This is a breaking economic and precious metals update from SGT Report.com. Andy Hoffman from Miles Franklin helps us frame up the severity of today’s global economic picture: “There is going to be nothing left that the bankers can do except create hyperinflation. That’s their only tool left. This is the end game.”
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Financial Survival Network
Wipeout Wednesdays with Andrew Hoffman:
As Andy has been predicting for months, Fed Chairwoman Janet Yellen has started doing the inevitable, walking back on future rate hikes. Right now she’s talking about slowing the rate hikes down, but as Andy has said many times before, she will soon have little choice but to start cutting rates and begin yet another round of Quantitative Easing. She’s running out of choices and she has limited alternatives. What will be the effect on gold and precious metals and will The Powers That Be lose control of the markets?
It’s Wednesday morning at 8:30 AM EST – just after Janet Yellen’s prepared remarks were released, ahead of her 10:00 AM EST “Humphrey-Hawkins” semi-annual Congressional testimony. They haven’t yet been published on Zero Hedge, although they’ve certainly been disseminated – and gold’s initial reaction was to modestly rise; which is a very good sign, as such appearances have been “key Cartel attack events” for as long as I can remember. Of course, the day’s young yet – so don’t be surprised if the Cartel attacks in the coming hours, trying to convince the world the Fed is in control, financial markets are undervalued, and Precious Metals’ year-starting surge was just a “flash in the pan.” Obviously, the “Yellen Reversal” didn’t occur; but equally obviously, the report was “incrementally dovish”; as it better have been, given global financial markets are on the verge of all-out implosion. I’ll get to the actual statement momentarily, but first let’s look at what has occurred in the past 48 hours.
On Monday and Tuesday, the Japanese stock market imploded by 8%; global banking equities plunged even more precipitously; crude oil crashed below $27.50/bbl; the U.S. dollar fell nearly 3%; and high-yield bonds plunged, whilst credit default swap rates of all kinds surged. Most importantly, the “next Lehman Brothers” – times ten – Deutschebank, fell as much as 13%, to a new all-time low. Copper is again on the verge of breaking below $2/lb; the benchmark 10-year Treasury yield plunged to 1.7%, not far from its all-time low of 1.5%; and generally speaking, market volatility has surged to ominously dangerous levels. Cumulatively, global equities are officially in a bear market; and despite tens of trillions of newly minted debt, worldwide equity capitalization is $6 trillion lower than at the 2008 top. Even the propaganda was muted amidst the carnage – with JP Morgan forecasting a dramatic expansion of European NIRP; the Australian Treasury Secretary all but admitting last month’s “strong” jobs report was fraudulent; and former (by two months) Minnesota Fed President Narayana Kocherlakota loudly reiterating his call for NIRP here in the States!
Frankly, the only “positive” news was relentless, maniacal U.S. PPT and Cartel activity –desperately attempting to put lipstick on a giant, snorting pig ahead of Yellen’s testimony this morning. I don’t usually do this, but I want you to see how desperate the PPT was to rescue equities ahead of Yellen testimony – via prototypical “dead ringer” and “hail mary” algorithms”; as well as the Cartel’s desperation to prevent gold and silver from taking out the key psychological levels of $1,200/oz and $15.50/oz, respectively – via equally prototypical “Cartel Herald” algorithms, as aggressively and often as necessary. Still, both metals have recaptured their 200 DMAs of $1,131/oz and $15.12/oz, respectively – and given the “chinks in the armor” exposed by Whirlybird Janet’s speech today; amidst an environment of surging worldwide physical demand; it’s going to be quite the chore for the Cartel to turn such support into resistance.
Oh, and one more piece of – LOL – “positive news” to discuss, validating exactly what I wrote in yesterday’s “Deutschebank on the verge of taking down the entire global monetary system.” I.e…
“From my experience, all that remains of DB’s final death throes – and potentially, the entire global monetary system – are the mysteriously floated “rumors” that all’s well; followed by vicious stock rallies, which ultimately crash back to Earth, just as oil last month’s “rumors” of Middle Eastern war and Saudi production cuts.”
Well, we got the first such pathetic “rumor” today – enabling the stock of DB, and the entire, collapsing global banking sector – to generated a likely fleeting dead-cat bounce. When – double LOL – a “German newspaper” suggested the ECB might expand QE to monetize European bank stocks. Yeah, that’ll work; just as it has for the Bank of Japan, which has bought up more than half the ETF’s on the Nikkei Exchange – and went to negative interest rates, to boot – only to watch the Yen surge, the Nikkei plunge, and Japan’s credibility implode to levels not seen in decades.
In Deutschebank’s particular case, talk about throwing good money (or should I say, cancerous toilet paper) after bad! Let alone, when combined with the other “rumor” floated today – that DB is considering the repurchase of some of its own bonds. Yes, another brilliant move! I mean, what could be dumber than using up its liquidity amidst a cascading liquidity crisis? And if the goal was to inspire “confidence” – such a moronic move, in my view, will have as much “positive” impact on sentiment as the Fed raising interest rates into an expanding global Depression!
As for Whirlybird Janet’s comments; frankly, I’m having difficult avoiding laughter, watching her desperately attempt to purport “confidence” amidst the rapidly expanding carnage – in espousing pure, unadulterated LIES like “ongoing employment gains and faster wage growth should support the growth of real incomes, and therefore consumer spending – and global economic growth should pick up over time, supported by highly accommodative monetary policies abroad.” Honestly, such blatantly self-serving propaganda holds about the same credibility as Kevin Bacon’s character in Animal House, shouting “all’s well!”
That said, the “chinks” in Yellen’s armor – or more aptly put, gaping holes – were evident for the entire world to see, when she uber-dovishly followed up the aforementioned lies with “financial conditions in the United States have recently become less supportive of growth, with declines in broad measures of equity prices, higher borrowing rates for riskier borrowers, and a further appreciation of the dollar. In the fourth quarter of last year, growth in the gross domestic product is reported to have slowed more sharply, to an annual rate of just 3/4 percent; again, growth was held back by weak net exports as well as by a negative contribution from inventory investment.”
In other words, NIRP and QE4 are coming to America – far sooner than nearly anyone can yet imagine. Frankly, I’d be shocked if the global carnage doesn’t re-commence the second the PPT’s Humphrey-Hawkins accommodation scheme ends; as all Janet Yellen revealed – in her unique version of “Fedspeak” – is that the world’s most powerful printing press is being dusted off, refurbished, and turbo-charged as we speak.
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How much clearer can I be that we are already amidst the “Big One” – with NO CHANCE of turning back? And that, barring a global PPT miracle in the next 24 hours, the answer to the question I posed on Saturday – i.e., “will Wednesday be the long-awaited Yellen Reversal?” – is decidedly YES! Not that she’ll join the ECB and BOJ at negative interest rates at tomorrow’s Humphrey-Hawkins Congressional testimony, of course. No, that will come shortly thereafter; perhaps, at an “emergency” session – in the coming months (or weeks), depending on how successful said PPT efforts are. As, per what I have shouted from the rooftops for the past three weeks, I do not believe there’s a chance the world survives 2016 without a catastrophic financial event. As if what’s occurred already isn’t catastrophic enough!
Frankly, I could have just as easily titled today’s article “Bank of Japan on the verge of taking down the entire global monetary system.” Or replaced Bank of Japan with ECB. Or, contrary to what the entire mainstream will conclude regarding the ramifications of a potential Fed rate cut, the Federal Reserve itself. As frankly, there aren’t words for the incredulity I’m experiencing watching the Bank of Japan and ECB not only dismally fail in their recent NIRP and QE pronouncements – but catalyzing the polar opposite effect of the “stability” they sought. Which is exactly what occurred when the PBOC attempted a “controlled” Yuan devaluation last summer – which I presciently forecast would be the “cataclysmic financial big bang to end all big bangs.” Not to mention, when the Fed attempted to promote “confidence” by raising rates – which I also knew would be a disaster, per September’s “only financial event as potentially cataclysmic as a significant Yuan devaluation.”
In Japan’s case, the Nikkei has been in freefall since the BOJ announced NIRP two weeks ago – with last night’s 5.4% plunge, led by the terrifyingly ominous implosion of Japan’s insolvent banking sector, making a mockery of yesterday’s afternoon’s blatant U.S. PPT “hail mary” rally. Which, I might add, still resulted in dramatic losses. Moreover, demonstrating how everything Central banks attempt now fail, the Yen has surged against the dollar; as has the Euro, as the “big three” currencies hopelessly fight the unwinnable “final currency war.” To that end, I maintain my staunch belief that the “Land of the Setting Sun” will be the first “first world” nation to experience 21st century hyperinflation; and that the “European Union” – and Euro currency as currently constituted – won’t last through the decade.
That said, Japan is but a pimple on the arse of Europe, in terms of the cataclysmic impact of its burgeoning political, economic, and social collapse. Heck, I could write an entire article on GREECE, based on the horrifying events occurring today alone. Which, as I predicted last summer, likely won’t make it through to the middle of this year without a catastrophic default of a significant portion of its €600 billion of debt; the large majority of which, is owed to Europe. To wit, the Greek stock market is down 12% in the past 24 hours alone; whilst its sovereign yields are exploding – ECB QE and all; with strikes and riots are taking place as we speak.
That sad, the credit default swap rates for Greece’s largest, soon-to-be-dead bank aren’t much higher than Deutschebank. I.e., Europe’s largest bank; the world’s largest derivatives purveyor; and the largest financial institution in the nation holding together the collapsing European Union via smoke and mirrors. Yes, the land of exploding migrancy crisis; Volkswagen “Diesel-Gate”; and an imploding political regime – in which 40% of the population is calling for Angela Merkel’s resignation; and the words revolution, anarchy, and crisis are becoming eerily commonplace.
Since the ECB engaged in NIRP two years ago – and QE last winter – things have gone from bad to worse in the Eurozone. As we speak, the entire continent is enveloped in the early stages of a financial crisis that will be MUCH worse than anything experienced in 1929, 1987, 2000, and 2008 combined. Bank stocks are down more than 25% this year alone; credit risk – via high yield bonds and credit default swaps – are in many cases already at 2008 financial crisis levels. In other words, “2008, Part II” has already started. And frankly, anyone who is NOT running to the exits right now, in my view, has a financial death wish. Or, for that matter, NOT protecting at least a portion of their hard-earned life’s savings with Precious Metals, at today’s historically Cartel-suppressed prices. Remember, during 2008, the world RAN OUT of gold and silver for roughly two months! Only this time, supply is much lower to start with; demand much higher; and the amount of printed money that will chase said scarce supply exponentially larger.
In Deutschebank’s case, its $165 billion of debt – compared to roughly $140 for Lehman before it collapsed – is dramatically understated due to its $50+ trillion of “gross notional derivatives exposure.” Let alone, its massive exposure to the PIIGS, France, and the rest of the collapsing European Union. Honestly, no one knows exactly how much Enron-like “off balance sheet” liabilities DB has. However, like Enron, Lehman, Fannie Mae, and all of the previous frauds before it, financial markets couldn’t be more “on to it.” In other words, just as was the case with early 2000s Ponzi schemes like Enron and Worldcom; and 2008’s Lehman, Fannie Mae, AIG, Bear Stearns, and others – Deutschebank’s stock, bonds, and credit default swaps are screaming imminent bankruptcy. In 2008, of course, it was screaming the same thing – but was deemed “too big to fail,” and promptly bailed out. This time around, no such salvation awaits – for Deutschebank, Alpha Bank, or hundreds, if not thousands of insolvent banks worldwide; as neither the will, nor the funds, to bail them out exists. Unless, of course, Central banks hyper-inflate; or governments “bail in”; in which, in either case, World War III will nearly certainly follow, plus civil wars, military coups, and other draconian social and government responses.
This morning, DB stock is down 4% – following yesterday’s 11% plunge – to a new all-time low. This, one day after it published an open letter to the ECB and BOJ to stop lowering rates, as it is killing their business (read: derivatives book). Which is quite telling, given that every other investment bank is practically pleading for what they erroneously believe will be “market stabilizing” rate cuts and monetizations. Moreover, as its credit default swaps have surged toward their 2008 crisis highs, not only has DB’s management – like those of Enron, Lehman, and all other Ponzis before it – put out a press release “assuring” the world of its financial stability, but sent a letter to its employees not to panic. Again, like Enron, Bear Stearns, Lehman, etc..
From my experience, all that remains of DB’s final death throes – and potentially, the entire global monetary system – are the mysteriously floated “rumors” that all’s well; followed by vicious stock rallies, which ultimately crash back to Earth, just as oil following last month’s “rumors” of Middle Eastern war and Saudi production cuts. And again, I cannot emphasize enough the contagiousness of DB’s toxic derivatives book. Which, when combined with the equally lethal balance sheets of essentially all global banks, may well set off the most devastating nuclear financial disaster of all time.
Again, I don’t know exactly how things will play out – nor does anyone else. However, the way I see it, Deutschebank is at the top of the list of potential catalysts to permanently end financial markets as we know them. And with them, the ability to protect yourself from the inevitable – perhaps imminent – destruction of history’s largest, broadest fiat Ponzi scheme.
P.S. I’ll be writing about this in more detail shortly, but please give Miles Franklin a call, at 800-822-8080, about the recently announced Canadian Royal Mint “Roaring Grizzly” .99999 fine gold coin”; and the first of its four-coin silver “Predator” series, the Cougar.
First off, the Broncos won the Super Bowl – and did so, in dominating, devastating fashion! To that end, I’ve now lived in Denver for nine years; and never, from the minute Super Bowl Sunday started, until the final toast with a gathering of friends, have I felt more a part of the fabric of my newly adopted home. Which, per the below photo, was possible only due to the magic of the “Von Miller cookie.”
To the contrary, there’s my hometown of New York. I’ll always cherish the 35+ years I lived there; however, in watching the Big Short this weekend, I couldn’t help but realize why I left. As while the principal business of Colorado is producing things –energy, technology, or otherwise – the business of New York is stealing from the masses. Sadly, the story of the Big Short – essentially, a blow-by-blow description of how collateralized mortgage obligations catalyzed the greatest financial panic in history – will be viewed in hindsight as inconsequential compared to the political, economic, and social carnage that will result from the terminal stage of history’s largest, most destructive fiat Ponzi scheme. Which in my view, commenced in most of the world over the past 12 months; and as I have shouted from the rooftops for the past month, here in the United States – NOW!
It’s early Monday morning, and gold is surging, silver is unchanged, and everything else is collapsing – from stocks, to Treasury yields, crude oil prices, and currencies. I was initially going to discuss the news that China’s currency reserves declined by another $100 billion in January, taking the total down to roughly $1 trillion in the past year alone; and the fact that, per yesterday’s “will Wednesday be the Yellen Reversal?” article, money market “betting” on the Fed taking interest rates negative has exploded.
Or better yet, this weekend’s utterly astonishing news that Europe’s largest bank, and purveyor of over-the-counter derivatives, Deutschebank (i.e., the NEXT LEHMAN), amidst an utterly imploding stock price and exploding credit default swap rate – took the unprecedented, extraordinary step of writing an open letter to the ECB and Bank of Japan to STOP reducing interest rates – claiming NIRP is destroying the system by increasing the risks of stock, bond, currency and commodity collapses. Which, frankly, is one of the most shocking pieces of news I have ever heard – as for the first time, Wall Street is admitting QE and NIRP are not “saving,” but destroying the world. And in Deutschebank’s specific case, likely igniting the fuse under its historic derivatives “weapons of mass financial destruction.” Trust me, Deutschebank is a goner – and when it goes, investors will look back at Lehman Brothers as the “good old days.”
That said, and particularly because the past 14 years of my life have been dedicated to fighting the gold Cartel, I have chosen to focus on THIS MORNING’s news that six of the world’s largest mining companies – including the world’s second largest miner, Rio Tinto – abruptly resigned their membership on the London Metal Exchange. No reason was given for why 10% of the Exchange’s “Category 5” members resigned, but I’ll bet everything I own that it has something to do with ongoing criminality in the fraudulent paper markets. Which, fittingly, may have been catalyzed by last week’s heinous “fixing” of the silver fix – in which a handful of bankers decided the day’s physical delivery price should be 6% lower than the prevailing paper price. Immediately, the world’s largest silver miner, Poland’s KGHM, loudly complained of this blatant manipulation; and after the LBMA, as usual, did NOTHING, 10% of the Exchange’s mining company members resigned their memberships a mere four days later.
In my view, this is the BIGGEST NEWS IN GOLD (AND SILVER) MARKET HISTORY – as, for the first time ever, the miners are fighting back. And given that Rio Tinto is not Precious Metal-focused, it couldn’t be clearer that the mining industry, generally speaking, suspects the paper market to be the fraud I have been shouting from the rooftops of since first reading GATA 14 years ago.
To that end, I have little doubt that this draconian, shocking turn of events will catalyze additional miners – and investors – to scrutinize said paper fraud more closely. Which, in the case of the base metals and other industrial commodities Rio Tinto focuses on, will unfortunately have no material impact on the price, given the massive product oversupply and declining demand. Conversely, in gold and silver, where demand is skyrocketing, supply plunging, and inventories vanishing, I would not be surprised if it acts as a “black swan” catalyst to significantly damage – if not destroy – the gold and silver Cartel. And with it, one of the few remaining threads of “stability” in the dying global monetary system. After all, there’s a reason why I recently deemed the rigged paper gold and silver markets the “very, very last to go.”
Which is why, more than ever, the time is NOW to protect yourself, whilst you still can. To that end, Miles Franklin has conducted business for 27 years without a single registered complaint – and can help you not only with the purchase, sale, or storage of Precious Metals, but a variety of financial planning strategies we have honed over two decades of working with gold and silver. Consequently, if you are considering the purchase, sale, or storage of Precious Metals, we simply ask you to give us a call at 800-822-8080, and allow our staff of professionals – on average, sporting nearly 25 years of industry experience – to give you a free consultation. And, as always, I can be reached via email, at firstname.lastname@example.org.
Keeping The Faith – The Paradox of Silver Supply, Demand, and Sentiment – Interview with Andy Hoffman
Today’s guest on The Silver Investing & 47Forum Presentation Series is Andy Hoffman, from Miles Franklin. Andy and I covered a range of PM topics … as well as bit of classic fiction.
Andy, if you don’t know him, is the marketing director at Miles Franklin, a full service company and brokerage specializing in precious metals for over 27 years.
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Those following me closely know I never attempt to “call” the Precious Metals bottom. Nor, more broadly speaking, when manipulative control of not just gold and silver, but the rapidly thinning veneer of “stability” the powers that be have cast over economic trends and financial markets, will be (permanently) destroyed. However, in the past three weeks or so, I have decidedly changed my tune – in no longer stating that it’s “coming”’; but to the contrary, that this point has been reached – NOW.
Said “point of no return” was reached in many parts of the world last year – as depicted by the average currency sitting near, at, or in some cases far below previous all-time lows. However, I now believe it is now here as well – in “first world” countries like Germany, England, Japan, and America – as well as “emerging markets” like China, and the entire “third world.” In other words, as I have stated countless times since year-end – and fittingly, as the Chinese calendar turns this weekend – I don’t believe there’s a chance the world survives 2016 – the “Year of the Monkey” – without a major, catastrophic financial market event. And with it, the “unspeakable horrors” – politically, economically, and socially – that go along with the collapse of history’s largest, most destructive fiat currency Ponzi scheme.
It’s early Saturday morning; and following a week of unmitigated economic and financial market carnage – ending with yesterday’s post-NFP bloodbath, when both the BLS and Federal Reserve may have finally, once and for all, lost all remaining credibility – I’m faced with the longest list of “horrible headlines” I’ve had on a single day. Frankly, I feel like Astro on the Jetsons, trying to keep up with the increasingly fast pace of the treadmill – to the point that I simply cannot alert you of all the ugly, massively Precious Metals positive news flying at us each day. I’ll continue to do my best; but keep in mind that it is no longer possible to cover everything – despite the fact that I write and/or tape a podcast every day. And trust me, that trend will only accelerate, as the “Big One” washes over the planet like none before. And likely, none that will EVER occur.
Per today’s title, Janet Yellen speaks this Wednesday on Capitol Hill, via the semi-annual “Humphrey-Hawkins” testimony the Fed Chairman is required to deliver to Congress. In the past, it was rarely utilized to introduce new Federal Reserve policy shifts – or even “leanings,” for that matter. However, in recent years, the prepared remarks of both Whirlybird Janet and Helicopter Ben have at times dramatically upset the status quo; and given not only the utter collapse of global economic activity and financial markets since the Fed “raised rates” seven weeks ago, the odds of Wednesday’s testimony containing some “unexpected” surprises couldn’t be higher. Let alone, given New York Fed President Bill Dudley’s comments last week – when he all but admitted “policy error.”
In other words, it’s eminently possible that Janet Yellen unleashes the long-awaited “Yellen Reversal” on Wednesday – particularly if financial market “stability” cannot be recaptured by the PPT, Exchange Stabilization Funds by Tuesday night. At which point, it will not only be GAME OVER for the world’s Central banks – and economies – but the gold Cartel itself. Which is clearly showing dramatic, tell-tale signs of occurring in global financial markets – and particularly Precious Metals, where gold and silver prices are surging amidst the most maniacal suppression efforts yet. Not to mention, mining shares having their strongest run since 2011. And oh yeah, the PHYS closed-end gold bullion fund’s discount to net asset value having nearly vanished; which I’ll speak more of in the future – as trust me, if it turns positive, against the Cartel’s best naked shorting efforts, “Admiral Sprott” will pull the trigger on a MASSIVE, physical gold draining secondary offering in a heartbeat!
Per above, I realize it is an impossible task to list all the terrifying, ominous events simultaneously washing over the Fed’s best manipulative efforts to ignore the reality of imminent NIRP and QE4 announcements. However, I want to list a few of the more pertinent headlines – of the past 48 hours alone – to demonstrate what Whirlybird Janet is up against; if not at Wednesday’s Humphrey-Hawkins testimony, than next month’s FOMC policy-setting meeting. Or perhaps, a 2008-like “emergency meeting” in between – most likely, on a Sunday. To wit…
- Despite the publication of every “rumor,” lie, and mistruth imaginable – from imminent Mideast war, to potential Saudi/Russian supply cuts – oil prices crashed yet again on Friday – putting them on the verge of breaching $30/bbl. Potentially, for years to come, in a development that would unquestionably bankrupt hundreds of corporations, and dozens of sovereign nations.
- Exploding social tensions in Europe, as the “migrancy crisis” resulting from crashing oil prices – i.e, the “unspeakable horrors” I predicted in October 2014 – is on the verge of tearing Europe apart.
- The utter failure of recent Central bank “hail mary” policy decrees – from the ECB, PBOC, BOJ, and countless others – to staunch the damage they created, no matter how draconian their announcements. Heck, we learned yesterday that the supposedly “most conservative” bank of all, the Swiss National Bank, has lost tens of billions speculating in the financial markets in the past year alone. First, on the collapsed Franc/Euro peg; and now, stocks like Apple.
- The utter decimation of PBOC currency reserves, to the point that it is now being predicted that China may “run out” – in terms of minimum capital requirements – by mid-year. By the time you read this, China’s January capital account change will have been published. And trust me, if it’s “worse than expected” – assuming they tell the truth – Monday’s going to be a very ugly day.
- An explosion in credit market risk the world round – in the equity, high-yield, and derivative markets; in many cases, rapidly approaching the 2008-09 crisis highs. Ironically, we are seeing a rapidly gather financial storm around some of the very “too big to fail” banks that not only catalyzed the 2008-09 crisis, but are largely responsible – with the aid of their Central banking “partners in crime” – for the hell on Earth we are about to experience. At the epicenter of what may become a 20.0 Richter Scale financial earthquake is none other than Deutschebank; which appears on the verge of fulfilling FDIC Vice Chairman Thomas Hoenig’s infamous quote of three years back – that Europe’s largest bank, and largest derivatives purveyor, is “horribly undercapitalized.”
- The complete and utter decimation of the last remaining vestiges of America’s historic equity bubble; from “FANGS,” to “unicorns,” to sundry “market darling” stocks of all kinds. And this, as corporate earnings are already in deep decline, whilst corporate debt is at an all-time high. Not to mention, company-destroying “share buyback” programs, which still rage on – despite collapsing corporate results, exploding balance sheets, and imploding share prices.
- An historic collapse in sovereign bond yields across the “first world,” as investors not only assume “QE to Infinity,” but know it’s coming. To wit, nearly half of all European sovereign bonds are now yielding negative rates, despite the continent’s imminent bankruptcy. As are Japanese government bond yields, whilst the benchmark U.S. 10-year Treasury yield has plunged to 1.83% versus 2.35% when the Fed “raised rates” in January – enroute to breaching its all-time low of 1.49% in the coming months. That is, until the “bond vigilantes” inevitably sense hyperinflation, and destroy sovereign bonds of all kinds.
- Imploding economic data everywhere, as evidenced by the Baltic Dry Index having plunged an astonishing 76% in the past six months alone, to a level way below its previous all-time low. An historic plunge, I might add, that “coincidentally” commenced the day the initial Yuan devaluation was announced - which I opined beforehand would be the “cataclysmic financial big bang to end all big bangs”. That said, it’s here in the States where the pace of economic collapse is accelerating the fastest – as evidenced by this week’s litany of horrifying reports, including yesterday’s January NFP employment bloodbath. And considering Thursday’s release of the ugliest Challenger Job Cut report since early 2009, don’t be surprised if February’s NFP “jobs” approach ZERO.
Meanwhile, as Janet Yellen’s team of taxpayer-funded Keynesian lackeys prepare Wednesday’s Humphrey-Hawkins “word cloud,” physical Precious Metals demand is exploding; whilst already scant above-ground inventories vanish, and mining production implodes. Heck, yesterday alone, even “first world” nations like Australia, Canada, and Japan saw gold priced in their respective, collapsing fiat currencies rise to within 10% of their all-time highs; whilst gold in BRICS nations like Brazil, Russia, and South Africa soared to new all-time highs again, as they do nearly every day now. Heck, even in nations where Central banks have been suppressing prices the most, prices are steadily rising – as in India, where Rupee-priced gold is now just 18% from its all-time high; and even Europe, where Euro-priced gold is a mere 24% away from its all-time high.
Whether Whirlybird Janet takes the “Yellen Reversal” plunge on Wednesday – which in my view, is entirely dependent on her cadre of market manipulators’ collective ability to stabilize financial markets by Tuesday night – is anyone’s guess. However, it’s coming as inevitably – and perhaps, imminently – as the Year of the Monkey follows the Year of the Sheep. As are the Precious Metal supply shortages that will ultimately make 2008 look like the “good old days” in comparison. At which point, you will be kicking yourself – and sitting unprotected in an imminently hyperinflationary world – for not having PROTECTED yourself when you still could. Which, I might add, is a point heavily emphasized in this must read interview with Miles Franklin’s President and Co-Founder Andy Schectman, conducted just two days ago.