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NIRP VS. GOLD, PT VII Exploding Unintended Ramifications!



Well, the five-year anniversary of the “Sunday Night Paper Silver Massacre” came and left with a whimper – as despite the 141st “Sunday Night Sentiment” capping of the past 147 weekends; the Cartel has not been able to prevent gold from rising above $1,300/oz, which is where it stands as I edit just after Monday’s COMEX open. In fact, aside from a brief moment in early 2015 – before the Cartel orchestrated the final phase of the four-year “bear-market” that ended in December 2015 – gold hasn’t been above $1,300 for nearly two years.

Per below, the massive “reverse head and shoulders” pattern the Cartel’s manipulations inadvertently created over the past nine months is on the cusp of pushing the price above an even more massive, equally artificially created “resistance level” at roughly $1,400/oz. And when it does, the 2011 high of $1,920/oz will be firmly in “Economic Mother Nature’s” sights. Not to mention, silver’s inevitable, “ultimate quadruple top breakout” above $50/oz. Upon breaking $1,400/oz – and equivalently, roughly $22/oz for silver – the world at large will realize the PM “bear market” is over – and start buying en masse, as they did in 2011. What the world will look like then – politically, economically, and socially – is another story, but my sense is it will be quite ugly.

To wit, this weekend’s “horrible headlines,” portending what awaits for years to come…

  1. Puerto Rico will default today; which, when all is said and done, will, due to its status as a “U.S. territory,” saddle American taxpayers with an additional $70 billion of unpayable debt.


  1. Italy, mere weeks after forcing its insolvent banking system to fund the €5 billion “Atlas” bailout fund, has already run through more than a third of the funds – enroute to the world realizing the entire Italian banking system, with its €360 billion of cumulative bad loans, is on the verge of collapse


  1. The “democracy” the U.S. government attempted to create in Iraq, after having completely destroyed the country over 15 years’ time, is on the cusp of imploding into chaos


  1. China reported an “unexpectedly” weak 50.1 PMI print on Saturday, depicting an economy either in, or on the verge of, recession, “6.7% GDP growth” notwithstanding.


  1. Japanese stocks continued to plunge, down a whopping 8% in the three trading session since the Bank of Japan’s historic “policy error” Thursday morning; of LOL, NOT extending QE further.


  1. The U.S. government inaugurated a “monitoring list” of five Central banks (China, Japan, the ECB, South Korea, and Taiwan), which it deems to be manipulating currencies downward – as the “final currency war” I first warned of 3½ years ago goes nuclear.


Sadly, such headlines are a mere appetizer to today’s “main event” – of the “exploding unintended ramifications” of three years of expanding negative interest rates; which cumulatively, have consumed nearly $8 trillion of global sovereign bonds, and counting.


To that end, NO ONE has more emphatically warned of the carnage negative rates would wreak, since July 2012’s “NIRP vs. Gold, Part I,” just after Mario Draghi promised to do “whatever it takes” to “save” the Euro. Which, ironically, has entailed hyperinflationary monetary policies on a par with the world’s most destructive Central banks. Regarding such, “NIRP vs. Gold, Part VI – the horrific end game of a cashless society” was written 2½ months ago, when the “war on cash” commenced…

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