TradCatKnight: The Final Currency War, Part lll-China’s Revenge!

Good for Bill Holter for uncovering what Martin Armstrong said in 2010-11 whilst still in prison – and at the time, a close friend and confidant of his partner Jim Sinclair – of how gold and silver would eventually explode in price.  Particularly silver, the “most manipulated precious metal of the entire group”; which is “routinely played with by the NY crowd”; and yet, “anybody you says such things is immediately attacked with venom”; as “silver is the playground for the CLUB.”  And yet, given that the exact same “footprints” that suggest this manipulation is prevalent now more than ever; let alone, admissions by Deutsche Bank, UBS, and soon-to-be-others; with damning evidence everywhere, as noted above; Armstrong – like Dent – himself “attacks with venom” anyone who dares claim Precious Metals are suppressed.  And worse yet, claims it “doesn’t matter” anyway.  Gee, I wonder what caused him to change his tune – so violently, to boot – right about the time he was released from prison.
Yes, “fake news” is the meme of the day – having taken over the political scene via the hideously criminal liberals’ attempt to commandeer the Presidency; just as “fake news” commandeered the economic scene years ago – in reporting fraudulent economic data, and describing rigged financial markets as “freely trading.”
Regarding the former, consider that simultaneous with what I described in Thursday’s epic, 51-minute Audioblog, of how “soft” U.S. economic data (like the rigged; and irrespective, statistically insignificant  diffusion indices), are increasingly diverging with hard data – like Wednesday’s hideous retail sales, industrial production, mortgage application, and inventory data; and yesterday’s catastrophic U.S. Housing Starts report (one day after the National Association of Homebuilders reported an explosion of “confidence,” to levels last seen at the top in 2005); this article emerged of how the exact same thing is occurring in Europe.  Not that such manipulation is anything new – per what I discussed in November 2014’s “lie to end all lies.”  However, at this, the blow-off top of history’s largest, Central bank and government-manipulation fostered bubble; whilst global trade collapses; political and geopolitical tension explodes; and dozens of fiat currencies implode; we have truly reached an Orwellian stage of flat out LIES, like none witnessed since, well, Nazi Germany.
Consider that in January 2014’s “3.0% – ‘Nuff said,” I vehemently espoused that the government would do anything to prevent the key round number of 3.0% on the benchmark U.S. Treasury yield from being breached to the upside – including the publication of “unexpectedly” weak jobs reports – given how rates above that level would annihilate history’s largest debt edifice.  Which, in the case of the U.S. national debt, was “just” $17 trillion then – a mere three years ago – compared to $20 trillion today.  Which, I might add, must be addressed in just three months, when the “suspended” $20.1 trillion “debt ceiling” becomes unsuspended, just in time for Trump to start lobbying for the budget-busting tax cuts and fiscal stimulus that have not a chance of being enacted – despite being the basis for the dotcom-like “Trump-flation” rally that has taken stocks, and base metals, to their most overvalued levels ever.
The below chart depicts my correct prediction that January 2014’s 3.0% ten-year yield would represent the (temporary) top; compared to where rates are today – at 2.6% as of yesterday’s close, nearly double the 200-year low of 1.4% hit in the BrExit aftermath.  However, given the all-out collapse of housing starts; mortgage applications – to post-Lehman lows; and the massive, parabolically surging, global addiction to low rates, given the explosion of debt in recent years; a three-plus percent Treasury yield – combined with the dollar explosion that is annihilating the vast majority of fiat currencies – including the Euro, Yen, Pound, and Yuan – would represent a worldwide financial fusion bomb, relative to the potential hydrogen bomb just three years back.

However this time, I’m not so sure the U.S. government – i.e., the ringleader of the global bubble economy – will be able to staunch the explosive upward pressure on interest rates; which this week breached their post-2008 downtrend, now that the “bond vigilantes” have awoken- realizing that hyper-inflationary money printing is about to explode.  If they can’t, said fission bomb will detonate in 2017, causing Precious Metal prices to explode.  And if they can, it will be because the deflation said “powers that be” so desperately sought to avoid washes over the aforementioned, historic debt edifice like a tsunami – yielding equally devastating political, economic, and monetary consequences, and an equally explosive Precious Metals rally.  Which is exactly why governments are launching the draconian decrees I warned of in Wednesday’s “money printing and draconian government actions will define 2017” – like the psychotic “cash bans” and capital controls that will catalyze equally explosive Precious Metals demand which – how do you like that – I apparently first warned of in 2013, here and here.
The Orwellian “fake news” phenomena has spread so rapidly, and virally, that people are no longer questioning my “taste” in publishing articles like September’s “was Goebbels right?” – in which, I discussed the outright LIE, coming apart further with each passing day, of OPEC’s propagandized “production cut.”  So much so, that no less than the President of the United States, yesterday, gave a press conference overtly accusing the Russians of hacking American electoral and Democratic Party databases, with not a shred of evidence to support such allegations against our self-described “most dangerous geopolitical foe” – which just happens to be staunchly allied with our most dangerous economic foe, China.