The Global Economic System Is Crashing – The Stealth Gold Bull Is Alive

Well, this time is indeed very different. This is not Jan., 2015. The world is waking up to the fact that a brand new, multi-headed hydra solvency crisis is upon us. – Eric Dubin, The News Doctors (link below)

One of the idiots from Wall Street that CNBC likes to roll out was on scratching his head over the behavior of the stock market. He asserted that it was nothing more than panic because “the real economy is doing well.”

I’m wondering what data he’s using to draw that conclusion. Nearly every report that has been released for the last few months, other than the highly manipulated/fabricated Government employment report, is showing that economic activity is collapsing to levels last observed in 2008.

The Baltric Dry Index has collapsed to all-time lows. Freight and goods transportation indices area showing a collapse in demand in the wholesale and retail distribution system. This shows a collapse in consumer spending. Based on unadjusted, unannualized numbers, existing home sales plunged 20% from Q3 to Q4. Auto sales are quickly rolling over. Energy debt is blowing a hole in bank balance sheets across the country. Auto finance paper is next.

These are black swans. They’re black swans because no one seems to see them. If they the market sees them then it is not acknowledging them. The current sell-off in the stock market is not remotely close to an acknowledgement of these black swans.

The S&P 500 is at its most overvalued in history by several metrics. It’s dropped roughly 10% from its all-time high and a spectrum of people from money managers to Congressmen are calling on the Fed to “do something.” No one seemed to be bothered by the fact that the stock market never should have been enabled by the Fed to go parabolic over the last 5 years, becoming more dislocated from the underlying fundamentals than at any time in history.

Then there’s gold.  Gold has been pushed inexorably lower by western Central Banks in order to facilitate bad monetary policy decisions.  But gold is the ultimate hedge against corrupt Central Banks and Governments.   Physical gold inventories at the bullion bank controlled gold exchanges in the west are quickly disappearing, as is silver now too.  GLD does not count because it’s always been a roach motel largely of paper gold.

This disappearance of physical gold is another black swan that is neither recognized nor acknowledged by the market, except by a few “conspiracy theory riddled” gold bugs. But the third leg of the gold bull market that began in 2000/2001 is stealthily taking off. Eric “The News Doctors” Dubin has written a worthwhile analysis of what is unfolding:  Stealth Gold Bull Market Continues;  Real-Time Analysis.

Someone from Australia emailed me a report showing that the Perth Mint had temporarily suspended gold sales last night/yesterday.  Physical gold is indeed disappearing.  Soon it will be harder to get at the retail level unless the buyer is willing to pay a hefty premium over spot.  I’m going to start converting as much paper currency as I can into silver – the original and first monetary metal – because it will soon become hard to get as well.

 

14 thoughts on “The Global Economic System Is Crashing – The Stealth Gold Bull Is Alive

  1. Everyone a month ago said I was wrong for
    selling paper and liquidating brokerage accounts
    and backing up the truck to buy gold. How you like
    me now bitchez. That is everyone except Dave Kranzler.
    Congrats to the Broncos on their super bowl win and for
    padding my stack with the game bet winnings. Oh yea,
    everyone thought I was nutz for betting Denver too.

      1. I Don’t really follow American football coming for the UK. I am a Long time reader, and I occasionally comment on here. I knew you would be happy Dave when I saw the result this morning. Always like seeing an upset from the underdog. The so called experts got that one wrong as well. I guess these people are like the financial experts on TV. They are never held to account either.

        Anyway, the UK stock market is down just under 3% today. It’s not looking good. The big worry is this just means we are closer to war. Very alarmingly the BBC ran a 4 part programe last week on 4 different nights about possible war with Russia. They had diplomats, military people and all the usual politicos. I didn’t watch it because I knew it was going to be very biased. But the elites are getting us ready for the idea of a war with Russia. The sheeple are being softened up to support a war. This will not end well. I can only hope it’s the final bluff. But I doubt it.

  2. ABOUT TIME!

    LONDON: News this morning that 6 of the world’s largest miners including Rio Tinto, have resigned en masse, their memberships in the LBMA!

    This is just the tip of the spear! Watch ALL the smaller miners now follow suit along with their investors. We just may be witnessing the demise of the LBMA?

    1. The LME is a separate entity from the LBMA. The LME is where base/industrial metals trade. I would suggest that the resignations occurred because the 5 entities that left altogether – and I know at least two of them, RIO and Cargill – are massively large entities – are fed up with the corruption on paper metal exchanges.

  3. Didn’t think this day would come. Man, can’t believe it’s finally here. The destruction caused by QEs, CBs, government overspending, Wall Street and corporate looting, and fiat currency has finally arrived.

  4. Hey Dave,

    Loving your SSJ service. In fact it is just what I was looking for as the market rolls over. I expect to have my best year in the market ever, assuming the powers that be don’t step in to halt trading just when things are heating up, or some other such manipulation.

    I think the journal provides just the right amount of depth, and your writing style makes me chuckle. Keep the great tips coming.

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