James Turk – Deutsche Bank Failure To Usher In The Next Great Depression
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.”