When I Said The Lowest-Ever Inflation Adjusted Gold Price, I Meant It!

So you understand just how dire – and global – the “Greatest Depression” is becoming, here’s a sampling of the “PiMBEEB,” or Precious-Metal-bullish, everything-else-bearish headlines of the past 24 hours alone.  Which cumulatively, tells you all you need to know about how all Central banks will respond into the foreseeable future.  Or, more accurately, forever – given that fiat currency regimes by nature are Ponzi schemes; which consequently, must expand exponentially; whilst maintaining public confidence; to prevent immediate, spectacular collapse.

• 98% of Greeks consider their economic situation bad, survey says
• South Africa unexpectedly plunges into recession
• Stressed Australians struggle with record debts
• Spain’s Banco Popular bailed-in, acquired by Santander for €1 (my comment, can you say Cyprus, and Bear Stearns?)
• It’s their going out of business sale – Venezuela struggles to sell $5 billion bonds
• Qatar-strophe Strikes Riyal, as FX Forwards Signal Peg-Break Looms
• Elderly Americans are taking their grandkids’ summer jobs
• Would Congress authorize the bankruptcy of Illinois and other states?
• Seattle follows San Francisco, Philadelphia in passing job-killing soda tax
• Where are the new (U.S.) factory orders? Not here
• Chicago cab industry collapsing, as medallion foreclosures soar
• Oil prices plunge after biggest gasoline inventory build of year
• Sears closing another 66 stores, Joe’s Crab Shack files for bankruptcy
• Gymboree misses interest payment, prepares bankruptcy filing
• Macy’s stock tumbles after issuing profit margin warning
• S. mortgage, refinance applications again plunge in week ending June 2^nd (my comment – C’mon Janet, I dare you to raise rates)

And my “favorites,” considering the Fed supposedly intends, for some unfathomable reason, to “raise rates” next week.  This, despite having said, in their May 3^rd meeting “minutes,” that “members generally judged it prudent to await additional evidence that the recent slowing in the pace of economic activity has been transitory before taking another step in removing accommodation.”

• S. macroeconomic index slumps to 16-month lows
• Bond yields tumble to 2017 lows, after China says ready to buy more Treasuries (my comment, what part of PONZI SCHEME am I missing?)

This, my friends, is why only historic, unrelenting market manipulation – both overt and covert – is being utilized to prevent widespread realization of the dire, irreversible financial and economic collapse the world is amidst.  Which ultimately, must result in catastrophe, when – at least in real terms, if not monetary terms, too – the “dotcom (stock, bond, and real estate) valuations in a Great Depression Era” said manipulations have created, inevitably, spectacularly, collapse.

• Yield curve collapses to nine-month lows as stocks hit record highs

Visually, this is what the powers that be are fighting against; which in turn, is why suggestions of imminent monetary policy tightening are so ludicrous, even if they have painted themselves into the “rate hike corner” for next week’s FOMC meeting by “crying wolf” once too often.  Not to mention, why “rumors” that the ECB will speak “incrementally hawkishly” at tomorrow’s meeting may prove unfounded at best, and fraudulent at worst.

Better yet, here is what the PPT allows as a “correction” from the all-time highs – cumulatively, a whopping 0.3% decline – over the past six trading days.  As you can see, on five of those days, they utilized the “variations thereof” version of the “dead ringer” algorithm I first discussed in April 2012’s “Dow Jones Propaganda Average,” to make it appear the Dow was “correcting” – when in fact, it was relentlessly prevented from doing so.  To that end, note the algorithm’s “signature”; of, like its “cousin,” the “dead ringer” algorithm – in which prices bottom at roughly 10 AM EST, and rise throughout the rest of the day; prices, under all circumstances, bottomed no later than the Fed’s 10 AM EST, completely covertly-enacted, “open market operations.”  Thus, if anyone tells you the Fed doesn’t buy U.S. stocks – with the help of the “President’s Working Group on Financial Markets” and “Exchange Stabilization Fund,” of course – I have a bridge in Brooklyn I’d like to sell them.

Conversely, Precious Metals are relentlessly capped – no matter how bullish the news, or powerful sentiment gets.  And yet, after yesterday’s “surge” – for the second time in three days, by exactly the Cartel’s long-standing “1.0% rule” – gold’s $1,293/oz close was not only its highest level since the Election Night rally that the Cartel maniacally, and historically blatantly, reversed; but well above both its 200-week moving average, of $1,240/oz; and its 5½ year downtrend line, of $1,274/oz.  Likewise, silver’s close, at $17.65/oz, was well above its 5½ year downtrend line of $16.30/oz, and barely below its 200-week moving average of $17.76/oz.  In other words, validating exactly what I wrote in last Thursday’s – i.e, one day before the “shocking” NFP report disappointment – “ultra-bullish developments in the 5½ year downtrend line war.”

Which brings me to today’s principal topic – i.e., a statistical validation of my recent claims that gold (and silver) are trading at their lowest ever inflation-adjusted prices.  At least, in the modern era, where such calculations are available.  To wit, the fantastic chart below, depicting that in real terms, utilizing the “1980 CPI formula,” gold is a whopping 89% below its January 2009.  Which I assure you, silver is as well.

That said, the “1980 CPI formula” has since been “adjusted” countless times since – via “hedonics” and other statistical gimmicks that on average, have understated actual U.S. inflation by roughly 5% annually.  In other words, Precious Metals’ actual inflation-adjusted decline is far closer to 100% than even the horrific, Cartel-generated 89% loss depicted above suggests.

This, at a time when Central bank money printing – even with the Fed “on the sidelines” – is at its highest rate ever, at roughly $250 billion per month; whilst the global economy is unequivocally at its weakest rate of our lifetimes, with nowhere to go but down.  Not to mention, as worldwide physical Precious Metal demand is close to its all-time high; mine production is freefalling; above-ground, available-for-sale inventories are running on fumes; and the all-in cost of production, incorporating the capital expenditures required to replace reserves that have been plunging for years, is way above current levels.

In other words, the Cartel has inadvertently orchestrated a once-in-a-lifetime investment opportunity – to buy “dirt cheap insurance” on events that must mathematically occur, in an “explosively PiMBEEB world.”  Take heed, as once “control” is even modestly lost by the maniacally market manipulating minions – due to a “black swan” event, or the sheer weight of its own fraud; purchasing such insurance – let alone, anywhere near the lowest-ever inflation adjusted prices – will be extremely difficult; and in the worst-case scenario, impossible.