As we kick off the first week of trading in October, today James Turk told King World News that Deutsche Bank’s failure will usher in the next Great Depression.
Eric King: “That was a great call you made last week, James, with the caution you issued about the impact that end-of-the-month option expiration would have on gold and silver prices.”
James Turk: “Thanks, Eric. Of course nothing is obvious when it comes to markets, which is another way of saying the future is unpredictable. But the future – or at least in the very short term – can be controlled from time to time, and we saw that happen last week when gold and silver swooned into option expiry…
So I was not predicting anything. I was simply focusing on the probabilities that gold and silver would get hit last week, and they did. Gold was down -1.8% from the New York close the previous Friday. Silver, which is usually more volatile, was hit harder, closing down -3.0% on the week.”
Eric King: “When you say that ‘the future can be controlled from time to time,’ are you referring to the fact that all markets can be manipulated?”
Bullion Banks – Agents Of The Fed – Paint The Tape
James Turk: “I was commenting mainly on gold and silver, which are the markets I follow most closely. But I suppose that most markets can be controlled for a time at least to some extent. It depends on what you call it. I used the word ‘control.’ Others might prefer the term manipulation or intervention. But these short-term swings pressuring the market one way or the other have been around for ages. It’s often called ‘painting the tape,’ which of course refers to the stock market ticker-tape used a century ago to disseminate share prices. That expression itself shows that market manipulation has been around for a long-time.
There is a related point. The Federal Reserve often speaks of controlling expectations. That’s a politically correct way of describing propaganda. Today for example, it was reported that U.S. construction spending weakened and automobile sales slowed in September. It looks like the economy is in a recession, but it won’t be called that until after next month’s election to control expectations. Also, the well-trained mainstream media doesn’t want to embarrass the Fed or any politicians before the election.”
Eric King: “James, I know that the drop in gold and silver prices last week did not change your bullish outlook for the precious metals.”