first majestic silver

Pep Talk: We Are Winning And Won’t Be Stopped

August 22, 2016

I’m going to act as your “spirit guide,” in our ongoing quest to save ourselves from the Hitler-esque “elites” that have commandeered monetary policy and financial markets – in the process, destroying global economic activity, political stability, and fiat purchasing power.  This same scenario has played out hundreds of times throughout history, with the same ultimate result.  Which is, total destruction of citizens’ savings, and a total loss of faith in the governments and Central banks issuing them.  Only this time, for the first time in history, not a single nation’s currency is backed by anything except faith – which is rapidly collapsing, as the average global currency is at, near, or in many cases well below its all-time low valuation.  And for those that think I’m “puffing,” here’s proof of what I speak.  First, the average currency decline against the US dollar – i.e., the “reserve currency” that’s been printed more than any other – a whopping 42% since the 2008 crisis.

Next, a chart showing that on average, gold prices in the world’s major currencies are trading a mere 3% below the all-time highs established in 2011-12.  With the notable laggard being gold in said “reserve currency” – which is still down 30% from its 2011 high because the U.S. is the focal point of the Cartel’s suppression operations.  Like all financial assets, higher prices prompt rising demand.  Thus, you can be sure that whatever “weakness” is currently being experienced in U.S. gold and silver demand, is being more than made up for overseas, where the other 95% of the world’s population resides.  Which, I might add, is why it’s utterly ridiculous when “analysts” claim gold’s demand is directly correlated to the dollar’s exchange rate with foreign currencies; particularly the Yen, which is purposely self-destructing; and the Euro, which may not even exist a year from now.

As long-time readers know, I have been “all-in” the Precious Metal sector for 14½ years, as both a passive investor and an active observer of every imaginable factor related to its movement.  Literally, I have watched every tick over this time – and given my background as a financial analyst (CFA Charter, 15 years on Wall Street, five as an investor relations officer in the mining industry, and five as Marketing Director of Miles Franklin), I am uniquely suited to understand the coalescence of these variables.

Moreover, I have become a “Cartel watcher” to the extent a “storm chaser” follows tornados, a Trekkie follows Comic-Con conventions, or a Deadhead follows Grateful Dead shows.  In other words, I know when they’re sleeping (never), I know when they’re awake (always), and I can effortlessly interpret their every move in between.  Which includes, I might add, the complex – and sometimes, not so complex – relationships between the powers that be’s principal manipulative tools, of money printing, market “intervention,” and propaganda.

As I write, history’s largest, most destructive fiat Ponzi scheme is in its terminal phase of collapse – as evidenced by the aforementioned currency implosions; the highest-ever – and parabolically growing – levels of debt; and the worst economic environment in generations, characterized by massive oversupply of essentially everything, care of the unprecedented “deformation” of financial markets by Central bank policy.  Negative interest rates, the monetization of stocks, sovereign, corporate, and mortgage-backed bonds; trillions of off-balance sheet derivatives, of all kinds; and maniacal Precious Metal price suppression, to name but a few of the “weapons of mass destruction” in their respective arsenals.

Unfortunately, given the nature of all Ponzi schemes, they MUST grow larger to survive – exponentially so, and in the process, maintain confidence that they are legitimate.  Which is exactly why such programs have gone off the charts – as evidenced by 668 cumulative rate cuts since the 2008 crisis, and tens of trillions of stock and bond monetizations, with freshly printed money.  Not to mention, the covert dishoarding of the vast majority of above-ground physical gold and silver inventories to suppress prices, nearly all of it to the world’s new economic leaders in the Eastern Hemisphere.  Consequently, the Western world is still “functioning.”  However, its economic output has never been lower; its financial condition never worse; its currencies’ cumulative purchasing power never lower; and its political and social stability at levels last seen during World War II – in all cases, going the wrong direction, and fast.

To that end, the reason I wrote this article was to empower readers to not lose sleep over the extreme market manipulations of the past month; although my guess is said stress is far less today than during 2011-15, when the Cartels’ “point of  no return” machinations were succeeding, giving them the upper hand.  Even investors in “paper PM investments” like mining shares, ETFs, and closed-end funds, are enjoying large gains this year – as opposed to the tortoise-like, slow but steady gains of physical metal.  Thus, it’s difficult to believe anyone’s truly stressed this summer.  That said, the level of frustration and anger I feel is unprecedented; partly because I’ve endured it for 14½ years; but more so, because it has become so egregious in this, the terminal phase of the Cartel’s reign.

To wit, watching the PPT take the “Dow Jones Propaganda Average” higher each day, amidst the ugliest economic, corporate, financial, monetary, political, geopolitical, and social news flow of our lifetimes is bad enough – and when combined with such blatantly obvious Precious Metal suppression, such as yesterday’s vicious raids, on perhaps the slowest trading day of the year – is a lot to take mentally.   In yesterday’s case, clearly the Cartel was terrified by gold closing above $1,350/oz on Thursday, and silver within spitting distance of its “line in the sand” at $20/oz…


…just 24 hours after its “FOMC minutes attack” – featuring Bill Dudley’s pre-minutes propaganda regarding hope for a September rate hike (of which, money market “odds” are currently less than 10%) – decidedly failed

Thus, knowing full well that Friday would be one of the lowest volume days of the year – after all, we’re in mid-August – they commenced yesterday’s attack late Thursday night, with the prototypical “8:00 PM algo,” to push gold away from $1,350…

…and prepare for the real attack Friday morning – starting, of course, for the 684th time in the past 787 trading days, at the “2:15 AM” EST open of the London paper pre-market session – culminating in this smash of silver at 7:45 AM EST, when it was hit for $0.20/oz in seconds, with no other market budging …

…and no major news to speak of – other than, the accelerated collapse of the “world’s most systematically dangerous institution,” Deutsche Bank; whose latest, PPT-orchestrated “dead cat bounce,” per what I wrote in last month’s “powers that be 2016 – lower highs, and lower lows,” was stopped cold at its 50-day moving average of $14.21/share, en route to an imminent plunge below last month’s all-time low of $12.49/share.

To that end, I could spend another two pages discussing the various “horrible headlines” of the past 48 hours alone – but suffice to say, Apple’s 30% plunge in iPhone demand; Caterpillar’s 20% year-over-year revenue decline; Cisco laying off 20% of its global workforce; Aetna cancelling nearly all its Obamacare exchange coverage, Cathay Pacific’s 90% net income plunge, due to collapsing Chinese corporate demand; the San Francisco Fed’s John Williams not only advocating negative interest rates, but a raising of the Fed’s 2% inflation “target”; the realization that foreign Central banks – led by China and Japan – have sold more than $350 billion in U.S. Treasury bonds this year; three German banks officially announcing negative retail deposit rates; Vancouver’s real estate bubble collapse, by 20% in the past month alone; the UK’s official announcement that it will go ahead with the Brexit process; a dramatic surge in Ukrainian geo-political tensions; the Chairman of the “bailed out” Bank Monte Paschi – NOT! – being investigated for derivatives fraud; and Japan’s July imports and exports plunging by 15% and 25%, respectively, say it all.  Not to mention, the utter chaos inside both the Trump and Clinton camps, which can’t be a good thing for confidence in American financial markets.

Which is why I look forward, with baited breath, to the words Whirlybird Janet chooses for her Jackson Hole speech on Friday – which I assure you, the entire world will be watching.  Frankly, it’s incredible to believe anyone still listens to these people – as per the mock “secret Fed minutes” the Sovereign Man published yesterday, this is all anyone needs to know of the Fed’s true modus operandi…

Nothing terribly catastrophic has happened yet, so we have decided to continue screwing responsible savers with interest rates that are at 5,000 year lows so that this dangerous asset bubble can persist, the federal government can continue indebting future generations, and the commercial banks can keep making tons of money, because we are shit scared that even the tiniest 0.25% increase in interest rates will completely derail this totally fragile economy, and that would be really bad for Barack Obama and Hillary Clinton.”

No matter, as it won’t be long before the Fed’s remaining “credibility” – like the Bank of Japan’s, the ECB’s, and all others before it – is completely, and irreversibly, dead.  And with it, the powers that be’s ability to subvert political, economic, and social reality with market manipulation, starting with the end of the heinous gold Cartel.  And thus, my friends, enjoy your summer weekend, as not only are we winning, but we will not be stopped!

Andrew ("Andy") Hoffman, CFA joined Miles Franklin, one of America's oldest, largest bullion dealers, as Media Director in October 2011. For a decade, he was a US-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005. Since 2002, his focus has been entirely on precious metals, and since 2006 has written free missives regarding gold, silver and macroeconomics. Prior to joining the company he spent five years working as an investor relations officer or consultant to numerous junior mining companies.

Gold is used in following industries: Jewelry, Financial, Electronics, Computers, Dentistry, Medicine, Awards, Aerospace and Glassmaking.
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