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Last Days of The Gold Cartel

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April 17, 2017 - 11:02am

It’s early Saturday morning, so don’t be surprised if by the time you read this, the world has significantly changed.  As frankly, a war involving the U.S., North Korea, and potentially many others may well be imminent; so much so, that China “nearly started World War III” last night, by “accidentally” reporting North Korea had launched a nuclear missile.

Yes, just five months after his inauguration, Donald Trump is on the verge of starting his second war with a nation posing no threat to America.  In this case, with a deadly, nuclear-armed nation run by a lunatic, which could easily involve northern-neighboring China – which has mobilized 150,000 troops to its North Korean border; southern neighboring South Korea, whose long-time feud with North Korea is as intense as that of North and South Vietnam; and fellow U.S. ally – and for now, “first world” nation – Japan.  Hopefully, what appears imminent will not be; but for now, China believes war can “break out at any moment.”  And given our “flipper-in-chief’s” recent record, I don’t have much confidence – particularly from someone acting so unprecedently un-presidential (seriously, you have to watch this 30-second clip to believe it).

On that note, let’s face facts here.  Neither I, nor likely anyone truly believed Donald Trump would “make America great again”; as per Friday’s must read article, nothing about his history; or likely, his personal motivations; suggested such an outcome, particularly as America is “ground Zero” for the imminent implosion of history’s largest, most destructive fiat Ponzi scheme.

To the contrary, the vast majority of citizens – myself included – voted for him for one of two reasons; 1) to prevent the Wicked Witch of the Western Hemisphere, and her equally evil husband, from “re-taking” the White House; and 2), as a general “F.U.” to an establishment that has destroyed our once great nation.  And in the case of Precious Metal owners, a third reason, whether we want to admit it or not; i.e, we believed his election would expedite the end of the gold Cartel – at one fell swoop, mitigating the damage it has done to us personally; and to the world at large.  And thus, when the gold Cartel deprived us of what should have been on November 9th and 10th…

…followed by an additional five months of misery – watching gold and silver smashed to $1,130/oz and $15.90/oz, respectively – during the Christmas holiday week, no less; whilst the stock market surged into dotcom bubble territory, based on the “Trump-flation” meme borne solely of market manipulation; I’d venture to guess that the vast majority of Precious Metal holders lost whatever “faith” they once had, real or imagined, in Trump’s leadership.  Let alone, after he hired a cadre of Goldman Sachs cronies to be his inner circle, and reneged on essentially all his campaign rhetoric and promises – like, for instance, avoiding the type of destructive military entanglements he railed against Hillary Clinton for supporting.

Fortunately, the reality of our long-standing investment thesis didn’t take long to re-surface – as mere weeks after the Fed’s initial, comically moronic forecast of 3.4% first quarter GDP “growth” (why anyone still listens to their perpetually overstated, politically biased “predictions” is beyond me), it has plunged to a mere 0.5%, following yesterday’s horrifying March retail sales number, of a way below expected -0.2%.  This, atop a dramatic downward revision of February’s number as well – to zero; which has me shaking my head in incredulity, as to how they can possibly keep said GDP estimate positive.  In other words, “Trump-flation” is officially dead – as all economic data – “hard” and “soft”; and market-based measures such as Treasury yields and the Treasury yield curve; are not just suggesting, but screaming recession.  Not to mention, surging gold and silver prices – which appear to have decidedly won their “200 week moving average wars” at $1,246/oz and $18.14/oz, respectively.

Usually, I wait until the end of my article to tie in the primary topic – but given how excited I am to discuss it; and how well it segues here; I’m going to do it now.  As per this enticing chart, gold is on the verge of breaching the equally important resistance level that is its “downtrend line” from the Cartel-orchestrated peak – in dollar-priced terms – of September 2011.

Per this link to a clearer version of the chart, the four principal manipulations that manufactured this 5½ year “downtrend” – coinciding, to the month, with my joining Miles Franklin; were…

  1. the “Operation PM Annihilation I” attack of Labor Day Eve, 2011 – when gold was attacked simultaneous with one of the most PM-bullish events imaginable; i.e., the Swiss National Bank pegging the Franc to the Euro;
  1. the heinous price-capping of summer 2012 – when an exploding European banking crisis, which is re-igniting as I write, caused Mario Draghi to say he’d to “whatever it takes” (read: hyper-inflation) to “save” the Euro;
  1. blatant Cartel smashing after the shocking, “unexpected” BrExit signaled the impending end of the European Union; which may well occur on May 7th, as a Marine Le Pen victory will unquestionably be a “BrExit times 100” event; and…
  1. the vilest PM suppressions of all; i.e., the Cartel’s blindingly transparent Election Night “Trump-flation” attack. Which, with gold on the verge of taking out $1,300/oz anew – and with it, its 5½ year “downtrend line” – may well be reversed in a mere 5½ months’


No matter what the catalyst turns out to be, the gold Cartel is going down – just like every such attempt to subvert real money in lieu of worthless fiat toilet paper, both overtly and covertly, throughout history.  And whether it’s a singular event – like the French election or a U.S. bombing of North Korea; or the cumulative, unsupportable weight of history’s largest, most destructive fiat Ponzi scheme; “this sucker’s going down.”

Perhaps the recent implosion of economic data will be what finally “breaks the Fed’s back” – causing it to re-embrace its irreversible destiny of negative interest rates and QE4.  Which may well be imminent, given Trump’s comments last week that he “favors a low interest rate policy” and that “the dollar is too strong.”  Not to mention, his 180-degree turn regarding Janet Yellen’s potential re-appointment – in now saying he “likes” and “respects” her, in direct contrast to vilifying her on the campaign trail for creating a Hillary Clinton-supporting “big, fat, ugly bubble.

And perhaps it will in fact be a black or “grey” swan event – like the potentially catastrophic, Trump-initiated wars that appear increasingly imminent in the Middle and Far East; per this weekend’s smattering of headlines – which cumulatively, threaten to burst the largest financial asset bubble in global history.

  • S. conducts successful field test of new nuclear gravity bomb
  • S. may launch pre-emptive strike on North Korea ahead of nuclear test
  • North Korea may be capable of Sarin-tipped missiles, Japanese PM warns
  • Japan prepares for North Korean emergency
  • Trump issues China ultimatum to “fix North Korea or we will”
  • China warns of North Korean conflict “at any moment”
  • Air China suspends flight to North Korea, as Kim vows “merciless response” to any U.S. provocation
  • North Korea slams Trump’s provocative, aggressive words – will test missiles “when it sees fit”
  • Trump prepares new North Korean sanctions, as armada approaches peninsula
  • Trump may send 50,000 troops to Syria
  • S. releases video of “mother of all bombs” explosion in Afghanistan
  • For third straight month, U.S. killed more Syrian civilians than Russia
  • Smoking gun quote, from Postol report on Syrian gas attack
  • Assad: the chemical attack is “100% fabrication”
  • Syria claims U.S.-led coalition strike of ISIS chemical depot has killed hundreds of civilians
  • Russia, Iran, and Syria issue warning to U.S. (against launching new strikes on Syria)


But irrespective, with Precious Metal prices at their “most undervalued level in modern times”; with “history’s most overdue (and potentially, catastrophic) financial crisis” looming; the time is clearly NOW to protect yourself financially, with the only assets proven to have provided such protection throughout 5,000 years of human history.

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About Andrew Hoffman / Media Director

Andrew C. Hoffman, CFA is the Media Director at Miles Franklin Ltd. Call 877-685-4705 or email ahoffman@milesfranklin.com, visit www.milesfranklin.com

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