A Blockbuster COT Report on Friday

20 April 2019 — Saturday

YESTERDAY in GOLD, SILVER, PLATINUM and PALLADIUM


With most markets closed for Good Friday, there certainly wasn’t much happening.

But the currencies did trade yesterday.

The dollar index closed very late on Thursday afternoon in New York at 97.47 — and opened down 5 basis points once trading commenced at 7:44 a.m. China Standard Time on their Friday morning.  It really didn’t much during the Friday session, which is not entirely surprising — and it closed at 97.38…down 9 basis points on the day.

Here’s the DXY chart…courtesy of BloombergClick to enlarge.

Here are the usual charts from Nick that show what’s been happening for the week, month-to-date — and year-to-date.  The first one shows the changes in gold, silver, platinum and palladium for the past trading week, in both percent and dollar and cents terms, as of their Friday closes in New York — along with the changes in the HUI and the Silver 7 Index.

Here’s the weekly chart — and there’s no way to paint this, except ugly.  The equities got crucified. This data isn’t quite accurate, as it contains the last five trading days — and in a holiday-shortened week like this week, it includes last Friday’s [April 12] data as the first day of the last five trading day sequence.  Click to enlarge.

And with the exception of platinum and palladium, everything is now down month-to-date, with most of the negative price activity coming during the last eight trading days as ‘da boyz’ engineered gold and silver prices lower.  Click to enlarge.

The year-to-date chart also shows that everything, with the exception of platinum and palladium, is now down on the year.  Chalk this unhappy looking chart to last two weeks of price activity as well.  Click to enlarge.

I would suspect that we’re very near the end of this engineered price decline in silver and gold…particularly silver.  As I mention in my COT narrative further down, the only big unknown is whether the powers-that-be are going to go gunning for gold’s 200-day moving average or not.  And as I also mention below, I doubt we’ll have long to wait to find out — and I doubt that that gold and silver prices will remain there for long if they do.

Other than that, with New York shut tight, there are no reports from anywhere to pass along.


But one thing I do have for you is that The Central Bank of the Russian Federation updated their website with their March data on Good Friday — and during that month they reported adding another 600,000 troy ounces of gold to their reserves.

Their total gold reserves now stand at a hair under 2,168 metric tonnes…69.7 million troy ounces.

Here’s Nick Laird’s most excellent chart showing this new data point.  Click to enlarge.


The Commitment of Traders Report for positions held at the close of COMEX trading on Tuesday, April 16 were better than Ted had said they might be in silver — and massively better in gold.

In silver, the Commercial net short position declined by 14,090 contracts, or 70.0 million troy ounces of paper silver.

They arrived at that number by adding 15,451 long contracts, but they also increased their short position by 1,361 contracts — and it’s the difference between those two numbers that represents their change for the reporting week.

Under the hood in the Disaggregated COT Report, the Managed Money traders made up only part of the change for the reporting week, as they increased their short position by 8,823 contracts, but they also added 427 new long contracts — and it’s the difference between those two numbers…8,396 contracts…that represents their change for the reporting week.

The difference between that number — and the Commercial net short position…14,090 minus 8,396 equals 5,694 contracts, was made up [as it always is] by the traders in the other two categories.  Both the ‘Other Reportables’ and the ‘Nonreportable’/small trader categories sold long positions and increased their short positions as well.

Here’s the snip from the Disaggregated COT Report so you can see these changes for yourself.  Click to enlarge.

The fact that the Managed Money traders increased their long position during the reporting week [albeit by a tiny amount] pretty much means that the traders holding all these long positions are of the ‘non-blinking’ variety — and are value-based investors and are not slaves to moving average penetrations…like the Managed Money traders on the short side.  So this is very much a bifurcated report for the Managed Money traders…value investors on the long side — and the brain-dead/moving average-following Managed Money traders on the short side.

Ted figures that JPMorgan went from the a 2,500 contract short position in last week’s COT Report — and are now long the COMEX futures market in silver by around 2,000 contracts.

The Commercial net short position in silver is down to 24,672 contracts, or 118.4 million troy ounces.  Although not a record low, it’s certainly far more bullish than it has been for quite some time now.

Ted is also of the opinion that the eight largest traders in silver on the short side…all Commercial traders…are now contaminated by up to three Managed Money traders whose short positions are now big enough to be included in that category.  I have more about this in my ‘Days to Cover’ discussion a bit further down.

Here is the 3-year COT chart — and this week’s big improvement should be note.  Click to enlarge.

So, are we done to the downside — and is there any more blood to get wrung out of the COMEX silver market stone?  That’s a good question.  But as I have commented on this week, gold made two new intraday lows during this past week, but silver only one — and that was on Monday.  There has been no real serious attempt by ‘da boyz’ since to break the silver price to new lows.  So you can read into that whatever you wish.


In gold, the commercial net short position dropped by a knee-wobbling 54,379 contracts, or 5.44 million troy ounces of paper gold…one of the largest one week declines that I can remember.

They arrived at that number by adding 13,224 long contracts — and they also covered 41,155 short contracts — and it’s the sum of those two numbers that represents their change for the reporting week.

Under the hood in the Disaggregated COT Report, it was almost all Managed Money traders that made up that change, as they sold 21,721 long contracts — and added a chunky 30,703 short contracts, for a totally weekly change of 52,424 contracts.

The difference between that number — and the commercial net short position…54,379 minus 52,424 equals only 1,955 COMEX contracts.  That difference was made up by the traders in the ‘Other Reportables’ and ‘Nonreportable’/small traders categories, but both went about it in wildly different fashion.  The former increased their net long position by 3,333 contracts — and the latter increasing their short position by a goodly amount…5,288 contracts.  The difference between those two number is 1,955 contracts on the short side, which is what it has to be.

Here’s the snip from the Disaggregated COT Report for gold — and the above changes can be noted…if you have the interest, that is.  Click to enlarge.

The commercial net short position in gold is now down to 7.84 million troy ounces of paper gold.

Ted mentioned on the phone yesterday that it appears to him that JPMorgan may be long the COMEX futures market in gold by 10-15,000 contracts.

Here is the 3-year COT chart for gold — and this week’s change is more than obvious.  Click to enlarge.

So, do ‘da boyz’ have enough already, or are they still going to be gunning for gold’s 200-day moving average?  A good question for which no one has an answer.  But I suspect that we’ll find out the answer to that in fairly short order.

In the other metals, it was business as usual in palladium this past week, as the Managed Money traders reduced their net long position by a further 701 contracts — and the other two categories did even less.  The Managed Money traders are net long the palladium market by 9,236 contracts.  Total open interest in palladium dropped to 21,712 COMEX contracts, down 1,225 contracts from the previous week.  It’s a very tiny market.  In platinum, the Managed Money traders went long a bit more during the reporting week…increasing their long position by only 695 contracts.  The Managed Money traders are now net long the platinum market by about 21,038 contracts, up about 1,500 contracts from last week’s COT Report.  In copper, the Managed Money traders increased their net long position by a further 2,589 COMEX contracts — and are now net long the COMEX futures market by 1,157 contracts, which is really nothing at all.


Here’s Nick Laird’s “Days to Cover” chart updated with yesterday’s COT data for positions held at the close of COMEX trading this past Tuesday. It shows the days of world production that it would take to cover the short positions of the Big 4 — and Big ‘5 through 8’ traders in each physically traded commodity on the COMEX. Click to enlarge.

For the current reporting week, the Big 4 traders are short 104 days of world silver production, which is down 12 days from last week’s report — and the ‘5 through 8’ large traders are short an additional 55 days of world silver production, down 7 days from last week’s report — for a total of 159 days that the Big 8 are short, which is a bit over 5 months of world silver production, or about 371.1 million troy ounces of paper silver held short by the Big 8.  [In the prior week’s COT Report, the Big 8 were short 178 days of world silver production.]

In the COT Report above, the Commercial net short position in silver was reported as 118.4 million troy ounces.  As mentioned in the previous paragraph, the short position of the Big 8 traders is 371.1 million troy ounces.  The short position of the Big 8 traders is larger than the total Commercial net short position by a chunky 371.1 minus 118.4 equals 252.7 million troy ounces.

The reason for the difference in those numbers…as it always is…Ted’s raptors, the 35-odd small commercial traders other than the Big 8, are net long that amount.

As Ted mentioned on the phone yesterday, JPMorgan is now net long the COMEX futures market in silver by about 2,000 contracts.

The Big 4 traders now in that category are short, on average, about…104 divided by 4 equals…26 days of world silver production each.

The four traders in the ‘5 through 8’ category are short 55 days of world silver production in total, which is a bit under 14 days of world silver production each.

Ted’s of the opinion that there could be up to three Managed Money traders with short positions large enough in the COMEX futures market to inhabit the Big 8 category now.

The Big 8 commercial traders are short 33.1 percent of the entire open interest in silver in the COMEX futures market, down big from the 39.7 percent they were short in last week’s report.  And once whatever market-neutral spread trades are subtracted out, that percentage would be a bit under the 40 percent mark.  In gold, it’s now 33.6 percent of the total COMEX open interest that the Big 8 are short, down from the 37.7 percent they were short in last week’s report — and something approaching 40 percent once the market-neutral spread trades are subtracted out.

It’s been many a moon since the Big 8 commercial traders held a larger percentage of total open interest short in gold, than in silver…albeit by a tiny amount.

In gold, the Big 4 are short 31 days of world gold production, down 7 days from what they were short in last week’s COT Report.  The ‘5 through 8’ are short another 20 days of world production, down 1 day from what they were short last week…for a total of 51 days of world gold production held short by the Big 8…down 8 days from last week’s COT Report.  Based on these numbers, the Big 4 in gold hold about 61 percent of the total short position held by the Big 8…down 3 percentage points from last week’s COT Report.

The “concentrated short position within a concentrated short position” in silver, platinum and palladium held by the Big 4 commercial traders are about 65, 75 and 77 percent respectively of the short positions held by the Big 8.  Silver is unchanged from a week ago, platinum is up 7 percentage points from last week — and palladium is down 2 percentage points.

Because of the Easter holiday, there’s not much in the way of news stories, but I do have a couple that I’ve been saving for today for length and/or content reasons.


CRITICAL READS

Housing Starts Collapse Continues – Worst Annual Drop Since 2011

Well this should steal the jam out of the green-shoot-brigade’s doughnut. Housing Starts and Permits unexpectedly tumbled in March.

Housing Starts fell 0.3% MoM (against expectations of a 5.4% rebound) and to make matters worse, February’s 8.7% plunge was revised down to a shocking 12% collapse…Click to enlarge.

This is the weakest level of Housing Starts since May 2017…Click to enlarge.

And biggest Y/Y drop since 2011, suggesting builders remain wary even as lower mortgage rates and steady wage gains offer support to consumers.

Permits were just as ugly – dropping 1.7% MoM (against expectations of a 0.7% rise) and, like Starts, February’s data was downwardly revised (from -1.6% to -2.05% MoM)

The drop signals developers continue to struggle to build affordable properties amid rising labor and materials costs…but, but, but… lower rates and green shoots!!

This chart-filled Zero Hedge news item showed up on their Internet site at 8:45 a.m. on Friday morning EDT — and I thank Brad Robertson for pointing it out.  Another link to it is here.


The Aftermath of the 2008 Crisis is That We Never Really Escaped (Part 1) — Jim Rickards

The economy is vulnerable to economic “chaos” due to several monetary and policy mistakes made since the 2008 recession, said best-selling author Jim Rickards.

His new book “Aftermath: Seven Secrets of Wealth Preservation In The Coming Chaos” details how the last economic crisis never really ended.

Technically, the recession was over in June 2009 and the U.S. economy has been expanding ever since. We’re coming up on 10 years of expansion, it’s one of the longest expansions in U.S. history and it’s one of the longest bull markets in stocks in U.S. history, so that’s true. But, it’s also been the weakest expansion in U.S. history. For 10 years average growth has been about 2.2%,” Rickards told Kitco News.

Part 1 of this 2-part video interview is linked in the headline — and here.  And the link to Part 2 is here.  Both segments run for 18 minutes — and I thank Harold Jacobsen for bringing them to our attention.


Doug Noland: Full Capitulation

It’s stunning how dramatically the Fed’s perspective has shifted since the fourth quarter. There’s now a chorus of Fed governors and Federal Reserve Bank Presidents calling for the central bank to accommodate higher inflation. Watching the inflation data (March CPI up 1.9% y-o-y), it’s not readily apparent what has them in such a tizzy. And with crude prices surging 40% to start 2019, it takes some imagining to see deflationary pressures in the pipeline.

The Fed’s (and global central banks’) dovish U-turn was clearly in response to December’s global market instability. Quickly, the global system was lurching toward the precipice. Acute fragility revealed – and central bankers were left shaken. And witnessing the speculative fervor that has accompanied central bankers change of heart, the backdrop is increasingly reminiscent of Bubble Dynamics following the 1998 LTCM bailout.

Central bank officials today lack credibility when they direct so much attention to consumer price inflation while disregarding the overarching risks associated with unrelenting global debt growth, highly speculative and leveraged global financial markets, and deep global economic structural maladjustment. In the grand scheme of things, consumer prices running just below target seems rather trivial. What’s not trivial are central bankers that now appear to have accepted that they will accommodate financial excess and worsening structural impairment. At this point, it appears Full Capitulation.

It’s simply difficult to believe such analysis resonates – yet it sure does. These are strange and dangerous times. Kocherlakota: “If your medicine chest is nearly empty, you want to keep your patient as healthy as possible.” Noland: If you’re running short of medicine, you better not encourage your patient to live a reckless lifestyle. You certainly don’t want to convince the foolhardy that you possess an elixir that will cure whatever ails them. These central bankers have really lost their minds: What they administer is anything but medicine.

Such central bank crazy talk should have longer-term bonds beginning to sweat. But, then again, bond markets are confident that central bankers from across the globe will be buying plenty of bonds over the coming months and years. When central bankers talk about accommodating higher inflation, bonds hear “more QE”. And while safe haven bonds may not be overjoyed at the thought of CPI creeping higher, they remain more than fine with bubbling risk markets – prospective bursting Bubbles ensuring only more expansive QE programs. The so-called U-turn marked an inflection point from a meek attempt to return central banking to sounder principles – to a decisive breakdown in any semblance of responsible monetary management.

These days, I worry about what central bankers have unleashed with their ultra-dovishness in the face of historic late-stage global Bubble “terminal excess.”

Doug’s weekly commentary was posted on his Internet site in the very wee hours of Saturday morning — and another link to it is here.


Russian fuel embargo could lead to collapse of Ukraine’s economy, oil major warns

Russia’s ban on exports of oil and petroleum products to Ukraine in response to Kiev’s latest sanctions could be a catastrophic blow to Ukraine’s economy, according to one of the leading Ukrainian oil refiners.

Now that the suspension of such supplies becomes a reality, it can really lead to the collapse not only in the fuel market, but also in the Ukrainian economy and undermine the national security of the country,” Ukrtatnafta said in a statement on Thursday. To stabilize the situation and provide the country with necessary oil products, the company has offered to boost processing the oil stock of the Caspian fields.

Commenting on concerns about the consequences of the embargo, Russian Senator Aleksey Pushkov noted that Kiev has long been willing to “tear apart everything” linked to Russia and purchase goods from its Western allies. He noted that Ukrainian authorities mistakenly thought that Russia wouldn’t respond to its “provocations” and warned that its “sanctions reserve is not exhausted.”

Moscow expanded restrictions on specific Ukrainian goods on Thursday. Apart from exports of oil, Russia banned some Ukrainian imports, such as clothes, bulldozers, pipes and pipe-laying vehicles, among other goods. Russian Prime Minister Dmitry Medvedev said that the new restrictions target goods worth $250 million as of last year.

Russia’s move came around a week after Kiev expanded its own sanctions against Moscow in addition to earlier restrictions on trade.

This story was posted on the rt.com Internet site at 10:11 a.m. Moscow time on their Friday morning, which was 3:11 a.m. in Washington — EDT plus 7 hours.  I thank Larry Galearis for sharing it with us — and another link to it is here.


The Hunt for Rocket Boosters in Russia’s Far North

The boreal forest of the Mezensky district in Arkhangelsk Oblast, Russia, teems with wild reindeer, wolverines, and grouse. But in January, the hunter photographer Makar Tereshin—on his fifth trip to the region while shooting his stunning series, Fields of Fall— was after bigger, more exotic prey: a 65-foot-long Soyuz rocket booster.

It crashed among the birches and pines in 1989 after blasting off from Plesetsk Cosmodrome in Mirny some 200 miles south. Constructed in the late 1950s as the world’s first intercontinental missile base, the military facility performed more than 1,500 spacecraft launches between 1966 and 2005—more than 60 in each year of the 1970s. Much of the launch refuse—boosters, fuel tanks, and fuselage—tumbled into the uninhabited forests and swamps of the Mezensky district, where hunters eventually would find it.

They never dared scavenge the junk for scrap until the late 1980s, when the Soviet Union began to fall. At first, they told Tereshin, they hacked the metal with axes. Then someone got the bright idea to use a circular saw. Still, it could take more than a week to dismantle a single booster, sometimes sleeping inside for warmth. They sold the metal—aluminum, gold, silver, copper, and titanium—for cash in the capital Arkhangelsk and also hammered it into whatever they happened to need: flat-bottomed boats (dubbed “ракетаs” or rockets), hunting sleds, fencing, gutters, and even saunas—infusing a region otherwise known for its traditional Russian culture and folklore with a touch of space punk.

This very interesting news item put in an appearance on the wired.com Internet site on Thursday morning — and for obvious reasons I thought it best to wait for my Saturday missive.  I thank Roy Stephens for finding it for us — and another link to it is here.


Greece Escalates Demands For WWII Reparations From Germany

Six months since Der Speigel revealed a 2016 report detailing the cost of Germany’s Nazi occupation of the nation during World War II, the Greek Parliament voted Wednesday to demand Germany pay reparations for those damages.

As we noted previously the audit report, ready since August 2016, claims Greece is entitled to €269.5 billion of repairs from the Second World War. In addition, Greece demands the repayment of a €10.3 billion occupation loan.

Having emerged from a decade of Troika-imposed austerity in the past year, Tsipras, a leftist, said his government did not want to link the two issues (imposed austerity and reparations), responding to criticism over the parliament’s delayed response to the report on the matter issued in 2016.

For its part, the German government is expected to reject the request. Already in the past, it has made it clear that Greece has no legal right to claim damages for the Second World War.

As Reuters reports, Germany has in the past apologized for Nazi-era crimes but has not been willing to reopen talks on reparations. Then-West Germany paid Greece the sum of 115 million deutschmarks in 1960 as reparations for its wartime suffering.

This story appeared on the Zero Hedge website at 4:15 a.m. EDT on Friday morning — and it also comes courtesy of Brad Robertson.  Another link to it is here.


Middle East Resistance is Stiffening — Tom Luongo

Amidst all of the truly terrible things happening geopolitically around the globe I find it’s important to take that big step back and assess what’s really going on. It’s easy to get caught up (and depressed) by the deluge of bad news emanating from the Trump administration on foreign policy matters.

It seems sometimes that it’s pointless to even discuss them because any analysis of today will invariably be invalidated by the end of the week.

But that’s also why the big picture analysis is needed.

Resistance to the U.S. empire’s edicts is rising daily. We see it and we see the counter-reactions to them from the useful idiots who make up Trump’s Triumvirate of Belligerence – John Bolton and Mikes Pompeo and Pence.

It doesn’t matter if we’re talking about sovereignist movements across Europe threatening the apple cart of the wicked European Union or something as small as Syria granting Iran a port lease in Latakia.

The Trump administration has abandoned diplomacy to such an extent that only raw, naked aggression is evident. And it has finally reached the point where even the world’s most accomplished diplomats have dispensed with the niceties of their profession.

This [I thought] worthwhile commentary/opinion piece by Tom showed up on the strategic-culture.org Internet site on Friday — and it’s the second contribution of the day from Larry Galearis.  Another link to it is here.


Manipulation of Gold Price is as Evil as WWII Expropriation — Chris Powell

SBTV caught up with Chris Powell, Co-Founder of the Gold Anti-Trust Action (GATA) Committee, in Singapore at The Safe House precious metals vault and found out the latest updates on his work. We asked Chris what keeps him going in his tireless work of calling out gold rigging by central banks and their agents – find out his answer in this interview!

Discussed in this interview:

07:42 How gold manipulation/rigging works
11:52 Why manipulate gold?
14:28 Senator Alex Mooney’s letters to the Federal Reserve
18:58 Article 1 Section 10 of the Constitution
20:09 How can gold rigging ever stop?
25:14 Central bank record gold buys and Basel III changes
27:18 Price of gold without manipulation or if it was revalued
29:37 Price manipulation during the 2000 to 2011 gold bull market?
31:47 What keeps Chris going with GATA?
33:20 Gold rigging is as evil as Nazi expropriation of occupied Europe

This 41-minute video interview with Chris took place in a precious metal bullion vault in Singapore about a month ago — and was posted on the youtube.com Internet site on April 14 — and is certainly worth your while if you have the time.  I thank Elliot Simon for sharing it with us — and another link to it is here.


The PHOTOS and the FUNNIES


The WRAP

Over the last thirty years, the United States has been taken over by an amoral financial oligarchy, and the American dream of opportunity, education, and upward mobility is now largely confined to the top few percent of the population. Federal policy is increasingly dictated by the wealthy, by the financial sector, and by powerful (though sometimes badly mismanaged) industries such as telecommunications, health care, automobiles, and energy.

These policies are implemented and praised by these groups’ willing servants, namely the increasingly bought-and-paid-for leadership of America’s political parties, academia, and lobbying industry.

If allowed to continue, this process will turn the United States into a declining, unfair society with an impoverished, angry, uneducated population under the control of a small, ultra-wealthy elite. Such a society would be not only immoral but also eventually unstable, dangerously ripe for religious and political extremism.”

Charles Ferguson, Predator Nation, 2012


I don’t have a ‘blast from the past today’.  Today’s ‘pop’ song is from Kazakhstan singing sensation “Dimash” Kudaibergen, who I’d never heard of until Roy Stephens slid a couple of his youtube.com videos into my in-box a few minutes before midnight on Thursday.

He is university trained in classical, as well as in contemporary music — and is known for his wide vocal range of 6 octaves and 2 semitones, from C2 to D8. This spans from the bottom of the bass range, to beyond the top of the soprano range.

It is a voice not of this earth — and that is not hyperbole!  I was totally blown away.  I’ve watched it an unhealthy number of times already.

The fact that you don’t know the language doesn’t matter — and the fact that you won’t understand a single word, or have heard the song before, doesn’t matter either.  Only ‘the voice’ matters — and the link is here.

And as an aside, here’s celebrity vocal coach Tara Simon’s first reaction — and critique of him as a singer.  Click here.  And for a purely emotional response to a first listening, you can’t beat the dude linked here.


Today’s classical ‘blast from the past’ is actually from the Renaissance — and is one I try to post around Easter every year.

Miserere (full title: Miserere mei, Deus, Latin for “Have mercy on me, O God”) is a setting of Psalm 51 (50) by Italian composer Gregorio Allegri. It was composed during the reign of Pope Urban VIII, probably during the 1630s, for use in the Sistine Chapel during matins, as part of the exclusive Tenebrae service on Holy Wednesday and Good Friday of Holy Week.

The Miserere is written for two choirs, one of five and one of four voices, and is an example of Renaissance polyphony. One of the choirs sings a simple version of the original Miserere chant; the other sings an ornamented commentary on this.

It is, without doubt, one of the most beautiful pieces of religious music ever composed — and the Mozart connection to this work is the stuff of legend.  You can read about that here.

Here’s the composition itself, as performed by the Tallis Scholars back in 1994 — and I consider this to be the definite recording of this work.  I know that others disagree — and I respect their opinions.  The link is here.


Such a precarious time in history.”…Doug Noland’s famous sentence in his commentary from last Saturday is still top of mind for me as I write today’s closing notes.

Nothing has changed since last week that alters his take on the current situation, not only in the U.S…but on a global scale for all nations…except Russia, the most financially solvent nation on Planet Earth at the moment.

As a good proxy for world equity markets, here’s a chart from Nick Laird’s website showing a triple top in the Dow Jones U.S. Total Stock Market Index — and I suspect that this is how the world looked back in 1929 before everything headed south.  It’s difficult to see how will be able to break out to new highs from here considering the current underlying economic fundamentals world wide.  Click to enlarge.

The only reason that the markets are this high is because of the massive market interventions undertaken by the Fed during and since the 2008/9 melt-down in the sub-prime mortgage.  The the market crash of ’87 is barely a blip on this chart, but it was only intervention by the soon-to-be anointed Plunge Protection Team that saved the day back then.

The sum of all U.S. equities has been inflated by a factor of fifteen times that size since that time — and has now become the biggest stock market bubble in all of U.S. history.

There might be some comfort in the fact that if it was only the U.S. equity markets at substantial risk, then a correction would be brutal, but survivable for some.  But that’s no longer the case, as the financial and monetary bubble now encompasses our entire planet.

I and others have spoken of the IMF and their SDRs…Special Drawing Rights — and that there’s this chance of a new world currency based on that.  But you have to wonder how much of that would have to manufactured out of thin air to save the markets this time around, or would they wait until the inevitable melt-down had taken its toll before they acted?

But SDRs or not, the only way that the world’s central banks and the IMF are going to be able to extricate themselves from this situation is by massive money printing on a scale far larger than it has been to date — and the inflation that they’ve craving to ignite in an ever-increasing deflationary  financial environment, will ultimately be successful beyond their wildest dreams.

Then all the pain of the last eight years for us precious metal holders will disappear in short order, as the powers-that-be will no longer be able to contain precious metal prices, nor will they want to.

It’s always darkest, just before dawn.

I’m done for the day — and the week…with Happy Easter wishes to all those who care to receive them.

See you on Tuesday.

Ed