It’s still Wednesday evening, but I’m confident enough in what will happen tomorrow to not only start writing before tomorrow morning’s ECB’s policy decision, but create a hyperbolic title. After all, if the past two weeks’ manic market manipulation – in today’s instance, featuring every imaginable “DLITG,” or don’t let it turn green, algorithm in Precious Metals; and “DLITR,” or don’t let it turn red, in the “Dow Jones Propaganda Average – can’t convince you that “something’s afoot,” I don’t know what will. In the latter case, the “smart money” has been selling for six straight weeks – which begs the question, who has been buying? I’ll give you a hint…the same who that is naked shorting “selling” gold and silver.
What’s so “parabolic” about the monetary madness you ask? For one, the hubristic arrogance of Richard Fisher, who retired at year-end as the Dallas Fed President. Frankly, I didn’t think he could top the despicable, reckless things he said in this January 5th CNBC interview – in which he not only admitted, but bragged of how the Fed “front-loaded an enormous stock market rally” to “generate a wealth effect.” Which, as we all now, resulted in not only the worst global Depression since…well, the Depression; but the greatest wealth inequality since feudal times, and the most egregious financial and economic bubbles. And by the way, he also said, in the same interview, that the Fed would raise rates four times this year – just before the financial markets collapsed. I’ll take the “under” on that one.
Lo and behold, he far outdid himself today – when, in as patronizing and supercilious a manner as possible, he laughed out loud whilst saying “we injected cocaine and heroin into the system, and now we’re maintaining it with Ritalin.” In other words, this sociopathic financial Frankenstein – who ironically, considers himself one of the Fed’s most “hawkish” members, is proud of the fact that he not only created history’s largest financial bubbles, but the horrific political, economic, and social ramifications thereof; which have not only negatively impacted billions of lives, but will do so for generations to come. I mean, these brainwashed, unelected Orwellians are truly becoming monsters – and the fact that they have more control over our lives than any other people on the planet should scare everyone listening into doing “whatever it takes” to protect themselves from what they will do next. Which, based on thousands of years of monetary history, couldn’t be more obvious.
Heck, we learned today that the Hungarian Central Bank now owns the Hungarian Stock Exchange – and armed with its forint-fabricating printing press, aims to do “whatever it takes” to take stock prices higher. In other words, the most egregious conflict of interest in the long, sordid history of conflicts of interest. I mean, can you imagine the Fed buying the New York Stock Exchange? Practically speaking, they do so already – in working through its “open market operations” trading desk to “PPT” stocks higher each day. However, in a world where major Central banks – like the Banks of Japan, Switzerland, Israel, and even China – have official policies of “monetizing” stocks, no hyperinflationary scheme would surprise me. Which is where we’ll likely be soon, as the New York, London, Tokyo, and all “stock exchanges” are morphed into Orwellian “Ministries of Trade.”
Thus, on an evening when the New Zealand Central bank “surprisingly” lowered interest rates; with the ECB expected to do so tomorrow – taking it deeper down the unprecedented NIRP rabbit hole – I’ll bid you good night, in advance of the “parabolic monetary madness” I anticipate tomorrow.
Well, its Thursday morning at 9:00 AM EST, and WOW, WOW, WOW! My friends, there has been no better time in history to buy Precious Metals – as not only are they more inexpensive relative to the gargantuan amount of debt, “currency,” and political, economic, financial, and social devastation that awaits us, but the COMEX “commercials” are at the tail end of what appears to be one of their biggest losing naked shorting gambits yet. Global physical inventories are down to fumes, whilst the paper claims against them are at unprecedented highs; and physical demand is so strong, that ETF’s like IAU are running out of shares! This, as Central banks go parabolic in their attempts to “win” the “final currency war,” and destroy the billions of people they are mandated to protect. Today – yes, today – represents a significant inflection point in history – not just economically, but in all aspects of the human existence.
And the scariest part is that the ECB’s “bazooka” money printing announcement – which even took me by surprise – wasn’t even the biggest “parabolic monetary madness” of the day! In other words, I couldn’t have been more prescient in my assumptions before going to bed last night – as the world’s Central banks truly went berserk in the ensuing 12 hours. Starting with the PBOC announcing – I kid you not – that it essentially plans to “nationalize” essentially all Chinese bad loans, financial and non-financial. In other words, taking onto its balance sheets trillions worth of assets as toxic – or more so – than the subprime mortgage bonds the Fed purchased through its QE1, 2, and 3 programs.
In other words, the Chinese national debt, already amongst the world’s largest (when considering that most Chinese “corporations” are government-owned), is about to go parabolic, due to one of the most irresponsible, and suicidal, Central bank actions of all time. Then again, when your neighbor is Japan, and you’ve built history’s largest bubble by pegging your currency to history’s most overvalued toilet paper, the U.S. dollar, it’s hard to be surprised. In other words, the PBOC has delivered a “final nail” into the hopelessly insolvent nation’s economy. Which, of course, can only be rectified by the inevitable delivery of the “ace up its sleeve,” which it most certainly plans to use, when all else fails. Which is, admitting how much gold it actually has, when the world simultaneously realizes the West’s (and COMEX’s) is gone.
On to Europe; again, it’s quite difficult to surprise me on the money printing front. However, I unequivocally was, when Mario Draghi decided the only way to properly destroy the Euro was to deliver the “bazooka” Richard Fisher’s “heroin and cocaine” addicted stock markets so desperately desired. In other words, with stocks historically overvalued – and equally historically “overbought” – there was nothing left to do but deliver what will likely be an ultimately lethal injection of parabolic monetary madness.
In a nutshell, here’s what the ECB delivered…
- The main Euro system refinancing rate was reduced from 0.05% to ZERO.
- The interest rate on Euro bank deposits in the ECB was lowered from -0.30% to -0.40%
- QE, exactly one year after it started, was increased from €60 billion/month to €80 billion/month. In other words, after fruitlessly spending $800 billion in year one, they are raising it to the same level as the Fed’s QE3; i.e., roughly $1 trillion/year.
- Not only will sovereign bonds be monetized, but non-financial (i.e, non-bank) corporate bonds.
In other words, they went full-bore hyperinflationary – and WOW, WOW, WOW! After an initial plunge of the Euro from 1.097 to 1.083, the Euro has – within barely an hour’s time, surged to 1.106 as I write! Not to mention, the U.S. Treasury yield curve has flattened too its flattest level since 2008 – clearly, due to surging bets that the Fed, too, will eventually lower rates to negative territory. In other words, just like the Bank of Japan before it, which saw the Yen surge after “unexpectedly” taking rates in January, the ECB’s credibility was destroyed within minutes of shooting its biggest – in many ways, “last ditch” – hyperinflationary bullet yet.
To that end, amidst a week featuring some of the most heinous Cartel capping and attacking of ALL TIME – such as yesterday’s repeated “waterfall decline” attacks; and, I kid you not, smashing gold as low as $1,237/oz when the ECB’s hyper-inflationary neutron bomb was dropped, gold decidedly rejected $1,250/oz in the same manner as it did repeatedly at the Cartel’s former, hard-core “line in the sand” of $1,200/oz – surging to $1,261 as I edit just after the NYSE opening. To that end, silver is back up to $15.50/oz, looking very much like it is about to “confirm” gold’s “golden cross” last month (50 DMA surpassing its 200 DMA), in very short order.
In other words, as I espoused in last weekend’s Audioblog, I have never been more confident that we have in fact passed the “end of the (dollar-priced) precious metals bear market.” To which, I can only add, that if you don’t do something to protect yourself from the coming nuclear salvos in said “final currency war” – and do it NOW – you may never get the chance; as not only will gold and silver inventories dry up, but production is on the cusp of plummeting.
P.S. As I was about to hit send, the last, “best” rumor of the potential OPEC production cuts I have screamed will not happen, was just shot in the heart, in being decidedly refuted by official sources. Oh, the tangled web we weave, when we seek to deceive.”