SD Outlook: Just like the human body has a breaking point, so does the cartel, and the cartel may be at that point right now…
Have you ever pushed your body to its breaking point?
You know that point?
My body hit that point yesterday, and what happened to me is what may be happening to the cartel RIGHT NOW!
First was the mental breaking point.
All last week I was pushed to my limits, mentally speaking.
My brain has been working on overdrive, so I was already mentally exhausted.
Add into that long days of non-stop work from 5:45 a.m. to 11 p.m. or 12 a.m., which I estimate have been a constant for the last two weeks.
Now, add into that my family moving from one city to another, last Saturday and Sunday, as in two days ago and yesterday.
My family consists of the formerly typical “All-American” household of wife, two kids, dog, turtle, two cars, and all the crap that we own which screams “upper (of the lower) class”.
On top of that – yes, there’s more – add in the fact that the dang movers literally stood us up yesterday, which meant everything in our house, heavy furniture and stuff included, had to by moved by myself, my wife, a fourteen year-old and a pre-teen.
And yes, I’m talking about a fully-furnished house.
OK, “Hey Half Dollar, we get it man, you’re tired, but what does this have to do with gold & silver?”.
Good question, and I get it too – I’m typing a bit slower than usual today, so bear with me and thank you in advance.
What does reaching my breaking point yesterday have to do with the cartel?
Well, a lot.
And I’ll explain it in terms of this over-sized brown leather couch.
This was the third of four leather couches we moved.
That particular couch can seat four people (I know ’cause at the end of the day it was the only thing that my whole family could sit on).
It is standard weight for a couch, not like our other reclining couches with the heavy metal frames.
Needless to say, this third-moved brown leather couch is bulky and huge.
We somehow managed to get the couch in the front door in a process which took a great deal longer than it should have, yet after two full days spent loading and unloading what seemed like 15,000 tons of crap, we were down to a 600 pound safe, a heavy as crap hydraulic press, two couches, a washer, a dryer, and a metal chest full of heavy steel tools.
We were stuck with the couch.
Leave the couch there, stuck in the hallway, and proceed to unload the smaller couch (though still a very bulky and over-sized matching brown leather love-seat) from the moving truck, carry the smaller couch around to the back of the house, come in through the larger door out back to see if a couch would even fit through it, and place the smaller couch in a jam-packed living room that currently functions as a staging area.
We did it.
But we’ve still got to deal with the couch that is stuck and literally wedged in the hallway, and oh yeah, the heaviest of the heavy stuff is still in the moving truck.
We finally worked the large couch free, and we took it out the same front door that we initially brought it in.
It was late in the day on Sunday, and the time and energy lost on that couch was critical, yet all we had accomplished was getting the couch back to square one because walking around to the back of the house with that couch involved walking directly behind the moving truck where we had unloaded it about an hour before.
We finally made it around to the back of the house, and placed the couch protruding ever so slightly into the back door.
I stood on the inside of the house, ready to lift the couch and (hopefully) finesse it inside.
Wife and pre-teen boy were lifting the other end.
That’s when I hit my breaking point.
I squatted on my end while wife & kid squatted on their end, and with the customary “one-two-three-lift” ritual so we could all begin lifting in unison, wife & kid stood up, lifting their end of the couch rather effectively, but as I attempted to lift my end of the couch, there was nothing.
I could not lift the couch at all.
There was no movement.
I was kind of confused.
My end wouldn’t lift.
Weird, I thought.
“Set it down”.
I must not have been ready to lift on my end.
Now, here we go for real this time – “one-two-three-lift”.
Wife & kid’s end again lifted with relative ease.
As I lifted my end, this time I was able to lift the couch off the ground, and for one split-second I even had the couch at waist-height, but then, BAM!
The couch literally fell out of my hands.
Crashing down on wifey’s wood floor.
I had fully hit my breaking point.
I could not lift one more thing.
I had to simply take a break.
Well, more than simply.
I was not capable.
I was ineffective.
Because even if I wanted to keep on moving the few remaining items, the few remaining yet heaviest of items that is, my body was incapable of lifting.
At that exact point in time, for the first time in two weeks, I quite literally had to stop for five minutes.
I slammed a luke-warm can of Coca-cola during my reluctant work break in order to get that one last sugary-caffeinated burst of energy for the last remaining items.
I regained enough energy and strength to get the couch inside the house and to move the final remaining items at an even slower and slower pace.
The thing is, just when you think that you have help coming, in this case in the form of two movers, that is, two strong, able-bodied young men, but they don’t show-up, well, all of our stuff just ain’t gonna move all by itself!
OK, “Hey Half Dollar, that’s all good, but you said the ‘cartel’s’ breaking point, not your own breaking point – who cares about you?”.
That is the point about breaking points – the cartel does not stop, ever, with their active monitoring and engagement of gold & silver price suppression.
But the cartel has a breaking point too, just like the human body, and while they may recover, just like I did, once they hit that breaking point, they are incapable of doing anything at all until they do recover.
So the big question is, are we at that breaking point right now?
I think we may be there – especially as gold regained $1300 on Friday, and has since even regained $1320 in the overnight/morning session.
Yes, the cartel will recover, but the question is, how far will prices rise before the cartel does recover?
That is my overall point – we know the physical market will eventually overwhelm these un-natural and totally artificial market forces, especially those market forces of gold & silver, but, from time to time, the cartel reaches a breaking point and they are incapable of doing anything until they recover.
Said differently, the cartel may be at that same point of physical exhaustion where I was, a point wherein no matter how hard the cartel tries, the cartel just does not have the energy or the strength to continue the price suppression, so gold & silver prices run higher as a consequence of that breaking point.
And again, I do think we are at that point right now, I’m just not sure how high prices will rise before the cartel recovers.
OK, “Hey Half Dollar, you idiot, everybody knows gold & silver prices are rising because we are seeing nothing more than a short squeeze, and it will most likely end sooner than later”.
Sure, we could be seeing short covering, and there could be a whole host of other reasons for why the gold price is running this morning, but that’s not my main point.
My main point is that every person and every thing have a breaking point – that point at which no matter the intention, there is simply no energy to perform.
If there is no energy, there is no work.
Gold sure does look like it’s breaking-out on the daily chart:
What we have on the chart is the very first of the all-important higher-lows and higher-highs.
Silver, being the most feared thing in the entire world by governments and central banks alike, does not have those same big, fat, beautiful candles:
The death cross is plainly visible, we don’t have a higher-low at the end of the chart, and we’ve still got work to do before we reclaim our major moving averages, but even as dire as things look for silver, I do think we’ve finally bottomed.
Which means the gold-to-silver ratio should start plunging:
Which is another way of saying the ratio is topping, so this may be about as extreme as we’re going to get in the ratio this cycle.
Platinum is doing battle at $800 to open the week:
Platinum may have finally carved-out a bottom here too.
Palladium is right around parity with gold:
Palladium is still some $250 off its highs.
Copper looks like it wants to turn the corner:
This may very well end-up as a pivotal week for the commodities, copper included.
Granted, the commodities and the precious metals could all drop one more time if crude oil double-bottoms:
I think crude oil prices, and, by extension, gas prices, are set to cause great pain on Flyover America’s wallet, though I’m just not sure if we take a trip down to the low-$40s first, however.
The Heartbeat of America Index is preparing for a death cross:
I think we could sell-off more before reaching “oversold” conditions too.
With everything going on in the markets, I’d be looking for a spike in the VIX soon, if not this very week:
I don’t think this is going to be a boring summer in these “markets”, and we can look to the VIX to get a sense of complacency and fear, where a spiking VIX is most generally caused by fear.
If the stock market indexes keep declining, I’d be looking for the same with interest rates:
I must say, however, that both the stock market and the yield on the 10-year note have been falling for some time, so we know a bounce is coming, at least theoretically.
I have been calling the false break-outs in the dollar all along:
We have been between 96 and 98 for an entire year now, and I think the run has ended.
I’m looking for the dollar to really start declining now as part of the Globalists’ plan.
What is the bottom line as we find ourselves on this beautiful June day?
No matter who you are, or what you are – there is a breaking point.
Nothing can be done until there’s been some sort of a recovery.
Seems the cartel’s reached its breaking point in gold & silver.
If so, it means gold and silver will run higher from here.
The big question is how high will the prices climb?
Before the cartel recovers from its breaking?
Because I don’t think this is the blow-up.
Of the physical gold & silver markets.
But then again, I don’t know much.
Nor do I have a direct inside line.
So I can only prepare ahead.
For what we all know now.
Comes to gold & silver.
One of these days.
It’s very soon.
– 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.