Or in this case, you can’t fool the natural laws of the Free Market. Since 2009 and before, the only way to keep the entire system from crashing down was fabricated money by the Federal Reserve. That is, money printing, quantitative easing, stimulation, liquidity or whatever else you want to call it.
This is like a brain dead patient being hooked up to life support hoping to bring life back to the patient. But it isn’t working and now the patient is losing ground and soon you have to pull the plug.
That’s where we are now. The central planners controlling our global economies are socialists and have run out of tricks to manipulate something that should never have been manipulated in the first place.
There’s going to be a complete implosion of their own fabricated financial system. They removed the free market and replaced it with their own centrally manipulated system and it has failed.
Centrally manipulated economies always fail. You have to ask yourself why they continue to try. The answer is POWER. Control over the financial system means the ability to enrich those in power, while everyone else suffers.
Gold and Silver Game Changer
Last week I mentioned that Deutsche Bank admitted to precious metal market rigging and agreed to ‘rat out’ the banking cartels co-conspirators.
Well this story is growing legs and should have a significant impact on the price of metals going forward. I expect the next few weeks to get very exciting.
I also mentioned that in Greg Hunters interview with Rob Kirby a few weeks ago that Kirby said the following:
“There are some revelations that are going to be coming regarding precious metals price suppression, which are going to make the deniers, that this has been occurring, look very silly. This is going to occur in the very, very near future. . . . The reaction to this news is going to be a very, very strong pop in the price of precious metals. . . .“
Kirby is an insider to the precious metals markets. He sells tonnage to high net worth investors and sovereign entities. I would think he had inside information to the deal being arranged by Deutsche Bank and this past week was the bombshell that we were waiting for.
Greg Hunter did a follow up interview with Rob Kirby on Friday last week and I have posted a link to it below. I consider this a must listen to interview. New revelations about the timing of the coming economic implosion are discussed.
A perfect storm of black swan events is coming together over the next few weeks, including the opening of the Shanghai Gold Exchange price fix in Yuan on April 19th, which was Tuesday and allows physical gold to be traded only in Chinese Yuan.
In the not too distant future I expect China will drop a bombshell on the rest of the world by backing the Yuan with gold which will give China the advantage for the Yuan to become the new world reserve currency.
In addition, China is merging its international payment system (CIP) with the European Swift Banking system for international settlements. This move will completely overshadow the US system for settling international trade in Yuan vs. Dollars.
This means the endgame for the US Dollar as the world reserve currency is not too far away. We are at zero hour and it’s going to be game over soon.
Hold on to your metal positions because things are really going to get interesting!
Live long and prosper.
PS: Last weekend I sent out a special report regarding what I consider to be the start of the US economic implosion. I expected the events that happened this week and over the next few weeks to be the catalyst which would trigger the beginning of the end for the stock market and the beginning of a huge run up in precious metals.
I received several calls and emails from subscribers in a bit of a panic. I’m sorry, but I didn’t mean to create a panic and I didn’t mean to suggest that things would crash this week. What I did try to imply was that this week would be the start for things to begin to turn around for the worst.
I did think that the DOHA meetings response would have had a greater effect on the price of oil which in turn would have caused a negative response in the stock market. But it appears that bad news is good news when it comes to our rigged markets.
Technically and fundamentally the stock market and the oil markets are overbought and due for a turnaround soon. I consider the recent run ups this week to be a knee jerk reaction to the fake headlines and just plain short term pump and fakes by the market riggers.
The SGE gold fix opened on Tuesday and as expected gold and silver surged on the news. I believe we will see a steady rise in precious metals over the coming weeks and these moves will grow larger as the markets begin to adjust to the new real and natural pricing mechanism offered by the SGE.
As far as China backing their Yuan with gold, it’s just a matter of time before that announcement comes out. I believe China will wait until the gold and silver markets have some time to adjust to the new pricing standard.
Regardless of what happened this week, there will be big moves in the weeks ahead and I just want my subscribers to be prepared.
On Tuesday China launched the Yuan denominated Shanghai Gold Exchange which is expected to give China more power in the precious metals and FX markets. The expectation is that this may end the current price manipulation of the Comex and LBMA paper derivatives markets.
However, the Comex and LBMA are not going to go down quietly and I expect them to battle it out with their paper price manipulation until the ship goes down. That will happen either when the Comex defaults on physical delivery, which could happen any day because their vaults are virtually empty and they have been settling their contracts in cash.
This in itself is a default, but to keep it quiet, they are paying cash premiums to investors seeking settlement for physical metal. Eventually these investors will seek to trade on a physical metals exchange where they are guaranteed physical delivery and the SGE will soon become that exchange.
The other catalyst for ending the manipulation will be when the trading of physical metal overpowers the paper markets, which will cause the paper pricing mechanism of the Comex and LBMA to be arbitraged out of existence.
Case in point; Thursday morning prior to open, gold was up over 17 points and then this happened at 9:15 AM, just prior to the market open. I was watching it at the time when the banks raided gold and within 5 minutes, gold dropped 22 points. Someone dropped $2 billion worth of paper gold on the market just prior to open. That amounts to approximately 16,000 naked (non-backed) paper contracts on gold in a 5 minute interval, smashing gold down to the 1250 range.
This was as blatant a hit job as you can get. The commercial shorts are desperate to keep gold down below $1250 because if they fail, there will be a huge short squeeze sending gold into the stratosphere. Of course this manipulation is illegal, but the government powers turn a blind eye to it.
This system is ready to break, so I really don’t think we have too long to wait before it happens. The problem is that if you are not positioned in metals, you will miss the opportunity because gold and silver will go ‘No Bid’, which means you will not have the ability to fill your orders.
Buy 2017 Calls slightly out of the money. This will be a homerun when it breaks!
Stock Market: (SPY) (QQQ)
There is no good fundamental or technical reason for the stock market to be increasing with the exception of rigging, in my opinion. I just don’t see this ending well. In fact, the same thing happened right before the stock market crashed in 2008, only this time the manipulation is blatantly worse than 2008.
Institutional or smart money continues to sell into this stock market rally. So that begs the question, if everybody is selling then who is buying?
We know that corporations are buying back their own stock at record amounts, especially since earnings are all reporting negative. Corporate stock buybacks can be tracked, but in my opinion, I believe the PPT or Plunge Protection Team of the US Treasury is propping up the market to avoid the inevitable implosion.
When it comes to the stock market, confidence is the key, and today everyone is losing confidence in the system and the Fed is desperate to hold it together by any means possible.
The chart below shows the stock market as technically overbought. This has been the case since February, so when will this cycle end? I think this rally’s days are numbered and we should see a cycle decline as early as next week.
I’m still short (IYF) as I believe the financial sector will fall hard once this market breaks to the down side.
Energy Stocks: (XLE) (USO)
The DOHA meeting was a big disappointment for those hoping for a production freeze from the OPEC countries and as a result, I expected oil to crash, which it did at first only to recover miraculously at market open.
It appears that the dollar’s decline is causing commodities like oil to rise. But the main culprit is propaganda like the headline below. You just can’t make this stuff up…
Stocks, Oil Continue Soaring On Fake OPEC Meeting "Headline" That Was Just Denied
‘Leaked’ information regarding new potential meetings to discuss an oil production freeze made its rounds, only to be debunked by Russia. These so called leaks are all it takes to get investors into panic buying mode. Idiots!
In any case, I just don’t think we will have to wait long for this knee jerk panic buying to lose momentum and turn around. In fact, I think when they do, you will see a down turn in both the oil sector and the stock market.
The chart of oil below looks just like the stock market and shows this cycle extremely overbought.
US Treasury Bonds: (TLT)
Treasuries are getting close to rebound mode and should bounce higher as the stock market rolls over.
(SLW) January 2017 CALLS
(GDX) January 2017 CALLS
(ABX) January 2017 CALLS
(FNV) January 2017 CALLS
(RGLD) January 2017 CALLS
(SPY) December 2016 PUTS
(IYF) August 2016 PUTS
Harvey Organ: Manipulation Exposed As Deutsche Bank Prepares to Spill the Beans on Gold & Silver Manipulation!!
Fund Manager Asks: Is The CME Preparing For A Comex Default?
It’s not a question of “if” the Comex eventually defaults but a question of “when.” The move by the CME to ring-fence cash collateral at the Fed expressly suggests that an event of default may be closer than any of us realizes…