The Most Important, And Bullish, Gold Chart You’ll Ever See

Tuesday, December 13, 2016
By Paul Martin

By Andrew Hoffman
Tuesday, 13 December 2016

Barely 24 hours before the Fed takes another giant step toward destroying whatever’s left of its “credibility”; and likely, proving yet again that rising rates are decidedly NOT “Precious Metal bearish”; I could easily write full-length articles on a half dozen separate “PM bullish, everything-else-bearish” topics – starting with the fact that, as discussed in yesterday’s “history’s largest bubble” article, the unprecedented equity surge that coincided with Trump’s victory is a giant hot-air balloon floating in a sea of pins.

Yes, historic market rigging – including suppression of history’s largest “anti-bubble,” Precious Metals – is a part of the unprecedented market movements that have pushed the “Dow Jones Propaganda Average” to its most overbought level in 20 years; with yesterday’s close (as all other indices declined, and interest rates breached a six-year downtrend) being surpassed on that metric on just three other days in the Dow’s 120-year history. However, there are still some actual market participants remaining; who, collectively, have never been more bullishly positioned in stocks, or bearishly in Treasuries. Which inherently makes absolutely no sense, either logically or historically; as rising rates always yield lower valuations – not to mention, weaker economic activity; particularly in an environment of historic, parabolically surging debt.

That is, until you realize the stock of the “Vampire Squid” itself, Goldman Sachs, is responsible for a whopping 30% of the Dow’s post-Trump gain, due to the facts that former Goldman partner Steve Mnuchin was nominated to be Trump’s Treasury Secretary; current Goldman Chief Operating Officer Gary Cohn was appointed as head of Trump’s National Economic Council; and last but not least, the Dow is a price-weighted average, with Goldman its highest priced – and thus, most influential – stock. In other words, a mirage of statistical chicanery, amidst an ocean of the very crony capitalism America had hoped to have shed when it rejected Hillary Clinton. And did I mention that the second biggest post-election Dow gainer is none other than JP Morgan – care of the “99%’s” biggest enemy, Jamie Dimon, being appointed to the head of the U.S. Business Round table, which will unquestionably give it “insider access” to the White House?

Yes, this is unquestionably history’s biggest financial bubble, whether simply considering its presence qualitatively – amidst the weakest global economy in generations; the highest ever debt levels; a surging dollar that torches U.S. corporate earnings and emerging markets’ debt service ability; historic global political turmoil; and a European banking system on the verge of collapse, as highlighted by today’s announcement that Italy’s largest bank, Unicredit, will be laying off 14,000 workers. Or alternatively, quantitatively, by the fact that on essentially all metrics, stock valuations are above those of the past century’s previous bubble peaks. Of course, in each of those periods – 1929, 1987, 2000, and 2008 – economic activity was booming, debt dramatically lower, currency exchange rates stable, and the world politically calm.

The Rest…HERE

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