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 News From The Front  

 

Prior dewdrops of wisdom from the illustrious Sage of Wexford are retained for posterity below:

News from the Front:  December 13, 2016

The last dewdrops of wisdom from the Sage for 2016.  Very interesting year, but we will not reminisce here, but highlight the goings on in the various markets & economies that will have an impact on Precious Metals prices going forward.  Everyone should be buying both Gold at $1,162 & Silver at $17.15.  No guts, no glory.  No matter what Fibonacci retracement percentage or dollar amounts we have corrected from the 2016 highs, we are still firmly within new bull markets for both metals.

Oh, Gold is still up 9.4% since 12/31/15, and Silver up a whopping 24.1% even at today's corrected prices ........ the Poor Man's Gold (Ag) doing twice as well as the casino chips called stocks ...... with a fraction of the risk via the fundamentals and value.

 



I think Gold is being sold short in the futures market by Russia & China so
that they can accumulate more physical into their vaults while Uncle Sam is
asleep at the switch.  Dollar is on a short leash as Reserve Currency.

 



Silver has not corrected anywhere near the degree as Gold, which suggests
that inflation is rearing its ugly head once again around the world as the
Gold to Silver ratio declines.  Very, very interesting!



The rapidity with which American investors jettisoned the Precious Metals to load up on more overvalued stocks is quite amazing, but they did have the wisdom to reject Hillary's bid for the White House, so I give them credit there.  The Donald will not be able to spend as promised using an Overdrawn U.S. Checkbook of over $20 Trillion in the red, so the euphoria since Election Night will be short-lived in stockmarketville.  The Gold ETF's & Silver ETF's, not really a wise way to participate in two asset markets that have beaten the pants off of stocks and real estate since year 2000, have suffered large redemptions in shares which forces the custodians to sell Gold and Silver into the marketplace, further depressing prices.  That American investors would be so frail in their convictions of fundamental prospects for stocks versus precious metals is quite telling in a society that put a Community Organizer into office for a span of eight years.

Actually, I personally hope this exit from PM ETF's will be somewhat permanent going forward, because when an outside auditor is finally brought in via Government edict or investor lawsuit, it is highly probable that the results will find a gross shortage of metals within the vaults of the custodian.  It is only a matter of time before this will occur.  When such parties as Morgan are involved with ETF bullion accounting & storage, it is truly the fox guarding the hen-house.

The failed German bank, Deutsche Bank, probably receiving German Government/ Central Bank assistance as I type, has admitted to conducting illegal trading practices and collusions in the Silver market and has gone State's Witness against about 8 other offenders in the largest European and American bank categories.  We are hardly surprised based on the regularly perverse price action of Silver since 1998, but the cow is finally out of the barn and headed for the Chicago slaughterhouse.  This trial has put the likes of Goldman and Morgan and Bank of America on notice that their highly manipulative trading activities will be increasingly scrutinized and prosecuted going forward.  Especially with such a Free Market Advocate as Sir Donald Trump in the White House lobbing munitions at perpetrators on a daily basis.

I just knighted the Donald to put him on equal footing with Sir Alan Greenspan, a Central Banker who did more harm to the U.S. financial and economic system than any single academic hack in American history.  I expect Mr. Trump will be remembered in quite an opposite vein, a more colorful one at a minimum.  Bernanke and Yellen will take Second & Third Place on that dubious Wall of Shame in the years to come.  Central Bankers do not know more than millions of market participants on how to price money to maximize economic growth or employment, and minimize inflation.  THAT HAS BEEN UNEQUIVOCALLY PROVEN NOW SINCE THE FALL OF 1998.

The Euro Single Region Currency is failing along with the European banking system, Governments, and European economies.  The British post-Brexit have kicked themselves in their derrieres for not buying more Gold since that historic vote to become a free country again, the only true currency appreciating mightily against Sterling and the Euro ever since.  Italy and its banking system are on the verge of collapse (IF NOT ALREADY IN COLLAPSE!!!), and the Domino Effect in Europe is well underway to bringing the Continent down to its collectivism knees on a hard count.  Nationalism is alive and well around the world.  Global Homogeneity was a failed concept from the outset. Never forget that the largest American banks hold very large quantities of the paper of insolvent European governments and sinking European banks.  TIMBER.

Speaking of the Bond Market, as I have warned for years now as global yields for insolvent borrowers have reached truly RIDICULOUS levels, devoid of any pricing element of Default/Credit Risk OR Inflation Risk, has ended its Bull Market that existed for an unprecedented 34 years, and now is being mauled by a newly-born BEAR MARKET.  Mortgage rates Stateside have surged some 30% over the last several months, putting a further damper on the Housing Market that suffered already from overpriced abodes to buyers who could barely meet the monthly home payments even with grossly subsidized interest rates.  The bloom is well off the housing market rose, another nail amongst a box of nails in the coffin of the American economy.  Mr. Trump will not be able to affect change fast enough or spend money fast enough to turn this well-established trend around.  Sorry ....... Stock Dreamers.

 



The 10-year Yield has surged from 1.34% to almost 2.50% in just over 5 months.  When
it exceeds 2.50% and stays there, KATY BAR THE DOOR FOR BOND INVESTORS.
Stocks are destined to follow bonds down in price.  Emotional rallies are very fickle.
 


There is also price depression ( yield elevation ) of U.S. Treasuries globally as sovereign states continue massive liquidations of this now questionable debt in order to plug insolvency dikes at the State, Corporate, and Banking System levels.  With a new Spender in Chief soon to enter the White House, fiscal soundness of the United States looks to soon be more compromised than ever, and Central Banks might as well jettison this budding junk in order to plug solvency crises on the Homefront.  China seems to be the lead character in this unfolding theater, but massive sales of U.S. Debt will become a Rate Increase Factor ( RIF ) in the weeks and months ahead ACROSS THE GLOBE.  The bloom is off the safe haven status of U.S. Debt Obligations, and they are a ready source of hard currency for Sinking Ships of State ( S.S.S. ).  History, as usual, is unfolding before our eyes.  Ho, Ho, Ho, Ho, Ho.


Sage of Wexford, Happy Holidays & Merry Christmas to All,
                                    count your Blessings.


 

 




News from the Front:  February 7, 2017

Obviously, I took the month of January off from ezine writing.  I have been writing bullion newsletters for over 18 years now, almost continuously, and the pen is starting to run dry or the motivation to push the pixels across the screen is growing weary.  My new motto in my silver years is to avoid doing things I no longer find fun to do or find much satisfaction in doing.  The privileges of age.

The Trump Euphoria is running very thin in the financial markets.  That magic level of 20,000 on the Dow seems not to hold on a regular basis, and bond yields have started back up in the equally GROSSLY over-valued debt markets.  All is not right with the world as the UK works through the mechanics to actually exit the failed-experiment known as the European Union, a conglomeration of cultures, political systems, languages, and histories that have been more in conflict with one another than in economic or financial system harmony for thousands of years.  France is now poised to joint the Exit Parade in Europe ( EPE ) as systemic failures in Italy, Greece, Spain, & Portugal rear their ugly heads again.  The disintegration of the European Union in one fashion or the other in 2017 and beyond may just be the straw that breaks the global financial and economic system's back.

The media in the United States is the laughing stock of the world when juxtaposed to the phrase, "FREEDOM OF THE PRESS".  The Constitutional right to speak freely in the United States does not mean it gives supposedly credible news providers the right to distort, politicize, or to inject bias into news "reporting".  It has been NEWS EDITORIALIZING for decades now, and Americans are voting with their feet.  The majority of the American populace would now like "freedom FROM the Press", and they vote with their plasma screen clickers by not watching or paying attention to the major news outlets.  Advertisers on major media outlets need to wake up and realize how poorly their U.S. MEDIA dollars are being spent.  Just visit a site like Yahoo Finance to see how the articles have a political, biased slant at virtually every turn.  The election of Donald Trump was to crash the economy and financial markets when the last vote was cast, BUT SEEMS LIKE THE FINANCIAL MARKETS TOOK OFF INSTEAD as the U.S. economy limps along.  I have my own personal boycott going of all advertisers I see supporting this Pravda-like "reporting", and hitting the pocketbook of enablers is still the best way to affect change.

I will get to the Precious Metals, which by the way are doing just fine in a new bull market, but one last comment on the Swamp known as The Federal City, Washington, D.C.  I have lived in this crowded, polluted, and hectic region for most of my adult life, and I must say that the hiring freeze of Federal Employees is a breath of fresh air.  Maybe now we will have "CHANGE WE CAN ACTUALLY SEE", forget the "believe in" element from Barack Obama's failed presidency.  Every time I have driven in D.C. and passed Government buildings, all I saw were dozens of Federal workers on smoking breaks making it hard on the pigeons to catch a breath.  Total compensation packages well above private sector levels for a fraction of the value added to the American cause is not a just arrangement for all of those who have been struggling in the Middle Class or below for the last 30 years.  This largess must stop, and the insolvency of the U.S. Government will force this day of reckoning upon us sooner than most of us ever expected.  Now to the part that you have paid for ........ a succinct bullion market update.

Since a picture is worth two thousand words ( word inflation emerges also! ), I will start with graphic portrayals of asset markets continuing their bullish reversals of a four-year bear market:

 


Investing in commodity-oriented assets has never been for the faint of heart, but I find these price patterns very encouraging as an investor now for almost 50 years.  One merely has to ask himself or herself the very rudimentary question:  "HAVE THE FUNDAMENTAL REASONS FOR OWNING THIS ASSET IMPROVED OR DETERIORATED OF LATE AND SINCE I FIRST ENTERED THE POSITION??".
This is Investments 101 stuff, but it is a basic ingredient to successful long-term investing.  Granted, I may have a conflict-of-interest here in perpetually recommending the purchase of both Gold and Silver since 1997, a span of some 19 years, but I have always put MY MONEY were my diminutive mouth is.  I personally am a ready buyer of both Gold and Silver at these price levels.

BASIC FUNDAMENTAL FACT:  The global economic and financial system is poised on the edge of a precipice of systemic failures that are emerging as daily realities across the world.  To not see this unfolding is a classic example of "OSTRICH HEAD IN THE SAND" behavior.  And a gross failure to spend some time each day reading some very erudite articles on the internet such as this one.  Okay, I have been forecasting this demise or collapse for years now, but we are much closer to or actually in the midst of that HISTORIC DEBT COLLAPSE NOW than at any time in human history.  Ignore the world around you at your own risk.  How is the world going to service the $60 to $70 Trillion in piled-on ADDITIONAL DEBT AT ALL LEVELS since 2008 with a global economy already in recession/depression and sliding more persistently southbound month after month.  AIN'T GOING TO HAPPEN WITHOUT A DEBT COLLAPSE THAT WILL MAKE 1929 AND 2008 LOOK LIKE A WALK IN THE PARK.

Happy New Year, and get out of the financial system as fast as your little (or big) feet will carry you.  The hourglass of failed policies has just about run out.

Forewarning,
THE WOODPECKER-LIKE SAGE OF WEXFORD.

P.S.  Don't give a hoot about a rising Dollar hurting Gold or Silver prices because there is no negative correlation that holds over time.  The U.S. Federal Reserve will have to tighten their Pampers this year and increase rates probably to 1.5% to 2.0% at least by year-end to address the Inflation Genie that has escaped from the Bottle one more time while the Fed fiddles with self-denial of impotence.  Trump's Weaker Dollar Strategy ( TWDS ), jawboning only at this point like the Fed loves to do ad nauseum, will increase consumer costs in the U.S., not to mention what a Border Tax or Import Tariffs would do to Consumer Prices.  But Protectionist Policies will increase under the Trump Administration as promised to the voters.  Increased Deficit Spending from the Trump Buffet of Economic Gooses ( TBEG ) will also move interest rates and inflation higher for the Person on the Street, if he can get the appropriations by Deficit Hawks in Congress ( if there are any with guts left!! ).  BUT GOLD AND SILVER IN THIS ERA OF CURRENCY DEBASEMENT WILL GO HIGHER NO MATTER WHAT THE GREENBACK DOES.  I rest my case and my fingers.

 



News from the Front:  April 2, 2017

I was going to do a special April FOOL'S Day edition yesterday, but had other pressing matters like going to the racetrack.  I will get back to the FOOL theme in my typical irreverent style later in this exposition, but let's take a look at how both Gold and Silver are doing in this NEW BULL MARKET.  Bull markets always climb a Wall of Worry, and this Precious Bull is doing exactly that since there is no scarcity of Naysayers and Disbelievers lining the PM Bull's path on a daily basis.  That is fine, because all of these skeptics will be forced kicking and screaming into the Gold/ Silver markets at much higher prices at exactly the time that an interim correction in bullion prices will occur.  History does repeat itself.

The fundamentals for owning Precious Metals are even stronger today than they were on January 1st, so it just takes more physical buying of the two Monetary Metals by China, India, & Russia to empty the vaults of the Comex and LBMA exchanges.  This trend in motion will eventually cause a cascading FAILURE TO DELIVER on more and more tenuous Paper Contracts also known as Futures.  There is little physical Gold or Silver backing these mountains of Paper Metal Contracts, so the inevitable rush to obtain bullion in the cash market as exists on the Shanghai Exchange will be like a tsunami hitting the shores of New York City and London.  I recently saw a graph of the massive growths in Gold Reserves for China, India, and Russia, and the last 8 years show EXPONENTIAL GROWTH for these developing countries.  These 3 countries, and there are others, are building a stockpile of the Yellow RESERVE Metal to displace the U.S. Dollar as the Reserve Currency in the months and years ahead.  Get ready for it.  It is already happening in world trade for oil and many other essential goods.

AND I WILL BET BIG-TIME THAT FORT KNOX ONLY HAS A FRACTION OF THE GOLD THAT IS STATED TO EXIST BY THE U.S. GOVERNMENT.  We have been lied to on so many other issues and levels that in 2017 we-the-people place little faith in Government statistics and pronouncements.

The race to the bottom in the world's leading currencies is well underway as more and more Governments publicly admit to taking measures to consistently weaken their domestic currencies to attempt to salvage any Export Sales that are still left in a sinking global economy.  Nationalism is on the rise not only Stateside, but welling up like a Spring Thunderstorm across Europe.  This "MY COUNTRY FIRST" theme goes hand-in-hand with budding Protectionist Measures, and the stage is set for the greatest depression of economic activity and simultaneous financial systemic collapse that the world has ever seen.  The clock is ticking so loudly from Captain Hook's clock in the crocodile's mouth that the words DEFAULT, INSOLVENCY, & BANKRUPTCY will soon be visiting a dinner table near you.  The Debt Collapse, Phase II, is well underway, even if it is ignored by the hacks in the financial press or the overpaid teleprompter readers on the Nightly News.  Greece, Spain, and Italy, to name just a few, are literally coming apart at the seams as my not-so-nimble fingers fly across the keyboard.

But price is the best indicator of an asset's near-term prospects and the PM graphs look very appealing for anyone with half a pulse ( or half a brain! ):

 


Some very misguided and possibly inexperienced "analysts" will read these charts as a resumption of the previous bear market in the Precious Metals, but nothing could be further from the truth.  Both metals are doing a superb job of resuming their 2016 uptrends after the late summer interim peak for the New Bull last year, and are pulling more physical buyers from the sidelines on a daily basis.  It amazes me that retail investors are still buying stratosphere stocks and bonds at this very extended point in time, and that many men-on-the-street are still thinking that now is a good time for residential or commercial real estate purchases.  Yeah, if you like buying at the top of another financial asset/ real estate bubble cycle and have 30 years to hope to break even on your lousy timing!!!!!

But let's have a little fun with the April Fool's theme.  A saying was rejuvenated in the 1920's that a Fool And His Money Are Soon Parted (Shakespeare originally?).  So let's take a few minutes to review some very FOOLISH BELIEFS held by the maddening herd in 2017:

1.  Residential real estate is a no brainer and is your road to retirement & financial salvation:  FOOL'S PLAY ONE, turn back to 1990, 2009 and now again in 2017 when buyers at these cyclical market tops lost their shirts and blouses in residential real estate.

2.  The Federal Reserve can come to the rescue once again as in 1998, 2001, & 2009 when the inevitable Systemic Collapse reoccurs off a $70 Trillion higher mountain of debt than existed during the Fall of 2008:  FOOL'S PLAY TWO, with still near zero interest rates and the banks still not paying any interest on deposits and with inflation bubbling to the surface like wiretaps on the Trump Campaign, THE STUPID-TO-THIS-POINT FED HAS NO WHERE TO GO.  Buy more U.S. debt and bad debts in the marketplace?  Janet would have a new gig in a heartbeat.  YOU'RE FIRED .... screamed The Donald.

3.  The Bond Market is the best place to put new cash and proceeds from Stock Sales:  FOOL'S PLAY THREE,  after 33 years of a Bond Bull Market and yields that are barely over 3% at the long end of the market, you think a 1% rise in interest rates due to global defaults, forced Fed tightening and currency/ protectionism driven inflation is a SAFE BET??!!!  Reminds me of going from the frying pan into the fire!!!!!!!!!!!!!!!!!

4.  The Trump Super-Nova Rally in Stocks still has more upside to it:  FOOL'S PLAY FOUR,  after the very flawed attempt by Speaker Ryan to craft a passable ObamaCare Repeal Bill met its death by a thousand cuts (and it deserved to die, it was so pathetic), you think the hoped-for economic savings from trashing this Insurance-Company-Get-Rich-Quick healthcare monster are going to flow to fund TRUMP TAX REFORM ( TTR ) as far as the eye can see???  And then massive INFRASTRUCTURE PROJECTS are going to spring across the April landscape like daffodils??  TOO LITTLE, TOO LATE, PILGRIMS.

5.  The French will not be the next to exit the EuroLand Failed Experiment:  FOOL'S PLAY FIVE, since the French are famous for their Nationalistic Pride ( that could be mistaken for arrogance! ) and they have a society well-schooled in the tenets of FRENCH Socialism and 35 hour work-weeks, the odds are now greater than 50% that Franco-Exit will become a reality before Fall.  Not to be left at the gate, watch Greece, Spain, Italy, and other Basket-Case Euro countries pass referendums to obtain GET OUT OF BRUSSELS PASSES.


6.  Gold and Silver will not be the best place to invest in 2017 and beyond:  FOOL'S PLAY SIX, and I will stop here, the crocodile's clock is ticking so loudly that I am getting a headache.  HE OR SHE WHO HESITATES IS LOST.  Usually when you feel the most uncomfortable in placing an investment bet IS THE BEST TIME TO ACQUIRE AN ASSET AT A PRICE THAT WILL NOT BE SEEN AGAIN IN YOUR LIFETIME.  Am I confident or what??!!!  Once the snowball has headed down the mountain, and it is well on its way, THINGS WILL START HAPPENING VERY FAST.


Sage of Wexford,
manning the ramparts with golden and silvery bullets.


 

 

News from the Front:  May 23, 2017

Hard to get motivated these days to expound on things going on in the 2017 world, one feels like a member of the audience viewing the chaos of the Barnum & Bailey Circus, mainly the gaggle of silly clowns.  Large contributors to the Deep State in Washington are allowed to break every rule in the book and go Scott free.  ( Hillary comes to mind on that thought. )  Not a newsflash to those who have read my hundred plus epistles over the two decades I have been creating them.  J.P. Morgan, that mega-contributor to both sides of the aisle to hedge its bets, most likely was behind the smack-down in both Gold & Silver until about 10 days ago.  Have said for years that these One Percenters get funding, at least overnight from the New York Fed, but only an audit of the Federal Reserve will prove that point.  Since about May 15th the New Bull Market of 2016 got back on his feet and trampled more than one Speculator that was heavily short the precious metals markets in the futures pits.  One can only hope that J.P. has met its accumulation target in Silver, especially, and will let us common folk make some more money on our holdings henceforth, since we cannot go into the Comex market each and every day and sell short an amount of Silver equal to total annual production!!!

But the presence of J.P. Morgan in the silver market, as a major long-term holder with very, very deep pockets is more bullish than the Hunt Brothers' hoarding because they have the ear of more than one bureaucrat in Washington these days and the Donald seems to be soft on New Yorkers.  Wish the Donald would button his suit coat for photo-opportunities, but his girth may prevent it; just looks sloppy, call me Old Fashioned. Hence, unlikely that Silver ( or Gold ) would ever be confiscated in a Paulson-Bush-Bernanke PANIC a la 2008 to attempt to put something behind the crumbling U.S. Dollar.  When the first market manipulator from one of the largest U.S. banks finally goes to prison, I will perhaps change my tune regarding the current administration still looking the other way for the One Percenters.  We will see, since it is still early in the Game, and Class Warfare was so popular under the O'bummer Administration when the masses got restless.

Very interesting that the Euro is catching a bid of late, an experiment that has blown up in the lab, but a witch with a prettier countenance than the Debt-Imploded Greenback right now since the Untied States of America is basically in political chaos from the top down in D.C.  The shot of speculative adrenalin given the stock market since Election Night is running out as it becomes more apparent that the Donald Agenda will be next to impossible to enact in its entirety and magnitude with the newly anointed Obstructionist Donkeys and the herd-of-cats Elephants in Congress!

Europe is running on economic, fiscal, & financial system vapors also, and it is just a matter of probably hours before another Euro-Crisis hits the airwaves regarding Greece, Italy, Ireland, Spain, Portugal, Hungary, or even France.  The fact that France, for now, voted to hang onto the Status Quo regarding Eurosis Membership, does not change the fact that at least 30 percent of the French people want out.  AS IN OUR HOMELAND, NOTHING HAS BEEN SOLVED REGARDING THE UNSERVICEABLE DEBT FROM 2008 AND THE ADDITIONAL $70 TRILLION OF NEW, UNSERVICEABLE DEBT PILED ON AT ALL BORROWING LEVELS SINCE THE BEGINNING OF THIS DEPRESSION.  And a Depression it is that will make 1929 look like a walk in the park, even one littered with doggy droppings.  Such a joy to come behind pet owners these days, but another sign of Romanic Decay in American society.

THE AIR IS FULL OF THE SCENT OF DEFAULT, DEFAULT, DEFAULT.

Defaults and bankruptcies are happening all over the world, especially in China were Financially Engineered ( TRUST?? ) products are blowing up almost daily.  If there was a Free Press in China, and we don't even have that here in our so-called Democracy, investors would be fleeing China even more so than they are currently.  The Red Ponzi will blow up any minute now, we have just seen the opening salvos to a cascade of DEBT DEFAULT fireworks worthy of the Fourth of July.  No consistent effort by Chinese authorities to rein in the Flood of Debt & Liquidity into the Chinese System has stretched the financial rubber band to the breaking point, and it is tearing in one province after the other in China.  In the end, China may indeed be the Black Swan that everyone knew about, but did nothing to contain.  CHINA IS THE GRAY SWAN.

Even our Northern Brother, Canada, is seeing that the Emperor Has No Clothes as Home Capital Group, the largest non-bank mortgage lender in Canada, starts coughing up Bankruptcy Flavored Hairballs.  The domino effect does still apply to interwoven, highly-leveraged financial dealings were a rebirth of the 2005 over-heated real estate market in every developed country this date shows that Sub-Prime, marginal lending to groundhogs, even, eventually causes Delinquencies and Defaults to dot the landscape.  Australia is probably next in this regard, as consumer servicing capabilities cannot keep up with ballooning home prices and property taxes, even with interest rates that do not begin to protect lenders from the explosion of missed payments just around the corner with economic recession.  As home prices roll over around the world, and they are beginning to do so, watch minute equity cushions disappear and keys being mailed back to lenders a la 2008 and 2009.  This time, residential real estate is going down for the count, and will not recover for decades.  I bet my home equity on this one.

 


As in many asset markets, VOLUME usually leads PRICE in a reversal of trend.  This chart of new home sales volumes strongly suggests that the bloom is coming off the U.S. Housing Rose as it is in most countries around the globe presently.  Price will follow as Home Affordability is affected by the multi-year surge in home prices knocking more and more potential buyers out of the market or, at a minimum, delaying their purchase which may not happen at all as the global economy heads South.  NOTE THAT SALES VOLUME IS STILL SOME 33% BELOW THE LEVEL ENJOYED IN 2007!!!!!  Housing Recovery???

How any American with half-a-brain would get caught up in the Post-2009 Housing Bubble Replay is beyond me, but Americans have proven themselves to be followers more than once in the New Millennium, and NOT ORIGINAL THINKERS SEEKING OUT HARD DATA BY ANY DEFINITION.  The silliness in the Stock and Bond Markets are other cases in point where the Lemmings rush to the edge of the cliff, but not enough time or pixels left to waste time dissecting the humongous rounding tops at work in those stratospheric markets.  Stocks will end up much lower, most likely before Thanksgiving, and Bond yields will end up much higher, same target date, I REST MY CASE.  As good a case presentation as the "evidence" of collusion with Russia during the recent Presidential Campaign.  What goes for "NEWS" today is almost laughable ..... if only it did not do so much damage to the mental & operational health of the Nation.

Let's take a look at the Entrails of the Chicken ( that fowl critter that personifies many American investors these days ) to get a picture of what the bullion markets have been telling all with a pulse to hear:

 


Oh, Dick, Oh Sally, Oh Spot, SEE THE NEW BULL MARKET IN GOLD AND SILVER.

Gold's technical's look better than Silver's in here, but remember that Silver is a much easier market to manipulate ( take a bow J.P. and Fed! ) due to its daily global trading volume. Furthermore, "painting the tape" or in this case, "painting the chart" to make the Lemmings throw in the towel is an Age Old Practice by large institutional traders since the 1920's to force an asset out of weak hands into their strong hands.  DO NOT FALL FOR THIS TRAP.  As a diehard football fan, Go Blue, I see the Silver chart as more of a double pump to cause the safeties to over-commit while my investment gain receiver runs right past them.  Morgan has got to be a little concerned about their massive visibility in Comex futures contracts in Silver, and it just takes one Congress Person ( ah, political correctness, ad nauseum ) from a U.S. silver mining State to raise the red flag.

THEN WE ARE OFF TO THE RACES WITH ANOTHER CONGRESSIONAL INVESTIGATION THAT HAS MORE THAN ENOUGH EVIDENCE TO LEAD TO PROSECUTION ON A CRIMINAL BASIS.  Stay tuned, but my Chicken Gut Feeling is that this recent rally from the J.P. Smack-Down is the Real McCoy or Real Morgan!!

It took my family 30 years to get a 10x times value on our Northern Virginia home in expensive Fairfax County, Virginia.  It is only 18 years since the Bullion Mega-Bull Market began in 2000, and we ONLY have a 5x times multiple on Gold and a 3.5x times multiple on Silver as my fingers head for the rest pad.  OAK TREES TAKE TIME TO GROW TO THE SKY.  Patience is more than a virtue in owning lots of Gold and Silver in today's Teetering/ Money-Printed World.  PATIENCE WILL SAVE YOUR BACON ( and your Net Worth ) IN THE YEARS AHEAD.  I rest my case.  And if called before Congress for sworn testimony under oath, I WILL PLEAD THE FIFTH AMENDMENT!


SAGE OF WEXFORD,
more convinced than ever of the Golden Path Taken
.

 

News from the Front:  July 19, 2017

I have to be in the right frame of mind to write these epistles these days.  And a tranquilizer or two doesn't hurt either.  I think I am well beyond the point of outright anger at those who run our country and our monetary/financial systems.  I am basically at the point of utter disgust, disbelief, and steely determination to weather the humongous mess that has been created by dim-witted, academic, and self-serving individuals that we taxpayers pay handsomely.  The Fed's revelation that they had better start taking away the punchbowl now in order to have some punch to try in vain to rejuvenate the revelers that are dead drunk in a sea of excessive liquidity suggests some of them may have half a brain!!!  Or a conscience???

None of us will escape the Greatest Depression that is already unfolding today without our lives being forever and irrevocably changed.  And changed not for the better.  The once-vaunted American Standard of Living will decline to a level more suited for the greatest debtor nation the world has ever seen.  Ireland comes to mind, but I have been known to beat up my descendants ad nauseum.  However, I think we are headed in the direction of Severe Economic Decline ( SED ), Historic Depression, and, at a minimum, Persistent STAGNATION.  We have experienced substandard economic growth since 2009 that is about half of what we enjoyed during the 1990's.  The New Millennium has not been kind to the Average American wage earner; the One Percenters, as always, have done just fine.

 


We have robbed Peter to pay Paul for too many decades now, and the bill HAS come due.  The total inability of Washington to address the Fiscal Disaster we are facing just confirms that the "fix" is in.  Meaning, of course, that the reversal of Fed policy toward reducing its balance sheet from a record-breaking $4.5 Trillion of Treasuries and Mortgage Securities as we head toward Fall will see a U.S. Government harder and harder pressed to finance its sea of red ink each and every quarter.  Since the Dollar has entered a new bear phase with the lack of fiscal prudence in Washington AND THE BUDDING REALIZATION THAT THE UNITED STATES IS A COUNTRY THAT WILL HAVE NO CHOICE BUT TO DEFAULT IN SOME FASHION ON ITS EVEREST-SIZED MOUNTAIN OF DEBT, buying U.S. Treasuries in the days and months ahead will demand higher and higher interest rates for the Coupon Clipper to throw us a bone.

The rock-solid, investment grade of U.S. Debt is sinking beyond the horizon with our utter unwillingness to reverse our doomed fiscal course, and along with it goes the status of the Dollar as the Reserve Currency of the world.  Sounds incredible, but we are sliding down the slippery slope to second-class status that our so-called leaders AND WE OURSELVES have led us onto in the quest for SOMETHING FOR EVERYONE THAT NO ONE HAS PAID FOR.

 



Before I get too carried away with lamenting the American Decline, let's view the tealeaves of both Gold and Silver and see if we can get even the glimmer of a smile back on our distraught faces:


 


Gold is looking quite ebullient to those recognizing a bull market when they see one, and if it weren't for the shenanigans on the short-side by Mega Silver Accumulator, JP Morgan-Chase, Silver would be looking a lot better, technospeak-wise only, than it does.  Silver always gets whacked in an orchestrated bullion smack-down due to its lower daily trading volumes, and the erroneous thought on the part of manipulation players that it is a less visible market for the regulators.  Of course, the regulators such as the C.F.T.C. are asleep at the switch OR HAVE BEEN INSTRUCTED BY HIGHER UP'S TO LOOK THE OTHER WAY in return for campaign funds and lucrative jobs after Washington.  SO AS THE WEST SLEEPS and fails to perform its fiduciary duties to retail investors by providing fair and transparent markets, TRADING VOLUMES AND PRESTIGE AND TRUST MIGRATE TO THE EAST.  Go East young man, go East.  Never forget:  Money goes where it is treated best.

THE LAST THING THAT THE CENTRAL BANKSTERS OF THE WORLD WANT IS FOR CITIZENS TO SELL GOVERNMENT PAPER, FRESHLY PRINTED, AND SEEK THE TANGIBLE, HISTORIC SAFETY OF THE PRECIOUS METALS.  To think that Governments and their minions have not been involved in the periodic take-downs of both Gold and Silver is to be naive, at best and uninformed, at worst.

China, Russia, and India remain in accumulation mode, so we can even shake a finger at them, but at the same time praise them for having the foresight to jettison decaying paper reserves.  He who holds the Gold ( and Silver ) will make the rules, or at least, have the ability to enforce them.  All while the FOOLS IN WASHINGTON FIDDLE, ROME BURNS.  Could someone tell me how many ounces, not tons, of gold WE THE PEOPLE have in Fort Knox??!!  Of course not!!!  Countries around the world will be scrambling to acquire more gold reserves in the months ahead as the wheels come off the cart.

The recent failure of two major and very-old Italian banks is just another indication that we are well into the DEFAULT CYCLE IN THE UNFOLDING GREATEST DEPRESSION.  Kind of like the rinse cycle in a Whirlpool washing machine where all of the nasty, dirty water gets swirled out of the system.  Do yourselves a big favor in the days and weeks ahead:  Take as much cash out of the banking system, and hide it in the nearest groundhog hole (after fumigating it, of course!!! ) to prepare for the banking collapse that is inevitable. Buy more canned goods than you normally do.  Get a back-up generator should the power grid be attacked electronically by naughty people or the bill payment system totally collapse.  Buy lots of gold & silver if you have not already done so.  Start packing heat, and buy a stockpile of munitions such that you can defend yourself and your family should we descend into CIVIC DISORDER.  Once the economic and financial systems are broken, and don't work for weeks or even months, those without cash or long-lived food on the shelf will be forced to do desperate things.  Those no longer with shelter will be forced to do desperate things.  And that means coming to a home near you that has prepared for the Collapse of the Millennia.

Scary stuff, isn't it.  We are closer to this event than most people think ..... or even expect.  I want to see a chart of defaults and bankruptcies on a national and global basis graphed over time based upon the total losses per week or month as we spiral downward.  As this graph accelerates into exponential mode, and it will as one domino knocks over the next, you will know when to hunker down with a round in the chamber.  Not a sales pitch for bullion sales.  A SALES PITCH FOR SURVIVAL.

Wish I could be more positive for the months ahead, but we can thank the idiot Central Bankers of the world, YES, YOU, JANET AS ONE, and the slimy politicians that they have in their pockets for the DEBT COLLAPSE OF 2017/18.  Take a bow, maestro's.


SAGE OF WEXFORD,
putting his most pessimistic ezine to date to bed  ...... as the Metals shine once again
.

 

 




News from the Front:  September 16, 2017

The unraveling of the global economy and financial system is like Chinese water torture:  DRIP, DRIP, DRIP, DRIP.  But the bucket of Insolvency & Bankruptcy is filling up steadily as we head into Fall.  Another big Spanish bank has required government bail-out, so even if this process of Unfolding Depression takes months more to fully develop TO PLAIN AND OBVIOUS VIEW, it is well underway.  A fact I have mentioned on these pages more than once over the last year.  Whether we have a singular event that causes the Great Crash, or it is a culmination of many prior imploding events, I haven't a clue, BUT THE END RESULT IS MORE CERTAIN BY THE DAY.

To see that President Trump is even considering the re-appointment of Janet Yellen as Chair of the Fed is very disturbing, but I have not been impressed with many things coming out of Washington these days, so it is in tune with the blind and/or ignorant governance we Americans are still stuck with.  The Donald has no problem with a $20 Trillion plus Debt Approval for the Greatest Debtor Country in the history of the world, so he sure as heck ain't no Fiscal Conservative.  Any dude that hugs Chucky Schumer at the expense of his own party's principles, if they have any left, is one who harkens back to his days of mega-leverage in building his real estate fortune.  The last thing a Bankrupt United States needs is more leverage.  Kicking the Debt Ceiling can to December just means that a lot of Washington Swamp Dwellers are going to be shopping for guts and fortitude during the pre-Holidays.

DONALD, YOU HAVE GRABBED THE DOLLAR BY GEORGE WASHINGTON'S WIG AND EXCLAIMED:  YOUR FIRED!!!

This latest Fiscal Miscue has guaranteed the DOLLAR BEAR MARKET that is well underway.  Venezuela has jettisoned King Dollar for all oil payments, and the value of transactions in oil, goods, and services that are made country-to-country with Non-Dollar Currencies ( NDC's ) grows by the hour.  China has been working diligently for years now to make the Yuan convertible and to become a reserve-currency-alternative in an upcoming Currency Basket for BRICS trade that will further push the need for Dollars in international transactions down the relative value scale.  As demand goes down, so does the relative value of the Dollar.  China and Russia, based on official statements and massive Gold purchases, will one day have Gold backing to their currencies, a backstop that the Dollar would be very hard pressed to obtain based upon the humongous number of rotting Dollar in circulation today, Greenbacks + Digits.  I still have serious doubts that the alleged Gold bullion, as assumed or casually proclaimed, exists in Fort Knox, especially since the new Treasury Secretary hardly did any kind of audit on his most sophomoric visit.

Both Gold and Silver, the kind we can touch and store safely at our own disposals, are doing just fine in their New Bull Markets. 

The price patterns that both Precious Metals are punching out, similar to a quarterback doing a double pump prior to sending the ball way down the field for a touchdown, is a Cup & Handle pattern first utilized by Investors' Business Daily to depict a budding bullish stock chart.  The recent minor pullbacks that we have had in both metals are little more than traders taking profits from recent stellar advances, but change nothing in the overall prospects for much higher prices in the months and quarters ahead.
 


The recent Safe Haven statuses of these two rare & fungible elements have been solidified with each and every missile launch out of Crazy North Korea, a fundamental & historical role for both Gold and Silver over thousands of years.  It is becoming more apparent by the day that Ill Chew Dung is baiting Trump for a military entanglement, a bluff I think the Donald will respond to with a few Stealth Bombers flying over North Korea with military targets in their crosshairs.  However we respond to these dangerous provocations, the financial markets are not going to be pleased.  They are also not going to be pleased with the economic data that will spell Recession/ Depression plainly and clearly as we move toward Winter.

When such Mall Anchors as J.C. Penny and Sears are hanging on the bankruptcy ropes, and auto sales ( Harvey & Irma effects still unknown, it takes borrowing capacity to buy a new vehicle ) steadily heading Southbound, there are fewer and fewer so-called analysts that do not see a recession in our immediate future.  Home sales, even in the craziest and priciest of markets, have turned downward, and the ability of new and existing buyers to cough up the dough to buy these over-priced structures has yet to recover from the 2008 Collapse as regards Disposable Income After Taxes!!!  DO NOT BUY REAL ESTATE NOW EVEN IF YOU THINK YOU HAVE THE DONALD'S TOUCH.  Never pays to buy assets at a peak price ( duh, stocks & bonds also! ).
 


The American Consumer is tapped out, and a Consumption Based Economy ( CBE ) needs the person on the street to borrow money with both hands, persistently, to keep this Ponzi Scheme alive.  I also think that Harvey & Irma are going to prove to be the straws that broke the economic camel's back. Borrowing too-cheap Dollars to spend just ain't happening, the Utility of that Last Dollar Borrowed has been declining for decades now.  However, regrettably, such out-of-touch academic venues as the Federal Reserve Bank of the United States have not gotten or read the memo yet.
 


 

This graph confirms what the Sage has been saying for years now:  The U.S. has been
in Depression ever since the Collapse of 2008.
  The way U.S. GDP is calculated is that
it includes Government Borrowing and this graph shows cumulative government borrow-
ing or TOTAL PUBLIC DEBT.  See how the economy was able to grow even with
massive Government Borrowing adding to Total Public Debt from 1965 to late 2007.
But then even with record deficits under Obama and the Fed adding $3.8 Trillion to its
own Balance Sheet, the economy continues to decline.  Personal Income and a nagging
Trade Deficit have failed to lift the economy since the Collapse.  THE OBAMA
DEPRESSION LIVES AND IS DESTINED TO ONLY GET WORSE GOING FORWARD.
Mine was a gut-feeling, THIS IS ACTUAL PROOF.  I rest my case.



The Central Banks of the World have put us into such a terrible mess with a Pyramid Scheme of No-Cost Debt, and an Egyptian Pyramid reaching into the Stratosphere it is, that Gold and Silver will be run to with abandon as the house of cards comes tumbling down.  THE RUMBLINGS OF FAILURE CAN ALREADY BE HEARD.  Stay the course.  Buy physical only, because the day of a surprise audit of one of the PM ETF's is just around the corner.  That Emperor will only be partially clothed!

 

This graph from JP Morgan shows the influence that Gold ETF's have had on the Gold price, at least to some extent.  However, the recovery in Gold (and Silver) prices since late 2015 really has more to do with physical purchases of the two metals as paper asset buyers become more and more skeptical as to what these unregulated funds actually hold.  The scrutiny of them by regulators is akin to the scrutiny of naked short sellers of PM's on the Comex!  Also shows the risk building in me-too ETF's on the stock and bond side of the equation with astronomical growth in total assets in ETF's.  Can investors in same spell:  WATERFALL DECLINE WITH DROPPED BIDS DURING A PANIC?!


SAGE OF WEXFORD
,
pleased with how his Golden & Silvery seeds have sprouted anew.

 

 

  
PRIOR DEWDROPS OF WISDOM VIA "News From The Front"
 

 

News from the Front - ARCHIVE I



 

The information and opinions contained within WCM's "News From The Front" have been compiled or arrived at from sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy or completeness. Neither Wexford Capital Management, David W. Young or the Company's agents or assigns accepts any liability whatsoever for any loss arising from the use of this free newsletter or its contents. All periodic "ezine" articles posted on www.goldsilverbullion.com are strictly for informational purposes only. No statement or expression of any opinions contained within this electronic newsletter constitutes an offer to buy or sell any financial securities or surrogates mentioned herein. Readers are encouraged to conduct their own research and to perform extensive due diligence and/or obtain professional financial advice before making any investment decision, especially in the exceptionally volatile asset markets of today.  WCM's Principal, David W. Young withdrew the Company's Registered Investment Advisor status with the S.E.C. and the Virginia Division of  Securities in May of 2005 and no longer offers financial-asset managed accounts receiving continuous supervision of assets.  WCM's principal, David W. Young, was a Registered Investment Advisor in good standing from October, 1985 to May, 2005.  Furthermore, the company does not engage in any fee-based or compensatory provision of financial or investment advice.  The brokering of tangible assets sales via U.S. Rare Coins, Precious Metals Bullion, and Fancy Colored Diamonds is the sole business of Wexford Capital Management and the company cannot be construed under any measure as being in the "financial newsletter business".




 



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