by Andy Hoffman, Miles Franklin:

It’s Friday morning, and for those worried that yesterday’s $4 billion “sell” of unbacked paper gold – nearly twice the COMEX’s registered physical inventory; and this morning’s equally egregious COMEX-opening raid, symbolize a change for the worse, fear not. Clearly, the 200-week moving average and 5½ year downtrend line wars are not over – as I assure you, when they are inevitably breached, to the point that traders feel confident in the trend change’s “legs,” the breakout will be extremely powerful.

As recently as Wednesday afternoon, three of the four breakouts were completed – albeit, barely so in two of the three cases; with the fourth, silver’s 200-week moving average – of $17.76/oz – within three cents of completing the “breakout superfecta.” This is why, despite the ECB policy statement being dramatically more “dovish” than anticipated – to the point that, I scripted “Goldman Mario takes Central bank credibility to an all-time low – and gold Cartel vulnerability to an all-time high” – the aforementioned, brutally blatant Cartel raid was perpetrated.

Clearly, yesterday’s Comey “nothing-burger” had been “discounted” well in advance – as not only did multiple insiders leak that he’d say nothing damning, but his prepared remarks were released a day earlier. Which, I might add, had zero impact on Precious Metals when they were released, as they rightly should not have. As for last night’s “shocking” UK election result, I fail to see exactly what’s so shocking about it; and even more so, why any objective investor would sell Precious Metals as a result – which they didn’t, given that gold and silver were just modestly lower until…drum roll please…the COMEX opened, many hours after the results were known. And as I’ll prove shortly, the market “reaction” has nothing to do with fundamentals, and everything to do with the “defense” of the Cartel’s “ultimate lines in the sand” – at silver’s 200-week moving average of $17.75/oz, and gold’s 5½ year downtrend line at $1,274/oz. Please note, silver is still well above its 5½ year downtrend line breakout level of $16.30/oz, whilst gold is still well above its 200-week moving average of $1,240/oz. Thus, despite the past two day’s Cartel monstrosity, the wars are, irrespective, half won already!

However, before I get to my take on the UK election, I’ want to drive home the point of how reliant “markets” have become on the historic manipulation that, in creating “dotcom valuations in a Great Depression Era,” have set the stage for global catastrophe; as no matter how hard they try, history’s largest, most destructive fiat Ponzi scheme must inevitably yield history’s worst, and most overdue, financial crisis.

To do so, I’ll start by bombarding you with the past 24 hours’ PiMBEEB headlines –to empower you to realize historically rigged markets are masking the worst global economy of our lifetimes; as well as the highest political and geopolitical instability since World War II; and the most hyperinflated monetary base in global history. Such as…

Mexican industrial production crashes 4.4% in April, biggest plunge since 2009

Credit Card defaults surge most since financial crisis

Catalonia sets October 1st date for final secession referendum

Crude oil crashes to $45.50/bbl – is $50/bbl still realistic?

Bank of Canada says default risks spilling over into uninsured mortgage market

Coming soon – the mother of all debt crises

Chart of the Day – Real hourly wages are unchanged from 50 years ago

Household wealth has never been higher relative to income (check out this terrifying chart)

Household debt back at record high, after nearly a decade

BMO warns “this is the beginning of the end for junk bonds”

China recession looms, as yield curve inversion deepens

Morgan Stanley warns of “unprecedented buyers strike,” slashes auto sales forecast

Home flippers’ reliance on leverage rises to highest level in nine years

Banco Popular ushers in “Bail-in Era” for Europe’s banking crisis

“Worst Since Lehman” – the state of the US Consumer, in one dismal chart

Q2 GDP to suffer, as April wholesale inventories plunge

Next, proof that only Central bank monetization – the “tip of the iceberg,” compared to what they are monetizing “off balance sheet” – is preventing; or better put, temporarily delaying; the worst financial crisis in history. Starting with these charts, depicting how only the highest level of global QE in history is supporting stock markets – particularly since Donald Trump’s “BrExit times ten” election victory. Or, more accurately, mega-caps like the “FANGS” – given that the S&P’s other 495 stocks are no higher than in mid-2015. Clearly, “mystery buyers” like the Swiss National Bank are the real reasons stocks have risen – as opposed to the actual fundamentals, which couldn’t be worse.

Read More @ MilesFranklin.com