to the lying equivalent of a ninth degree black belt. Or, more
appropriately, the seventh level of hell, as the trapped rats that are said
“powers that be” resort to unprecedented fraud in their desperate efforts to
kick the can those last few inches
Frankly, it’s hard to believe Precious Metals are the year’s best
performing asset – in nearly all currencies – given how maniacal the Cartel
has been in its vicious, blatantly obvious, 24/7 attempts to hold prices down
amidst the most “PM-bullish, everything-else-bearish” news flow of our
lifetimes. Which I assure you, are about to get a lot more
so. Such as last night’s 160th “Sunday Night Sentiment” raid of the past
166 weekends, and this morning’s follow ups – at what do you know, the time
honored “key attack times” of the 8:20 AM COMEX open, the 10:00 AM EST
physical market close, and the 12:00 PM “cap of last resort” – as the
horrific global political and economic news flow accelerates to a torrent.
I’ll get to the incredible Deutsche Bank saga shortly, as it’s clearly the
most likely flash point for the political, economic, and monetary implosion
that frankly, I cannot see being avoided by the end of this year.
However, the bigger – and far more terrifying – concept of war is
what is dominating my thoughts, regarding not just currencies and trade, but
the desperate attempt to maintain power by those with the most to lose; and
to garner it by those most able to exploit the world’s rapidly exploding
ills.
Politically, all is nearly all lost – as no matter what the powers that be
attempt, the world will be a far different scarier place a year from
now. New leadership has already been secured in the UK, which
officially announced its BrExit plan this morning. And later this year,
the same will occur in Italy, and very likely in the U.S. as well; followed
by France, Spain, and Germany next year, to name but a few; all of whom aim
to either destroy the hell that has been created, or create a new one,
purposefully or inadvertently. I mean, think about it. What could
possibly come of the U.S. cutting off military diplomacy with Russia
in Syria, whilst accusing it of humanitarian atrocities? Or Congress
passing the JASTA bill, enabling Americans to directly sue Saudi
Arabia…forcing our only Arab ally – and the gatekeeper to the “petrodollar”
standard – to openly discuss its role in 9/11?
Here in the States, with each passing day I am more convinced that
November 8th will represent a cataclysmic event in U.S. history – by my
words, “BrExit
times ten,” given that seemingly everyone believes Hillary
Clinton will win, despite polls claiming otherwise. And more
importantly, the increasingly obvious shift in the political zeitgeist.
Frankly, it’s almost surreal to watch the mainstream media relentlessly
attack every move Trump makes – most of it, pure propaganda; whilst allowing
Clinton to rape, destroy, and pillage American citizens, and the world at
large, without a peep. Hopefully, Julian Assange’s much anticipated
WikiLeaks release tomorrow in fact destroys her Presidential campaign – as he
strongly believes will be the case. But if not, I assure you something
else will; as in my view, no Presidential candidate has been more universally
despised than Hillary Clinton.
Economically, possibly the three biggest economic lies I have ever seen –
which is saying a lot – have occurred in the last three trading days,
starting with Wells Fargo’s blatant lying to thousands of clients – which by
the way, Morgan Stanley was also accused of this morning. Next, the
complete and utter fabrication that is the “OPEC production freeze.”
Which I assure you, will be seen through by the time its planned
“ratification” on November 30th arrives. Don’t believe me? Than
pray tell, why did the Saudi stock market close today at essentially
its lowest level since early 2009; i.e., oil’s low print from the
great financial crisis. And why did Zero Hedge just post an article
titled “what OPEC ‘production cut’: Iran, Libya to boost production.”
Then there’s Deutsche Bank, the “Lehman
of 2016” and “world’s
most systematically dangerous institution,” that is unquestionably on the
“verge
of collapse.” Honestly, nothing I have ever seen – from Enron, to
Worldcom, Bear Stearns, AIG, Fannie Mae, and Lehman – holds a candle to the
depth of fraud, deception, and flat-out war its imminent bankruptcy
is bringing to light, to the point that I’m having trouble putting it
words. Put it this way, what we saw on Friday (always Fridays!), of a
fabrication so blindingly ridiculous, it made the OPEC ‘production cut’
appear rational, takes the cake as the biggest financial lie ever told.
Which fortunately, is already being called out – as frankly, my anger level
regarding all things Deutsche Bank-related is reaching levels previously
reached by only a precious few, like Hillary Clinton.
Last year, the “Deutsche Bank War” erupted when it announced massive,
multi-billion losses, far more disproportionate than its peers.
Clearly, its immense leverage and gargantuan, toxic derivatives book were
starting to erode it from the inside. And when DB started offering 5%
Certificates of Deposit this Spring, and openly criticizing the ECB of
destroying its business with negative interest rates, the writing was clearly
on the wall that something very, very big was going down.
During late June’s post-BrExit swoon, the stock hit a new all-time low of
$12.49/share; and rapidly approached that level when two weeks ago, the U.S.
Department of Justice, despite being amidst similar investigations with
numerous banks, chose to single out Deutsche Bank, and fine it $14 billion
(against expectations of $2-$3 billion) for mortgage-related fraud prior to
the 2008 financial crisis. Which, it turns out, was exactly the amount
the EU fined Apple for “tax evasion” last month. Only in this case, the
U.S. picked on the weakest – and most “systematically dangerous,” according
to the U.S.-led IMF – institution in Europe; as opposed to Apple, quite obviously
America’s strongest company. Better yet, a week later, the DOJ went
after Volkswagen – one of Germany’s largest employers – claiming it aims to
fine it as much as possible without putting it out of business. And
this morning, my prior observation of the DOJ’s agenda was validated by the
head of the German Parliament’s Economics Committee, who suggested the U.S.
was indeed engaging in economic war; and not to mention, extortion.
In doing so, the price of DB sliced through said all-time low, falling as
low as $11.22/share last Thursday, when word emerged that numerous high
profile hedge funds were pulling their excess cash out – leaving the world
one day from imploding, as if DB’s stock crash continued Friday, ahead of a
three-day German weekend, there’s a good chance markets would not have opened
today.
Which is precisely why the most inane rumor ever was concocted, based on a
TWITTER post, by the FRENCH press, that the GERMAN company Deutsche Bank was
on the verge of signing off on a “mere” $5.4 billion settlement with the
AMERICAN government. Which aside from the fact that the concept of such
an announcement being leaked to the French press, and posted only on Twitter,
being utterly ridiculous, wouldn’t even be “good news” if it were true.
I mean, is it me who’s nuts, or did essentially every major Wall
Street bank, upon hearing of the DOJ’s $14 billion fine announcement two
weeks ago, opine that even a $3-$4 billion fine would be enough to wipe out
most of DB’s capital? Let alone, $5.4 billion, if it were true!
Either way, this blatant lie was put out, with accompanying PPT “cover,”
to make sure DB’s stock turned around prior to the weekend, despite it being
so Goebbels-esque in nature. And “save” it most certainly did, for one
day at least – as the mother of all short covering rallies was piggy-backed
onto the PPT’s relentless buying, causing the price to rise back to $13.09 by
day’s end.
The only problem is, that like OPEC’s “production freeze,” it was likely
to be found out, and quickly. And in this case, it also invited a new
phase of economic warfare; as over the weekend, embattled Italian Prime
Minister Matteo Renzi, who unquestionably will be forced to resign by
year-end – once his pet Constitutional Reform referendum is defeated – used
Deutsche Bank’s weakness to not only attack the European Union (as revenge
for it patronizing Italy regarding the poor state of its banking system); but
to further his own political agenda (by “standing up for Italy’s rights”);
and seek a scapegoat for the equally imminent collapse of Italy’s third
largest bank, Banke Monte Paschi. By thus, accusing Deutsche Bank of,
for all intents and purposes, fraudulently hiding Monte Paschi’s losses – as
Goldman Sachs did with the nation of Greece, going all the way back to the
2009 financial crisis. In other words, kicking them when they’re down,
by making it more difficult to negotiate a DOJ settlement; and by proxy,
dramatically increase the odds of Standard & Poor’s imminently reducing
DB’s credit rating to junk status.
That said, the bigger bombshell occurred (last Sunday night), when it was
reported that not only was there no DOJ settlement, but Deutsche Bank
executives hadn’t yet even met with DOJ officials to discuss
it. In other words, it took a mere two days for the biggest economic
lie ever told to be refuted. Which, per my initial quote regarding the
ramifications of lies, made the situation that much worse, now that the Bank
Monte Paschi-related lawsuit has been thrust onto the scene. Which is
probably why Deutsche Bank bankruptcy-related credit default swaps hit an
all-time high this morning; in turn, revealing just how maniacal the
PPT has become, given that as I write, DB stock is down just $0.30, after
rising $1.60 on Friday. Oh well, as they say, the bigger they come, the
harder they fall. Oh, and did I mention that over the weekend, many of
Deutsche Bank’s ATM’s “coincidentally” wouldn’t dispense cash, due to what
company executives are deeming an “IT glitch?” Or that the Deutsche
Bank corporate yield bond curve inverted? Or that U.S. repo market cash
funding rates just soared to the highest levels since the 2008-09
crisis? But don’t worry, what could possibly go wrong? After all,
I kid you not, Jim Cramer just told listeners to buy DB stock.
Frankly, the only TRUTHs I see from today’s soon-to-be serially
discredited and deposed officialdom are those telling you, right to your
face, of the horrors they are about to impose on your financial status – like
the UK government proposal to reduce pension benefits; and major Central
bankers speaking of upcoming bailouts, bail-ins, negative interest rates, and
equity monetizations. Including, in just the past week alone, America’s
“big three” dollar destructionists – Ben Bernanke, Janet Yellen, and Larry
Summers.
OK, that’s enough for now – as my anger is at the boiling point, and my
daily three-page limit getting harder and harder to meet. Other than to
scream, at the top of my lungs, for you to PROTECT YOURSELF, and DO IT NOW,
as the global wars are raging – politically, economically, and
socially. Shortly, to conflate into an unprecedented monetary inferno.
