Gold Goes Deeper In The Red Year-To-Date As Stock Market Nears Record High On Same Day Trump Vetos Bill To End US Involvement In Saudi-Yemen War

SD Midweek Update: The ultimate head fake is underway with the stock market, but gold & silver are the ultimate inverse head-fakes. Here’s why…

Editor’s Note: This post is subjective opinion, and it will offended most people, so easily offended people may want to click the “back” button right about now.

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Focus.

Nothing has changed.

Well, one thing has changed, and it is that President Trump just used his second veto-power during his term as President to veto legislation that would have essentially ended the US involvement in the Saudi-Yemen War.

OK, “But Half Dollar, you don’t get it man, Iran is backin’ Yemen…Freakin’ Iran man!”.

Wow.

There comes a point where drinking more of the Kool-Aid not only has no additional benefit, but drinking more is actually detrimental, you know?

It’s kind of like the Law of Diminishing Returns, but different.

In my opinion, President Trump is doing a fine job of sticking to his script which calls for losing the support of Americans who actually believed Candidate Trump when he said he was going to end the wars.

I’ve gotta admit, I myself was duped when Candiate Trump said those things.

But before you get around to thinking ‘Ol Half Dollar is easily duped, if I could take a que from the President and offer an excuse for something, I may have been duped, but I’ve never seen WWE, or Trump’s Celebrity Cooking Show, so I’m not really sure how good or how awful his acting skills actually are.

But I do know this: The “Silent Majority” will no longer stand with the President.

Remember that?

The “silent majority”.

Not the Vietnam War era Silent Majority, for I’m talking about the 21st century re-make.

Of course they’re silent – they’re zombies, and everybody knows that zombies can’t talk.

So newly updated, “Silent majority” was that stupid meme from the 2016 campaign where everybody was “embarrased” to admit they support Candidate Trump.

Well, it works that way in reverse too, and now the silent majority will be embarrassed to admit they no longer support President Trump.

The latest acting on Trump’s part, that is, his Veto from last night, after market hours of course, isn’t even on Zero Hedge’s Front Page as of 8:17 a.m. EST Wednesday morning, but something like that wouldn’t be news anyway if you understand that Zero Hedge is the lame “guerrilla marketing” campaign for Trump 2020.

If this was actual guerrilla warfare, Trump’s re-election campaign would get smoked.

But I digress.

Here are President Trump’s own words:

The White House
Office of the Press Secretary
For Immediate Release 
April 16, 2019

TO THE SENATE OF THE UNITED STATES:

 

I am returning herewith without my approval S.J. Res. 7, a joint resolution that purports to direct the President to remove United States Armed Forces from hostilities in or affecting the Republic of Yemen, with certain exceptions.  This resolution is an unnecessary, dangerous attempt to weaken my constitutional authorities, endangering the lives of American citizens and brave service members, both today and in the future.

This joint resolution is unnecessary because, apart from counterterrorism operations against al-Qa’ida in the Arabian Peninsula and ISIS, the United States is not engaged in hostilities in or affecting Yemen.  For example, there are no United States military personnel in Yemen commanding, participating in, or accompanying military forces of the Saudi‑led coalition against the Houthis in hostilities in or affecting Yemen. 

 

Since 2015, the United States has provided limited support to member countries of the Saudi-led coalition, including intelligence sharing, logistics support, and, until recently, in-flight refueling of non-United States aircraft. All of this support is consistent with applicable Arms Export Control Act authorities, statutory authorities that permit the Department of Defense to provide logistics support to foreign countries, and the President’s constitutional power as Commander in Chief.  None of this support has introduced United States military personnel into hostilities.

    We are providing this support for many reasons.  First and foremost, it is our duty to protect the safety of the more than 80,000 Americans who reside in certain coalition countries that have been subject to Houthi attacks from Yemen.  Houthis, supported by Iran, have used missiles, armed drones, and explosive boats to attack civilian and military targets in those coalition countries, including areas frequented by American citizens, such as the airport in Riyadh, Saudi Arabia.  In addition, the conflict in Yemen represents a “cheap” and inexpensive way for Iran to cause trouble for the United States and for our ally, Saudi Arabia. 

    S.J. Res. 7 is also dangerous.  The Congress should not seek to prohibit certain tactical operations, such as in-flight refueling, or require military engagements to adhere to arbitrary timelines.  Doing so would interfere with the President’s constitutional authority as Commander in Chief of the Armed Forces, and could endanger our service members by impairing their ability to efficiently and effectively conduct military engagements and to withdraw in an orderly manner at the appropriate time.

    The joint resolution would also harm the foreign policy of the United States.  Its efforts to curtail certain forms of military support would harm our bilateral relationships, negatively affect our ongoing efforts to prevent civilian casualties and prevent the spread of terrorist organizations such as al-Qa’ida in the Arabian Peninsula and ISIS, and embolden Iran’s malign activities in Yemen. 

    We cannot end the conflict in Yemen through political documents like S.J. Res. 7.  Peace in Yemen requires a negotiated settlement.  Unfortunately, inaction by the Senate has left vacant key diplomatic positions, impeding our ability to engage regional partners in support of the United Nations-led peace process.  To help end the conflict, promote humanitarian and commercial access, prevent civilian casualties, enhance efforts to recover American hostages in Yemen, and defeat terrorists that seek to harm the United States, the Senate must act to confirm my nominees for many critical foreign policy positions.

    I agree with the Congress about the need to address our engagements in foreign wars.  As I said in my State of the Union address in February, great nations do not fight endless wars.  My Administration is currently accelerating negotiations to end our military engagement in Afghanistan and drawing down troops in Syria, where we recently succeeded in eliminating 100 percent of the ISIS caliphate.  Congressional engagement in those endeavors would be far more productive than expending time and effort trying to enact this unnecessary and dangerous resolution that interferes with our foreign policy with respect to Yemen. 

    For these reasons, it is my duty to return S.J. Res. 7 to the Senate without my approval.
 
 
                              DONALD J. TRUMP

The White House 
 April 16, 2019.

In the meantime, we have a stock market right back at record highs, and gold turns even more negative on the year.

In my opinion, the stock market will crash once the Deep State/Globalists think their timing is correct.

And gold?

Well, gold (and silver) will surge in price, but not because the Deep State/Globalists want gold to surge, but because they have no choice.

No to worry though, they will be well stacked for gold’s price rise, and silver’s too, because as much as they hate God’s Money, Honest Money, Sound Money, the Gold & Silver Standard specifically required by the US Constitution, or whatever you want to call it, the Deep State and Globalists are greedy bastards and will certainly not complain about the profits.

So here’s what gold’s daily chart looks like after the Tuesday beat-down:

We’ve been negative before year-to-date, just not to such an extent after the beating we took yesterday.

Silver is more or less holding up:

But then again, there is a fine line between grazing somebody’s ear and blowing somebody’s brains out, so yeah.

As such, the gold-to-silver ratio dropped, not because silver outperformed gold:

But because gold dropped more than silver, percentage-wise.

Palladium is still banging around $1300 and $1400:

As crude oil and copper have held up recently, going off of the “industrial use” properties of palladium, I’m starting to think we may not get that leg-down after all.

It would be great, however, to see platinum re-take $900 before the end of the week:

The technicals are not super-duper bearish either, so I’m currently in a wait-n-see mode.

Check out crude oil ready to test $65 a barrel:

Once the dollar turns, I do think crude oil will take-off in price, and if the dollar turns before a pull-back in crude oil, then crude oil could really show us an upside surprise.

Copper’s base is absolutely massive:

It almost seems as if the copper price was being maintained for some odd reason, but that reason has nothing to do with silver, right?

I have been looking for a rise in yield in the short-term:

If the stock market does reach record highs, which I think it will, then yield on the 10-Year Note will continue to climb in the short-term, however, if the record high in the stock market happens this week, we could very well be headed lower come next week or possibly even this week.

The dollar is still being held within its allowable range:

I’m still looking for the next big move in the dollar to be down, although I also wouldn’t be surprised to see a minor head-fake first.

Get ready for one more really good squashing of fear:

My call has been a 10-handle, and they really need to move quick if the stock market is going to reach all-time record highs.

The S&P 500 is nearly there:

Now everybody is talking about how this bull market is sustainable, ignoring that it’s artificial as all heck, everybody is talking about how this is a continuation pattern of the bull run, and everybody assumes that even if those beliefs are wrong, well, the Fed still has the stock market’s back if it starts dropping again.

Remember: Most of the people are wrong most of the time.

Only this time, being wrong will be devastating.

If I’m right, and if Trump is the Fall Guy.

The market drop will begin very soon.

But not until a Trump Tweet first.

“All-time highs!” it will read.

And then it will begin.

Ah, the confusion.

But only if you.

Ain’t paying.

Attention.

To their.

Script.

Yup.

Stack accordingly…

– Half Dollar


 

About the Author

U.S. Army Iraq War Combat Veteran Paul “Half Dollar” Eberhart has an AS in Information Systems and Security from Western Technical College and a BA in Spanish from The University of North Carolina at Chapel Hill. Paul dived into gold & silver in 2009 as a natural progression from the prepper community. He is self-studied in the field of economics, an active amateur trader, and a Silver Bug at heart.

Paul’s free book Gold & Silver 2.0: Tales from the Crypto can be found in the usual places like Amazon, Apple iBooks & Google Play, or online at PaulEberhart.com. Paul’s Twitter is @Paul_Eberhart.

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