GOLD is the money of the KINGS, SILVER is the money of the GENTLEMEN, BARTER is the money of the PEASANTS, but DEBT is the money of the SLAVES!!!

Wednesday, October 22, 2014

Andrew Hoffman -- Has The Great Unraveling Begun?

Signs everywhere…
third Chinese "backdoor QE" announcement in two months Friday

heightened chatter of increased BOJ stock purchases
European stocks plunging despite QE having started. Major Western sovereigns (even France, which had its outlook downgraded to negative by S&P last week) plunging to all-time lows…but PIIGS stocks and bonds collapsing, led by Greece (Athens stock index down 30% since April, and Greek 10-year yields up 200 bps last week)
EU manufacturing, industrial production, sentiment plummeting, led by Germany - clearly in continent-wide recession, and falling quickly
U.S. retail sales, industrial production plummeting. NFLX, WMT major earnings announcments last week, and IBM earnings catastrophe today
Article - "need or want, demand is dying"

Last week's market carnage, PPT not withstanding, was horrific
vast majority of stocks in bear markets
volatility surged, at times overwhelming "manipulation organizations" like the PPT, Fed, and ESF
dollar index not "strong" last week b/c down vs. Euro, but continued to wreak havoc by surging against peripheral currencies
Article "the single most bullish PM factor imaginable"
biggest one-day percentage drop in Treasury history Wednesday morning, when 10-year plunged from 2.2% to 1.9% in an hour (en route to Japanese and German levels sub 1%, before hyperinflation inevitably destroys them)
Article - "most damning proof yet of QE failure"
commodities continue to crash, as well as all indicators of global trade
Articles - "Commodity Crash! (but don't worry, gold and silver are not commodities), "Crashing Oil prices portend unspeakable horrors"

Fed desperate to maintain calm
Six Fed governors hinted at "QE and/or ZIRP to Infinity" last week, including Vice Chairman S. Fischer
"coincidentally," five are on the 2015 FOMC voting committee, while the two biggest "hawks" (Plosser and R. Fisher) will be departing
crucial FOMC meeting 10/29, when QE supposedly ends, just six days before critical mid-term elections (with both Presidential and Congressional approval ratings at all-time lows) - Article - "Manipulation, Jawboning, and Prayer"
of course, this is all that matters

PM fundamentals never stronger, with record physical demand for both metals
for silver specifically, best risk/reward in history
demand in India, the U.S., and Canada on pace to match 2014's record levels

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