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PHYSICAL GOLD and SILVER will be the only “financial assets” to rise in this environment

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In nearly all cases, I come up with a premise and fashion my RANT around it. I was all ready to write about the silly term “RISK OFF” this morning, a term synonymous with the mindless, computer-generated ALGORITHMS that have DESTROYED American capital markets. As I’ve written exhaustively for some time, the MAJORITY of such algorithms are emitted from GOVERNMENT COMPUTERS; Thus, essentially, the government CREATED the definition of RISK OFF, which apparently means gold and silver are the riskiest assets on earth, and U.S. Treasuries the safest. At this LATE STAGE of global economic annihilation, the financial equivalent of the War Games construct GLOBAL THERMONUCLEAR WAR, the ONLY tool left in America’s arsenal is to PRINT MONEY, MANIPULATE MARKETS, and PRAY for a miracle. But that miracle won’t come, and shortly the modern world will understand the cycle of misery and hardship experienced by countless generations across history.

The reason for changing my topic mid-stream was, obviously, the global meltdown that commenced yesterday afternoon and is gaining momentum this morning, like a speeding locomotive. Mind you, NOTHING positive has occurred in the two months since GLOBAL MELTDOWN II commenced (sending bank stocks to all-time lows and gold to all-time highs), just the aforementioned MONEY PRINTING, MARKET MANIPULATION, and PROPAGANDA to stave off the masses. The financial horrors that nearly destroyed the world in GLOBAL MELTDOWN I are DRAMATICALLY WORSE today, and will be DRAMATICALLY WORSE tomorrow, and the next day, and the next day. I read yesterday that “fortunes will be made and lost in the chaos”, but only part of that statement seems realistic. Yes, PHYSICAL gold and silver will rise to, potentially, EXPONENTIAL levels, but such “fortune” will likely only be enough to keep you solvent in the post-fiat era, an era of financial stress not experienced since the Great Depression. Of course, the U.S. was a strong nation during the 1930s, with little debt, a trade surplus, industrial leadership, a gold standard, and just 120 million citizens. Today, it has been gutted of all industrial prowess, is the most indebted nation on earth, has a fiscal deficit approaching $2 Trillion per annum, 3x as many citizens, and, soon to be learned, NO GOLD.

To long-time readers, what I am writing is nothing new. I am a REALIST, and unfortunately for my critics have been correct about EVERY major macroeconomic call for the past decade. I am not brilliant by any means, but have the rare ability to ignore the LIES so readily accepted by the masses. HUMAN NATURE dictates that evil neither be spoken nor heard, but unfortunately it has a REAL impact on lives, causing death, despair, and despondency.

I say THIS IS NOT A GAME because, even on the EVE OF DESTRUCTION, people are still looking to PROFIT from what is coming ahead, as opposed to PROTECTING what they have. Not just the lemmings, who have no idea what’s coming but listen to TPTB tell them “solutions are coming,” but other REALISTS who understand that major, historic changes are about to occur. They still think in terms of “bargain hunting”, “investing strategies”, and, of course, the great internet-like bull market in mining shares that’s guaranteed to occur.

They don’t realize that ANY AND ALL such “strategies” are doomed to fail in this environment. Asset deflation is guaranteed (certainly in REAL terms), as is heightened market manipulation, surging unemployment, bankruptcies, and foreclosures, and of course government intervention into all aspects of your life, including increased taxes, regulation, and nationalization, and reduced personal rights. A reader vehemently wrote me yesterday how the Tea Party will save America, demonstrating yet again how humanity seeks to IGNORE the real issues, but instead create “champions” and “villains.” America has been destroyed by a long-line of politicians, lawyers, and bankers over many decades, and nothing short of Superman has a chance in hell of saving it. Not that America will disappear, just the dominant, powerful America that has been a global superpower for the past century, boasting the highest standard of living in human history.

No, THIS IS NOT A GAME. This is the time to finally RECOGNIZE the world is about to enter the “Greatest Depression”, one which will last for many years to come and end with less people than it started. For every “fortune made”, a million fortunes will be lost, and during this period humanity will realize its essence, the quest for survival and peace, not materiality. REAL ITEMS OF VALUE such as gold, silver, and food will become the most sought after items, and iPhones, Wii’s, and HD televisions forgotten. Happiness WILL be found by those who, first and foremost, seek to PROTECT themselves, and misery by the millions that did not, or could not.

As the market opens this morning, I look below this text at yet another 30 “horrible headlines” from the past 24 hours, many of which occurred since I woke up.

To start, I cannot emphasize enough my DISGUST at the VILE, previously unknown firm MF Global. I had heard of the venerable Man Financial, the nearly 250-year old British firm from whence MF was bastardized, but not MF Global, a Frankenstein-like derivatives ghost cast onto the markets to STEAL taxpayer funds, destroy corporations, municipalities, and nations, and partner with the U.S. government in its schemes of global conquest.

MF Global, run by one of the most despicable men on earth, represents ALL that is wrong with America, and what has ultimately destroyed it. It exists in the global finance “shadow world”, home of dark pools and other notorious trading and accounting frauds. It is deemed by Wikipedia to be a “global derivatives broker,” yet was also a primary dealer of U.S. Treasury Securities. To me, it sounds like John Corzine’s evil creation was nothing more than a Federal Reserve/U.S. Treasury slush fund, and I don’t believe for a SECOND it is going BK due to “exposure to European sovereign bonds.”

http://en.wikipedia.org/wiki/MF_Global

John Corzine was a CEO of Goldman Sachs, the most evil company in history, and governor of New Jersey, where he helped destroy its finances while living the high-life from his ill-begotten Goldman profits and the New Jersey taxpayers. In the process of losing to Chris Christie in the 2009 election, he spent more time calling Christie “fat” than discussing politics….

 

Too Fat? Corzine Attacks Christie's Weight
Too Fat? Corzine Attacks Christie’s Weight

…and apparently set up a $12.1 million (so precise) “golden parachute” in the event of MF’s bankruptcy.

http://www.zerohedge.com/news/did-jon-corzine-just-get-121-million-golden-parachute

Even in bankruptcy, the firm REFUSES to disclose to regulators what its books look like…

http://www.zerohedge.com/news/panic-behind-mf-scenes-company-refuses-disclose-information-regulators-even-death

…potentially because it was embezzling its clients funds, and potentially (my speculation) due to its MASSIVE derivatives exposure, which could commence a daisy chain of MASS FINANCIAL DESTRUCTION…

http://www.zerohedge.com/news/someone-going-jail-mf-global-caught-stealing-hundreds-millions-customers

As usual, the rating agencies had it all wrong, issuing strong credit ratings until the very end…

http://www.zerohedge.com/news/presenting-current-mf-global-ratings-moodys-sp-and-fitch

…while Wall Street pulled its typical “Bear Stearns is fine” while Rome burned…

http://www.zerohedge.com/news/dick-bove-goes-post-lehman-twofer-mf-global-fine

Will this slimy, likely government-connected derivatives firm be the next “Lehman Moment” for the global financial system? I guess we’ll see soon, won’t we?

Of course, that was YESTERDAY AFTERNOON’s news, which is NOTHING compared to what we are seeing TODAY.

To start the Asian day, a key Chinese manufacturing index fell to its lowest level since the BOTTOM of GLOBAL MELTDOWN I, clearly headed still lower while “pundits” continue to state China is immune to the Western financial crisis. Earth to Wall Street – it isn’t!

http://www.zerohedge.com/news/china-manufacturing-pmi-drops-32-month-low

In Australia, where the Central Bank has been praised for its stance on inflation, a new cycle of rate cuts started this morning, and I assure you it will only pick up steam…

http://www.bloomberg.com/news/2011-11-01/australia-central-bank-cuts-key-rate-to-4-5-in-first-reduction-since-2009.html

In the U.S., the ISM New York Business conditions index PLUNGED to its lowest level since, yep you guessed it, the BOTTOM OF GLOBAL MELTDOWN I…

http://news.tradingcharts.com/futures/4/5/167499154.html

…while in Russia, markets were just HALTED for an as yet unstated reason…

http://www.zerohedge.com/news/russia-halted

…and I won’t even talk about Japan, where yesterday’s MASSIVE currency depreciation nearly rivaled the Swiss National Bank’s from just two months ago…

http://www.zerohedge.com/news/welcome-latest-peg

The real story this morning, of course, is EUROPE, which appears just WEEKS from TOTAL ECONOMIC COLLAPSE. The contagion is no longer a cancer, but EBOLA, the most deadly, contagious, potent virus known to man.

In Greece, all-out political civil war emerged overnight, following PM Papandreou’s suddenly announced referendum to vote on last week’s European bailout plan. I cannot write this RANT fast enough, as mid-sentence it looks like Papandreou’s party majority is gone, potentially yielding his ouster later today, and with it, COLLAPSE of the Greek government…

http://www.zerohedge.com/news/there-goes-greek-majority

http://www.zerohedge.com/news/emergency-greek-cabinet-meeting-4-pm-local-early-elections-referendum-be-discussed

Meanwhile, CDS spreads in Europe are EXPLODING (hey ISDA, is this a “credit event?”), particularly in Portugal, which looks set to become the next Greece within weeks, and ITALY, the third largest economy in the EU and one of the most highly indebted nations on earth…

http://www.zerohedge.com/news/greece-sends-global-markets-tailspin-again-european-cds-spreads-demand-another-bailout

As I write, Italian sovereign bonds are in FREE FALL, threatening an all-out collapse DESPITE non-stop ECB purchases of these “dead man walking” bonds…

http://www.zerohedge.com/news/goodbye-9-handle-btp-collapses-895-down-43-day-next-bidless

Worse, the GERMAN stock market is down 5%, and GERMAN sovereign “bunds” amidst their largest single-day decline EVER…

http://www.zerohedge.com/news/10y-bund-yields-drop-5-standard-deviations-most-ever

Of course, it only took just DAYS for the HALF-LIFE of the European Bailout plan (the title of my RANT from just TWO DAYS ago), to be reached…

http://www.zerohedge.com/news/euro-bailout-halflife-48-hours

…while the UNINTENDED CONSEQUENCE of granting Greece a debt write-off is the OTHER PIFIGS will want one, too; and, sure enough, Spain, Ireland, and Portugal are whining for bailouts as well…

http://www.zerohedge.com/news/three-out-four-spain-joins-ireland-portugal-gun-its-head-demanding-concessions

Readers, I will continue to RANT that THIS IS NOT A GAME until each of you take steps to PROTECT YOURSELVES from the financial collapse that is coming SOON.

PHYSICAL GOLD and SILVER will be the only “financial assets” to rise in this environment (at least in REAL TERMS), but the real secret of gold and silver is that they are NOT financial assets, but MONEY. They are the only items on earth that have ALWAYS fit the DEFINITION of money, and always will. Dollars, Euros, and Pounds are the ANTITHESIS of money, as the world will soon learn.

Please consider long and hard the risks you take holding money in INSOLVENT BANKS earning nearly ZERO INTEREST, particularly CD’s which additionally FREEZE YOUR ASSETS. Stocks are a loser’s game, bonds a catastrophic nightmare, and real estate indescribable with a few adjectives.

PROTECT YOURSELF, and do it NOW!

 

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