TPTB Losing Control Of Paper Markets – PhysicalMarkets Next!

blog.milesfranklin.com /tptb-losing-control-of-paper-markets-physical-markets-next

Post Published: 13 October 2014 Author: Andrew Hoffman Found in section: Andrew Hoffman , Inflationand Deflation , Market Manipulation , Quantitative Easing Tags: China , dollar , Dow , Federal Reserve ,gold , hyperinflation , silver Previous Topic: Collapse Is Coming…What Will Take the Blame?

It’s Monday morning and the New York Fed’s new “ Chicago office” has been busy all night attempting to reverse the expanding collapse of globalfinancial markets. Their pitiful efforts are attempting to mask the gaping wound of global economic collapse; and thus, whether they can will the “DowJones Propaganda Average” to reverse to the upside in time for next month’s elections is a 50/50 shot at best. Irrespective, few people could care less,as retail participation in the equity market has plunged to record low levels, care of 15 years of stagflation and two epic market collapses.

Global financial markets are in FREEFALL, irrespective of what the world’s best funded most technologically sophisticated market manipulationorganizations – i.e., the U.S. President’s Working Group on Financial Markets , Federal Reserve and Exchange Stabilization Fund – are doing. Sovereign yields are collapsing, led by the 16-month low 2.25% yield on the benchmark 10-year U.S. Treasury bond exposing the “most damningproof yet of QE failure.” Even the “New Hail Mary Trade” – of the Fed goosing Treasury yields early in New York trading hours and again at day’s endis failing miserably against a veritable tsunami of demand. Heck, just last week, U.S. bond funds witnessed their largest capital inflow ever; and this,despite massive liquidation of the world’s largest bond fund group, PIMCO, after Bill Gross left. And now that the Fed itself admitted failure – in lastweek, disclosing its fears of a global slowdown – the entire world is starting to realize Whirlybird Janet is not only unable to stop it, but will shortly notonly reverse the “tapering” but overtly announce QE4.

Commodities, too, are collapsing, as are global shipping indices and real estate markets from West to East. And more importantly, depicting what wedeem the “single most bullish precious metals factor imaginable,” currency markets are wildly fluctuating wreaking havoc on global trade; increasinginflation of “want versus need” items in “emerging markets”; and – of course – taking the “ final currency war” to a new ominous level. Last week’sFOMC minutes revealed a Fed as fearful of a rising dollar as the ECB is of a rising Euro, the BOJ a rising yen, etc. – of which, the only “cure” is moremoney printing.

And thus, the “race to debase” is about to launch into hyper drive, as exemplified by the shocking comments of uber-dove Charles Evans, President ofthe Chicago Fed and a 2015 FOMC voting member; who this weekend, averred that a stronger dollar is an “obstacle to the Fed’s ability to meet itsinflation mandate” – calling it a “headwind” as it will lead to lower import prices. No, readers, that’s not a typo. The Fed actually thinks falling importprices is unfavorable – and thus, will do “whatever it takes” to make sure the cost of living increases for the “99%.” But don’t worry, since all that ZIRP,TARP and QE money goes directly to the world-destroying banks – and the aforementioned “manipulation organizations” – the “1%” will do just fine. That is until hyperinflation “comes to town.”

On the topic of cataclysmic PM-bullish developments this weekend, there were quite a few – starting with Iraq begging the U.S. to send 10,000 groundtroops as ISIS is not only on the verge of taking over key strongholds in Syria, but Northern Iraq (where the massive Kirkuk oil field lies), and Baghdaditself. In Europe, whilst “Goldman Mario” complained the Germans are “impossible to work with,” all manner of political and economic hell is breakingloose – as it commences its own suicidal version of Abenomics. Friday night, S&P downgraded France’s outlook from stable to negative, and the ECBis considering swapping some of its U.S. dollar reserves for Yuan – as are the Russians, which not only sold $53 billion of U.S. treasuries last quarter,but signed a $25 billion currency swap agreement with the Chinese.

Here in the United States of Economic, Military and Social Devastation, “earnings season” starts this week with even Goldman Sachs forecastingdisappointing results and guidance; partly due to the collapsing economy, and partly the “strong dollar” which causes foreign earnings to translate intoless dollars. Meanwhile, for the first time this year, consensus economic data expectations – including “island of lies” reports like diffusion indices –are declining; and lo and behold, the Fed is today executing a joint “war-game” effort with the Bank of England in preparing for the “potential” of a majorbank failure. I mean, why would they possibly do that? And the most hilarious part of all, is that the Fed published a study this weekend warning of thepotential for increased market volatility in a higher interest rate environment. Earth to Janet, rates are not only not going higher, but to ZERO – as theentire world front-runs “QE to Infinity.” Only when hyperinflation inevitably results will rates go higher; but when they do, economic “policy” will be mootas social chaos, draconian government, and war will be far more pressing issues.

Last but not least, the most important headline of the weekend, strongly validating today’s article title. In an environment where mine production islikely to utterly collapse, as evidenced by the shocking 50% plunge in miners’ capex since 2012, the Chairman of the Shanghai Futures Exchangehimself “admitted” Chinese gold demand was above 2,000 tonnes in 2013 – validating numerous private estimates and confirming, without a doubt,Central banks have secretly dishoarded reserves to avoid default. After all, just 2,770 tonnes were mined worldwide; and thus, China consumed morethan 70% of all global gold production, despite having just 20% of the world’s population. And given the fact the Shanghai Futures Exchange’s silverinventory plunged more than 90% this year to a measly $50 million, it’s safe to say private estimates that global silver demand were also at recordlevels are spot on as well – and accelerating as U.S. Mint Silver Eagle sales were faster in the first two weeks of October than at any time this year.

And just as TPTB slowly – or perhaps, not so slowly – lose control of paper financial markets, the same will inevitably occur with precious metals. Lastnight the streak of 70 straight “Sunday Night Sentiment” raids was broken – i.e., a Cartel-generated “anomaly” with one in a sextillion odds of occurringin a freely-traded market. They still fought back with a typical “2:15 AM” raid – of which, I’m too tired to calculate the odds of occurring 90% of the timeover 350 trading days. However, as I write at 10:45 AM EST, gold is back up to $1,230, as stocks fall sharply and the 10-year Treasury yieldapproaches 2.25%. In other words, the “exception” in “2008, with just one temporary exception ” is on the verge of being eliminated.

The Cartel is now using every illegal tactic imaginable to prevent the inevitable precious metals explosion; which, as it appears, may well be this Fallafter all. From last week’s blatant DLITG or “Don’t Let it Turn Green” algorithms, to attacking mining shares like never before (see the below

SRSRocco Report

SRSRocco Report

screenshots from Thursday and Friday’s “trading”), they are leaving nostone unturned in their desperation to prevent “it” from commencing –which per this weekend’s podcast appears to be occurring.

All along, we’ve written of the “tells” that history’s largest most destructive Ponzi scheme is on the verge of collapse. First and foremost is themorphing of global debt accumulation to parabolic growth rates; and “last but not least,” loss of control of selected paper markets – enroute to the totalcollapse of the system and liberation of physical gold and silver markets.

In June 2008, Helicopter Ben stated that “the risk the economy has entered a substantial downturn appears to have diminished,” just one year afterstating, “Problems in the subprime market seem likely to be contained.” You’d think Federal Reserve Presidents would be smart enough to avoidsuch phraseology in the future; but think again, as Cleveland Fed President Loretta Mester, just three weeks ago, said, “Financial stability risks in U.S.are well-contained.” Well, looking at the global paper markets – and the aforementioned Fed “war games” – it appears she may have spoken toosoon. First up, the battle for the paper markets are lost, followed shortly thereafter by PHYSICAL gold and silver.

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