As I scan the news headlines at Zero Hedge, the King Report — and other publications every day in search of stories for this column, it’s sad to see how corrupt all three branches of the U.S. government have become — the Executive, the Legislative and the Judicial. The “separation of powers” has become almost nonexistent. As Gregory Mannarino has correctly pointed out on numerous occasions, the Federal Reserve and the Wall Street banking syndicate now run the show…not only at home, but abroad.
Of course this corruption is not at all confined to the U.S. Here in Canada, the descent into tyranny has accelerated, as all three political parties, regardless of their so-called “ideological differences”, are all sounding the same these days. It’s even worse in places like Australia, New Zealand and the U.K. In some countries in Europe, Austria and Germany in particular, the rhetoric is sounding like that heard under the Nazis.
The deep state/New World Order crowd are now closing in for the kill at an ever-increasing rate with each passing week — and now with each passing day.
And regardless of all the happy talk on the deep state-controlled media, the world economy continues to sink further into the abyss.
The only thing holding it all together is the 24/7 intervention by the powers-that-be in whatever markets they see fit — and the non-stop money printing by the world’s central banks.
As Nick Giambruno stated in an article posted over at the internationalman.com website yesterday…
“The Fed has two choices: 1) keep printing trillions and let inflation skyrocket or 2) tighten monetary policy and watch the markets crash.
In other words, it can sacrifice the stock market or the dollar.
When faced with the choice, politicians usually choose the most expedient option. Therefore they are likely to choose the easy option—keep printing money.
Max Keiser summed up the situation best, “you can’t taper a Ponzi scheme.”
On a slightly different tack, I note that Goldman Sachs is out with
yet another forecast of a commodities supercycle…
“Oil prices could reach $95 if Iran doesn’t return to the market this year, while commodities overall are set for a supercycle that could potentially last a decade, according to Goldman Sachs, which is “extremely bullish” on the whole commodity complex.
Currently, we are seeing record dislocations in energy markets, metals markets, and agriculture markets, Jeff Currie, global head of commodities research at Goldman Sachs, told Bloomberg Television in an interview on Thursday.
There is still a lot of money in the system, while investment positions in commodities are very low, which is setting the stage for further upsides in oil prices and the prices of other commodities, Currie said.
“The best place to be right now, particularly given the Fed pivot, are commodities.”
“We think you’re going to see another year of out-performance of commodities and real assets more broadly,” Currie added.”
The rigging of precious metal prices is now obvious to all, whether they care to admit it or not. This fact is no longer debatable — and as you’re more than aware, the precious metals haven’t been allowed to join in the rally in commodities that we’ve already had to this date. So it remains to be seen if they’ll be allowed to join he party during the next rally in commodity prices once it materializes.
From a COMEX futures market perspective, we’re certainly set up for it. However, we’ve been in this position on many occasions in the past…only have our hopes crushed.
But when it’s finally allowed to come to pass, then I can’t help but think once more that the end of the bull market in all things paper will be its first casualty, as the move from paper and into “real assets” as Currie states, will turn from a trickle into a flood. This would be especially true if the price management scheme in the precious metals is abandoned at that point.
Whether or not the New World Order crowd will make their move sometime during this hoped-for commodities cycle is unknown. But what I do known, is that this “everything bubble” that has grown slowly — and now to Frankenstein proportions since we were taken off the gold exchange standard 51 years ago, owes its entire existence to our current debt-based monetary system.
Ludwig von Mises, the godfather of free-market Austrian economics, summed up the Fed’s — and the other central banks of the world’s dilemma when he stated this now-familiar quote:
“There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved.”
One or the other is in our future, but as I and other have already pointed out repeatedly, this time it will be global — and only those holding Mr. Currie’s “real assets” will survive it.
So despite the losses I/we’ve had imposed upon us over the last year, I see no intelligent alternative to investing in commodities in general — and the precious metals in particular.
I’ll end this Saturday column as I always state…I’m still “all in” — and will remain that way to whatever end.
I’m done for the day — and the week — and I’ll see you on Tuesday.
Ed