In keeping with the trends in last week’s equity markets, specifically the VIX (CBOE Volatility Index), I will also be all over the installment map this time around. This one is going to be an up & down ride, but one main theme as always will come through. All my pontificating, and all of anyone’s pontificating shouldn't change the need to be accumulating hard assets for your DHAP (Diversified Hard Asset Portfolio). With that being said the news items from last week were truly comical, rapid fire, devoid of logical direction, and believe it or not making some people a lot of money. Many of whom we would have preferred to have seen getting their arses kicked. Also at the end of this installment we need to go over a possible transition setting up in the metals markets, that RMer’s should pay attention to. Especially if you have more monetary metals buying necessary to reach your DHAP (Diversified Hard Asset Portfolio) goals. First……
Before I delve further into the veritable cornucopia, though not the good kind, of news items that hit the wires last week, I want to dig further into idea that there were jerks who were probably making some moola during last weeks volatility bonanza. There was massive up & down action in the equity indices, note the following article, and charts from Steve St. Angelo & ZeroHedge……..
…….depicting a day of trading that ain’t normal. But, banksters were raking in the dough with each of these orchestrated moves. To open a thousand points down last Monday! For example, what happened to the retail guy who wanted to get out at a fair valuation in comparison to the previous day’s close? He got trapped, and or trampled that’s what. And, BTW the retail guy was trying valiantly to get out last week, more on that in a minute.
Side note if you go back through market history you will be hard pressed to find extended market periods (say a couple weeks or longer) where a high VIX number accompanied a bull market. High VIX numbers have been the hallmark of the typical “stair step” down trends. This one ain't likely to be typical though. And, oh btw the VIX is “Off the Upper End Charts”…! Here is another example of making money off this violent price action, note the next link from ZeroHedge…..
This guy is a prime example of an investment pro, who understands the pricing actions (so I am not necessarily cutting him down), but how about the banksters of the world?
Well how about this theory! Could this whole "up/down trend", with ridiculous price spikes, have been purposely created for bankster liquidity to cover some of the upcoming massive losses in the energy industry (junk bonds etc.)? Especially the paper hedge owners against down trending oil prices! Who knows, but someone needed some cash that is for sure, and the I suspect the SixPacks weren't as successful in their participation. Speaking of the SixPack's note the next link, detailing record “retail bond & equity fund” outflows:
Reflecting on the above evidence, what should have happened? A two day record setting point rise in the markets would make perfect sense, right? RMers at this point know this is WRONG of course! This is a contrived market action to make someone money, controlled by someone who with impunity acts outside the market pricing laws & structures, and even in the face of common sense, except where the CNBC bobbleheads are concerned. This is more evidence of a major on-going transition in all markets! No need to wait for a good seat to watch the show, it is here, right now!
I suspect someone is getting ready to cover their arses & their losses. Is it energy related, or gold & silver in house supply related? Who knows, but economic mother nature is telling everyone via the VIX, watch out SixPack folks, this will not be for the feint of heart.
More proof needed, that any rise in the markets is totally fabricated? Then check out the honest money GDP sources detailed in the links below:
Yet the market went up! Well of course it did, silly. With honest GDP numbers that count government spending, by crackee! What a crock of shit! Speaking of honesty in the numbers, and also hitting on a subject detailed many times here on RM, are the gateways to the monetary exits soon to be restricted. Check out the following link:
And, if that doesn’t warm your cockles, then this next headliner should complete the “paper job”! BTW you never see this kind of crap in true bull markets.
Yea folks, everybody jump in, the water is warm, don’t worry, just ignore the “violent up & down” action of those great white sharks. Hell, even a 21 year old can make money (oops I forgot he is a college senior). Give it a go, jump in, yea I dare ya!
All the above links are preparatory signs to a transition from paper to physical. Got Yours??? The actual reasons behind the machinations, whether energy related or something else, is irrelevant. Just get out of the way, by getting out of paper.
Segue to a Sideline Issue:
In the I can’t believe this damned guy category……check this out:
In the above link that wild and wacky Jim Rickards is being interviewed by CNBC, so he has to cater to the 1,235 people watching the nationwide paper worshiper's broadcast. So he hints at having a portfolio sprinkled with treasuries as being wise, and then references this market being similar to the 1997-1998 markets. Really, are you kidding me? That a boy dude, bring up the Long Term Capital Management debacle. Seems I remember the vampire attorney representing this ‘bs’ was none other than “the wild & wacky one”!
What’s your boggle Wolf Gray? My boggle is, this guy got famous back then. Plus just like the up & down action in last week’s markets, where the vampires are making money while the SixPack’s are getting clobbered, I have no doubts this clown made big money representing Long Term Capital! Just another example of an opportunist vampire, and thus he is no different than the banksters. Guys like him are part & parcel to the problems we face. Oops I forgot, while typing these two paragraphs the CNBC viewership went to 925 pairs of eyeballs, guess I should be truthful, even though I am discussing a video from the SDR/IMF “master tool”, himself.
China, Treasuries & the Transition with QE In & QE Out???:
Since China may have cut into all the good work done by the Federal Reserve with QE3, would anyone be surprised if QE4 was just around the bend. How…what….when & why WG? Note the following analysis from ZeroHedge:
Well the above article reminds me of an old saying “Payback is a Bitch!” No matter how you slice it if US Treasuries are in a “return to sender” mode then it does somewhat reverse the paper printing spree with forced paper “buy backs”. Or at least that is what normal markets would indicate. Right…WRONG! Check out this next link from ZeroHedge again:
The charts in the above link (note this isn’t an text filled link, just charts) show strength in the US 10 year note. Isn’t it interesting that in past markets just a 5 billion dollar dump by some outside source would have decapitated the treasuries for the day, but a 100 billion dollar dump by a powerful source like China causes a rise in treasuries??????? Hey Wolf Gray can you explain that one? NO, and neither can anybody else who is using standard metrics for the truth! For one hour early Monday a flight to safety made sense, after that, not so much, as the equity markets were in an uptrend basically rising the rest of the week (note volatility could evoke a run to treasuries). Thus, no flight to the safety noticed on my screens would be necessitated. Yet up went the treasuries in the face of massive foreign dumps.
For those that haven't caught the gist of this, and this is my take albeit the right one, a 100+ billion dollar treasury dump in weeks not months (on top of already having dumped over 500 billion in just 15 months) is a two handed flip off to the paper maestros. This appears to be war on several platforms.
But, sticking with the bond & equity markets, the chart anomaly outlined two paragraphs above is one that could be explained by? Hell I have no clue what by, do you? Think about it, as linked further above, the biggest weekly retail exodus from equity & bond funds in recorded history, and one of the biggest bond dumps in a short period of time, in history by China (& who knows who else that wasn’t reported). Yet up they went from the Monday spike lows. Uh yea that makes sense the paper betting markets always rise, right? This is desperation to the nth power by the western paper maestros. That being said.....
This form of market contradiction is what you get when the market is no longer defined, by risk vs. reward, and demand vs supply.....presto you get paper garbage. The only solution, is one we are all well aware of, the return to real money as defined by "Gold & Silver Bars & Coins". It ain't very complex at all, is it? Wolf Gray
How long can the PPPTB (Paper Pushing Powers that Be) do this in the face of reality? This is the $64,000 question that is soon to be answered. Soon as in months not years in my view. Please note once the answer to this question is clearly understood, you ain’t going to stroll into your corner precious metal retailer, and lay down some green for the monster box of your choice! No that will not happen, in fact you would be lucky to get a single tube of silver eagles (tube is 20 eagles). Once this question is clearly answered, physical metal may not be available at all!
Last week’s treasury market farce is another sign of the transition taking place, a transition already in motion, in a monster move to extricate most of the world from the shackles of the King Dollar. I once said, "Do the opposite of the crowd." Well let me redefine that statement, it should read at the end...."western crowds".
Last weeks volatility was proof positive of the ongoing transition.
And, if you want to really muddy the thought processes, check out this article from the esteemed Jim Willie:
In effect this is yet another form of stealth QE, and if true it is about as fraudulent a version as any transaction in "paper history". Selling Treasuries with none on hand for delivery or collateral. I guess anything China can do with a flip off to the PPPTB by dumping treasuries, the banksters can shrug their shoulders, and say who gives a flip. In the meantime China could probably care less as long as they are lightening their own paper loads. Bottom line someone is destined to get hurt by this financial paper hocus-pocus. Here is an excerpt from Dr. Willie's article, noting the new form of fraudulent stealth QE:
The gimmicked rigged corrupted USTreasury Bond market is currently cruising along with about $40 billion Failures to Deliver on a daily basis in the bonds. This is a veritable bonanza for the Wall Street firms, probably London and Western European banks as well. It is free money, and disguised QE volume which totals over $1 trillion per month in magnitude. Yet the counterfeit receives very little publicity, since it provides ample cash flow for the broken criminal banks. Think over $1 trillion per year in free cash flow to the big broken banks. Compare to the minor $40bn per month admitted by the USFed, even the other $40bn per month by the BLICS nations in exported QE. The Failures to Deliver is 12 to 25 times larger in volume, surely hidden QE by any other name.
In truth this fraud will eventually fall into the laps of the middle class who will foot the bail-in bill. And even worse, I suspect it will add more ammo to the (BRICS) New Sheriff in Town's argument, that in order to receive imported goods from any BRICS & Associate entities, the USA will have to devalue their currency substantially. As in more than previously assessed!!!
After this little covert bond selling, maybe even more than Jim Willie's initial 30% followed by another 30% version. Hell the banksters don't mind frauds that enrich themselves, while digging deeper devaluation graves, because they ain't going to have to fill them up. As always, RMer's know what the only solution to this is...........which leads to this additional negative find.....
Sad but Real Notes of the Transition:
I still don’t believe that mainstream SixPack America is buying physical metal in a meaningful way, so what’s up with this article from Steve St. angelo?
Obviously someone gets it, and is piling into physical metal, especially silver. Paper metal ETF's be damned, it would appear. Via clear evidence, we have already seen that the retail investor is exiting the paper markets, but are the SixPacks the ones buying physical silver? I don’t think so, least not in my neck of the woods, and again not in a meaningful way. I think it is the big players trying to buy at a less than fanatical rate that doesn’t "clue everybody in” on the best asset value buy in world history, silver! And possibly a few SixPack's on a higher financial level, but still SixPack/elite wanna-be's. I do know some SixPackers are wetting their feet a bit in physical metal, but not at any meaningful level. As always it matters not, as the signs are obvious, "get it while you can"! And, on that note……a complement to gold in the next segment.....
A Passing of the Physical Metals 'Favorite Baton' in the Offing?:
I read an analysis on the coming lack of supply in the monetary metals recently that made me straighten up in my chair. It was from the folks over at Miles Franklin. This analysis made perfect sense, as it offered some excellent points regarding the lack of existing above ground supply in physical silver. The same thing that my metals sources are telling me, and more specifically they say, “Silver will soon run into a lack of retail availability.” The Miles Franklin thesis, which I think makes perfect sense, and summarized Wolf Gray style:
Look for a “passing of the popularity baton” to it’s metal sibling in the retail market, gold. If you need silver get it NOW, and start preparing, as mentioned in a past installment, by accumulating gold in the the nice utility sizes, 1, 2.5, & 5 gram bars. Wolf Gray
If you don’t think this is the place to start parking your legal tender, please refer back to the above links regarding the exodus from the retail stock & bond funds, while at the same time the markets are rallying on less than scintillating volume. A really bad sign for the bulls. As mentioned before the equity market's recent “hyper actions” are the warm-ups to the collapse of the biggest market of them all, the bond & forex markets & a likely real avalanche of volume in a one way down direction.
The King Dollar and the US T-Bond market are linked at the hip, the same relationship isn’t as strong with the equity markets, represented by the Dow Jones ‘BS’ average (hence the term “bond vigilante” describes the linkage). In a prior installment I referenced auto racing, and the art of drafting, well I have a feeling the bond & forex markets are drafting very very closely behind the action in the equity markets, much closer than normal. Meaning a wreck by the front runner will lead to a pile up that can’t be avoided by the much much larger “bumper hawks”. Then……..
Once this happens the opportunities to accumulate Physical monetary metals in any meaningful way will evaporate, almost instantly. The theory is, the PPPTB will give the all clear signal when they squeeze all the available debt out of the SixPacks, and in addition have accumulated all the physical metal that wasn't scarfed up by the east. Wolf Gray
This is just my opinion, but I do suspect the big players will have already bought up nearly everything “physical” that wasn't nailed down, once the bond market apocalypse is in full swing. Final note, this is part of the transition that is on going, as the important moves are happening under the cover of the phony index headlines in the currency, and more specifically the bond markets (again, note China’s recent moves). And by comparison, the equity markets (stock indices) will soon be recognized, by those with a reasonable IQ as a real “no show”, or better yet "worst in show", or more accurately "a diversionary show".
Don’t count out the equity markets from the evil moves of the paper manipulators though. I suspect the stock market’s fall will be part of a “bail-in” propaganda, with classic lines like, “save the markets & your portfolio as well, in the name of capitalism in the USA”. This will be an attack on the sympathies of the only retail investors left in play, via payroll deduction, pension programs, & other forms of retirement vehicles. Probably to be enhanced with a save your country switcharony to move your funds from equities to bonds, at which point you are screwed. Get Out now folks, while you can, and buy what little “Gold & Silver Bars & Coins” remain! Wolf Gray
Don’t be bashful about buying gold in the smaller units. It looks like silver is about to disappear from the deeply discounted “show room floor”.
Thinking Outside the Box, as Regards this Transition:
Note the following excellent interview with Alasdair Macleod by the “Silver Doctor”:
It occurs to me, though the guys in this interview are very very bright, their points are meaningless to me (I am not cutting them down). Why meaningless? First, they discuss the Fed not being so stupid as to raise rates, and blah blah blah. Well I agree with them on the academic level, but only as long as the Fed is thinking within the box of rational thought. I don't think they are, thus it might pay to think the opposite is possible.
Why can't they raise rates? Especially if it is to go ahead and implode the markets, once they are in a safe hiding place away from the 'torches & pitch forks'. First off, I don't think they will (raise rates), but if they want to implode the paper markets on purpose, then why not go against rational logic. Alasdair Macleod in this interview uses the sound logic of, the Fed can't raise rates as it will destroy all hope in the economy by making debt unserviceable, and thusly they are backed into a corner to maintain their existing failed policies. Therefore it stands to reason that the Fed. will have to toe the political line, and not destroy things. Why, I say? Hell it ain't stopped them from destroying things yet, has it? Logic has been on vacation for a long long time in the halls of western economic academe.
Again, I ask why? They ain't done anything else right, why would they care about doing something to keep things propped up, in an end game they know is coming? BTW, they do know the end game is upon us? They ain't that dumb, folks! So why not, just implode it with impunity right now? Don't discount that theory or possibility. After all it is headed into that abyss eventually, to implosion that is, so why not ramp up the kickoff time before China buys everything up? A theory discussed many times in various RM installments.
Wolf Gray summary, it is important to listen to the wisdom of guys like Macleod, but at this stage it is meaningless. To apply logic to the people (banksters & elites etc) who helped destroy the western economies is pointless, they are madmen. Just more evidence that proves you should be well along in the preparations you should make to protect yourself, and your family.
Interesting side note; at the 32 minute mark Maclead discusses the ESF (Exchange Stabilization Fund), and it's mandate to keep the price of gold under control. A point already discussed here on the very astute advanced pages of RM. A point that is, AGAIN, just more evidence to put in your mental tool box as reassurance to your chosen path, and more proof you shouldn't delay your thoughts to prepare as quickly as possible.
Special note: Again, I suspect the only thing that keeps the banksters from imploding things is there might be just a wee wee bit more money to be squeezed out of the sheeple, before capital controls are put in full force. Nothing more nothing less. With retail withdrawals from retirement funds picking up the pace, the signals are being given to the bankster control towers, that they may need to pull the trigger on "BAIL INS". That’s what I would do if I were them, before too much of their precious money leaves the system (and yes they believe it is theirs, not yours).
Get Out of the System, accumulate while you can! Before the transition sweeps you away!
If you have read this far, and still have your doubts about the coming of a King Dollar collapse, in the face of all the evidence, then you must be bored as hell to have read to this point. Don’t try to convince me with your excuses that attempt to define a business cycle that ends in a rosy outcome, just because you live in the land of the free & home of the brave (formerly). You are just fooling yourself into being a gutless moron that will not fight for the greatest gift given to you,......“LIFE”!.......A LIFE that hardly exist without FREEDOM! I have heard your damned excuses many times before, and the Wolf Gray's sense of smell is getting traces of the next excuse coming a mile away……
Filled with mutterings at gatherings. And, if we want to attend, we will all be invited to the most rave of western party’s, all soon to be devoid of both food & spirits, as the retail shelves will be empty. Yep we can all attend these happening gatherings, where the pretenders will now be lacking in general levels of cool, loaded with former neat guys & gals, and where the mutterings will abound, .........“I must have been crazy not to have seen this one coming!”
Hard Asset Tip:
Pile up the lumber folks. Some extra 2 x 4’s, 2 x 6’s, 1 X 6’s, and '4 ft x 8 ft' chip boards may be worthwhile, especially if you will be confined to your home (throw in some nails, wood screws, and heavy grade sand paper). You never know, they could be valuable, as in cover, and exterior protection to entry into your home (windows & doors). Always keep the batteries to your cordless drills, and hand tools charged. Lastly, got a hardwood tree that has been aggravating you in your yard (oak, hickory, aspen, birch, poplar)? Take it down, and properly stow the wood on site. Most houses these days have a fire place, and it may just have to become functional, and not decorative. Also, if you have this hardwood tree taken down, have the tree cutter save you some of the chips (great cooking fuel, note soft woods are not so good, they can be toxic).
Credits to the thoughts of: Opie, & “The Spirit of Life & Freedom that resides in all of us…..It’s one Heaven of a gift!”, standard kudos to the rest