The End Of Trust, And Rise Of Real Money

In last week’s “historic market manipulation, setting the stage for catastrophe” – as well as dozens of other articles and podcasts – I demonstrated, in painstaking detail, the gross misallocations, inequities, and fraud caused by the artificial “support” of “favored” asset classes like stocks, bonds, and real estate – whilst the “unfavored” gold and silver markets were mercilessly suppressed, to equally deleterious global effect.

This weekend’s “wide world of PiMBEEB” demonstrated ten such situations – as frankly, the amount of “Precious-Metal-bullish, everything-else-bearish” headlines has never been so large, or broad, in the nearly six years I have worked at Miles Franklin.  To the point that, there are so many potential catalysts, I could easily write two articles per day – regarding serious, dangerous events with the potential to blow history’s largest, most destructive Ponzi scheme sky high, at a moment’s notice.  Come to think of it, I’m not far off this pace, having already penned close to 100 articles this year alone, whilst taping roughly 40 podcasts; all of which, are archived for free at www.milesfranklin.com.

Since Saturday’s afternoon’s “wide world…” article, on what should have been a “quiet” holiday weekend – not just here in the States, but worldwide – I amassed three full pages of “horrible headlines”; each, regarding a potentially market-destroying catalyst; which, per today’s extremely important article’s title, encapsulated an overarching theme of MISTRUST – of politicians; corporations; and most of all, Central banks.  Quite obviously, the historic fraud perpetrated by the “evil Troika” of Washington, Wall Street, and the Mainstream Media – as well as their “foreign counterparts”; of the “evil tripod” of money printing, market manipulation, and propaganda; is causing an accelerating collapse of worldwide TRUST – of information; political and geopolitical relationships; the law; and fiat currency.  This is why crypto-currencies are explosively rising; and why, when the historic Precious Metal suppression is inevitably overcome by surging physical demand, a new, unprecedented, and potentially glorious, era of REAL MONEY will arise.

And for a “quiet” holiday weekend, these are truly big headlines– starting with the end, and I do mean end, of trust between the U.S. and its most important geopolitical “ally,” Germany.  Frankly, if one calls a spade a spade, this is entirely due to Donald Trump’s inability to be diplomatic – particularly regarding the trade imbalances that are as much the fault of U.S. government and Federal Reserve policy as anything else.  To wit, calling the Germans “very bad” for selling “so many” cars in America.  Which, despite the Euro currency’s recent plunge, are still no cheaper than American cars.  In other words, Germany is not “dumping” cars on Americans – who frankly, are buying German cars not because they are cheaper, but better (and FYI, it was revealed last week that GM, like Volkswagen, was also cheating on emission tests).  In fact, to claim Germany is at fault for the “too strong” dollar – after the Fed’s historic six-year QE program, and nine-year NIRP scheme that continues to this day – is the ultimate example of “calling the kettle black.”  Particularly because, in many ways, it was the principal reason why the ECB was forced to initiate its own hyperinflationary schemes.

While I agree with Trump’s stand against the G-7’s global warning pork barrel spending plans, the timing of such antagonistic behavior, mere days after the aforementioned trade war salvo, couldn’t be worse – from a man who, in just four months in office, has refused to shake Angela Merkel’s hand; suggested Germany was untrustworthy (it is); and accused Merkel (rightly so) of “catastrophic mistakes” regarding Germany’s immigration policy.  Thus, when Merkel counter-punched this weekend by suggesting the U.S., and UK, are untrustworthy partners; catalyzing Trump’s first-thing-in-the-morning tweet today, that “we have a MASSIVE trade deficit with Germany, plus they pay FAR LESS than they should on NATO & military, very bad for U.S., this will change,” it couldn’t be more obvious that whatever TRUST still remained between perhaps the two most important Western economic powers, is once and for all, dead.  Which can’t be a good thing for “confidence” in the dollar and Euro, versus the REAL MONEY that is physical gold and silver.  This, on a weekend when Mario Draghi himself, despite calling the “Euro-area upswing increasingly solid,” espoused to the European Parliament that “an extraordinary amount of monetary policy support, including via forward guidance, is still necessary.”  I mean, just how untrustworthy – and contradictory – can one criminal; I mean, “man”; be?

As for Draghi’s home nation of Italy, which he personally aided in its rise to the title of world’s fifth most indebted nation when he was its Central bank head from 2005 to 2011, it’s on the verge of taking over – and succeeding – at where the French miserably failed last month.  As today, Italian stocks and bonds dramatically plunged, on news that the “snap elections” that were expected to occur next year, may in fact be held in this September or October.  And given that the anti-EU, anti-Euro Five Star Movement is running neck-and-neck with the ruling “Democratic” Party – which was thoroughly disgraced in November’s landslide Constitutional Reform referendum – the odds of an “ItaLeave” may be higher than even a “BrExit times 100” FrExit at the height of Marine Le Pen’s campaign.  This, as the Italian banking system is unquestionably the weakest of any “first world” nation.

Except, of course, Greece; which in many ways, has already lost its first world status – as well as its sovereignty, Treasury gold, and national pride.  Which added an equally devastating anti-Euro depth charge this weekend, when it suggested no new “bailout” would be accepted unless the “Troika” offers substantial debt relief.  Correct me if I’m wrong, but isn’t this the very issue that nearly destroyed the European banking system before the last “bailout” two years ago – after which, Greece’s economy dramatically collapsed, and its debt skyrocketed further?  I mean, if Greece’s unpayable debt is even modestly recognized, we’re talking about massive write-downs at European banks; not just of their Greek debt, but all the other PIIGS as well.  Not to mention, numerous, equally insolvent nations; as well.  Which is why it’s so ironic that perhaps the world’s most untrustworthy bank; with more PIIGS exposure than any other – DEUTSCHE BANK – today issued a blanket downgrade of European banking stocks.

Next, we have a Cartel as untrustworthy as the gold Cartel itself – OPEC.  Which, since the blatantly obvious “aid” of the U.S. government-led “oil PPT” was garnered, when forced into existence by last year’s sub-$30/bbl oil plunge, has lied more about its production, production aims, and demand expectations than in the previous four decades combined – which is saying A LOT.  With the end result being, that after six months of their “historic” production cut agreement completed, the world is still amidst its worst-ever crude oil glut, with no hope of even a dim light at the end of the tunnel.  Which is why it’s so satisfying to see last week’s “nine-month extension” flame out, as said oil PPT’s “line in the sand” at $50/bbl is again looking more like resistance than support.  And given this weekend’s bombshell news that Saudi Arabian currency reserves are in freefall, it should once and for all prove that all’s not well in America’s only remaining Middle Eastern ally; as if prices remain at or below $50/bbl much longer, the likelihood of political revolution, and monetary collapse, will become very, very likely.

Next up, in perhaps the single best representation of the FRAUD corporate America has become – in league with a thieving government bent on blowing the world’s largest financial bubbles, no matter how many people are destroyed in the process; we learned that, per this damning article, Fair Isaac, the creator of the “FICO” score American financial institutions utilize to gauge credit quality, has dramatically increased the average person’s score by, for all intents and purposes, eliminating reams of negative credit history data.  Consequently, the percentage of U.S. adults deemed to have the riskiest credit profiles plummeted to, I kid you not, its lowest level on record, just one month after total U.S. household debt surpassed its pre-2008 all-time high, amidst exploding delinquency rates for credit card, auto (CarMax, the nation’s leading auto retailer, reported a massive 18% inventory surge this week), and student loan debt.  Not to mention, last week’s news that bankruptcies in Manhattan, one of the world’s richest areas, are “exploding.”  To which I ask, how much do you TRUST having your hard-earned savings held in financial institutions lending to these people?  Or for that matter, that said “money” won’t be diluted further by the inevitable “bailouts” governments will mandate, when said “good credits” inevitably default?

And then there’s the Fed, which insists it intends to continue “raising rates” – which by the way, are still below 1% – despite its long-standing claim of being “data dependent,” amidst the worst economic data since the heart of the 2008 crisis.  Heck, in last week’s May 3rd “minutes” (as usual, doctored in consideration of obviously weakening economic data), FOMC members “generally judged it would be prudent to await additional evidence indicating that the recent slowing in the pace of economic activity has been transitory before taking another step in removing accommodation.”  And what part of rates plunging to post-Election lows – validating my early January call that 2.5% was the top of the benchmark 10-year yield – says “rate hikes” are on the way?  Or LOL, that a shrinking of the Fed’s balance sheet that can never happen, no matter how high the PPT pushes the dotcom-like “Dow Jones Propaganda Average?”

Last but not least, we have a government, and “fake news” media playing an equally devastating role, lying about everything from economic, to military, to monetary issues.  And by government, I don’t mean the Trump Administration specifically, but essentially every member, be they “Democrat” or “Republican.”  From John McCain claiming Russia is more dangerous than ISIS; to Defense Secretary James “Mad Dog” Mattis claiming war with North Korea would be “catastrophic,” as he orders a third Aircraft Carrier into Korean waters; to this weekend’s Paul Sperry expose of how the Obama Administration attempted to steal the election for Hillary Clinton; to this weekend’s exploding White House “leakers” scandal; to the equally deleterious “wars” over the budget; Obamacare; and shortly, the debt ceiling; the “leadership” of the so-called “superpower” that is America is collapsing – and with it, confidence in the currency it issues and hyperinflates; i.e., the dollar.

While “Washington burns,” the gold Cartel is doing everything in its power to delay the inevitable collapse – in real terms, if not nominal terms as well – of the massive bubbles they’ve created in “desirable” asset classes; and conversely, “anti-bubbles” in “undesirables” like Precious Metals; as evidenced by today’s 846^th “2:15 AM” paper raid of the past 967 trading days.  But have no fear, as with each passing day, the supply/demand fundamentals of the only money the world has ever trusted are strengthening – to the point that, potentially any day now, the cataclysmic end of TRUST, and rise of REAL MONEY, will commence!

P.S. As I was about to hit send, Martin Schulz, Angela Merkel’s principal competitor in October’s Prime Ministerial election, was quoted as saying Donald Trump is “the destroyer of all Western values“, and added that the U.S. president was undermining the peaceful cooperation of nations based on mutual respect and tolerance.