Beating Of The Drums
Beating Of The Drums by Andy Hoffman – Mile Franklin
Well, it doesn’t get more obvious than this! Clearly, the status of the “200 week moving average war” has been taken to DEFCOM 1; as without question, Friday’s dual “super PiMBEEB” events – i.e., Trump’s “surprise” Syrian attack; and one of the worst NFP job reports in memory – put the Cartel’s all-time high silver short position, which I discussed in this weekend’s MUST READ article, in serious jeopardy; as unquestionably, hundreds of billions of momentum-seeking capital is watching for an upside breach of these key resistance levels, for confirmation of the time to re-invest. Not to mention, the major post-election support level of 2.31% on the benchmark 10-year Treasury bond; which early Friday it briefly traded below, before the Cartel and PPT raced in to temporarily stave off their respective “executions.”
Then, following a weekend of loudly beating “war drums” – not to mention, the digestion of the hideous ramifications of Friday’s jobs report; this, in the wake of the Fed’s “GDP Now” forecast for Q1 having been reduced to just 0.6%; the Cartel came out with guns blazing today – starting with the 180th “Sunday Night Sentiment” paper raid of the past 190 weekends, followed by the 822nd “2:15 AM” EST raid of the past 940 trading days – in both cases, launched via a prototypical “Cartel Herald” algorithm”; and finally, two New York pre-market “waterfall declines,” in both cases with no other market materially moving – followed by a third at the 9:30 AM EST NYSE open.
Heck, both interest rates and the dollar index are lower this morning – and falling further, as I write. In silver’s case, the price is now “safely” in the $17.80s – which I say in quotes, at it could recover its fraudulently lost ground in the blink of an eye. As for gold, it is currently trading at $1,251 – having recovered from its low of $1,246, following yet another abysmal Fed Labor Market Conditions Index reading; to the Cartel’s chagrin, still above its 200 WMA – of what do you know, $1,246/oz.
And for anyone that actually believes the unprecedentedly rigged markets are “signaling” anything other than their own fraudulence, consider the following, damning charts of the dire state of the dying U.S. economy – starting with the first six-month period of negative commercial and industrial loan growth since the dotcom bubble implosion, and the 2008 financial crisis…
As well, a whopping 40% surge in March bankruptcy filings versus February. This, despite the so-called “record confidence” depicted in meaningless “soft data” surveys since Election Day; which conflict not only with economic reality, but Trump’s Presidential approval rating – which, as of March 31st, had plunged to just 35%.
Which is also seen in market-based metrics – like the Credit Suisse “fear barometer,” which measures hedging activity based on fear of a significant market correction; literally, rising to a level last seen on Election Night Eve. You know, when it was “common knowledge” that Trump would be bad for stocks, and good for Precious Metals; which was exactly the response his “surprise” election engendered, until the powers that be took their already historic market manipulation activities into hyper-drive.
Fast forward to today; with the economy on the verge of a recessionary GDP print, despite the BEA’s best data-goosing attempts. Meanwhile, our historically dysfunctional government faces a potential shutdown in just two weeks; with the nation’s worst-ever “debt-ceiling” crisis looming roughly four weeks later. Throw in the fact that the “replace and repeal” of Obamacare is dead; and in its wake, any hope of “massive” tax cuts or “yuuggee” fiscal stimulus; and the concept of near-term economic “hope” starts to border on ridiculous – particularly for the already highest taxed state in the union, California, whose legislature passed yet another massive gasoline and automobile registration tax increase. Let alone, commentary that anyone would be selling Precious Metals under such circumstances – particularly Friday afternoon, following the aforementioned “duel Super PiMBEEB” events. Oh, and did I mention that Marine Le Pen’s election odds continue to rise, despite every imaginable propagandist attempt to prevent this from being understood?
However, what unquestionably scares me most is the aforementioned “beating of the drums” – of war, as discussed in Friday’s “did America just start World War III?”. Which is NOT something I speak of lightly – certainly not to fear-monger, which is the last thing I want to do. No, I simply look at facts; and frankly, even I am taken aback by Trump’s 180-degree turnaround – from last week, stating he “is no longer focused on getting Assad out”; to this week, when, according to UN Ambassador Nikki Haley, “regime change in Syria is one of Trump’s top priorities.” This, following an alleged Assad-ordered chemical attack; which according to a vast amount of observers, from multiple strategic angles, is a mistruth at best; and at worst, a flat-out lie.
This weekend, Trump made it clear that he’s far from done with Syrian military confrontation – not just through proxies like Haley, but an official letter to Congress. Moreover, he claimed to be considering additional sanctions on Russia and Iran, simply for supporting Assad. Which is quite ironic, as one of his key campaign platforms was the destruction of ISIS – which, in attacking Assad’s government troops, he is explicitly aiding. Not only that, America’s “loose cannon” Commander-in-Chief – no pun intended – dispatched a major aircraft carrier to Korean waters this weekend, “in response to recent North Korean provocations.” Perhaps, Trump does in fact intend to carry out the ultimatum he made to Chinese Premiere Xi Jinping on Thursday. Which was, that if China didn’t “solve North Korea, we will.”
In other words, any hope that Trump might seek the diplomacy America so desperately needs – which frankly, was the principal reason I voted for him, given that his lunatic opponent made her desire for war with Russia crystal clear; has been shattered to pieces, less than three months into his Presidency. Moreover, given the reckless nature of the Syrian attack – threatening to not only ignite a major Middle Eastern conflict, but potentially, military conflict with Russia and/or Iran – he may well turn out to be more “hawkish” than the Wicked Witch of the Western Hemisphere herself. I mean, if America’s going to have a $600 billion military budget – up 10% from last year’s record-high level – it’s going to have to be spent, right?
Why is he doing this, you ask? I wish I knew – but whatever the reason or reasons, NOTHING good will come of it. Is it simply because war increases approval ratings? Does he think it will improve his chances of Congressional and/or mainstream media support, given that even his “arch-enemies” supported his decision to bomb Syria? Was he working on behalf of the “U.S. government-led “oil PPT” – which clearly, will do anything to support the price of oil; and thus, enable its only remaining Middle East ally – Petrodollar-supporting Saudi Arabia – from going bankrupt? Or perhaps, he was trying to intimidate China – given that the Syrian attack was launched mere hours after Trump hosted Xi Jinping for dinner. I mean, just how incredible is it that Trump changed his mind about Assad so quickly, with so little evidence – to that point that World War III could possibly be the result?
Irrespective of the reason, the fact that we are so close to war is in my mind, a glaring symptom of America’s dying Empire; and with it, the dying fiat Ponzi scheme underlying it. Clearly, the powers that be will stop at nothing to prolong the inevitable; but in the end, this fight to the death will result in their demise, not ours. And when this occurs, likely, sooner rather than later – if you have not already protected your assets from the horrifying economic and financial results, it will already be too late.