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Sure as night follows day, and spring follows winter,
the GREATEST BUBBLE OF ALL TIME is bursting, as I have vociferously forecast
all year. And what more fitting day for it to occur than my birthday?
Per yesterday’s RANT, “LESS THAN
ZERO”, the Fed’s pathetic statement will likely serve as an
INFLECTION POINT IN WORLDWIDE FINANCIAL HISTORY, representing the moment iTs EXTEND AND PRETEND policy of PRINTING MONEY to BAIL
OUT EVIL BANKS lost ALL effectiveness. Moreover, as the only thread holding
Europe together has been its ability to access the Fed’s unlimited
printing press (since European interbank lending has dried up, with major
corporations and sovereign nations WITHDRAWING FUNDS), they are now DONE as
well.
Several commentators, such as myself,
have forcefully stated we would exit the eye of the hurricane as soon as Fall
arrived. I could not have been more adamant if I tried.
And now it’s here, the TITANIC MOMENT referenced
above.
Not hitting the iceberg (September 2008), not the
Eureka moment when the crew realized the ship would sink (August 2011), but
the moment when the ship actually goes under (notice how fast the pace
accelerated). From my perspective, the Federal Reserve’s powers are officially
DRAINED, NEVER to be able to mislead public PERCEPTION ever again. The common
man is seeing it for the FRAUD it is, led by a MORON, and not only COERCED,
but actually OWNED by EVIL BANKS such as Goldman Sachs and JP Morgan. Too bad
they won’t make it through the storm either, particularly when PUBLIC
RAGE is eventually directed at them.
Yes, the Fed will make a more formal, $500 BILION- $1
TRILLION QE3 announcement later this Fall, when market hysteria SURPASSES
that of the BOTTOM of the 2008-09 meltdown. But all that will do is engender a scenario like the one in the brilliant seven
minute video below, “The Day the Dollar Died,” in other words the
commencement of hyperinflation. In the meantime, Quivering Lip Ben will be
forced to watch the carnage from his ivory tower in Washington, pondering why
his monetarist ‘Helicopter Theory’ didn’t work.
http://www.youtube.com/watch?v=2N8gJSMoOJc
Meanwhile, the European banking system has ALREADY
plummeted nose-down into the North Atlantic, or perhaps the Mediterranean, if
you will. The ONLY difference between Europe and the U.S. is that the dollar
is still the world’s reserve currency (not for long), while the Euro is
not. The Fed has held the rest of the world hostage with their dollar
reserves for the past decade (as its value has precipitously declined), but
that game is about to end, perhaps by year-end, and if not in 2012 the
latest.
In fact, the game could very well end before the end of
September, and that is no small claim. DESPERATION is in the air, per the
rumor below that the $500 billion (UNLIMITED in practice) joint dollar
borrowing facility created last week by the Fed/ECB/BOE/SNB is going to slash
its “borrowing rate” to essentially ZERO, essentially turning it
into another TARP facility, not just for U.S. banks, but ALL TBTF banks (not
the small ones, of course, which will be fed to the wolves).
http://www.zerohedge.com/news/rumor-fx-swap-l...cal-eurusd-trad
This too WILL NOT work, as the
problem, for the MILLIONTH time, is NOT liquidity! It is solvency, and ALL
MAJOR WESTERN BANKS are BANKRUPT! And I’m not
talking “bailout and re-organize” bankrupt, I’m talking
Lehman Brothers bankrupt, as in GONE FOREVER, including all employees and
depositor funds. Yes, the Fed and ECB will try to keep favored ones alive by
merging them into each other (ala JP Morgan/WAMU/Bear Stearns and Bank of
America/Countrywide Credit/Merrill Lynch), or even taking some onto their own
balance sheet (ala Fannie Mae/Freddie Mac), but I don’t expect ANY of
those options to work this time around, and CERTAINLY not the free-money
TARP-like bailouts with government stake purchases (a la Citigroup, AIG, and
General Motors).
The real problem is the FED’S MONEY WILL NO
LONGER BE GOOD, not to corporations, sovereign nations, and eventually to
individuals as well when hyperinflation commences in America. Moreover, if
that’s the case, certainly the ECB’s EUROS won’t be either,
yielding imminent collapse of the Euro currency in the very near future, and with it massive hyperinflation, social unrest,
and likely WAR on the other side of the pond.
Now that the Fed’s bailout powers are essentially
GONE FOREVER (and don’t be fooled when the market jumps upon it’s
IMMINENT $500 BILLION – $1 TRILLION QE3 ANNOUNCEMENT, which will this
time OVERTLY target the STOCK MARKET. From where I stand, all that will do is
advertise to the world that the U.S. has officially
become a third-world country. RANT readers should know this occurred LONG AGO from a financial perspective, but now
the rest of the world will realize this as well.
TPTB (The Powers That Be) are purely reactionary in all
matters economic, and thus swimming around frantically searching for a life
preserver. The above rumor will turn out to be true, but just like the
Fed’s “Operation Twist” announcement yesterday, will have
no impact at all, other than to make more urgent the rest of the
world’s efforts to get OUT of fiat currency and INTO REAL MONEY, i.e.
gold and silver.
Given this reactionary nature, they will now look to
the ECB’s bastardized EFSF (European Financial Stability Facility) for
salvation, a 100% PRINTED-MONEY TARP initiative to bail out ALL European TBTF
banks, whom are collectively joined at the hip via
cross-investment and layered credit default issuance. Just ONE WEEK AGO, the
Germans were acting high-and-mighty about how they wouldn’t bail out
Greece or Europe’s weak sisters (not that Germany is so strong itself),
but in the blink of an eye decided that kissing Greece’s arse had become an act of “National
Security.” Despite massive dissent among the German people, all of a
sudden its politicians strongly support expanded EFSF powers, per this
article from yesterday.
http://www.bloomberg.com/news/2011-09-21/e...schyk-says.html
TPTB will attempt to rally the market with the
“good news” that Germany’s Parliament supports such
expanded powers for the EFSF, BRIEFLY playing on assumptions that its new
“empowerment to buy
sovereign bonds in the primary and secondary market, offer precautionary
credit lines, and create a bank- recapitalization facility” will
translate to a new, TARP-LIKE, MULTI-TRILLION increase in bailout money. But
that bailout will likely never come, unless the stock market sufficiently
crashes, pushing the European banks to the brink of closing the doors. Which would likely yield a similarly hasty HYPERINFLATIONARY
STIMULUS ANNOUNCEMENT by the ECB.
In fact, I wouldn’t be surprised to see the
ULTIMATE SUNDAY NIGHT SPECIAL later this fall, when the markets open Monday
morning to the announcement of a JOINT, MASSIVE, MULTI-TRILLION TARP/EFSF
fund by the Fed, ECB, BOE, SNB, and BOJ to BAIL OUT EVERYONE WITH UNLIMITED,
PRINTED MONEY.
This of course would commence the GLOBAL CURRENCY
COLLAPSE I have warned of for so long, likely when PHYSICAL gold and silver
finally go NO OFFER, as in NOTHING available to buy
at ANY price.
Finally, I wanted to discuss the gold and silver
crashes this morning, for the most part just more of the same manipulation we
have seen for the past decade. Per my September 7th RANT,
“DEATH STAR ATTACK….”, there is not a doubt TPTB KNEW
exactly what I KNEW, i.e. the system would collapse right after Labor Day,
and thus intensified their attacks on gold and silver to levels even I have
never seen in 9½ years of watching gold and silver (of course, my
motto re: gold manipulation has long been “each day is worse”, so
this should not be a surprise). The sudden $50 gold smashes, which take place
in a matter of MINUTES, have occurred at an accelerating frequency in the
three weeks since Labor Day, and frankly the fact that gold stayed above
$1,800 and silver $40 as of last night is a tribute to their resilience. Not
to mention, premiums have clearly been expanding for PHYSICAL versus PAPER;
for example, the premium to NAV (net asset value) of the Sprott
Silver Bullion Trust surged to nearly 23% this week, and I believe such
premiums will increase further in the coming weeks.
When REAL GOLD FEVER hits, it will be 100% about FEAR,
contrary to the belief by many PM market investors (particularly those that
finally entered on the HUI breakout last week) that it will be about GREED.
That not-so-subtle issue will be the most important difference, among many
others, between the 1970s and today. Back then, the economy was troubled, but
widespread fear of a global collapse was not an issue, nor was viability of
the dollar, pound, or yen. Today, the ENTIRE GLOBAL FINANCIAL SYSTEM will
collapse, engendering the END of the 40-year dollar-based fiat currency
system. People will be buying GOLD and SILVER to PROTECT THEMSELVES FROM
RUIN, NOT to make a “profitable investment.” GOLD and SILVER are
MONEY, and before long billions of people worldwide will learn this the hard
way.
Now, back to today specifically.
Superficially, the crash in gold and silver prices
started EXACTLY, TO THE MINUTE, at 8:20 AM EST when the COMEX opened, a
typical Cartel tactic to inspire fear among gold traders and investors,
particularly, in this case, to get them to think “oh no, this is 2008
again.” Of course, that notion is silly, as both gold and silver are
near all-time highs, and both ROCKETED HIGHER in August due to the EXACT SAME
BROAD MARKET FACTORS! Worldwide recognition of GOLD and SILVER as CURRENCIES
has exploded in the past three years, and BOTH have reached ALL-TIME HIGHS
against essentially EVERY MAJOR WORLD CURRENCY.
But aside from the typical Cartel manipulation, which
has reached SPIRITUAL levels in its quest to put off commencement of the END
GAME GOLD EXPLOSION, I believe a number of European Central banks are leasing
PHYSICAL gold into the market to pay off debts, particularly those to
creditors (i.e. the Chinese) who WILL NO LONGER take Euros or dollars for
payment. No way they would actually SELL the gold and report it to the IMF,
as the citizens of those nations (France? Italy? Greece?) would
probably lynch them if they found out. So lease it they are, putting further
pressure on gold and silver prices this morning. Combine this with Cartel
NAKED SHORT SELLING of PAPER gold and silver (COMEX FUTURES, GLD/SLV), and of
course terrified traders who are long such PAPER garbage, and you get a major
sell-off.
However, I ASSURE YOU that FAR LESS PHYSICAL gold and
silver has been sold than the prices imply, and that EVERY SINGLE OUNCE is
being gobbled up by FEARFUL investors worldwide, from individuals to
institutions to Central Banks themselves, PARTICULARLY those of China, India,
Russia, and the Middle East.
If you own PHYSICAL gold and silver, your brokerage
account and bank statement is unchanged today, but ANYTHING else is
plummeting, which is why only PHYSICAL gold and silver can save you in these
darkest of times. PAPER forms of gold and silver, such as the closed-end
funds CEF, GTU, SVRZF, PHYS, and PSLV will eventually be big winners, but
only if your brokerage account survives to withstand the
2012-13 ECONOMIC TSUNAMI. As will selected PM mining stocks, once the
FEAR subsides and calm is restored. However, WHEN will that occur? And until
then, are you PROTECTED?
PHYSICAL gold and silver, FOOD, ENERGY, and OTHER ITEMS
OF REAL VALUE are the only items that matter during an economic collapse, and
the current situation will historically be remembered as the MOST
CATASTROPHIC ECONOMIC EVENT OF ALL TIME!
PROTECT YOURSELF NOW, AND I MEAN TODAY, AS WASHINGTON,
WALL STREET, LONDON, AND THE EVIL POWER CENTERS OF THE WORLD WILL NOT BE ABLE
TO STOP THE DAM FROM COMPLETELY AND UTTERLY SHATTERING.
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