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Is Bottom In For The Latest Gold Market Paper Attack?

The move by Modi to eliminate large-denomination cash bills from India has set off an unanticipated physical gold buying frenzy that has driven Indian ex-duty import premiums in the mid-$30’s.  It’s the widest I’ve seen in them in the many years I’ve been tracking that data (via John Brimelow’s Gold Jottings report).  “”I’m getting non-stop calls from unknown numbers from people asking for gold,” the jeweller told a Reuters reporter in an interview inside his shuttered showroom..”

Ditto for China.  The SGE premium last night was $12.59 to spot gold.  As Brimelow describes: “In this case the high premiums probably simply reflect capacity constraints among Chinese import dealers. Possibly there is a Trump/devaluation effect boosting local appetite, besides of course the price decline.”

My personal view is that, given the extreme amount of paper being launched at the LBMA and Comex right now, and given that the price of gold seems averse to going any lower (at least for now), the worst of the beat-down is over.  Too many people are looking “down” right now…Eric Dubin has also called a “double bottom in gold.”   He and Jason discussed the precious metals market, among many other topics in their lates Welcome to Dystopia episode, which you can access here:   The Bottom Is In.

 

Elizabeth Warren Defines Sleazy Hypocrisy

Look in the dictionary under the term “hypocrisy” and there has to be a picture of Elizabeth Warren.  Her latest beaut is sending a letter to Trump criticizing his transition team’s ties to Wall Street.

Yet, how come Obama never received the same type of letter from her?  Obama’s entire cabinet from 2008 to now is riddled with Wall Streeters.  By the way, Lizzie, when the AG and former AG have law practices built around keeping Wall Street out of jail, that is a “tie to Wall Street.”   I guess it’s a matter of convenience to overlook the fact that both Treasury Secretaries are and were deeply tied to Wall Street.

Oh. Wait. I almost forgot.  What about your beloved Hillary?  No Wall Street ties there?  You certainly forgot to chat about this when you were campaigning for her.  Let me review the facts starting with the fact that Wall Street firms were among her largest campaign financiers.  The biggest donor was perhaps the biggest Wall Street criminal:  George Soros.  Speaking of which, is this guy ever going to die and leave us alone?

“Do as say, not as I do” seems to be de rigeur for the people and entities who thought Hillary’s presidency was a matter of formality.  These people forgot that some segment of the public still pays some attention to the truth.

Make no mistake, I’m not issuing support for Trump.  But someone needs to hold people like Miss Warren accountable.  God knows her zombie, slavish supporters won’t.  I remain firm in my convictions that:  the good news is, Hillary lost – the bad news is, Trump won.

The Housing Market Is Unraveling

You wouldn’t know it from the housing industry organizations, Wall Street or the media propaganda, but the housing market is starting to unravel. It does not matter which person or political party occupies the White House and Capitol Hill. The debt orgy that followed the Fed’s QE program is now showing visible signs of unintended but inevitable consequences and it’s beginning smell a lot like 2008.

Per RealtyTrac, U.S. foreclosure activity increased 27% from September to October. Foreclose starts posted the biggest monthly increase since…December 2008. Scheduled foreclosure auctions posted the biggest monthly increase since 2006. The data is even more startling in certain States. Foreclosures in Colorado jumped 64% in October from September and foreclosure starts soared 71%. Colorado tends to be an economic and demographic bellweather State. In the housing bubble 1.0, foreclosure activity in Colorado began to accelerate before it hit all the other major MSAs.

Just in time for foreclose activity to ramp up, the Obama Government rolled new Fannie and Freddie mortgage programs which removed or reduced required mortgage insurance. Once again the Taxpayers will be left holding the bag and monetizing a mortgage collapse from which the bankers, real estate and mortgage industry collected $100’s of millions in fee money.

Per this analysis posted by Wolf Richter, the Miami condo market is in a freefall: LINK. Mortgage rates have spiked up considerably in the last week. This will extinguish a significant amount of home sales and cash-out refi’s – note – the following is an excerpt from the latest issue of my Short Seller’s Journal :

untitledI continue to see with my own eyeballs, which I trust a lot more than the manipulated b.s. reported by the National Association of Realtors and the Government’s Census Bureau, a stunning number of “for sale” and “for rent” signs all around central Denver. Note that Colorado has 11,000 people per month moving here, so if inventory in both homes for sale and rentals are visibly increasing here it means they are increasing everywhere. Those looking to move into the area may want to seek out a denver realtor and see the property listings they have; there are many exceptional homes for those planning to move to this great city on the market.

I’ve heard horror stories about the south Florida market from several sources. A colleague who runs a real estate brokerage firm in Houston published a report last week on a growing glut in luxury apartments in Houston: LINK.

I bought Toll Brothers (TOL) December $28-strike puts on Thursday for 64 cents. The stock at the time was $29.40. It closed Friday at $28.25. I also bought Pulte Home (PHM) January $18-strike puts for 72 cents. The stock at the time was $18.65. It closed Friday at $18.32.

I did this after chatting with the friend of mine mentioned earlier who is a Mortgage broker in Sydney. We are working on a refi for my significant other, which is why he called me on Thursday to see if I wanted to rate-lock her loan after informing me that the mortgage market was getting “funky” and spreads were widening.

Finally, again just like the mid-2000’s housing bubble, NYC is showing definitive signs that its housing market is crumbling very quickly. Landlord rent concessions soared 24% in October, more than double the 10.4% concession rate in October 2015. Typical concessions include one free month or payment of broker fees at lease signing. Days to lease an apartment on average increased 15% over 2015 in October to 46 days. And inventory listings are up 23% year over year. You can see examples of studio apartments at websites similar to lincolntowersnewyork.com and notice that their inventory has increased. Why don’t you have a look at the most expensive housing markets where you live to see whether or not you will be affected.

DR Horton (DHI) reported earnings on Tuesday. It missed both revenues and earnings. The stock was hit 5.4% that day and closed even lower by Friday. Any stock that sold off on Thursday and Friday while the stock market was going orbital has real problems. DHI reported the slowest order growth rate in three years. More troubling from my perspective is that, with the market obviously slowing down, DHI’s inventories continue to balloon, increasing by $537 million to $8.3 billion vs $7.8 billion at the end of September 2015. The Company’s cancellation rate jumped to 28% from 23% last year. Again, this smells exactly like 2008…perhaps this part of the reason the Dow Jones Home Construction index looks so ugly:

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The graph above shows the Dow Jones Home Construction index vs the S&P 500 for the past year. Since hitting 601 on July 26, the index is down 14%. It’s down 16.5% from its 52 week high of 618 on December 1, 2015. As you can see, the index is below both its 50 and 200 dma’s (yellow line and red line, respectively). The 50 dma is about to cross below the 200 dma, another potentially highly bearish techincal indicator. Perhaps first and foremost is the fact that the homebuilders were extremely weak relative to the buying frenzy that gripped the market Wed thru Friday.

In my opinion, it’s safe to put a fork in the housing market. And this is the primary reason that it smells to me a lot like 2008.

You can access the Short Seller’s Journal with this LINK or by clicking on the graphic to the right. Almost all of the ideas I have presented since NewSSJ Graphicearly August have been working, some have been yielding tremendous returns. It’s a weekly report for $20/month with no minimum subscription requirement. I provide options trading ideas as well as disclose all of my trading activity from the short-side.

Gold Signals Trump Is No Different

The good news is that Hillary lost but the bad news is that Trump won.

A massive take-down of the gold and silver markets was put into action shortly after it became obvious that Trump was going to take the election, shortly after midnight EST. Gold  had finished soaring about $64 when early returns indicated the possibility of an upset.  So why was gold methodically disemboweled once Trump emerged as the official winner?

Contrary to all the propaganda smoke being blown from the right and the left, Trump won because of economics.  Going back to 1932, in any Presidential election year in which the growth in real disposable income was less than 3.1%, the incumbent party holding the White House lost the White House – in 2016 the official real disposable income growth has been 2.33%.    Please re-read that fact and let it sink in.  There’s been six elections in which this occurred – this table was sourced from John Wiliams’ Shadowstats.com:

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In other words, people vote with their wallets.  The reason gold has been inexorably smashed in the paper markets – along with the Dow and S&P 500 manipulated higher – is nothing more than a form of propaganda in an attempt to make the public believe that a Trump presidency is a good thing – that Trump can save the economy from collapse.  Jim Sinclair refers to this as “MOPE:”  Management of Perception Economics.  It’s the Central Planners’ signal that they still intend to continue stealing your wealth.   They don’t care who is sitting in the Oval Office.

The takedown in gold included cooperation from India’s Prime Minister – a western elitist lapdog – who “coincidentally” removed large denomination currency bills from the banking system last week in an attempt to curtail the Indian public’s current voracious appetite for physical gold.   Removing this element from the global market last week enabled the Fed and bullion banks to bombard the Comex and LBMA with massive amounts of paper gold derivatives to push down the price of gold.

Of course, the shenanigans in the west have stimulated demand for gold even more in the Asian markets.  Last night the market premium in Viet Nam soared to over $91.  Premiums this high in Viet Nam have not been seen since at least 2011.   On the Shanghai Gold Exchange the market premium soared to $12.47 above world gold – on Friday it was $8.20.  It is rare when the premium gets this high on the SGE and signals very heavy demand.

In today’s episode of the Shadow of Truth, we put closure – at least for us – on last week’s election and we explain why Trump has no intentions of “draining the Swamp” and why the current take-down in the price of gold and silver is setting the market up for a much bigger move higher:

Guest Post: Human Derivatives and Gold

The Oligarchs’ Plan to Monetize Humanity – Stewart Dougherty

The greed-diseased and power-obsessed Deep State oligarchs hate you for your freedom and love you for your money, and they are accelerating their plans to strip you of both. There are two things standing in their way: cash, and precious metals. The oligarchs are doing everything in their power to falsely discredit both of them in the eyes of the people. Cash and precious metals are physical manifestations of financial and human liberty. Liberty, which is indivisible, is the absolute last thing the oligarchs have in mind for us, as there is no profit in it for them. The oligarchs realize that the people are fast waking up to what is being done to them. While the Oligarchy remains an unimaginably dangerous enemy, it was wounded in the United States presidential election, is acting more erratically and illogically, and is starting to make serious mistakes. How we, the people, push forward from here will determine whether we remain free, or become slaves to the greatest Force of Evil ever known to mankind, the Deep State oligarchs.

While the above themes are not new to Inferential Analytics, the accurate and reliable forecasting method we have developed and use, the intensity with which the Deep State is pursuing its “dual mandate” of expropriating private wealth and enslaving the people by deliberately impoverishing them is absolutely unprecedented. If the people lose the war that the Deep State has declared against them, their futures and those of their descendants will be destroyed. The people must not and need not lose this war. In fact, the people can defeat the Deep State by using simple tools and common sense. The problem is that the people do not realize they have the power to take down the Oligarchy, so we all must work to open their eyes and show them the force of nature they truly are. That is our mission in this article, and the ones to follow.

The post-election orgy of precious metals price destruction is an open letter from the Deep State oligarchs that they couldn’t care less about the people’s desire for fundamental change, something the people shouted from the rooftops with their votes. The oligarchs have announced that there will be no change in policy or operating procedures; it is full steam ahead for them, because they know they can loot society of trillions more dollars if they can successfully implement their plans, which are well underway and inimical to the people in the extreme.

Money that flows into physical precious metals means less money in banks for the Deep State oligarchs to loot. In 2011, as gold surged to $1900 and silver to $50 per ounce, the oligarchs saw the real potential of a buying stampede breaking out among the people, which would have resulted in even greater bank withdrawals. They were simply not going to allow that to happen. Plans to gain control of the people’s money were in the formative stages, and could not be activated at that time. Not having the means to restrict the flow of money into precious metals, they decided instead to crush prices by market manipulation, both to financially punish those who had bought into the gathering stampede, and to scare away prospective buyers. The Deep State is now on the threshold of being able to implement its asset control agenda, and is certainly not going to lose bank deposits to precious metals when they are so close to their objective. Therefore, they have ratcheted up their illegal price manipulation activities to record intensity.

Post-election, the Deep State oligarchs have made it clear that they are going to continue to ram down the throats of the people the self-serving crony communist agenda they have been pursuing for the past twenty years, and particularly during the past eight, when they have had an energized communist organizer in place. If this means that they must hire phony activists on Craig’s List for $12.00 per hour and bus them around the country from one pre-arranged “demonstration” site to another, this is what they will do, as we can see. This is a small price to pay for the power and money prizes they have plotted to win.

The most profitable financial instruments ever created by the oligarchy are derivatives. These synthetic devices, designed for hedging, risk management and speculation by market players, and structured to generate guaranteed profits for the oligarchs who invent, issue and control them, include futures, options, forwards and swaps, and are a Deep State money machine.

Derivatives are layered on top of what are known as “underlying” assets, such as stocks, bonds, commodities, currencies, government debt, and securitized debt and mortgages.

We believe that the oligarchs are creating a new class of financial derivatives that could produce the largest transfer of wealth in history, from the people to them.

We call them “Human Derivatives,” or “HDs.” The “underlying” asset in HDs is humanity itself; specifically, the personal wealth and future wealth-creation potential of human beings, in addition to rich, deeply personal, tradeable and exploitable information about them. With HDs, the Oligarchy intends to monetize humanity. By positioning themselves as the “House,” and giving themselves proprietary fee-setting, settlement, arbitrage and inside trading powers over HDs and bank deposits, the oligarchs intend to create a monopolized toll booth through which most monetary assets must pass. This will enable them to siphon off trillions of dollars of existing and future financial wealth from “underlying” human beings. The oligarchs plan to turn humanity into a financial asset over which they have control.

Human Derivatives will not just leverage people’s underlying financial assets, but much more important, deep personal insight into who they are, what they buy, how they behave, their medical well-being, their relationships and social networks, their susceptibility to messaging and advertising, and their overall economic “value.” This information will be codified, scored and quantified, and then converted into indexes made tradeable by HDs. The tradeable financial digitalization of the people will be worth a fortune to the Deep State “House.”

The oligarchs face a critical prerequisite to the optimization of Human Derivatives: the elimination of cash. By removing cash from the system, the oligarchs will obtain full visibility into and control over the people’s monetary transactions, which is required to maximize HD profits.

While numerous “motherhood” justifications for the elimination of cash are enunciated by the Deep State shills who are promoting it, such as fighting terrorism, crime and drug trafficking, these are misdirections and lies. This is why so many people speak with a marijuana defense attorney, or a similar legal advisor, if they become embroiled in cases related to this. The real purpose for the elimination of cash is simple: to give the Oligarchy full-spectrum control over monetary assets. The fact that Larry Summers is one of the main proselytizers for cash elimination is all that you need to know; he is a longstanding Establishment spokesperson and enabler.

Influential, non-banker elitists are now joining the battle. For example, on October 27, 2016, while speaking to reporters, Apple Computer CEO Tim Cook triumphantly stated, “We are going to kill cash.” By “we,” he does not mean Apple, which has no means by which solely to murder cash, but the Deep State elite, of which he is a peripheral member. The elimination of cash will be a boon to Apple Pay, which collects a 0.15% commission on all transactions, an amount that is guaranteed to increase by multiples and passed on to consumers in the form of price inflation once digital payments are non-optional and monopolized.

On November 8, 2016, the Indian government announced the most brazen cash reset and windfall tax generation scheme ever hatched. At 8 PM, after the banks had closed, Prime Minister Narendra Modi made a surprise proclamation that as of 11:59 PM that same evening, all 500 and 1,000 rupees currency notes would be demonetized, stripped of “Legal Tender” status, and “extinguished.” In his words, “currency notes of rupees 500 and rupees 1,000 will be just paper with no value.” Rupees 500 and 1,000 notes are worth roughly $7.50 and $15.00, respectively, and they constitute 85% of India’s total currency supply. With no advance warning, Indian citizens were given 4 hours to spend 85% of India’s total money supply, or endure a massively time-consuming currency conversion ordeal.

In the few hours remaining that night, the stores were flooded with citizens trying to dump their 500 and 1,000 rupees notes. Gold spiked to the equivalent of $2,300 per ounce, before completely selling out at dealer locations, as people were willing to spend pretty much anything to get a real asset like gold in exchange for “just paper with no value.”

The government gave those unable to offload their 500 and 1,000 rupees notes during the four hour window the option of depositing them into their bank accounts (assuming they have them) until December 30, 2016. But to do that, the depositor must fill out an affidavit, explaining where the money came from. If the authorities determine that the depositor has not satisfactorily accounted for the funds, then an income tax and fines will be imposed on the depositor, or the currency will simply be seized.

The government also gave the people the ability to physically exchange at banks their rupees 500 and 1,000 notes for new currency, but only until November 24, 2016 (a period of 14 days), and only at a rate of 4,000 rupees (roughly $60.00) per day. If a person is willing to stand in a bank line for hours a day, for 14 days straight, they will be able to exchange a grand total of 56,000 rupees, or roughly $840.00.

Modi stated that the extraordinary action was taken to curb “counterfeiting,” “corruption,” “terrorism,” “black money,” and the “black economy,” the usual excuses for tyranny, but never explained how, which is typical of these Deep State gambits. While making his announcement, Modi stated: “Experience tells us that ordinary citizens are always ready to make sacrifices and face difficulties for the benefit of the nation.” As we can see, the citizens’ willing acceptance of surprise currency resets is being positioned by the Deep State as a matter of patriotism and duty.

India’s gun control laws are among the strictest in the world, and have been tightened even further by Modi since he came into office in 2014. The people are also trained from a young age to be compliant and polite. It is no wonder why India was chosen as the test site for Deep State’s first surprise, national currency reset.

Almost exactly one year ago, it was the same Modi who announced an Indian “paper gold” scheme. The Indian people were asked to turn in to their bank their physical gold, in exchange for a paper “note” that would provide 2.25 – 2.75% interest per annum on the gold’s value at the time of submission. The “investor” would not be able to get their gold back for at least 5 years. By then, of course, it would be long gone. Indian inflation is consistently above the offered interest rate. The Deep State’s scheme, promoted by their puppet Modi, flopped because the people, who are never nearly as stupid as the elitists think, saw right through it.

There are an estimated 20,000 tonnes of gold in the private hands of the Indian people, and the bullion banks wanted it for their own profit-making purposes, not the least of which was to cover their enormous naked short positions.

We believe the Indian currency reset is a test, foisted upon a compliant, disarmed people to gauge their reaction. The real drama is yet to come, and will occur throughout the West. If the oligarchs cannot trick the people into accepting the elimination of cash, then they will do the next best thing: a for-profit currency reset that nets a windfall. Most likely, they will do both, in succession: a currency reset, netting a windfall, followed by the elimination of cash, netting a second, much larger windfall.

Several prominent commentators have recommended holding cash as a financial defense mechanism. But none of them has warned of the possibility of a currency cancellation, such as the one that just occurred in India. This demonstrates how entropic, unpredictable and dangerous the current financial environment has become. We urge readers to stay highly informed via the Alternative Media, the only place where you can find the truth. Developments are happening fast, and you could get blindsided if you are inattentive and drop your guard.

All of the above begs the question: how can we financially defend ourselves from the Establishment controllers who are coming for our money and our freedom?

Even though precious metals prices are being deliberately crushed at this time, for the reasons outlined above, we view them as the best, and in certain cases, only defense against Deep State exploitation and expropriation. Gold and silver are financial Freedom Fighters, uniquely capable of protecting people from oppression. Throughout history, as people have fled persecution and sought liberty, gold has been their salvation. For millions over millennia, freedom has only been payable in gold. Precious metals provide the best escape from the Deep State’s coming financial command and control matrix, and are the only assets that cannot be canceled, demonetized or extinguished by government decree and whim. Even assets traditionally viewed as being safe, such as productive farm land, can be taxed into oblivion by a government gone rogue. It has happened in the past, and will certainly happen in the future. One cannot hide farm land, or stitch it into one’s coat.

Some people express the concern that governments will prohibit the ownership of precious metals, particularly gold, when things unhinge. We would respond by saying that if it ever comes to that, you will know, for a fact, it is game over. By issuing such an order, the Deep State would make it absolutely categorical that they intend to impoverish and enslave you. While many people might surrender to that kind of totalitarianism, hundreds of millions to billions of people worldwide will not.

Governments can create currency, but only God can create gold, and He is not in the Deep State’s back pocket. No government has the moral authority or practical ability to extinguish the value of the gold made by God. The gold and silver markets have been healthy, consensual and vibrant for more than 5,000 years, and that will never change as long as human beings still walk this earth and breathe the air. Government made currencies have catastrophically failed every single time they have been created. That, too, will never change. Soon, the exchange value of metals will be determined by people, trading one to one, and not by Deep State manipulators and criminals who now set phony prices in rigged markets that they control. You will only be able to enjoy gold and silver’s many virtues if you own them. As millions upon millions of people wake up, see monetary truth and buy, it will become harder to acquire metals at anywhere near current prices, in our view. This is not investment advice (we are not investment advisors and urge you to do your own research and make your own decisions), this is common sense. We believe your opportunities for action are diminishing, because you are battling deteriorating fiscal, economic and monetary circumstances, not to mention time.

Stewart Dougherty
November 13, 2016

Stewart Dougherty is the developer of a privately-held, principles-based forecasting methodology named Inferential Analytics. The unique IA model assesses monetary, fiscal, financial, market, social, political, empirical and anecdotal factors to get a glimpse of tomorrow, today. He has 35 years of management, corporate strategy and business development experience. He is a graduate of Tufts University (MA) and Harvard Business School (MBA).

Gold & Silver: Light At The End Of The Tunnel

Gold and silver and the mining stocks still have tremendous YTD gains despite the highly manipulated take-down that has been orchestrated since early Wednesday morning.  The smash has been executed entirely in the paper derivatives in London and NYC.   De rigeur for the Central Banks.

Eric Dubin discusses why we’ve probably seen the last of the downward manipulative pressure on gold and silver:  Gold and Silver Decline Is Fading, Dow Rolling Over  and Rory Hall published an article on Trump that accompanies the precious metals analysis and our Shadow of Truth episode to be released later today:  The Trump Trojan Horse

I moved checking account cash into my Bitgold account on Saturday, Sunday evening and this morning.  I shorted Capital One at the open today and added to my First Majestic calls. At least I put my money where my mouth is, unlike most of the alternative fear porn promoters…

Gold, Silver Action: The Criminals Are Still In Charge

Out with the old, in with the old.  Wall Street and  the Fed wants to make nice with Trump so as soon as he accepted the next Presidency, the market manipulators went to work on pushing stocks higher and gold lower.

What happened with the threat issued by the media that if Trump were elected the stock market would crash?  Yesterday Stanley Drunkenmiller issued a proclamation that he sold gold because inflation was coming.  I do not believe that I have EVER come across any reference to the notion that gold in inversely correlated with inflation.  Someone must’ve slipped Drunkenmiller some LSD in his scotch.  But, then again, Drunkenmiller is part of the Soros family, which means he’s the enemy of the people and the truth.

The economic thesis connected to Trump is infrastructure spending and inflation generation.   The insanely overvalued, over leveraged “infrastructure” stocks like Caterpiller and Terex screamed higher the last few days.    But if Trump has his way with his economic ideas, corporate taxes will be cut and the Government will re-do the work Obama did on the infrastructure.   Bridges to nowhere funded by more Government debt.

I’m sure most market participants with at least two brain cells to rub together – which de facto would exclude Larry Kudlow from this human demographic – have figured out that Trump’s game-plan would widen out the Federal spending deficit and further accelerate the issuance of more Treasury debt.  It is likely that the Fed will have to monetize some of this new debt issuance.  This is the perfect recipe for higher gold and silver prices.

What is occurring right now in the markets  is nothing more than a knee-jerk response by the hedge fund algos to the overt intervention by the PPT (the Fed + the Working Group on Financial Markets).  The PPT steps in to get stock and precious metals futures moving in opposite directions and the hedge fund black box computers pile in.

The massive take-down in gold is designed to make everyone feel better about Trump as the new president.  But the price-smashing can only occur in the fraudulent paper gold markets in NY and London.   Drunkenmiller is a fan, not surprisingly, of GLD – the quintessential postcard for fraudulent paper gold derivatives.

Today gold traded flat to up in the physical gold clearing eastern hemisphere markets.  It wasn’t until the Comex opened that the real party for the criminal manipulators began.  At one point, from 11:30 to noon EST 48,239 paper gold contracts were dumped on the Comex:

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48,239 contracts represents 4.8 million ozs of paper gold – over 150 tons.  Close to $6 billion worth of paper gold in 30 minutes.  From 11:30 to the 1:30 Comex close EST, a little over  103,000 contracts were sold, representing  10.3 million ounces of paper gold, or 321.8 tons.  The U.S. produces about 200 tons annually.    Make no mistake, it is no coincidence that this hit on the price gold was gold timed to occur on a Friday holiday after the rest of the world had shut down their trading systems and went home for the weekend.  This is standard modus operandi for the criminals running our system.

The Comex vaults are reporting a little over 2 million ounces available for delivery.  If an imbalance between the futures and the underlying available physical commodity were this wide in any other CME market, the Government regulators would be cracking down on it immediately, no questions asked.  Why is gold different?  The gold and silver markets are the most manipulated markets in the world and the same people doing the manipulation will kept in place under Trump.

The good news is that the physical accumulation going on in the eastern hemisphere will accelerate next week with the lower price of gold.  This always occurs.  This will be the catalyst that will put a floor under the ability of the western elitists to push gold much lower.

I personally bought some physical gold this morning via Bitgold and reloaded some call options on some high quality large cap mining stocks and added to positions in my existing junior mining stock portfolio.  The subscribers to my Mining Stock Journal were given my gameplan last night, including some names of other high quality mining stocks that have been beaten up and are overdue for big bounce.

Most Idiotic Comment Ever? “Sell Gold Because Inflation Will Spike”

Stanley Druckenmiller said:  “I sold all my gold (sic) on the night of the election” because he sees inflation spiking and that will force money(sic) out of gold…hmmm….sell gold because you see inflation coming?  That has to be the most idiotic investment rationale I’ve ever come across.  Even “buy stocks because they keep going higher” is less dumb than that.

You’ll note the “sic” I added after Drunkenmiller’s comment about “gold.”  “Sic” is used after a quoted word (from someone else) that seems odd or out of place.   I inserted “sic” after Drunkenmiller’s use of “gold” because he never owned gold.  He bought GLD, which is a paper derivative of gold.  The only way you own gold is if you buy physical gold and keep it outside the system. GLD is a fraud, just like every other fiat paper “asset.”

I also inserted “sic” after his use of the word “money” with respect to “money flowing out of gold” (because he thinks inflation will spike up).  Gold is money.  It’s the second oldest form of transaction currency – silver being the oldest.

Finally, the idea that gold should be sold ahead of an expectation of a spike in inflation is…well, for lack of a better term, retarded (apologies to safe-space and socially correct people).   Gold is the ultimate inflation hedge.

I sincerely do not know what would motivate Druckenmiller to make those remarks about gold – maybe he was patronizing what remains of CNBC’s imbecilic audience.   I don’t feel any need to directly address each component Drunkenmiller’s assertions about gold – and about his expectations about feeling good about the prospects for the economy.  The audiences of blogs like this one get it.

The current trading action in gold is being fueled by the paper market manipulation. If you review overnight charts for the last 3 months, you’ll see that on average and in general gold moves higher during the eastern hemisphere physical gold trading hours and gets bombed once the London and NY paper gold markets open after the Asian markets close.

It’s as simple as that.  The paper gold market, like Drunkenmiller’s comments and investment rationale,  are emblematic of the fraudulent, debt-riddled Ponzi nature of the U.S. and western hemisphere economies.

While the mantle of “power” in the U.S. was handed from Uncle Tom to Andrew Dice Clay, the real financial, economic and political power is being shifted from the western hemisphere to the eastern hemisphere.   The massive flow of physical gold from west to east is the root of this tectonic geopolitical and economic movement.

Will Trump Be Different than Hillary Or Obama? SoT #125

Tyranny is defined as that which is legal for the Government but illegal for the citizenry – Thomas Jefferson

The mainstream media tried it’s hardest to persuade the public that Hillary was a lock to win the election. Even the nefarious George Soros asserted confidently that Trump might win the popular election but Hillary would win the Electoral College.

But apparently the voters just weren’t ready for a tyrannical President yet. The perception of the two candidates shaped by the mainstream media led the unsuspecting – if not comatose – public to believe that Hillary Clinton was some liberal angel who would save the country from reality and that Trump is some kind of fascist monster who is going to force everyone with slightly tinted skin to leave the country.

Of course, nothing could be farther from the truth. Lost in the shuffle is the fact that the Dragon Lady, reincarnated, hid behind the veil of the tax-free status of the Clinton Foundation to steal $100’s of millions from the taxpayers and the Saudi royal family (the Huma Abedin connection, which is why she is Hillary’s “Igor”) and move it into the bank accounts of the Clinton family and friends of the Clinton family. The taxpayers got nothing in return – the Saudi family got use of the U.S. military to attack Syria.

Phony polls are just another form of insidious propaganda – it’s a tool designed to persuade the masses to go the direction of the poll and discourage the other side from voting. It worked for Hitlery and the DNC against Bernie in California. But the people woke up enough to see through the ruse in the big election.

The election results on Tuesday were not about giving Trump or the Republican Party a political and economic policy mandate. The only mandate issued on Tuesday – quite loud and clear – was this: “Someone please stop Washington DC and Wall Street from date-raping us in the bodily area where waste exits.” That was it. Obama had the same mandate in 2008 and completely betrayed his supporters.

Judging from the early indications from the Trump camp regarding Trump’s likely cabinet and advisor appointments, it’s going to be out with the old and in with the old. Currently it appears as if the new Attorney General will be Rudy Guiliani, who is a blatant Establishment hack; Larry Kudlow as an advisor, who is the worst economist in modern era; and Jamie Dimon, CEO, JP Morgan/Chase – who should be in jail – and Goldman Sachs alumnus Steven Mnuchin as Treasury Secretary. More of the same. Neocon elitists, Establishment apologists and Wall Street thieves.

The Shadow of Truth hosted special guest, Eric Dubin of The News Doctors to review and dissect what happened on Tuesday evening. Unfortunately, it’s not difficult to conclude that not much will change when Obama hands the Oval Office wand to Trump:

It Was The Devil vs. The Loch Ness Monster

And the Devil lost.

The “Deplorables” came out and voted against HRC.  They didn’t vote for Trump.  They voted against the corrupt DC/Wall Street Establishment and against the Democratic National Committee criminal enterprise.  The Dems could have put just about anyone else up against Trump and won.

We knew what we were getting with Hillary Clinton:  the reincarnation of Al Capone.   We don’t know what we’ll get with Trump.   But can it be any worse than what we’ve had for the last 16 years?   A Clinton victory would have sealed that fate.   At least with Trump there’s some small chance that the forces at work destroying the U.S. middle class will be halted.

Unfortunately the mainstream media was successful at smearing Trump and building a false narrative about Hillary Clinton.   But Americans vote with their wallet and the fact that Trump won Wisconsin – the first time in 32 years that State voted for the Republican candidate – and the fact that Trump took most of the Rust Belt States reflects a middle class that is far worse off now than it was 8 years ago.   And Hillary was correctly perceived as the candidate who was going to perpetuate the policies that are destroying this country.

The truth is that not much will change under Trump.  The U.S. is enveloped in a systemic collapse – financial, economic, social and political – that is an inevitability regardless of who or which party occupies the Oval Office.

The United States has operated like a giant Ponzi scheme for several decades – a Ponzi scheme fueled by debt, fraud and overt corruption.   When  a Ponzi scheme fails nothing can stop its collapse.  The U.S. has crossed that Rubicon – but long before the Loch Ness Monster defeated the Devil.