• Gold: 1,255.13 -0.67
  • Silver: 15.97 -0.07
  • Euro: 1.175 -0.001
  • USDX: 93.932 0.443
  • Oil: 57.26 0.11

Line in the sand broken

It looks like the Cartel's eight-month "line in the sand" at $20/oz silver has finally been broken; as has their three-month "line in the sand" at $1,250 gold. Gold forward rates have again gone decidedly negative, ETF purchases have surged amidst record Chinese demand, and this week's news of massive gold mining writeoffs highlights just how tight the physical market is, and will be.

"Yellenomics" will be unleashed

In the aftermath of Friday's horrific NFP report, "Yellenomics" will be unleashed to Capital Hill tomorrow morning. The "pressure to print" will continue mounting on "Whirlybird Janet" until she finally gives in; likely, coincident with the ECB announcing its own, overt QE whilst Shinzo Abe prepares to increase the scope of Abenomics, given the likely catastrophic economic impact of the massive sales tax commencing in Japan in April. And don't forget the U.S. "debt ceiling" debate, which MUST be resolved by month's end lest another "governemnt shutdown" is catalyzed.

A tall order on her hands

Well, as it turns out, what we wrote earlier this week about the weather having zero impact on the jobs report was true - as opposed to Goldman Sachs and the Wall Street propaganda crew, which opined otherwise. Per today's article, the January NFP report simply points out just how miserable the U.S. economy is; not to mention, why Janet Yellen has a tall order on her hands next Tuesday when she makes gives her initial economic testimony to Congress.

The REALITY of collapsing economies

As I wrote on Friday, "the Carnage is just starting." Like the Broncos in the Super Bowl, global Central banks are being overwhelmed by a superior opponent; i.e., the REALITY of collapsing economies, currencies, and equities. Janey Yellen's swearing in today was met with an all-time low in the Chinese Services PMI index, and the biggest drop in the U.S. PMI Manufacturing Index since 1980. Despite blatant government intervention, stocks and currencies are plunging, and PMs surging.

The carnage has just started

Per the title of today's article, "the carnage has just started." Yesterday's one-day stock reprieve, fueled by two of the world's biggest blights, Facebook and Twitter, is decidedly over; as global stock and currency markets are collapsing anew, amidst horrific, across the board economic data.

What a day

It's just 15 minutes before the FOMC decision; and what a day for it to occur. Global currencies are in freefall, the result of Fed exported inflation that accelerated with the commencement of "Operation Twist", "QE3" and "QE4" in late 2011. It faces the ultimate Hobson's Choice of doing NOTHING, and risking a dollar collapse sometime in the coming months, or "tapering" further (as if they ever slowed QE in the first place) and risking an all-out currency crisis NOW!

Game On

Well, it appears to be "game on" for the final round of the financial crisis that commenced five years ago. All the world's Central banks achieved in the past five years - via unprecedented money printing, market manipulation, and propaganda - was exploding debt, inflation, political tensions, and unemployment. And now that governments' own balance sheets have been decimated by this futile cause, there is no remaining "safety net." Currencies worldwide are collapsing, like Argentine Peso and Venezuelan Bolivar - while "fragile five" currencies, like the Brazilian Real, South Africa Rand, and Turkish Lira, have started their own, likely terminal declines.

Huge, earth-shattering announcements

Huge, earth-shattering announcements in the past week; as finally, the word of official PM price suppression is spreading the world round. It was inevitable to happen, as the disparity between record physical gold and silver demand and plunging paper prices had to "give" at some point.

Silver: "line in the sand" at $20/oz…

It won't be long before talk of "tapering" - which was but a mirage to start with - will turn to that of increasing QE; and now that global PHYSICAL demand is really starting to take off, it's only a matter of time before reality re-enters the PM markets. Gold has now fought through four straight days of identical attacks, while silver has staunchly held the line above its seven-month "line in the sand" at $20/oz…

The VERY KEY ROUND NUMBER of 3.0%

Yesterday afternoon, a "miraculously strong" 30-year bond auction pushed the benchmark 10-year Treasury yield below the VERY KEY ROUND NUMBER of 3.0%. Never mind the FACT that the Fed monetizes at least 70% of all new issuance, or that only a lunatic would dramatically increase purchases of high duration bonds when a "very strong" NFP report was anticipated the following morning. OF COURSE it was the Fed's fear of surging rates that caused it to step in and "turbo QE" rates back down, just as it was forced to do on September 6th. On that day, yet another "weaker than anticipated" NFP report was fabricated to help them out, as was the case today.