Another Monday passed, another financial market “LOCKDOWN” in front of a blizzard of “events,” which I say in quotes because they will ALL be exacerbated dramatically by simultaneous, premeditated Cartel/QE/PPT/ESF manipulation to produce the desired psychological effect. Not that I am sure they will be successful in such efforts, particularly in the silver market which could do ANYTHING as Eric Sprott seeks to source ten million PHYSICAL ounces, but you can be sure PERCEPTION management, or as Jim Sinclair would call it, “MOPE,” will be front and center, to be discussed below.
Let start with today’s (Monday’s) PM market, where the Cartel was determined to invoke one of its cardinal rules, to NEVER allow gold, silver, and the mining shares to perform well simultaneously. Actually, scratch that, as the shares now appear unable to EVER perform well. You can bet that any time a minor negative piece of news comes out, such as mild dilution from Pan American’s proposed acquisition of Minefinders, and the Cartel will be there to double up the decline to make it look much worse. That is why KGC, NEM, and HL were obliterated in the past two weeks, and why PAAS was slaughtered 12% today.
Back to the aforementioned Cartel rule, silver had a big up Friday, and thus was not allowed to strongly rise today. Conversely, gold was held Friday to modest gains while silver soared more than 5%, so naturally silver was suppressed today while gold was strong. No matter that it had a major breakout Friday, or that copper and oil soared despite a flat stock market. Gold, as always, was held to its typical grinding, CAPPED gains – with each tick challenged – while silver was smashed down each time it attempted a sharp rally (yet still rose $0.15/oz).
As you can see below, gold was higher all night, until EXACTLY the COMEX open at 8:20 AM EST, and when it had the gall to attempt a post COMEX open rally, it was stopped cold for the day at – yep, you guessed it – EXACTLY 12:00 PM EST, the “cap of last resort.”
Notice below how yet again a sharp decline was stopped cold by the PPT, not coincidentally at EXACTLY 12:00 PM EST despite not a shred of material news (unless you consider endless Greek negotiation rumors to be “news”).
After 12:00, the Dow was walked higher for the rest of the day, so the “Dow / Gold x 2” algorithm in place all morning was shut off, so that gold couldn’t it recover its losses like the Dow. I’ve seen this tactic literally DOZENS of times over the years, particularly since GOVERNMENT ALGORITHMS took over the PM sector after “D-DAY,” November 9th, 2010. I’m literally in SHOCK that the PPT allowed the Dow to fall a whopping eleven points today, but no matter, the S&P was marginally UP.
In a nutshell, TPTB have taken over ALL financial markets, causing “complacency risk” to soar. I’m still incredulous as to how ANYONE can be complacent in light of the global financial collapse unfolding before our eyes, but when I see messages from people believing themselves to be “financially savvy” such as David Schectman’s alter ego, “Backwoods Jack,” I understand. Every time “BJ” opens his mouth on matters financial, he spouts the drivel of the masses, but what is expected of someone whose hobby is shooting squirrels?
When “Jack” watches CNBC and Fox for self-validating PROPAGANDA, he is not shown the FACTS of the economy, let alone what he’d see by simply observing his surroundings. You know, inflation, unemployment, bailouts, welfare spending, exploding debt and deficits, and the inexorable decline of homes in his – and every American – neighborhood. But why care about the TRUTH when you can embrace LIES, which are so much easier to accept.
In a largely commoditized business, Miles Franklin stands out via its commitment to customer service, including client education to ensure they are informed of all factors affecting Precious Metals investments. David Schectman, Andy Schectman, and the Miles Franklin team believe strongly in the service we provide, including refutation of the relentless forces of ignorance.
I take pride in spending time sourcing esoteric movie clips to emphasize points, but this one is so easy, I feel embarrassed posting it. That said, “Jack” is wealthy enough to live comfortably, and thus can “handle the truth” more than most, which in turn could be used to help others to PROTECT THEMSELVES from the dangers closing in on them. I despise people like this, demonstrating the core selfishness of HUMAN NATURE that has brought America – and other parts of the supposedly “civilized world” – to the edge of ruin.
My job is to separate PROPAGANDA from REALITY, and shame on well-educated people like Backwoods Jack for perpetuating the world with ignorance, adding nothing to society whilst subtracting the same elements of character that made America great. To the contrary, not only is Tim Thomas of the Boston Bruins a world class goalie and Stanley Cup champion, but contributes to society by standing against the shrill babble of the ignorant masses, such as Backwoods Jack.
Of course, “BJ” is far from the worst society has to offer, as such ignorance is a dime a dozen in 21st Century America. Per the article below, you’d probably think I was citing Jonathan Lebed of the NIA as the worst offender, an arguably justified label given that he and NIA President Gerard Adams have forsaken the NIA credo of PROTECTING PEOPLE to pursue illicit profits as penny stock promoters. I cannot believe such apparently well-intentioned people, who have published some of the best economic work I have ever seen, have so quickly abandoned the NIA platform to bilk their doting readers, but then again, nothing surprises me anymore.
That said, the point I am making is that the writer of this article, “Timothy Sykes,” is perhaps WORSE than the NIA, attacking Lebed mercifully for being a penny stock promoter when he is doing EXACTLY the same thing. In fact, he is far worse, as per the language in the article, appears to be charging suckers for his penny stock advice, unlike the NIA which simply exploits the leverage of its large mailing list to move stocks.
Back to the post-PSLV silver surge, I thought you would appreciate the apparent breakdown of the uptrend in the gold/silver ratio, which has risen sharply since bottoming out at 32:1 the day before the “SUNDAY NIGHT PAPER SILVER MASSACRE” eight months ago. I cannot say what will happen in the short-run, but my bearishness on the gold/silver ratio is only matched by my bullishness on PHYSICAL gold and silver themselves!
And for those into “conspiracy theories,” an interesting coincidence regarding the timing of the Eastman Kodak bankruptcy last week. Apparently, EK consumes nearly as much silver each year as PSLV is sourcing with the $349 million of proceeds from its equity offering, which many – such as myself – believe may not be available despite what Sprott has been told. There will likely never be a way to connect these two events, but then again there was no way of connecting the “too early” sale of Warren Buffet’s 130 million ounces of silver in 2006, precisely when the fraudulent SLV ETF commenced operations with an inventory of – get this – 130 million ounces!
As for the perfect storm of typical Cartel “gold smashing events” necessary to impact investor PERCEPTION, this week’s “fearsome foursome” will tell us a lot of how strong the PHYSICAL market actually is, particularly with “ADMIRAL SPROTT” in the market sourcing ten million ounces. Today (Monday), we had the so-called “Greek debt negotiations deadline,” which for the umpteenth time failed.
The hyped “50% haircut” deal from late October has now degraded to proposals of 80%+ write-offs, to which I ask “what’s the point?” Greece, with its 450%+ sovereign yields, is beyond toast, yet somehow the global PPT has been able to delay the day of reckoning for a few months. Rest assured, Greece will return to the spotlight, the gods on Olympus frowning as the world’s first great civilization turns to ashes. And when it does, the FRENCH banks with huge exposure to Athens will be the first dominos to tumble.
On Tuesday night, we have the top PROPAGANDA speech on Earth from the biggest liar in America, the “(MISERABLE) STATE OF THE UNION,” followed by further dovish comments from the FOMC on Wednesday, another COMEX gold options expiration date on Thursday, and of course an uncontested, undebated $1.2 TRILLION increase in the U.S. national debt on Friday, to $16.4 TRILLION.
As for now (Monday night), it’s time to prepare dinner and watch a few hours of TV before tomorrow’s battle begins!
Tuesday morning, and the same old, same old. I walked into the gym to see Dow Futures down a whopping 50 points, and despite having been up something like 19 of the last 20 days, Zero Hedge can’t help put out the same moronic “risk off” headlines, a ridiculous, amorphous catch-all phrase to explain any time any market goes down. As I watched the Dow / Gold x 2 algorithm in full force – wherein PAPER gold falls 2x the rate of any tweak down in Dow Futures, but rises at half the rate – I smirked at how good I have become at predicting the tick for tick action of these GOVERNMENT COMPUTERS in the thin pre-market PAPER action.
As has been the case during the past month’s market and media LOCKDOWN, very little news was discussed on financial websites and TV, no matter how bad. Apparently the “EU finance ministers” approved the European Stability Mechanism, or ESM treaty in a shady overnight vote reminiscent of the Christmas Eve 1913, sparsely-attended Congressional vote that ratified the unconstitutional Federal Reserve. Perfect timing, as due to the aforementioned global, mental LOCKDOWN, we could probably bomb Iran without drawing a significant media – or Dow Futures – reaction.
The big question, of course, is why such a hurry to empower the ESM (scheduled for July 2012) if it is completely toothless? Its predecessor, the largely impotent European Financial Stability Fund, or EFSF, was unable to leverage its limited funding, forcing the ECB to “save” Europe with pure MONEY PRINTING via its own “LTRO” mechanism and the Federal Reserve’s “swap facility,” downgraded by S&P before it even issued a cent of its own debt.
Of course there’s a reason, revealed in all its glory in the four-minute video embedded within the below link. In essence, the ESM is being utilized to commandeer Europe, much as the Federal Reserve has in the United States. Essentially, it concentrates financial power into the hands of a handful of centralized “elites,” mandated to act on the behalf of the ‘good of the continent,’ with ZERO input or regulation from individual nations.
Considering two former Goldman Sachs honchos were just installed – without election – as Prime Ministers in Italy and Greece, you can see what direction Europe is going. In other words, sovereign rights in Europe are about to go the way of States’ rights here in the U.S. – to the BANKERS. And with them, the voices – and wealth –of tens of millions of people.
Off topic, if I see one more article about Greece’s bleeping debt default negotiations, I’m going to seriously vomit. How the ISDA considers Greece – that of the 450% yielding government bonds, which have lost 70%+ of their value – to still be solvent, is beyond me. But then again, per the commentary above about the conspiracy to commandeer Europe’s finances, and global willingness to be lulled into mental LOCKDOWN, I guess nothing is impossible.
Of course, for how long can the markets, and people, remain quiet when their capital, livelihoods, and lives are being stolen from them?
As for gold’s absolute action this morning – as compared to its relative action via the Dow / Gold x 2 algorithm, not surprisingly we already have a 2-for-2 day. Up all night in Asia, then smashed at EXACTLY 3:00 AM EST while the Dow Futures barely budge, and again at EXACTLY the COMEX open at 8:20 AM EST. Then again, silver is only down $0.15 as I write this commentary, yet again THREATENING the Cartel’s best attempts to control market perception, care of “ADMIRAL SPROTT.”
As I noted earlier, between the tense Greek debt negotiations today, the (MISERABLE) State of the Union speech tonight, FOMC meeting tomorrow, COMEX options expiration Thursday, and $1.2 TRILLION debt ceiling increase Friday, the Cartel will likely be in rare form all week.
Particularly, keep your eyes on gold in the ensuing minutes following the Fed’s rate decision tomorrow at 2:15 PM EST. My guess is they say the same thing as always – i.e. rates at zero until at least mid-2013, continuing to examine stimulus options, etc. – and that gold is initially allowed to drift up to bring in suckers before a big PAPER attack. This is their most common post-FOMC tactic, utilized in the same manner as their oft post-NFP report attacks.
Don’t worry, I’m not concerned about lasting effects, just pointing out short-term Cartel tactics to expose them further. I hope I’m wrong, and very well could be given the explosive PM fundamentals and lurking economic dangers. Remember, this summer gold and silver SOARED while stock markets plummeted, asserting themselves as the SAFE HAVENS they have been for the past 5,000 years, and will be for the next 5,000.
PROTECT YOURSELF, and do it NOW!
Nothing makes me happier than a RANT topic served up on a “silver platter,” and tonight’s State of the Union address provides the perfect fodder. No better way to draw attention than with shock value, so here’s a gem of a timely headline, care of the most useless, bloated, right-stealing agency in the U.S. – the TSA.
Yes, an esteemed Senator is being held because the TSA won’t accept his word that he is not carrying a bomb in his pants leg, probably because his father is Ron Paul, by the way. The clownish U.S. government makes my job too easy, plumbing new depths each day, as it plunges faster toward its ultimate end, the “Davey Jones” locker of oppressive, bankrupt, ruling bodies.
Son of Ron Paul or not, I feel little sympathy for Rand Paul, who ultimately will be released, apologized to, and treated to additional privileges in his role of taxpayer-funded bureaucrat. As for “average Americans” not lucky enough to be Senators, not only do I sympathize with how the TSA is likely to treat YOU, but I may soon have to empathize as well.
As for the “State of the Union” itself, I am quite confident it has NEVER been worse, and sadly that today’s state of decline will shortly be remembered as the “good old days,” following the ultimate collapse in social, economic, and political equilibrium following the dollar’s loss of its “world’s reserve currency” status. Tonight’s annual PROPAGANDA report will be the same veritable puke-fest as always, a tribute to the art of flat-out LYING while an obviously bipartisan crowd cheers. Obama’s lucid “speechifying” is growing tired on the oppressed, distressed public, and simply saying “mark my words” or “you can take that to the bank” is falling on deaf ears, just as it did with George Bush and countless fraudulent “leaders” before them.
Per the below article, American’s state of “dissatisfaction” has never been higher, a TREND steadily worsening since the “U.S. peak” at the turn of the Century, care of the Greenspan-inspired MONEY PRINTING that brought us the doomed technology and real estate bubbles.
Per the chart below, we are talking about GARGANTUAN declines in all aspects of Americans’ views of their nation, from its financial strength (13% satisfaction compared to 68% in 2001), moral/ethical climate (28% satisfaction compared to 36% in 2001), and government growth (29% compared to 50% in 2001). These are extremely alarming trends, matched only by the rapid decline in Presidential approval ratings.
In last week’s RANT, “FIGHT NIGHT – RANTING ANDY,” I discussed the rapid deterioration of America’s “moral/ethical climate.” However, per the chart above, note that it was already at extremely low levels in 2001, as the rot of a welfare society with declining disciplinary standards has been wearing on this once great nation for some time.
As for Presidential approval ratings, it should be quite clear how easily they can be manipulated for short-term gain, despite the horrific long-term consequences of such actions. Note above the surge in Americans’ views of the nation’s “moral/ethical climate” and confidence in the “size and power of Federal government” in 2002, even while its views of the “state of the economy” plummeted, just before the U.S. unconstitutionally invaded Iraq under false pretenses.
Next take a look at the excellent graph in the below article, charting Presidential approval ratings over the past 65 years. Notice how the largest spikes occur when the nation ATTACKS other nations, including dropping the annihilation of Hiroshima and Nagasaki (Truman, 1945), Cuban Missile Crisis (Kennedy, 1962), Gulf of Tonkin Incident (Johnson, 1964), “Operation Desert Storm” (Bush I, 1990), and “Operation Iraqi Freedom” (Bush II, 2003).
The “patriotism” engendered by military attacks – based on lies or reality – quickly wears off, and in the case of Vietnam and Iraq, the negative ramifications are often pervasive, enormous, and long-term in nature. Obama’s 49% approval rating has a long way to go before it hits the ALL-TIME LOW of 19% achieved by George Bush as he left office in 2008 (although it has been as low as 37%), but his 44% average approval in the third year of his presidency was the second lowest third-year rating since at least 1955, with only Jimmy Carter in 1979 below him on that notorious list.
Using deductive reasoning, it would be a pretty reasonable assumption that an attack on Iran, vilified for years as our mortal enemy despite having done nothing to earn that description, is being planned as we speak. I can only HOPE the American public wakes up to the EVIL being perpetrated on it by its leaders, but based on the alarming data above regarding public support of WAR, a decade of brainwashing that the Moslem religion is America’s “enemy,” Obama’s weak approval ratings, a nation in economic, political, and social turmoil, and an historic Presidential election upcoming in November, my HOPES are likely to be disappointed.
As for tonight’s vile display of blatant deception from a puppet simpleton, commentated on by hordes of politically-biased dolts, on networks mandated to fool the masses in pushing their own selfish agendas, I will not be watching. I do not think there is anything I wouldn’t prefer to watching Obama speak, and hopefully you feel the same.
Moreover, I couldn’t be more certain he will espouse how great America is doing, with a few “our lord” references thrown in to convince people he is religious, or “folks” references to convince people he is one of them. Just as certain as gold’s attack tomorrow morning to “validate” Obama’s filth, yet another of the myriad events on the Cartel’s list as “must smash gold” events.
However, If there is ONE reason to watch him speak tonight, it would be to see – in person – how low the U.S. government has sunk, and how much lower it is on course to plunge. If that doesn’t inspire you to PROTECT YOURSELF from what’s coming, I don’t know what will!