CAN THEY DO IT
By Mike Krieger
Ever since roughly early October 2011 the markets have been fed line after line of carefully crafted bureaucratic garbage coupled with tactical market interventions to create reality that they wish to sell. I remember back to those last months of 2011; what it was like. It was pure madness. There would be a crisis and then the powers that be would come out with some meeting in the next week or two that would solve everything. Then the date would come and go and nothing would be solved and they would move the meeting to the following week.
You could see the fear and doubt in The Bernanke at his latest press conference. You can see the reality of the situation as it pops up through to the surface every now and again despite the media blackout of any “unfavorable” news. These bureaucrats know full well this is all a hologram, an illusion, but it is one they are trying to sustain for as long as possible.
They know how difficult it will be to keep things together in the markets amid a real world that is falling apart. This is why the Fed is pretending there will be no more liquidity added to the system. In their minds, the best strategy is to talk down QE while at the same time attacking commodity markets behind the scenes. In their mind, this will give them the cover to create trillions more for their banker shareholders. I have stated that this would be the plan and as we can see in the markets lately, it has been executed to precision.
The reality is that pretty much all of the engines of global growth in the emerging markets have economies that were similarly fueled by ponzi finance and money creation and they are rolling over hard. I don’t even need to mention Europe. Then there is the United States of Propaganda, which has held up relatively well due to the reserve currency status. That said, relatively well does not equal good and recent indicators are pointing to a serious loss in momentum here.
So the fact that pretty much every major economy is rolling over at the moment means one thing. These guys need to print and print big. Not that this does anything for the economy, but it usually buys time (until it doesn’t). If they are going to print and print big they need commodities as low as possible.
I still suspect one more major raid attempt may be made. If so, and silver is knocked down a few dollars from here in a paper smash, I will be standing there ready to go with the biggest buy in years. I am not the only one. All of us are thinking the same way. The pent up demand from folks like me is big. We are in no rush as we are waiting for the Central Planners to blink and then we will pounce.
The huge risk now though is if they do push the metals in a gap lower from here supply will literally disappear. Let’s see if they dare.