Oct 13, 2014
Manipulation Mondays with Andrew Hoffman:
- Last week, Andy wrote "2008, with one temporary exception" - which was PPT support of the U.S. stock market
-now, breaking down horribly, which is why I think the title of my audioblog last Wednesday, "Has 'it' Begun?" is apropos.
-European stock markets collapsing, small cap U.S. stocks, and ALL Western sovereign yields, with 10-year Treasury at 2.25% this morning and 30-year below 3.0%. i.e., the "most damning proof yet of QE failure."
Head of Shanghai Futures Exchange admitted this weekend that Chinese gold demand was above 2,000 tonnes in 2013, compared to global production of 2,770 tonnes.
-validates record gold demand, and likely silver demand estimates as well. Both are likely at or near 2013 levels this year, and early October U.S. Mint Silver Eagle sales at fastest pace of year.
France outlook downgraded by S&P- PIIGS (or PIFIGS, with France) on verge of 2011-12 collapse, even with Draghi doing "whatever it takes." Worse yet, Draghi fighting the Germans tooth and nail on the extent of QE - and without it, Europe implodes NOW.
Commodities collapsing, will have dire economic ramifications on mining/energy industry - and production; particularly in mining, where care of Cartel suppression, Capex is already down 50% in past two years, enroute to much lower levels in 2014. PM mining industry on verge of collapse, IMO.
Geopolitical risks exploding, particularly in Iraq, where Kirkuk oil field within reach of ISIS, as well as Baghdad and key areas in Syria. Iraqi government begging for 10,000 U.S. ground troops.
- plunging oil prices will only cause signficantly expanded tensions with Russians and Arabs.