by Andy Hoffman, Miles Franklin:

The principal reason we hold gold and silver, is that no matter how much their paper derivatives are manipulated, the underlying physical market is governed by “Economic Mother Nature.” This is why the Cartel’s efforts to mask the reality that history’s largest, most destructive fiat Ponzi scheme is collapsing will spectacularly fail; as, per what the Miles Franklin Blog has discussed throughout this horrifying spectacle of deceit, global physical demand is surging, whilst supply is plunging.

Conversely, historically oversupplied commodities like crude oil and “Dr. Copper” can only be propped up for so long by the “oil PPT” and false “Trump-flation” meme (which by the way, won’t be “revived” by the House passing a watered down Obamacare bill that likely, won’t even be passed by the Senate). In the former case, the modest price increases caused by the fraudulent OPEC “production cut” – which, with each passing day, looks more and more unlikely to be renewed later this month – have caused dramatic non-OPEC production increases, at a time when demand is unequivocally declining due to the global recession no one wants to admit.

To the point that, global inventories are higher than they were when said “agreement” was made in November; and as of yesterday, oil prices lower. The same goes for copper; which directly after Election Day, skyrocketed on the “hopium” of a demand increase that never came. Which is probably why prices are plunging anew, amidst surging inventories and – yep, you guessed it – weak demand. To that end, the CRB Commodity Index is on the cusp of breaking key support levels that have held for the entirety of the fraudulent “Trump-flation” meme, and then some.

Likewise, no matter what governments say economic activity looks like (like the ten-year-low 4.4% “unemployment rate” reported this morning, despite collapsing economic activity), it can’t change what is actually occurring. And as we speak, global economy activity is weaker than at any time in our lifetimes, aside from a handful of weeks at the height of the 2008 crisis and 9/11 aftermath; in each case, when the world temporarily went into “deer in headlights” mode. Just look at China’s plunging manufacturing PMI, or all U.S. “hard data” – like yesterday’s plunging productivity and factory orders; the latter of which, was supported only by soon-to-explode government military spending, and soon-to-collapse oilfield equipment orders. And oh yeah, the worst GDP quarter in three years, following the worst GDP year since 2009.

Read More @ MilesFranklin.com