“Now that I am out of government, I can tell you what I really believe ... Central banks are now so heavily influencing asset prices that investors are unable to ascertain market value" -- Kevin Warsh, former board Governor, U.S. Federal Reserve
Gold and silver are on the march and as has occurred so often in the past when they have arisen from hibernation, the financial press has taken little notice. In fact the early years (2001-2003) of the secular precious metals bull market were largely stealth, with Wall Street begrudgingly acknowledging the performance only when the returns became too large to dismiss. Then again, the financial press' reporting on markets is largely pointless thanks to the Federal Reserve's having become the Bureau of Central Planning. Our country's capital markets are now a dysfunctional illusion, divorced from the fundamentals that once drove price discovery and run as the New York Fed's trading desk so dictates.
Ted Butler is in my opinion the most astute observer and analyst of the silver market anywhere: What Really Happened to Bear Stearns?
"I believe that sudden and massive losses and margin calls of more than $2.5 billion on tens of thousands of short COMEX gold and silver contracts were the specific triggers that killed Bear Stearns."
Once a critical agent for cultural change and political dissent, the American college campus has morphed into a bastion of intolerance and political correctness. Classic liberalism, which values independent thought now wears the face of its 21st century incarnation; institutionalized left wing conformity and cultural fascism: Majority Of Colleges Restrict Free Speech On Campus: FIRE Report
Nowhere is intolerance and group-think more prevalent than in the zombie-like environmental movement. In this seven minute clip the late George Carlin brilliantly excoriates the cult of earth worshiping, which blindly follows "scientific" gospel in lieu of critical, independent examination. George Carlin: Environmentalism: 'Arrogant meddling'
Public schools are indoctrinating our kids with government sponsored (i.e. funded) "climate science." The lie -- repeated sufficiently -- that there is a scientific consensus or near unanimity with regard to climate change lulls the young and the intellectually lazy into allowing politicians and 'climate researches' into deciding what to believe. The most bizarre example of how shameless the climate cult has become may be a remark made by Secretary of State Kerry this past week: "Climate change can now be considered another weapon of mass destruction, perhaps the world's most fearsome weapon of mass destruction," Seriously, he said that.
Personally, I find nuclear, chemical, and biological threats a bit more worrisome but I refrain from imposing my preferred paranoia on others. This though is very much the point about the environmental gravy train, an industry that fosters an illusion of a big problem that is in reality not even a small one. I've previously suggested that environmental evangelism is so off-the-charts misdirected that if mankind actually survives to the point of glacial melts and rising sea level threats without having previously decimated itself by a thermonuclear event I'd consider our time on the planet a success. The same critics who vehemently object to Creationism being taught in schools have no problem with Environmental Fundamentalism being passed off as consensus science.
In line with the growing trend of linguistic bastardization and hyperbole exemplified by the remarks of U.S. Secretary of State Kerry, a U.K court (London’s High Court of Justice) equated journalism to terrorism in a ruling on the egregious detention of Guardian reporter Glenn Greenwald's partner at Heathrow airport this past summer.
Whistle-blower and American patriot Edward Snowden's temporary visa expires in July. In return for exposing institutionalized evil and the most massive affront to constitutional protection in U.S. history, the federal government has labeled him a traitor. Please sign the Clemency for Edward Snowden petition. Don't be concerned about bringing attention to yourself; you're likely already on the NSA's watch list by merely being on this website, so the incremental risk of signing is minimal.
A visualization of 'The Affordable Care Act'...which would have been more appropriately titled 'The Parasitic Bureaucracy Employment Act': Lord help us
And precisely what were they applauding..? There is little in this world as grotesque as the exploitation of the physically maimed for political purpose, yet that is precisely what the President of the United States saw fit to do during his State of the Union address by introducing a disfigured soldier wounded in Afghanistan, a place he should never have been sent. The young man's injuries served no military or moral purpose and neither did his appearance at a prime-time televised presidential address.
These annual 'reports,' which long ago strayed from the constitutionally mandated reviews they were intended to be, have morphed into political propaganda forums. Even so, the spectacle of a battle scarred soldier/pawn calculatingly and cynically showcased by the politician most directly responsible for his disfigurement, to a packed chamber of bi-partisan politicos clapping like oily seals struck me as beyond the pale. The off-putting exhibition was compounded of course by the reaction of boobus americanus watching at home and believing this all makes perfect sense, as apparently did the soldier's father who proudly accompanied his son to the event and no doubt believes his son incurred his injuries by serving his country and a public interest.
Truth be told, his son's injuries were of no more purpose or consequence than had they been sustained in a bicycle accident. His wounds served only the political interests of a small group of elites and the private business interests of the U.S. defense and energy industries. If anything, the American civilian population is less secure and in increased danger as a result of the young man's military deployment. None of this -- I wish to make clear, is the fault of this particular innocent soldier/pawn. It is however your fault for applauding.
Gold and silver...
The underlying dynamic that created the sensational investment opportunity that existed in precious metal investments in the late 90's was the widespread lack of understanding of the gold and silver markets by Wall Street analysts. As gold and silver have now emerged from the cyclical correction of the past few years, that same dynamic is in play. Having declared gold's run over, the bearish consensus on the shiny metals was at year-end as severe as it has ever been. This is precisely the sentiment that sets up big moves in price and it launched gold, silver and the precious metal stocks on an upward trajectory which has made it the single best performing asset class and stock sector thus-far in 2014. With few exceptions the major banks and financial media had bearish outlooks for the precious metals and in spite of the moves over the past two months they remain largely negative. Meanwhile, with the S&P 500 and Dow negative for the year, gold has moved ahead 8%, the HUI gold stock index is up 21% on the year and GDXJ -- the ETF of junior miners -- is up 32%. Many of the small exploration companies that were nearly comatose the past few years have risen 50% in just the first few weeks of the year. Have you heard this on CNBC? Likely not. Their job is to push stocks -- so long as they aren't gold or silver companies.
Expect increased volatility, increased interest in the gold and silver sector, and sharply increasing prices for the remainder of the year.