The Fed’s Vicious, Self-Created Catch 22-All Roads Lead To “Scarcity Assets”


by Andy Hoffman,  Miles Franklin

It’s Friday morning, just before the B(F)LS, or Bureau of (Fraudulent) Labor Statistics publishes the second quarter GDP report. Incredibly, despite hard economic data consistently worse than the previous two quarters – which, at 1.7{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} (doubly seasonally adjusted and all), sported the lowest two quarter rate since the 2008-09 Financial crisis – “expectations” are for a 2.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} increase.  I mean, how do all those zero and negative retail sales, industrial production, construction activity, factory orders, and durable goods orders translate into “2.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}” growth?

Heck, even in Europe, whose economic stagnation has become legendary, GDP growth rates have been stuck below 1{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} for years on end, despite the publication of higher “soft” data PMI readings than the U.S.  In other words, just as the U.S. government leads the world in surreptitious financial market trading, derivatives creation, and paper Precious Metal suppression, they do so in economic data as well.  And yes, I know the Chinese continue to report 6.5{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528}-7.0{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} GDP “growth” despite an obviously collapsing economy.  But heck, at least their numbers are so far from reality, they aren’t actually taken seriously.

Irrespective, in an America on the verge of political (see: death of Obamacare repeal), economic (see: upcoming debt ceiling debate), and geopolitical (see – new Russian sanctions) chaos, the BLS may well attempt to prolong the illusion of the soon-to-be-second-longest “expansion” of the 147 in America’s 241-year history.  Which, if one were ignoring the rigged stock markets, could easily be mistaken for the second coming of the Great Depression.  This, one week after Janet Yellen’s wildly dovish, “ding dong, the Fed – and with it, the Precious Metals ‘bear market’ – is dead” speech in front of Congress, and two days after the Fed’s follow-up, uber-dovish policy statement.  In which, they not only downgraded their expectations of “inflation,” but altered the timing of their mythical, never-to-happen balance sheet “exit strategy” from “sometime this year” to LOL, “relatively soon.”

In other words, to commence today’s “Catch-22” discussion, if GDP growth is “better than expected,” the Fed will look like fools – particularly because there’s no doubt they are privy to the GDP numbers before their release.  Heck the Fed’s own “GDP Now” forecast is for 2.6{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} growth.  Conversely, if “worse than expected,” the dollar will plunge further, causing the “inflation” they so badly want to explode.  Which, if truth be told, already occurred in the week since Whirlybird Janet’s speech, given how the dollar has since plunged to a 13-month low.  Which in turn, would force the Fed to re-start hints of rate hikes, just one week after rate hike odds for September plunged to ZERO – and just 42{5f621241b214ad2ec6cd4f506191303eb2f57539ef282de243c880c2b328a528} for December.  Talk about destroying what’s left of one’s credibility!  This, from the institution responsible for printing the world’s “reserve currency.”

And by the way, for anyone that still doesn’t’ get just how thin the line has gotten between the economic reality of said Depression, and the fraudulently fostered illusion of prosperity from rigged financial markets, I’m going to continue driving into your head that at some point soon, the world will be “on” to the most blatant rigging scheme in history – paperPrecious Metals.  To wit, here’s what I showed you last week, of the previous six days of silver trading…

…here’s what I showed you Wednesday, of Monday and Tuesday’s “trading”…

And here’s what occurred yesterday; when every imaginable manipulative tool was utilized – from DLITG, or “don’t let it turn green”; to “Cartel Rule #1 – i.e., “thou shalt not allow PMs to surge whilst stocks plunge”; to the 10:00 AM EST “key attack time #1.”   TRUST me, it won’t end well for the Cartel – now that physical supply is set to plunge for years to come, care of the mining industry destruction caused by two decades of price suppression.  Which is exactly why – amongst other things – I boldly stated yesterday, this is the “most PM-bullish I’ve ever been.”