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How fitting that on the day our President is about to nominate the man who “wrote the book” on gold manipulation as Fed Chairman – i.e., Gibson’s Paradox and the Gold Standard, Colorado is receiving more rain than at any time in its long, drought-filled history.  Moreover, PMs are in the final stage of yet another Cartel-orchestrated attack; in this case, taking them down by the comical amounts of 9% and 15%, respectively, in just two weeks.  TPTB’s desperation has never been more apparent; as it should be, given the powerful supply and demand fundamentals that promise to strengthen with each passing day.  And thus, it shouldn’t surprise you that COMEX registered gold inventories plunged by another 3% yesterday, bringing the cumulative decline over the past five months – i.e., since April’s “ALTERNATIVE CURRENCIES DESTRUCTION” – to an astounding 77%.

As for PM production, I recently predicted that this year’s Cartel PAPER raids – amidst an industry already in dire financial condition, following five years of relentless price suppression, cost expansion, and taxation issues, would cause global PM production to decline 15%-25% in the coming three to five years.  Well, if you don’t want to believe me, that’s fine; but perhaps you’ll believe “ADMIRAL SPROTT”; who just yesterday stated his belief that gold production this year could decline by 5% compared to last year; i.e., back to levels last seen in the year 2000.  If this is the case, it would be quite a shocking turn; as it was just eight months ago when gold was $1,700/oz.  In other words, the financial strain on the dying mining industry is so powerful; it needed to dramatically retrench following just a few months of prices trading below the cost of production!  This is why PM mining stocks have been the world’s worst investment for the past five years, and why in early 2011 I left them forever – for the dramatically more favorable risk/reward profile of the metal itself.

Amidst intense – and in this case, completely unprovoked – Cartel attacks, I want to make sure readers understand what’s really going on.  At Miles Franklin, our goal is to arm you with the TRUTH – to empower you to protect yourself from what’s coming.  And honestly, even I, in eleven years of PM watching, have never seen the Cartel attack “at will” – that is, without even the slightest PM-negative news (as if there ever is).  That is, unless you consider Assad countering the proposed Syrian chemical weapon deal with untenable demands “PM-negative”; or, for that matter, freefalling Italian housing prices; surging crude oil; weak consumer demand; or ominous employment trends.  And no, it doesn’t matter a whit if the Fed announces a “token taper” next week – as whether they overtly monetize $75 billion or $85 billion of bonds each month is completely meaningless; particularly when they covertly purchase far more than we are aware of.  Think of how hard the Treasury market has tanked since they simply hinted they “might” taper in June; and then, consider WHO will take up the slack given that the world’s two largest holders – China and Japan – have become aggressive sellers.

Hence, the Fed’s unprecedented desperation to generate “all’s well” signals via a stabilizing Treasury market; such as, for the second straight day, it being miraculously “rescued” by a strong auction, just as it was starting to tank.  I mean, can you imagine ANY market having a successful auction after plunging to multi-year lows?  Anyhow, it was all for moot; as just as in the PHYSICAL PM market, where the harder the Cartel pushes PAPER prices down, the more rapidly PHYSICAL inventories are drained, the Fed-orchestrated post-T-bond auction “surge” was rapidly sold off; yet again, causing Treasuries to close at the day’s lows.

No, Larry Summers won’t be able to save the day; and no, Twitter’s IPO will not change the world (perhaps it can be the “next Facebook”).  The damage is already done; and thus, NOTHING can turn the tide of 42 years of unfettered, global MONEY PRINTING – which as I write, has entered its final, terminal phase.  The “death throes” those that seek to PROTECT themselves have been forced to endure this year have been violent; but for those simply holding PHYSICAL gold and silver, sleep well, for you are indeed protected from the historic financial storm heading our way.

To conclude for the week, here’s the latest email from my new contact in India.  Pretty scary; and sadly, representative of what the world at large is on the verge of experiencing…

It gets better with the Indian government.  We have just dug ourselves a grave, and it is going to get worse.  We have just passed a food bill promising subsidized rice and wheat at three Rupees/kilo.  I cannot even convert this into dollars (readers, it equates to about $0.02/lb, compared to worldwide rice and wheat prices of $15/lb and $7/lb, respectively).  Where on earth can you get anything at such rates?  There are going to be massive current account deficits, so I am expecting the rupee to have an even bigger decline.  Also, our new Reserve Bank of India governor has decided on Currency swaps with seven countries, which should worry you guys more than anything.  Guess who is the governor?  Raghhuram Rajan, ex-chief economist of IMF.  He will carry out IMF instructions from now on, I guess.  I don’t know if NWO exists or if it is true, but it seems they put IMF, World Bank, and Goldman Sachs guys in every country.