• Gold: 1,388.30 -1.01
  • Silver: 15.39 -0.04
  • Euro: 1.129 -0.000
  • USDX: 96.638 -0.479
  • Oil: 57.15 2.72

The big one

Amidst surging global “horrible headlines,” of all types, physical PM demand is surging. Cartel efforts to cap at $1,300 and $20, respectively, are failing in light of major gold backwardization, and gold’s “golden cross” last week has been substantial technical support into a market screaming “double bottom.”

"Whirlybird Janet" joins the party

As I predicted earlier this week, the NFP report was "weaker than expected." All NFP reports are horrible - and rigged - but with interest rates having crept back up, the government knew it had to get them back down again. And hence, today's near "death cross" in the 10-year Treasury yield - to the downside - just as gold made its own death cross - to the upside earlier this week, with silver soon to follow.

The "duh" statement of the century

Frankly, not more to add to that - on a day when Michael Lewis is being feted for claiming the "duh" statement of the century, that markets are rigged. Of course, they are not rigged - as he claims - primaily for the benefit of HFT traders (who are simply leeches to the cancerous system), but the government and TBTF banks that control the markets.

Attacked with a vengeance

Since last Sunday – when gold hit $1,397 before the 30th “Sunday Night Sentiment” attack of the past 31 weekends – the Cartel has attacked PAPER PMs with a vengeance, to quell its recent surge and convince the world all’s well yet again. Unfortunately, nothing has changed, and gold’s “golden cross” (with silver’s upcoming shortly) indeed occurred – whilst global economic data and geopolitics have only worsened. Per Monday’s article, “golden life preserver in a sea of lies,” and Tuesday’s “cycle of bad advice,” this is the time to ignore the propaganda – like Goldman Sachs’ brutal anti-gold hack job – and pay attention to reality; especially with prices of both metals trading well below their respective costs of production.

This week's attempted "façade of...

"Whirlybird Janet" said essentially nothing incremental; and if anything, was more dovish than anticipated. This week's attempted "façade of credibility" - in JY's first meeting - is already cracking, as interest rates are surging whilst emerging market currencies are plunging anew. The accompanying PM attack has occurred amidst blitering physical demand - including Miles Franklin's best day of the year, earlier this week; and thus, all it's accomplished is pulling the inevitable supply shortage that much closer.

Panic Mode

Now that a second, potentially cataclysmic "Crimean War" is a significant possibility - whilst "Whirlybird Janet" prepares her inaugural FOMC policy statement on Wednesday, amidst abysmal economic data (like this mornign's NAHB Housing Index), collapsing U.S. Treasury demand (foreigners sold a record $104 billion last week), and heightened currency wars (the PBOC doubled the Yuan's daily trading band this weekend), naturally the Cartel is in panic mode.

Whirlybird Janet

With a potentially tumultous weekend coming - let alone, next Wednesday's FOMC meeting, when "Whirlybird Janet" will be under signficant pressure to "pause" the taper - PM's have surged to their highest levels of the year. The Crimean referendum takes place Sunday, and it's a fait accompli that it will vote to secede from the Ukraine and join Russia. The U.S. has made it clear this is not acceptable, so the odds of a military confrontation are sky high.

How much longer can the game go on?

U.S. Mint Silver Eagles sales are simply going berserk, as we wrote about last week in "silver anniversary," and global gold demand has started the year even stronger than last year's record-shattering levels. Currencies are crashing, economic data plummetting, and there are real worries that China could be headed for a catastropic real estate and financing crash.

Operation Ukraine Whitewash

Well, it appears that "Operation Ukraine Whitewash" has been a modest success; in that despite the crisis clearly escalating, global financial markets are all higher. Gold, too, is higher, but just by 1.5% since the weekend; which all things considered, is pretty good given that prices are typically ATTACKED when PM-bullish news like this emerges.

Catalyzing the inevitable global financial...

It could have been ANYTHING that commenced the inevitable global financial collapse - and end of the near-dead fiat currency regime; but as of now, Ukraine looks to be the odd-on favorite for catalyzing such. "Economic fires" are now burning everywhere - from Turkey, to Thailand, Argentina, and Venezuela. However, none of the near-term catastrophic potential of a war in a region as politically sensitive in the Far East as Jerusalem in the Middle East.