• Gold: 1,423.12 19.79
  • Silver: 15.94 0.41
  • Euro: 1.122 0.001
  • USDX: 97.238 -0.157
  • Oil: 56.69 -0.84

Well, well, well

Well, well, well; turns out I was right that U.S. Treasuries are being swamped by buying - and European sovereigns, too - amidst expectations of accelerated QE given plunging global economic activity. In the past two days, we have seen ZERO retail sales and a surging PPI, demonstrating stagflation at its worst; not to mention, collapsing German confidence readings and Chinese economic data. It's only a matter of time before ALL safe haven buying is not in Treasuries, but REAL MONEY.

Rock and a hard place

Each day, my belief that the Fed is actually supporting interest rates - specifically, the 10-year yield at multi-month support at 2.6% - grows stronger, via the "most damning proof yet of QE failure." Today's abysmal retail sales number clearly has them under pressure again; not to mention, the horrific Chinese industrial data and German ZEW investor confidence numbers. The ECB again leaked its leaning toward launching QE at next month's meeting; and pretty soon, it will be the Fed's turn as well - as they are stuck in the ultimate "rock and a hard place."

NOTHING incremental

Another Fed Chairman giving Congressional testimony, another PM raid. No matter that NOTHING incremental was said relative to last week's FOMC statement, with the MSM's key takeaway being the sound byte "a high degree of accomodation is still warranted." In my view, the scariest part of TPTB's shell game is the fact that rates are dramatically falling despite the so-called tapering of QE; in my view, per the title of my article today, "the most damning proof yet of QE failure."

How much longer can this historical aberration...

In the aftermath of yesterday's faux "tapering" announcement - following a miserable +0.1% GDP reading, which per today's revised durable goods figure, was actually negative - PMs have been attacked with impunity; on this, the third annivesary of the 5/01/11 "Sunday Night Paper Silver Massacre." With most of the world closed, TPTB have bulled up stocks and bonds despite the so-called "tapering" increase; and amidst a flood of horrible global economic data, particularly in the U.S., have taken gold down $30 from Friday's highs, and silver to near its multi-year lows.

Silver on the verge of a 'sharp and swift...

"Right now, we're expecting that the FOMC will continue to taper," said Sanchez, founder of Chantico Global. "If that happens, you'll see a downtick in silver, not an uptick. I think that the trend and even the fundamentals would suggest that silver is headed down, not up from here."

When, oh when?

On a weekend featuring dramatic escalation of the Ukraine crisis; and now, further collapse of the 1999-valued tech stocks propped up by the latest Fed equity bubble, PMs experienced, the 38th “Sunday Night Sentiment” PM raid of the past 39 weeks; as well as the 211th “2:15 AM” EST raid of the past 238 trading days; the DLITG, or “Don’t Let it Turn Green,” algorithms that stopped gold and silver from turning positive just after the COMEX open at 8:20 AM EST; and the prototypical 10:00 AM EST waterfall decline; i.e., the second global PHYSICAL markets closed.

It's just a matter of when

It looks like another COMEX options expiration day to me; as with 500,000+ ounces of gold still standing delivery from prior months' contracts - and (if you believe it) just 820,000 ounces of registered inventory, you can bet the Cartel is terrified of a major delivery demand. Meanwhile, gold has never been in such backwardation, and PHYSICAL demand is surging -with the US Mint rationing silver Eagles, and on pace to shatter last year's record level.

The historic game of can-kicking

The historic game of can-kicking continues, with the cataclysmic news that last week, the Japanese 10-year Treasury bond had ZERO bids for 36 straight hours. In other words, QE has so horribly distorted valuations, there are literally no buyers left; or sellers, for that matter, in fear that Abenomics will be increased. The same has occurred in essentially all the world's paper markets, as this historic, Frankenstein-like game of money printing and market commandeering plays itself out.

"Sunday Night Sentiment" attack

Another weekend, and another "Sunday Night Sentiment" attack to calm budding PM sentiment in the week's early hours - in fact, the 35th in the past 36 Sundays; the 203rd “2:15 AM” raid in the past 229 days; and additional raids each and every time PMs attempt to increase - particularly at "Battlefield $20/oz silver," which is exactly where it is trading as I write. With the Ukrainian crisis on the verge of dramatically escalating, and global economic weakness practically begging for "moar" QE, it's only a matter of time before PM prices escape the Cartel's clutches; and at the least, rise to levels well above the cost of production.

They WILL lose

The global equity crash continues, notwithstanding this morning's blatant PPT efforts to staunch the blood flow. Worldwide, economic data is collapsing, whilst inflation is surging. Watching oil surge whilst stocks plunge should scare the heck out of anyone believing in "deflation and recovery." But then again, we have been saying this all along.