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It’s still Saturday afternoon, but my mind is
racing, and the list of “horrible headlines” is piling up. But
before I get started, I want to put you in a good mood. I was just sent the below
video of perhaps the most amazing football play of all time, which
even the most diehard football-hater will enjoy.
http://wimp.com/endzone/
OK, back to reality. The past week was a major
inflection point in GLOBAL MELTDOWN II, when the dam’s leaks became
large enough for the chewing gum band-aids to be
seen from outer space. The cumulative damage from decades of reckless
borrowing and spending, deregulation of the most dangerous business on earth
– BANKING – and corruption of the world’s most powerful
politicians, is finally penetrating the artificial blockades of spin,
propaganda, and MONEY PRINTING. It is downright eerie that the Mayans
forecast December 21, 2012 as the “end of the world,” as I FEARwhat things will look like then, a year from today.
Who would have thought that AMERICA, the “land of opportunity and
freedom,” would fall so far, so fast?
50 Economic Numbers About The US That Are “Almost Too
Crazy To Believe”
The first thing on my mind is the endless bailouts
– OVERT and COVERT – ongoing each day right under our noses. The
concept of QE2 “ending” in June is too ridiculous to discuss, as
evidenced by the continued, skyward rise of the published money
supply, and anecdotal evidence that growth of the unpublished money
supply, both in the U.S. and abroad, is many multiples larger. ECB
bond purchases, the Fed’s unlimited “swap facility,” and of
course ongoing “secret loans” to the world, only a small amount
of which we have learned of, are mushrooming the global money supply to a
level soon to ERUPT volcanically into the worst episode of HYPERINFLATION in
human history.
Fed makes Thai-style capitalism look honest
Seemingly each morning a new “tipping
point,” or “Lehman moment” as James Turk puts it, is averted
by a combination of spin, propaganda, and, most importantly, COVERT money
printing. The Fed “swap facility,” announced just two weeks ago,
was an open-ended invitation to the world’s zombie banks to
“borrow” PRINTED MONEY perpetually at nearly no interest
rate, never to be paid back or accounted as such. Word is a MAJOR French
bank, or banks would have collapsed without it two weeks ago, and it can be
no coincidence the Fed “swap facility” was announced the morning
after Bank of America, the U.S.’s largest bank, closed at $5.03/share
and was subsequently downgraded by S&P after the close.
In fact, a major bank bailout may have occurred just
DAYS ago, per the chart below. The Fed has become as skilled at obfuscating
its actions as MONEY PRINTING, and it doesn’t hurt that jobless,
apathetic, video game playing, reality show watching, texting, food stamp
using Americans could care less. If the National Defense Authorization Act
can pass by a 2-to-1 margin after just an hour of debate, with no
public outcry except by Jon Stewart, than bailing out zombie banks in plain site is a no-brainer.
Did The Fed Quietly Bail Out A Bank On Tuesday?
And before I leave the topic of the Fed, Dan at Future
Money Trends is on fire this month, first publishing If Silver Goes
Down, All Hell Will Break Loose In The Physical Market, which has
received 120,000 YouTube hits in a week, and now this beauty on the Federal
Reserve, describing how “QE to Infinity” is a 100% certainty.
The Federal Reserve Has been CHECKMATED! QE to Infinity
Back to “National Defense,” the U.S. is
finally ending the Iraq War after eight years, $1 trillion of direct costs,
10,000 American deaths (2,000 in Afghanistan), 100,000 wounded, more than
120,000 Iraqi casualties, and not a single drop of Dick Cheney’s
treasured Iraqi oil. Congratulations, America, fantastic effort considering
it was predicated on WMD’s that never existed and a link between 9/11
and Saddam Hussein, also untrue.
But don’t’ worry, we’ll just blame
it on Iran, with or without evidence. And no worries, the dumbed down,
entitlement-starved American populace will be happy to support the next
chapter of the “War on Terrorism,” so long as it doesn’t
pull them away from their video games or bank-financed iPhones.
US Court Claims Iranian 9/11 link. With “Absolutely No
Evidence” – 16 Dec 2011
In fact, while the news networks tell story upon
story about the end of the Iraq war, they somehow fail to report the fact that
many of those troops are being redeployed to the Persian Gulf, as the inevitable
countdown to “Operation Ahmadinejad” begins. I have NO DOUBT
this topic is being discussed in the White House as I write, as part of its
“Election 2012″ grand strategy.
U.S. Planning Troop Buildup in Gulf After Exit From Iraq
And if Obama doesn’t scare you enough, just
listen to this psychopathic madwoman, Michelle Bachman, espouse how we need
to attack Iran NOW. Brainwashed lunatics like this have no idea that war
destroys the world, or maybe they do and just don’t care. Modern
America is the largest war machine in human history,care of
the defense contractors that have taken over the military with the same
degree of control Wall Street has taken of America’s financial
decisions.
Heated debate between Michelle Bachmann and Ron Paul –
FOX NEWS GOP Debate 12-15-11
Conversely, THIS is how one should treat the world!
THIS is how one makes friends, not enemies, particularly when
one is completely, utterly BANKRUPT!
http://www.youtube.com/watch?v=BDvaTqLlZlA&am...feature=related
TPTB know the END GAME is here, and have thus
pulled out every possible, illegal maneuver in their expanding playbook to buy
more time, although due to the onset of “MANIPULATION
SATURATION,” such “cash bombs” and “propaganda
attacks” have shrinking half-lives, soon to be completely
ineffective. I’m guessing they’ll make it through year-end, just
long enough to pay themselves “record bonuses” with PRINTED,
TAXPAYER MONEY, while the government continues to SPEND, SPEND, SPEND.
Senate passes payroll tax cut and spending bill
Don’t forget the $15.194 trillion debt ceiling
is about to be breached, with another $1.2 trillion scheduled to be added on
Friday, December 23rd. It’s hard to believe the media was so
crazed about raising the debt ceiling from $14.292 trillion to $14.692
trillion just four months ago, but not a single article has been
written about rising from $14.692 trillion to $16.392 trillion, with nary a
dollar of spending cuts accompanying it. Nor that gold SOARED back in August
for that very reason, while it has tanked this Fall thanks to the dual doses
of “OPERATION PM ANNIHILATION I” in September and
“OPERATION PM ANNIHILATION II” here in December.
Last year, Gerald Celente
stated “the American Empire is on its deathbed,” and I believe
2012 may be the year it dies.
http://www.usdebtclock.org/
No, I’m not done with the United States of
Corruption in this RANT, not even close. The situation here has become so
vile; I can barely contain my rage. One story after the other of
government-sanctioned, often government-led fraud, although when I say
“government” I mean Wall Street and the aforementioned Military
Industrial Complex that runs it via exponentially growing campaign
contributions and reciprocal appointments.
Goldman
Sachs *is* The Federal Government – The Venn Diagram
I mean, the story below is unbelievable –
“only in America” as they say. The SEC, a government agency,
suing executives of Fannie Mae and Freddie Mac, two other government
agencies, for fraud. Guys, get your story straight, you’re all part of
the same CORRUPT team!
SEC Sues Former Fannie, Freddie CEOs For Misleading Investors
On Subprime Risk
Or how about the unending explosion of “silver
derivatives” by JP Morgan, which adds BILLIONS each quarter to this
“dark pool” of naked, PAPER silver shorts each quarter,
under the watch of the Office of the Comptroller of the Currency (OCC), yet
another government agency. What is the OCC anyway, what does it do, and how
much PRINTED taxpayer money does it cost? JP Morgan, being sued by half the
planet for naked shorting silver OVERTLY on the COMEX, and under
investigation by the CFTC, yet another government agency, for the past
THREE YEARS for same, has close to $30 billion of “silver
derivatives” alone, roughly equal to ALL AVAILABLE SILVER STOCKPILES ON
EARTH (most of which is NOT FOR SALE)!
More Proof That The Gold Sell-Off Was Manipulated – Truthingoldblogspot
No worries, frustrated PM investors. For one,
remember your “investments” in PMs are no such thing. PHYSICAL
gold and silver are not “asset classes,” they are MONEY, timeless
wealth that CANNOT be debased, certainly not in today’s world of
EXPONENTIAL MONEY PRINTING and GLOBAL FINANCIAL COLLAPSE. Each PAPER attack
takes the Cartel one day closer to its demise, as occurred with the London
Gold Pool in 1968 and ALL previous attempts to suppress Precious Metal prices
throughout human history.
The MF Global collapse, premeditated or not, will
prove to be a watershed event when history is written, accelerating
the inevitable, PERMANENT separation of the PAPER and PHYSICAL markets, a
process that started years ago and recently gained strength (see the Open
Interest/Gold and Silver Price ratios in my December 5th RANT, target="_blank" “THE
SOUND OF SMART”). PHYSICAL premiums have expanded in recent years,
and I strongly believe the cumulative COMEX losses caused by Cartel
manipulation, loss of confidence in the COMEX itself thanks to MF Global, and
the early 2012 expansion of the Pan-Asian Gold Exchange (PAGE) will shortly
yield an end to COMEX suppression of PAPER gold and silver prices, and
possibly the COMEX itself.
Ann Barnhardt- Cash Commodities
Markets Will Decouple from Futures
The Silver Rush at MF Global
And you don’t have to take it from me, take it
from this passage in James Cavell’s Gai-Jin,
describing East-West trade in the 1860s.
“I’m sure you know China will only
accept “cash,” i.e. silver or gold, for the tea we must import,
nothing else. The only merchandise they’ll pay “cash” for
– silver or gold – is opium, nothing else.
Alas, some things never change!
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Twas’ the week before Christmas, and all are
asleep. Off to the gym this morning, where the parking lot was empty. Not a
creature was stirring, except of course the Cartel and PPT.
Yet another Sunday night attack, nearly the second
the thin Asia markets opened, with NOTHING in the news except the death of
Kim Jong Il of North Korea, and no markets moving at all. Once NY opened,
gold actually jumped from its $1,580 overnight low to $1,608, but of course
those gains evaporated at the COMEX open at EXACTLY 8:20 AM EST, followed by
a second WATERFALL DECLINE at, just after 10:00 AM EST, as always. Moreover,
with all other commodities essentially flat, and of course the PPT-inspired
Dow futures up their token, set-the-tone 50 points, PAPER silver was down a
staggering 2.5%, as the disconnect between PAPER and PHYSICAL prepares for to
grows wider in the coming weeks.
 
In the true spirit of “market action makes
commentary,” every conceivable reason is brought about to explain why
PMs have been hit so hard, not a one mentioning the obviously concerted
“OPERATION PM ANNIHILATION,” as I call it. Such drivel has
repeatedly brought up the topic of Central bank “gold leasing”,
as brain-dead reporters echo what they are told by equally brain-dead
“analysts” and Cartel shills about how Central Bank gold is being
“leased” to meet cash needs brought about by the expanding
financial meltdown. Funny how none of these gaggle of morons ever ask
themselves why, with all this gold leasing occurring, Central Bank gold
holdings NEVER decline, such as the so-called 8,135 tonnes
held by the U.S. Treasury, which but for a few tonnes
to mint gold eagle coins, hasn’t declined in 30 years.
Yes, this is the beauty of international crime
syndicate law, in this case authored by the IMF, which for some reason was
years ago mandated to create the accounting rules for Central Bank gold
holdings. The reporters and “analysts” neglect to research this
simplest of economic concepts, and if they did they’d see that leased
Central Bank gold is permitted to remain on the balance sheet, double-counted
although the metal is long gone, sold by an unnamed third party, never to
return. Which reminds me of the GLD and SLV ETFs, which are permitted to do
the same. In fact, SLV’s custodian, none other than crime kingpin JP
Morgan, is permitted by its prospectus to store the fund’s silver
holdings with “sub-custodians” that don’t need to be either
named or audited, i.e. “dark pools” where supposed silver bars
go, but never return from.
In the article below, it appears the SLV naked short
position is once again exploding due to, NO DOUBT, JP Morgan naked shorting
its own fund to maintain the suppressed COMEX price and avoid delivery
requirements. Apparently, yet another loophole in the SLV prospectus allows
the trustee to issue new shares before it acquires the metal to back
them. And yet people still buy SLV as a proxy for silver, while the discount
to the PHYSICAL silver price continues to erode each year!
Ted Butler: SLV Naked Short Position Near Record Highs
Back to the markets, the weekend might have been
uneventful, but the “horrible headlines” continue to build, and
will NEVER STOP until the system collapses entirely, likely in 2012 by my
estimation. The global PTB may appear powerful due to their ability to PRINT
MONEY and MANIPULATE MARKETS, but the forces of Economic Mother Nature are
pure, and powerful, unable to be defeated by financial engineering and
propaganda. MANIPULATION SATURATION assures that all new Fed, ECB, and
BOJ efforts to stave off the inevitable will prove ephemeral, until finally
the forces of reality swamp them, just as they swamped, and defeated the
London Gold Pool in 1968, U.K. government support for the pound in 1992, and
Bernie Madoff in 2010.
Around the globe, Economic Mother Nature is
displeased, and each day it becomes more clear that
no nation will be spared her wrath, ANYWHERE.
China’s real estate bubble is undergoing an
epic collapse as we speak, although the puppet media is reluctant to speak of
it. Apparently, much of China’s $3.2 Trillion of U.S. dollar reserves
are committed to its immense, bank- financed construction Ponzi scheme, which
has come to its end as no new buyers are stepping up to purchase residential
or commercial properties in the dozens of “ghost cities” that
have sprung up across the land.
China’s November Home Prices Post Worst Performance
This Year Amid Curbs
In Europe, things go from bad to worse…and
worse…and worse. Not only is the financial situation deteriorating
rapidly, saved from terminal collapse ONLY by the emergency Fed “swap
facility” that has likely injected hundreds of billions of FREE,
FRESHLY PRINTED dollars into the system in the past two weeks…
Fed May Inject Over $1 Trillion To Bail Out Europe
…but political infighting has escalated to
“DefCon2″ levels following the UK’s refusal to join last
week’s pathetic EU austerity treaty, the one which will be broken apart
within weeks when it is found that most, if not all,
signees are completely ignoring its tenets.
The Diplomatic War Between France And Britain Goes To DefCon 2
In fact, the verbal battle between the UK and France
could, in and of itself, be the spark that DESTROYS EUROPE, given that the UK
has the highest cumulative debt load in the world, yet has been “flying
under the radar” due to its self-exclusion from the Euro Currency, and
its ability, like the U.S., to print as much money as it wants. Not only is
the UK the birthplace of financial corruption and military imperialism, but
it has the least regulated banking system on earth, and hands down the
highest inflation in the “civilized world.”
In reading Gai-Jin,
about British imperialism in Japan circa 1860, I am reminded yet again of the
nation’s history of abusing its military power to enslave nations, force religion and politics down their throats,
and steal their wealth until finally defeated by uprisings. Even the
U.S.’s corrupt history pales in comparison, although it is currently
making up for lost time. Wouldn’t it be ironic if England and France,
the world’s oldest cultural and military rivalry, winds up plunging Europe
into war yet again, only this time involving dozens of other nations from
around the world?
Psssst France: Here Is Why You May
Want To Cool It With The Britain Bashing – The UK’s 950% Debt To
GDP
As for the rest of Europe, what more is there to
say?
The rating agencies continue to savage the
Continent’s dying “old world” nations, including
Moody’s two-notch downgrade of Belgium on Friday…
Moody’s Takes S&P’s Place – Downgrades
Belgium By Two Notches To Aa3
…Fitch’s outlook revision on the
comically AAA-rated France to negative…
Fitch Revises French Outlook To Negative
…and Fitch’s capitulation that
essentially ALL of Europe will likely be downgraded in the coming weeks,
including France, Spain, Italy, Belgium, and Ireland.
And The Euro Downgrade Hits Just Keep On Coming, This Time
Fitch
Meanwhile, in lieu of the failed, Dead On Arrival
EFSF rescue fund, all the rage Friday was that the IMF would instead act
as “white knight” for Europe. I can’t describe how stupid
this concept sounds, as the IMF is simply an agglomeration of funds
contributed by member nations – the very same member nations that
refused to contribute to the EFSF! Of course, it took exactly ONE
business day for this rumor to be refuted, as NO ONE in their right mind will
bail out the “too big to bail” nations of France, Italy, and
Spain, EVER.
Only COVERT money-printing is likely to be attempted
at this point, as risking the backlash (EXPLODING GOLD PRICES) of a massive,
OVERT MONEY-PRINTING operation by the Fed or ECB could be instantly fatal. Scratch that, they’ll try it anyway, just give it
time!
IMF Loans Likely To Fall Short Of €200 Expected As UK
Pulls Rescue Funding
And
what’s this? While proofreading this morning, the following article
emerged, noting that ECB sovereign bond purchases have again picked up, just two
weeks after MANIPULATION SATURATION of the almighty “Fed swap
program” was announced, yet another example of its ABJECT
FAILURE, and better yet, the sheer hopelessness of the situation.
As Liquidity Swap Impact Fades, ECB Is Back To Propping Up
Peripheral Bond Markets In Size
Before I get to my RANT topic of the day, I want to
bring one more topic to your attention, how SICK the American economy is, and
how rapidly this TERMINAL ILLNESS is spreading, contrary to the
non-stop PROPAGANDA preaching the economy is “recovering.”
Two weeks ago, I watched a heartbreaking episode of 60
Minutes, depicting the inexorable rise in American homelessness,
including 1.2 million such children in the “land of
opportunity.” Millions of Americans are living in cars, “tent
cities,” and homeless shelters, and many of those lucky enough to find
homes are doing so only due to food stamps, other PRINTED MONEY government
entitlements, and bank reluctance to foreclose on homes, and thus write down
their balance sheets, in turn yielding corporate bankruptcies.
Hard
Times Generation: Families living in cars
Last night, I watched an equally gut-wrenching story
of neighborhoods DESTROYED by government-promoted real estate lending, which
are now WORTHLESS. Houses are being raised by the thousands in the mistaken
belief it will raise real estate values, as the BANKS owning that real estate
will obviously be forced to take the aforementioned write-downs – not
to mention, the bankrupt municipalities will go into greater hock just do to
the gargantuan costs of such demolition programs. Would it SHOCK anyone, for
instance, to learn that the median home price in Detroit is $6,000?
Foreclosures
spread to suburbs
Worse yet, American “growth” is based
solely on unreported INFLATION and exploding DEBT. I did a double-take after
reading the below article, which states that American credit card debt was
154% higher in the third quarter of 2011 than a year ago, as “the speed
at which consumers are garnering new debt is unprecedented.” And I
thought news of China’s year-over-year gold imports rising by 4,000%
was shocking!
Credit Card Spending Growing At An Alarming Rate
Readers, the ENTIRE WORLD, but particularly Europe
and the U.S., which for generations have enjoyed WAY ABOVE AVERAGE standards
of living, are about to enter a prolonged depression, the likes of which even
our grandparents would have a difficult time remembering. That is why
studying HISTORY may be the most important means of survival, to learn how
such situations unfolded in past, and what people did to PROTECT THEMSELVES
during such periods.
As you watch the stock of Bank of America, the
U.S.’ largest bank, yet again stare at the $5.00/share non-marginable
abyss, ask yourself this:
What will YOU do when GLOBAL MELTDOWN II rages out
of control?
Bank of America Drops To $5.01; Lowest Since March 2009
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Which leads me to today’s topic, “PUT
YOUR MONEY WHERE YOUR MOUTH IS.”
As noted above, I view HISTORY as the singularly
best way to educate yourself, and thus spend
countless hours reading about past crises of the past. The types of crises I
research have not occurred in some time, so most of the writings are from
deceased authors. However, World War II, the Holocaust, and the Great
Depression are recent enough that survivors still exist, and in the immortal
words of the great Andy Rooney, “the best classroom in the world is at
the feet of an elderly person.”
Particularly in economic matters, which can
literally determine your “life or death,” it pays to find the few
“good, smart people” to learn from, particularly those with a
lifetime of experience in financial markets. The reason I am here
writing today, as opposed to out of work and scratching to survive, is my
reliance on the writings of the great financial experts of our time, starting
with Richard Russell and Jim Sinclair circa 2002.
Russell has been preaching of the three
“primary trends” since I first read Dow Theory Letters in
2002 – the gold bull, the dollar bear, and the Dow bear. And he has
been correct for a decade, more so today than ever. Who knows how much
further along these trends would be if not for exponential growth in MONEY
PRINTING and MARKET MANIPULATION, but then again, the levels they would have
reached today PALE in comparison to how far they will extend due to
such arrogance in the face of Economic Mother Nature.
PAPER and LEVEAGE – the basis of all financial
markets for generations – are destined to die horrible deaths in the
coming years, perhaps as soon as 2012, to be replaced by REAL ASSETS,
AUSTERITY, and “CASH & CARRY” markets, for generations to
come, and believing otherwise will take you with them. Stocks as mainstream
investments will soon be a thing of the past, as will bonds, fiat currencies,
and financial engineering, to be replaced by the “Once and Future
Kings,” PRECIOUS METALS.
Mining stocks are NOT gold and silver, no more than
ETFs, Perth Mint Certificates, or tungsten bars, and have proven thus over
the past decade. My estimate is that 90% of all PM mining stocks have
declined in value over the past five years, with the 10% that haven’t
dramatically underperforming the metal besieged by surging mine costs,
depletion, share dilution, and naked shorting. A precious few may survive
through the breaking of the gold Cartel to make dramatic gains, but most will
likely be swallowed by the abyss of collapsing financial assets, while those
that do survive will likely, shortly thereafter, be undone by capital gains
tax increases, bank holidays, brokerage bankruptcies (read, MF Global) and
nationalization fears.
Only PHYSICAL gold and silver ensure you will
SURVIVE through the coming economic Armageddon, and potentially THRIVE if the
system remains intact and the world evades World War III. Richard Russell
says so, which is good enough for me.
Richard Russell – I Will Stay with Gold to the End
As for Jim Sinclair, “Mr. Gold,” he felt
so strongly about the prospects for PHYSICAL gold in April 2008, when gold
was $900/oz and had just been attacked following
its first attempt to eclipse $1,000/oz, that he bet
ANY AND ALL TAKERS $1 MILLION that gold would hit $1,650/oz
by January 7th, 2011, a bet taken up by NO ONE despite the
incredible odds in their favor.
Jim Sinclair Bets a Million Dollars Gold Price Will Hit $1650
before the 2nd Week in January 2011
They would have won that bet, but just barely, as
gold reached $1,400 in January 2011, en route to $1,650 in August and ultimately,
$1,920 before “OPERATION PM ANNIHILATION I” commenced minutes
after the Labor Day weekend.
Sinclair KNOWS gold is rising to at least $4,500 in
the coming years, and could not be more confident in his prediction, so
SELLERS BEWARE!
Jim Sinclair sees gold hitting $4500 an ounce in next major
wave
And speaking of cajones,
long time gold commentator Peter Grandich last week
took on the “Three Stooges” of Precious Metals – Jon
Nadler, Jeff Christian, and Dennis Gartman. These
three symbols of stupidity, poor analysis, and the selling out to covert
government interests have spent the past decade denigrating gold and silver
at every possible opportunity, continually forecasting its collapse, and
working with three of the most discredited organizations in the business
world, to boot.
Grandich bet each of the three $1 MILLION that gold would
reach $2,000 an ounce before it hit $1,000, yet not a one accepted, as all
three KNOW they will lose. Not only will gold hit $2,000/oz
first, it won’t even come close to $1,000, a level never to be seen
again. Moreover, Sinclair’s $4,500/oz is just
a “jack for starters”, as he, too, knows $15,000-$20,000/oz is a more likely end game in TODAY’S DOLLARS,
having done the math to prove so.
$1 million gold bet draws no takers
But buying PHYSICAL gold and silver is not about
TODAY’s DOLLARS, but tomorrow’s, which may or may not even
be “dollars.” The present, unavoidable course is one with
HYPERINFLATION, which is why one needs to PROTECT THEMSELVES, and do it NOW!
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