An Urgent Cry To Europeans

January 20, 2015

It’s Monday afternoon; but unfortunately for TPTB, even closing the “Dow Jones Propaganda Average” for a day can’t prevent “Economic Mother Nature” from continuing to exact revenge for mankind’s hubristic attempt to usurp her laws. Whilst Americans rightfully acknowledged one of their greatest citizens with a day of rest, global markets were as far from “at rest” as imaginable. In China, for example, the massive, PBOC-fueled bubble that is the Shanghai Stock Exchange plunged by an incredible 8%. If “god forbid” the PPT lost control and allowed such a plunge in the States – as it last did in 1987 – the financial system would permanently collapse, given the massive leverage utilized under the assumption that the “Yellen Put” can’t fail. You know, like the “Jordan Put” in Switzerland – which promised to maintain the Franc/Euro peg at all costs, “whatever it takes.”

Meanwhile, crude oil resumed its freefall to the depths of economic hell, amidst news of Iraq reaching an all-time high production level, and Iran’s oil minister claiming “even if the oil price falls to $25 a barrel, the oil industry will not be threatened.” As I edit Tuesday morning, by the way, said plunge has taken on a new life, pushing WTI crude down to $46.40 from Friday’s $48.70 close – and with it, the 10-year Treasury yield below 1.78%. Well, perhaps low-cost Middle Eastern producers like Iran won’t be “threatened,” but high-cost producers in the North Sea and the U.S. shale industry certainly will be. Of course, given that Iran and other OPEC communists like Saudi Arabia base annual spending budgets on $80-100+ oil, they, too, will produce “all-out” to pay their bills. Which will only depress prices further; until ultimately, EVERY oil exporter will be engulfed by a Russian Ruble-like crisis and horrific economic depression – followed by debt defaults; cascading derivative failures; unprecedented geopolitical strain; draconian government actions; and likely, war, of both the currency and military variety.

And heck, I didn’t even get around to today’s ugly base metal plunge; led by copper – i.e., “Dr. Death” – which lost nearly all of last week’s “dead cat bounce” gains. And ditto for the Euro; which ahead of the ECB’s potentially world-destroying QE announcement Thursday – and Greek election Sunday – is creeping anew toward its post-SNB, 12-year lows. By the way, before you read this, the Bank of Japan will have concluded its own policy meeting; and wouldn’t it be a hoot if they “unexpectedly” retaliated against the SNB’s act of financial war – which is exactly what it was – by taking further steps to debauch the Yen? And oh yeah, guess which markets did NOT decline today – despite every conceivable Cartel weapon being unleashed, such as the 82nd “Sunday Night Sentiment” raid in the past 83 weeks? I’ll give you a hint; some refer to them as “barbarous relics.”

In 26-years in the financial markets, only at the depths of the 2008 crisis can I recall such a relentless spate of global “horrible headlines.” Only this time, there is no chance of reversal – as no matter how much money is printed; markets are manipulated; and propaganda is spread; Economic Mother Nature intends to “finish the job.” As I wrote 3½ months ago – before the historic energy, commodity, and currency crash – “2008 is back.” And considering that Central bankers and politicians now have as little credibility as they do “dry powder,” it’s just a matter of time before history’s largest Ponzi scheme entirely collapses, leaving the “99%” that haven’t prepared to swim in shark-infested waters without a life jacket.

Truly, the “end game” has arrived when the MSM starts to tell it like it is. Today alone, the New York Times, home of establishment lackey Paul Krugman, published “Swiss give a scary lesson on the limits of Central banks”; Bloomberg claimed “not even Mario Draghi can save Europe now”; and even CNBC asked “is QE enough to save the Euro Zone?” Comically, the Fed’s discredited “mouthpiece,” the Wall Street Journal’s Jon Hilsenrath, wrote of history’s most destructive financial organization remaining “on track” for mythical rate hikes “later this year” – as the 10-year Treasury yield plunged four basis points; but at this point, such drivel has as much credibility as Whirlybird Janet’s claims of the oil price decline being “transitory.” Consequently, it shan’t be long before the entire world is running for the paper exits, in lieu of the time-honored safety of real money.

What took everyone so long is beyond me; but obviously, the “weapons of mass financial destruction” used to kick the can the last mile were indeed powerful. That said, the SNB’s implicit admission that Central banks “have no clothes”; not to mention, the decision’s horrific, widespread ramifications, has clearly awakened the brainwashed financial community – which eventually, will be followed by the hysterical masses. To that end, Marc Faber may have made one of the prescient quotes ever today – i.e., “the big surprise this year will be the collapse of investor confidence in Central banks; and the only way to short Central banks is to go long gold, silver, and platinum.”

Moreover, said “confidence loss” goes for the Central banks, too – as evidenced by today’s bombshell announcement that the German Bundesbank has repatriated 120 tonnes of gold from the New York Fed. Whether they were lying to help the Fed save face is another story altogether. However, the fact remains that “coincidentally,” Germany claims to have gotten back its gold just as Euro-priced gold launched into the stratosphere. In recent months, Holland, Belgium, Austria, Switzerland, and France have made noises of their desire to repatriate and/or increase their gold holdings; and trust me, that trend is gaining momentum like a runaway locomotive. Pretty soon, every Central bank will be competing – with every institution and individual – for the scant amount of actual, available-for-sale metal. And to those left standing when history’s highest-ever stakes game of musical chairs ends – all we’ll be able to say is “it’s not like we didn’t warn you.”

Which brings me to today’s ultra-important message, as the Miles Franklin Blog issues an “urgent cry to Europeans” to PROTECT THEMSELVES, and do it NOW. Not that we haven’t been screaming this for years; but now, more than ever, the “financial life or death” scenario lies at your feet. A significant part of the world has already witnessed catastrophic currency devaluations in the past three years – with the average currency down more than a third. However, when speaking of the world’s most widely utilized currency we’re talking some serious pain for hundreds of millions of people accustomed to the world’s highest living standards. And now, barely two years after Draghi claimed he’d do “whatever it takes” to save the Euro, it is on the verge of collapse – just as I predicted 3½ years ago. In fact, had it not been for said infamous speech – and the historic money printing, market manipulation, and economic propaganda that accompanied it – it would likely, to at least some extent, have occurred already.

Today, on the eve of what is expected to be a $635 billion QE package – of which the market will be severely “disappointed” if it comes in at a lesser amount -it couldn’t be more obvious that the ECB has entered the fringes of Abenomics-like money printing. Of course, it not only will decidedly NOT improve the European economy, or enable “inflation” to reach Draghi’s arbitrary optimum of 2.0%, but will destroy the purchasing power of the Euro further – likely, to its all-time low, and then some. And oh yeah, it will drag the British Pound down with it, as the Goldman Sachs led BOE will shortly join the party by expanding its own “QE to Infinity” program – especially now that the oil price is destroying its North Sea economy. Plus, this weekend’s Greek elections will likely put the very existence of the Euro in doubt; as unquestionably, the cascade of debt jubilees, derivative implosions, and bank and corporate failures that result will be too much for even the best printing presses to offset.

Sure, said money printing and market manipulation has pushed “leading” equity indices like the German DAX to all-time high levels – at nosebleed valuations – as the financial community “front-runs” QE to Infinity, just as they are doing in the sovereign bond markets. However, the real value of such gains is actually falling due to the Euro’s descent; and in time, will unquestionably plunge into the abyss, either via accession to the inevitable economic implosion, or the equally inevitable hyperinflation.

To wit, Abenomics started with a Nikkei surge, but was followed by an historic economic plunge; rising inflation; and oh yeah, as I write, Yen-priced gold is just 1% from its all-time high. Similarly, “whatever it takes” posturing has yielded surging equity indices, but the European economy is undeniably crumbling – and its financial condition dramatically worsening, to conditions last seen during World War II. Only this time, Europe is trapped by a dying monetary system on the verge of implosion – with very real, and near-term, catalysts. And what do you know? Euro-priced gold is rocketing higher, too; now, just 19% from its all-time high – which likely, will be breached far sooner than most can imagine. Clearly, the Swiss National Bank was terrified at the potential ramifications of tying themselves to the Titanic-like anchor the Euro represents. And thus, why aren’t you? And when it really starts to “hit the fan” in the coming months, do you trust that your governments will have your best interests at heart; let alone, your “precious” financial assets?

Which is why we “urgently” insist that you consider Miles Franklin’s industry-leading storage program at Brink’s Montreal. Every imaginable question you might have about it is answered in this interview I conducted three months ago with our President and co-founder, Andy Schectman; and after listening to it, you’ll well understand why Miles Franklin’s principals – myself included – store their personal metal there.

In this article, I describe the program’s unique characteristics; which, I might add, are just as cost effective for Europeans as American and Canadians. Yes, if you choose to ship your currently-owned metal overseas, shipping costs will be higher than if such metal were emanating from North America. However, if you order the metal from us, we will have it directly shipped from the Canadian Mint to Brink’s Montreal vault. There are no extra fees or taxes for European, or any foreign clients – on either the purchase or sale side of the equation. In my view, Canada represents one of the best geo-political “safe havens” for capital; and coupled with Miles Franklin’s proximity to Montreal (we are headquartered in Minnesota, with principal distribution in North Dakota), we are able to personally oversee the operation. To wit, I have personally seen my metal counted twice.

Hopefully, this sentiment echoes not just to Europeans fearful of a collapsing Euro or Pound, but all people holding the majority of their net worth in dying fiat currencies; which is to say, EVERYONE.

Here at Miles Franklin, our goal is to protect as many people as possible before it’s too late. Thus, we “urge” you to call us at 800-822-8080, as our professional staff – with, on average, 20 years of industry experience – promise to give you the same customer service that has earned us an A+ Better Business Bureau rating, with not a single registered complaint in the 26 years since we opened our doors.


And, as always, you are welcome to email me at

Andrew ("Andy") Hoffman, CFA joined Miles Franklin, one of America's oldest, largest bullion dealers, as Media Director in October 2011. For a decade, he was a US-based buy-side and sell-side analyst, most notably as an II-ranked oil service analyst at Salomon Smith Barney from 1999 through 2005. Since 2002, his focus has been entirely on precious metals, and since 2006 has written free missives regarding gold, silver and macroeconomics. Prior to joining the company he spent five years working as an investor relations officer or consultant to numerous junior mining companies.

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