If We Build It, Gold & Silver Will…Wait A Minute…A Massive Rally Will Come With Or Without The Wall!

SD Friday Wrap: The border wall is back in the news, and gold & silver really can’t lose. Here’s why…

Once again I find myself sitting here thinking about that dang border wall.

It sure does get people fired-up, doesn’t it?

By now, you have likely read my theory that the wall is designed to keep Americans in. Look, it’s not just me saying it. There are at least two other well known and actually respected people saying it too.

But for some reason, the wall has been one of the main focal points of the week.

Why do so many people fall for the “we must build the wall” rhetoric?

I wish I was smart enough to know.

I’m not.

And I don’t.

My hunch is that people naturally want to blame something other than self for life’s “problems”, so the whole “border-jumping illegals took your jobs, they commit crimes, and they soak up all the welfare so we must build the wall” excuse is just as good as any.

It’s easy to say, it’s easy to point the finger, and the very fact that they are here in the first place makes them criminals anyway, right?

It’s almost brilliant, really, because not only is there someone to blame (them dang illegals), but it also gets us to don our knee-pads and beg the government to step in and do something.

It’s genius!

While reflecting on the whole “build the wall” thing, something else occurred to me. What occurred to me is that the wall is a great opportunity for the US government to solidify its monopoly on all the dirty deeds that it does.

OK, “Hey Half Dollar, I’m confused. What dirty deeds does the US government do?”.

Good question.

In a nutshell, just a couple of the things the US government does that involves the Southern border includes the trafficking of people for sex slavery and Lord knows what else, and the smuggling of drugs to fund and accomplish Lord knows what.

OK, “Hey Half Dollar, those are some pretty bold statements. Can you prove those are facts?”.

Well, no.

Of course I can’t.

I’m not trafficking people or smuggling drugs for the US government.

That said, after seeing first hand that “war is racket”, after having lived on the Southern border (El Paso, TX) for many years, after having lived and traveled extensively in Mexico, and after having been around the block a few times, I can certainly connect the dots.

So it is just a theory of mine.

It would take too long to get into all of the reasons why I have come to think this, and quite frankly, that is not the point here. A point I will make, however, is that people who say, “bad people are illegally coming into the country – gang members, ISIS, people with diseases, people who just want to collect benefits, criminals, etc” are missing the bigger picture. The bigger picture, I would argue, is that the US government directly brings in more of those types of people than those people who, either on their own or aided by a group of coyotes, somehow managed to get in because they made the crossing on foot through some desolate part of the desert.

Oh yeah, and those people also managed to escape all of the other man power and technology in use that is meant to keep them out.

Border jumping is not as easy as it sounds.

Still, the government wants us to believe that there are droves of criminal illegals just dashing through the Southern border.

Non-stop.

24/7.

Sure, there is some of that going on, but I would argue it is the minority of people illegally coming into the United States.

The vast majority of illegals coming in is the direct result of the US government (Deep State/Traitors) secretly bringing people and Lord knows what else in.

Seriously.

I’m sure there are people who can come forward to prove my theory right, but that would be a death wish.

Besides, the money is likely very good, and people are generally greedy, so I’d wager that nearly everybody involved will take their secrets to the grave.

Those who don’t, well, they just end up in a shallow grave.

Back to my original point: The construction of the wall is to solidify the US government’s monopoly power over all of the dirty deeds the government does at the Southern border.

How is that?

By sealing off the border, the US government essentially changes “mom-n-pop” clandestine activity from something that is challenging, to something that is pretty darn near impossible. Granted, I’m sure there are those who are corrupt enough in government, either elected or not, who would still continue to work with mom-n-pop outfits, but those bribe takers and crime facilitators risk getting flushed-out and made an example of.

Furthermore, the bribery payments would have to increase exponentially.

Therefore, when constructing the wall, the US government’s secret activities – gun running, drug smuggling, human trafficking, and things like that, in short time become massive cash flow mechanisms that are exclusive to the Deep State/Traitors.

In other words, free (black) market capitalists need not apply.

If you don’t think my theory is valid, then please understand this: The government, past, present, forever and always, can only ever do two things. The government can either get in the way, or the government can get out of the way.

That’s it.

OK, “Hey Half Dollar, will the government be getting in the way or getting out of the way by constructing the border wall?”.

Good question.

I would argue the government will be getting in the way of all that (black) market stuff as the government will be creating a market that is free from competition.

I’ve likely mumbled and jumbled my way through everything I’ve said so far, and that is something I’m very good at, but my main point is that I must revise my border wall theory.

I must revise my overall theory from this: The wall is designed to keep people in, not to keep people out.

To this: The wall is designed to keep people in, not to keep people out, and the wall is also a way to create a government monopoly on illegal, clandestine, and black market operations.

Maybe I’ll work on a more concise one-sentence statement, but I think you get my point.

Moving on.

Death hath come to the last of the major indices:

Back on November 16th, I said we would not be gettingĀ  a “Santa Rally” in the stock market.

Looks like ‘Ol Half Dollar nailed it again.

Always early but rarely wrong.

On Monday I said I was looking for the VIX to perk-up this week:

That is exactly what we saw.

I’m still also looking for the VIX to surge again a la February “Volpocalypse”.

Will it surge before year end?

We’ll see.

Check out the yield on the 10-Year Note:

We’re now under 2.8% on the benchmark US Treasury.

People sure are making that “flight to safety”!

Here’s a question: If the US government can’t handle higher interest rates, which it can’t, then how about, oh, I dunno, say crashing the stock market in order to create demand for US Treasuries that otherwise would not be there with the goal of creating the illusion of “naturally” falling interest rates?

Hmmm.

Makes sense to me.

I mean, everybody knows Stevie’s Exchange Stabilization Fund can intervene in any market it wants, at any time, for any reason, and without making its activities known to more than just the few other people who are in on it (people who will take those secrets to their graves as well).

If you don’t know what I’m talking about when I mention the ESF, then please take a few minutes to read some of the pages about the ESF at the Treasury Department’s website.

On that same token, the US dollar has had a very interesting end to the week:

The dollar fell through its 50-day moving average yesterday, but apparently, for whatever reason, the manipulators are not ready for that to take place just yet.

As such, we’re within spitting distance of 97 yet again, late in the afternoon on Friday.

Copper has been doing so much dancing around its 50-day moving average that copper has fallen from a dizzy spell:

While I still think we could retest the lows from mid-August, I do think the next major move in copper is a move up.

Why?

If we do have this “booming” economy, we’re going to need a lot of copper, but if we don’t have a booming economy, then the next round of “coming to the rescue” will be done via the government through infrastructure spending, and as such, we’re going to need a lot of copper.

Either way, we need a lot of copper.

We’ll see.

Crude oil is still falling:

With a fresh 52-week low put in just today, crude oil is now down over 41.3% from its peak.

Crude oil is one of the examples of that rare case of being wrong on my calls. Yeah, I was calling for $80 to close out the year.

I was wrong.

That said, with the speed of the collapse in the price of crude oil (October 3rd was the top), I’d be very nervous about paper assets right about now. Crude oil looks to be signaling the mother of all stock market crashes is close.

Platinum is tighter than a, well, nevermind, butĀ that range is pretty freakin’ tight:

I do think we’re bottoming here.

Finally.

Palladium continues to look strong:

While we did put in a new high on Wednesday, I do think we’re in some healthy sideways consolidation.

See if you can see what the cartel is afraid of on the gold chart:

In the immediate near-term, the cartel is afraid of gold breaking-out above its 200-day moving average. Gold did that just yesterday. In the short-term, the cartel (and everybody else for that matter) is about to see why it’s called a “golden cross”.

In the long-run?

That’s a rhetorical question.

The gold to silver ratio looks more toppy with each passing day:

For now, however, the ratio is still extreme and affording anybody with common sense the opportunity to gain free ounces down the line.

Silver is clearly making progress:

Silver really looks like it wants to break-out here and run.

Before the end of the year?

I’m not so sure.

I’m still looking for the upside surprise, however, just like I called, we got the most gold & silver unfriendly outcome from Wednesday’s FOMC dog-n-pony show. That is to say, the Fed hiked interest rates and appeared dovish (or at least attempted to).

To recap, what would that scenario mean for gold & silver?

It means we most likely will see more sideways action because the Fed neither went full hawk nor full dove. There was only one other scenario in which the Fed could have gone neither full hawk nor full dove, and that would have been to pause on rates but appear hawkish. I said the Fed would not be able to pull that one off, so I was not looking for that scenario. The takeaway is that by not going full hawk (hike + hawkish tone) nor going full dove (pause + dovish tone), the Fed can use its spin doctors, propagandists, and apologists, both the internal ones (the Fed heads themselves) and the external ones (the mainstream media), to keep gold in check using several tactics, such as (in no particular order):

  • The barbarous relic play, because, you know, nobody is seeking safety in gold
  • The gold bashing play, because, you know, gold is a barbarous relic
  • The “flight to safety” play in the bond market, because, you know, bond are safe havens

Those are just a few of the reasons the Fed’s actions this week are the least gold and silver friendly.

It is subtle, but you have to understand that in order for anything to work today’s economy or markets, the way things are currently set-up, which is an unconstitutional debt-based fiat currency system, priority number one is to suppress the prices of gold & silver.

Gold & silver price suppression is the very foundation of our fraudulent, immoral and corrupt economy, our markets, and our political system.

Without the suppression, the whole fraud comes crashing down.

But here’s the thing: The cartel just can’t keep gold & silver prices suppressed forever.

Because gold & silver are real things and they’re scarce.

There will come a time when the cartel can’t, or won’t, give gold or silver away at these prices.

That’s when the cartel comes to terms with reality.

When they realize gold & silver always win.

And therefore we can’t lose.

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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