It’s Wednesday morning, the day before what could – but as of now, is not
expected to be – the most violently anti-establishment election in global
history. Which, if it in fact comes to pass, will shake up the global
political, social, and monetary order like nothing ever before
it. Amidst a sea of propaganda (like the “importance” of Jo
Cox’s murder); lies; and market manipulation, there’s no telling what
Britons will actually do – particularly as seemingly each hour, new
statistically insignificant polls claim dramatic changes in
“sentiment.” Moreover, the Ladbroke’s “odds” of a BrExit vote have been
longshots. However, the amount of money “bet” on the event is
infinitesimal; and thus, could be easily “altered” by those trying to
influence sentiment.
As Mike Maloney said yesterday, “freedom is scary.” And thus, for
many UK citizens, government fear-mongering will undoubtedly impact their
decisions. Not to mention, the millions of Britons – particularly,
immigrants – who support the teat the EU has created for them. However,
unquestionably, the facts
show that the EU has been a disaster for the UK since it joined in 1973; and
given the real threats to not only Britain’s economy, but national identity –
created in 1707, and forged over 2,000 years – it’s difficult to believe a
powerful wave of nationalism, amidst one of the world’s oldest, proudest
peoples, won’t be a significant factor.
Given what I do for a living; and the cause I have championed, and invested
in, for 15 years; my principal concern is the monetary impact of the
referendum, whether it passes or not. To which, I’ll simply make a
comparison of EU failure, to that of Central banks. Regarding the
latter, it’s no coincidence that on the eve of the vote, fresh evidence that
the world’s four major Central banks are failing miserably is front and
center – starting with the ECB itself, whose balance sheet hit a new
all-time high of €3.1 trillion, or $3.5 billion, as European stocks fell
to their lowest level since negative interest rates were launched two years
ago. In fact, European stocks’ 20% plunge from their all-time highs of
early last year (yes, QE was launched with stocks at their highs!) coincided
nearly to the day QE was launched. And the scariest part of all, is
that not only is the European economy at its quantitatively worst level since
the EU was created in 1967, but the ECB’s balance sheet is still $1 trillion
smaller than the Fed’s. A gap, I assure you, that will be “made up” in
the coming years – likely in a hurry, if the BrExit vote passes.
Unless, of course, the Fed accelerates its own “monetization” activities
first.
Next, we have Bank of Japan Chief – and “Abenomics” architect – Haruhiko
Kuroda, last night saying flat out, “monetary policy doesn’t always turn out
as expected.” Or in Japan’s case, EVER, as it has now had zero interest
rates (or lower) for 20 years, and has been amidst non-stop QE programs for
15. As we stand today, Japan’s economy is at its quantitatively weakest
since the end of World War II; with history’s largest public debt edifice;
worst demographics; and arguably, the highest probability of runaway
inflation of all “first world” economies.
Next up, the People’s Bank of China; which, as I predicted
last summer, is accelerating the Yuan’s devaluation – to the tune of 10%
– as it takes the “final currency war” I first warned of 3½ years ago
thermonuclear.
And last but not least, Janet Yellen’s embarrassment of a speech before
Congress yesterday – kicking off her mandated, semi-annual “Humphrey-Hawkins”
economic testimony; in which she espoused the same clueless platitudes as
always. Universally, from Goldman Sachs; to Zero Hedge; to myself, as I
listened to the early part of the proceedings; the verdict was that Yellen
said absolutely nothing incremental, in 1) continuing her Obama-esque lies
about the “recovering” economy; 2) noting myriad reasons why it’s not the
Fed’s fault that “considerable uncertainty about the economic outlook
remains” – such as “the latest readings on the labor market and weak pace of
investment,” which “illustrate downside risks that domestic demand might
falter.”
Tell me Janet…given that the “expansion” is now the second longest in U.S.
history, but is clearly taking water more quickly than the Titanic,
how far down do you think corporate earnings – and stocks – will fall
in the coming years; particularly as their growth has been more of a function
of Fed-catalyzed financial engineering than actual organic growth? Such
as, for example, borrowing at all-time low interest rates; but instead of
investing in property, plant, and equipment (hard to justify amidst a global
economic collapse); buying back stock at an unprecedented pace, leaving
corporate America with an unprecedented debt load, and horrifyingly weak
earnings outlook.
As for the European Union, mere words cannot describe what a disaster its
been for its 28 member states. For larger members, like the UK,
Germany, and France, the subsidies they have provided for the (dozens of)
weaker states have produced little economic benefit, and enormous unpayable
receivables. For weaker states like the PIIGS, the ECB’s irresponsible
monetary policies, coupled with Wall Street (and “City”) financial engineering
schemes, have created debt-soaked zombie economies on the verge of default,
political regime change, and social revolution.
European Council President Jean-Claude Juncker says “Prime Ministers must
stop listening so much to their voters, and instead act as full-time
Europeans.” However, countless anti-EU movements, in nations as diverse
as France, Italy, Spain, Greece, and of course the UK, claim otherwise.
And if tomorrow’s BrExit referendum, in the EU’s second largest economy,
passes, it will likely set off a chain reaction of nationalistic fervor
unparalleled in the post-War era. Likely, to levels that even the
world’s best market manipulators – like the GOLD CARTEL – can’t control.
Heading into the referendum, the level of market manipulation has been at
least as blatant as the propaganda. And yesterday’s unconscionably
blatant Precious Metal raid – particularly after Janet Yellen started
speaking, in what has been a “key attack event” for the past five years;
whilst the “Dow Jones Propaganda Average” was propped with equally
transparent DLITR, or “don’t let it turn red” algorithms, couldn’t have been
more obvious.
That said, due to the aforementioned, expanding failure of global Central
banks, the cumulative rise in stocks, and decline in Precious Metals, leading
up to the BrExit referendum has been, for the most part, immaterial.
Heck, Monday night, gold traded as high as $1,295/oz, after hitting a
two-year high of $1,315/oz last week. Putting it into
perspective, this is all the gold Cartel achieved heading into the
BrExit referendum…
Whilst this – accompanied by the most
violently anti-gold propaganda in memory – is what it accomplished heading
into the equally “dangerous” Swiss gold referendum on November 30th,
2014. I.e., a three-month, 13% plunge – culminating with a
post-Thanksgiving Friday $25/oz smash (two days before the Sunday vote), that
bottomed mere hours after the “no” vote was recorded. Although
arguably, given the far more tenuous state of the global economy; potentially
far-reaching, hyperinflationary Central bank responses; and the fact that the
Swiss National Bank may well have lied about buying gold, even if it was mandated
to do so; a BrExit result may be even more “Cartel-destroying” than a Swiss
gold “yes” would have been.
At this point, I’ve said all I can possibly say about my vehement belief
that not only would BrExit be the most
violently PM-bullish event of our lifetimes; but perhaps, the world’s
last chance to fight back against the political, economic, and monetary
tyranny today’s “powers that be” have exercised. Regarding the latter,
a “remain” vote will unquestionably destroy the UK’s economic outlook for
years to come, whilst permanently diluting its long, storied national
identity. Conversely, the Precious Metal bull market will not be
stopped no matter what the British vote; and frankly, a “strengthened”
European Union will only mean the ECB has freer reign to destroy the Euro
than ever before.
So sit tight with your nest egg gold, silver, and platinum; get a good
night’s sleep; and pray for the British to do the right thing – for
themselves, and the rest of Europe’s EU-oppressed population!
