It’s Friday morning, and for those worried that yesterday’s $4 billion “sell” of unbacked paper gold – nearly twice the COMEX’s registered physical inventory; and this morning’s equally egregious COMEX-opening raid, symbolize a change for the worse, fear not. Clearly, the 200-week moving average and 5½ year downtrend line wars are not over – as I assure you, when they are inevitably breached, to the point that traders feel confident in the trend change’s “legs,” the breakout will be extremely powerful.
As recently as Wednesday afternoon, three of the four breakouts were completed – albeit, barely so in two of the three cases; with the fourth, silver’s 200-week moving average – of $17.76/oz – within three cents of completing the “breakout superfecta.” This is why, despite the ECB policy statement being dramatically more “dovish” than anticipated – to the point that, I scripted “Goldman Mario takes Central bank credibility to an all-time low – and gold Cartel vulnerability to an all-time high” – the aforementioned, brutally blatant Cartel raid was perpetrated.
Clearly, yesterday’s Comey “nothing-burger” had been “discounted” well in advance – as not only did multiple insiders leak that he’d say nothing damning, but his prepared remarks were released a day earlier. Which, I might add, had zero impact on Precious Metals when they were released, as they rightly should not have. As for last night’s “shocking” UK election result, I fail to see exactly what’s so shocking about it; and even more so, why any objective investor would sell Precious Metals as a result – which they didn’t, given that gold and silver were just modestly lower until…drum roll please…the COMEX opened, many hours after the results were known. And as I’ll prove shortly, the market “reaction” has nothing to do with fundamentals, and everything to do with the “defense” of the Cartel’s “ultimate lines in the sand” – at silver’s 200-week moving average of $17.75/oz, and gold’s 5½ year downtrend line at $1,274/oz. Please note, silver is still well above its 5½ year downtrend line breakout level of $16.30/oz, whilst gold is still well above its 200-week moving average of $1,240/oz. Thus, despite the past two day’s Cartel monstrosity, the wars are, irrespective, half won already!
However, before I get to my take on the UK election, I’ want to drive home the point of how reliant “markets” have become on the historic manipulation that, in creating “dotcom valuations in a Great Depression Era,” have set the stage for global catastrophe; as no matter how hard they try, history’s largest, most destructive fiat Ponzi scheme must inevitably yield history’s worst, and most overdue, financial crisis.
To do so, I’ll start by bombarding you with the past 24 hours’ PiMBEEB headlines –to empower you to realize historically rigged markets are masking the worst global economy of our lifetimes; as well as the highest political and geopolitical instability since World War II; and the most hyperinflated monetary base in global history. Such as…
Mexican industrial production crashes 4.4% in April, biggest plunge since 2009
Credit Card defaults surge most since financial crisis
Catalonia sets October 1st date for final secession referendum
Crude oil crashes to $45.50/bbl – is $50/bbl still realistic?
Bank of Canada says default risks spilling over into uninsured mortgage market
Coming soon – the mother of all debt crises
Chart of the Day – Real hourly wages are unchanged from 50 years ago
Household wealth has never been higher relative to income (check out this terrifying chart)
Household debt back at record high, after nearly a decade
BMO warns “this is the beginning of the end for junk bonds”
China recession looms, as yield curve inversion deepens
Morgan Stanley warns of “unprecedented buyers strike,” slashes auto sales forecast
Home flippers’ reliance on leverage rises to highest level in nine years
Banco Popular ushers in “Bail-in Era” for Europe’s banking crisis
“Worst Since Lehman” – the state of the US Consumer, in one dismal chart
Q2 GDP to suffer, as April wholesale inventories plunge
Next, proof that only Central bank monetization – the “tip of the iceberg,” compared to what they are monetizing “off balance sheet” – is preventing; or better put, temporarily delaying; the worst financial crisis in history. Starting with these charts, depicting how only the highest level of global QE in history is supporting stock markets – particularly since Donald Trump’s “BrExit times ten” election victory. Or, more accurately, mega-caps like the “FANGS” – given that the S&P’s other 495 stocks are no higher than in mid-2015. Clearly, “mystery buyers” like the Swiss National Bank are the real reasons stocks have risen – as opposed to the actual fundamentals, which couldn’t be worse.
Followed by this chart from an article whose title, “nothing else matters, Central banks have monetized a record $1.5 trillion year-to-date,” requires no further comment. And last but not least, the bubble-mania chart to end all charts; of the market capitalization of Tesla – a money-hemorrhaging, government-supported, small scale manufacturer of a product the world has little need for anytime soon – exceeding Ford, GM, and BMW, to become the world’s fourth largest automaker.
That “housekeeping” complete, let’s move on to the UK election; in which, the ruling Conservative Party, led by Prime Minister Theresa May, failed – barely so – to maintain their Parliamentary majority. Yes, it was shocking, in that no one expected the Conservatives – a/k/a Tories – to lose their majority; particularly as it was young Britons who drove the result. This, despite, as a group, having been more negatively impacted by the status quo than any other. However, May will likely remain Prime Minister, as she appears to have formed a coalition with a lesser party. Which, combined with the Conservatives, will in fact form a majority. Consequently, I can’t see a reason why the BrExit won’t go forward as planned.
In the vote’s aftermath, nearly all “fake news” commentary suggested “chaos” will ensue – as with the BrExit negotiations scheduled to start later this month, they suggest a “hung Parliament” will be too bogged down in debate to effectively negotiate. And yet, British stocks were up sharply today; as were, with the usual PPT-support, European and American stocks. Yes, the Pound is down sharply; but the Euro only modestly so, resulting in a dollar index, contrary to the propaganda in this morning’s MSM, up a whopping 0.02%.
In other words, as was the case with James Comey’s widely expected “nothing burger”; and certainly, the ECB’s “surprise” dovishness; there’s not a logical reason imaginable why Precious Metals would decline; let alone sharply, amidst the aforementioned tsunami of PiMBEEB headlines, both today and yesterday. To the contrary, the only “meaning” to be taken from the UK election result is that, like the French election result last month, there’s still plenty of fight in a status quo that is destroying the world at an accelerating rate, yielding relentlessly weakening economic activity and fiat purchasing power; whilst debt, social unrest, geopolitical tensions, and policy uncertainty balloons exponentially higher. Which last I looked, were the very reasons Precious Metals have been so popular for several millennia of human existence.
Taking the farce of the past two days’ Cartel attacks further, consider that the media is so clueless of Precious Metal manipulation, Kitco’s top “analyst” claimed gold was “pressured by…a weaker greenback”; whilst simultaneously, Reuters reported “gold slipped as UK election surprise benefited the dollar.” Which as comical as it is sad – and paradoxical – has been standard operating procedure for the mainstream media for the past 15-plus years. Not to mention, the fact that in the wake of last year’s equally shocking BrExit referendum – suggesting a polar opposite political trend to that of yesterday’s election – the dollar rise sharply, whilst gold rose far more so. Heck, the Pound plunged in both cases – first, due to fears of the ramifications of secession from the European Union; and now, that the BrExit will be delayed? In other words, not only are “markets” historically rigged, but today’s “trading” doesn’t suggest much, if any, “ramifications” of the election, despite the “chaos” suggested by the “fake news” media. Like, say, the media’s obsession, to the point of hysteria, with Trump’s non-existent “collusion” with Russia.
In reality, the UK election result will have essentially zero material impact on a worldwide political, geopolitical, economic, social, monetary, and military environment as troubled, and dangerous, as any in our lifetimes. To that end, the past two days’ Precious Metal “weakness” has nothing to do with “bearish” UK election or Comey testimony outcomes – and everything to do with a Cartel desperate to prevent historic gold and silver breakouts above their 200-week moving averages and 5½ year downtrend lines; as evidenced by the Yeti-like footprints they left yesterday when “someone,” for perhaps the thousandth time, dumped $4 billion of paper gold onto the COMEX’ trading floor, mere minutes before the Cartel’s time-honored “key attack time #1” of 10:00 AM EST; i.e, the close of global physical metal trading.
Consequently, the best financial insurance the world has ever known – i.e. physical gold and silver, simply became “dirt cheaper” than they were two days ago, providing an even more attractive opportunity to PROTECT YOURSELF…and do it NOW!