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Or better yet, this weekend’s utterly astonishing news that Europe’s largest bank, and purveyor of over-the-counter derivatives, Deutschebank (i.e., the NEXT LEHMAN), amidst an utterly imploding stock price and exploding credit default swap rate – took the unprecedented, extraordinary step of writing an open letter to the ECB and Bank of Japan to STOP reducing interest rates – claiming NIRP is destroying the system by increasing the risks of stock, bond, currency and commodity collapses. Which, frankly, is one of the most shocking pieces of news I have ever heard – as for the first time, Wall Street is admitting QE and NIRP are not “saving,” but destroying the world. And in Deutschebank’s specific case, likely igniting the fuse under its historic derivatives “weapons of mass financial destruction.” Trust me, Deutschebank is a goner – and when it goes, investors will look back at Lehman Brothers as the “good old days.”
That said, and particularly because the past 14 years of my life have been dedicated to fighting the gold Cartel, I have chosen to focus on THIS MORNING’s news that six of the world’s largest mining companies – including the world’s second largest miner, Rio Tinto – abruptly resigned their membership on the London Metal Exchange. No reason was given for why 10% of the Exchange’s “Category 5” members resigned, but I’ll bet everything I own that it has something to do with ongoing criminality in the fraudulent paper markets. Which, fittingly, may have been catalyzed by last week’s heinous “fixing” of the silver fix – in which a handful of bankers decided the day’s physical delivery price should be 6% lower than the prevailing paper price. Immediately, the world’s largest silver miner, Poland’s KGHM, loudly complained of this blatant manipulation; and after the LBMA, as usual, did NOTHING, 10% of the Exchange’s mining company members resigned their memberships a mere four days later.
In my view, this is the BIGGEST NEWS IN GOLD (AND SILVER) MARKET HISTORY – as, for the first time ever, the miners are fighting back. And given that Rio Tinto is not Precious Metal-focused, it couldn’t be clearer that the mining industry, generally speaking, suspects the paper market to be the fraud I have been shouting from the rooftops of since first reading GATA 14 years ago.
To that end, I have little doubt that this draconian, shocking turn of events will catalyze additional miners – and investors – to scrutinize said paper fraud more closely. Which, in the case of the base metals and other industrial commodities Rio Tinto focuses on, will unfortunately have no material impact on the price, given the massive product oversupply and declining demand. Conversely, in gold and silver, where demand is skyrocketing, supply plunging, and inventories vanishing, I would not be surprised if it acts as a “black swan” catalyst to significantly damage – if not destroy – the gold and silver Cartel. And with it, one of the few remaining threads of “stability” in the dying global monetary system. After all, there’s a reason why I recently deemed the rigged paper gold and silver markets the “very, very last to go.”
more http://blog.milesfranklin.com/the-biggest-news-in-gold-market-history-today