THE BOLDEST, MOST BRAZEN Lie Yet About The Economy Is A Direct Attack On Gold & SIlver

SD Midweek: If things weren’t bad enough, now we have the boldest, most brazen lie which seems like a direct attack on gold & silver. Here are the details…

Let’s start with a definition, which will be our assumption.

Let’s define inflation in the mainstream way, as in “inflation” means “rising prices”.

Therefore, I will assume inflation means rising prices for the purposes of this article.

OK, “Hey Half Dollar, everybody knows inflation don’t mean no stinkin’ rising prices but an increase in the money supply!”.

Thanks for squarin’ me away, and don’t forget to add, “rising prices are the symptom or consequence of inflation”.

I get it.

For what I’m about to share, however, we need to follow the “K.I.S.S.” principle here because, well, keeping it simple is something we like, and we like it a lot, because keeping it simple will matter, and it will matter in a very big and spectacular way.

So let’s just assume and define inflation as rising prices.

Moving on.

Just yesterday, October 9th, President Trump said he sees no signs of inflation:

Trump: We don’t have to go as fast on interest rates from CNBC.

Note a few specific things he said –

  • “The numbers that we’re producing”
  • “Especially when you don’t have the problem of inflation”
  • “And you don’t see that inflation coming back”

First, the number’s we’re “producing”.

Yeah, they’re production all-right, as in a total fabrication, but that’s not my point. My point is that the President is saying two things. First, he is looking at the numbers, and secondly, he likes what he sees.

Think about those things as I type on.

The big thing President Trump says is we do not have the problem of inflation, nor does the President see inflation coming back.

Friends, stackers and trolls, what President Trump just said is a bold-faced lie, and no, it’s not in a way that the Trump supporters and apologists are going to use as an excuse, like “that is just the President using reverse psychology to blame the Fed when inflation comes around.” Besides, you can’t believe that logic because by saying he wants the Fed to essentially hold off on rate hikes, the President is saying he wants us all paying more for the things we need to buy in our everyday lives.

Back on track.

The President just told a bold-faced lie to all of the American people.

Plain and simple.

OK, “Hey, how is it a bold-faced lie Half Dollar?”.

Good question.

The answer is that President Trump has been talking about inflation the entire time he has been President, and sometimes he talks about inflation being good, and sometimes he talks about inflation being bad. You see, he can have his cake and eat it too.

Now we can’t, but this ain’t no political rant.

I just want to bring the economic truth to light.

Now, we all know how he (rightly so) said all the economic statistics were phony as a Candidate, but I just want to show you what he has said since he has been President to show how this is just another bold-faced lie.

See for yourself:

if you’re in the market for buying a house, you will be paying more than ever.

That’s inflation.

Let’s keep going:

Oil prices are very high.

The cost of energy is the base cost of everything.

That’s inflation.

And of course, he doubled down on it:

This time he’s specifically talking about prices at the pump too.

Paying more for gasoline and diesel at the pump is something most Americans feel in their wallets in a bad way.

That’s inflation.

And then he tripled down on it:

“Higher and higher prices…must get prices down now!”

Yup.

Inflation.

To recap:

  • House prices have never been more expensive
  • Oil prices and gas prices are too high

Let’s keep going:

Wages are the prices paid for labor.

That’s inflation.

Here’s another one:

That’s the president bragging about 102 price increases for the same thing in one single Tweet.

Wow.

Amazing.

Now, hopefully you’re not part of the half of all Americans who can’t come up with 500 bucks in the face of an emergency.

More specifically, hopefully you are reaping the profits of the the best economy and much more, ever (the President’s words, not mine)?

If you are reaping mad profits from the totally booming economy, then let’s say you wanted to buy some stocks with those profits. If you have been buying stocks all along since Candidate Trump became President Trump, you have paid 102 price increases as of last week.

That’s inflation.

Let’s recap:

  • House prices have never been more expensive
  • Oil prices and gas prices are too high
  • Wages are rising
  • 102 record highs in the stock market

Let’s keep going:

Drug prices are rising.

That’s inflation.

One more:

The cost of running the government is getting “ridiculously high”.

That’s inflation.

So let’s recap one last time:

  • House prices have never been more expensive
  • Oil prices and gas prices are too high
  • Wages are rising
  • 102 record highs in the stock market
  • Drug prices are too high
  • The cost of government is too high

You see, no matter how you slice it, President Trump has been not just been seeing inflation, but talking about inflation all along.

But yesterday he said there are no signs of inflation?

There is no other way to say it other than that is a bold-faced lie.

This is why Peak Trump is such a strong theory. Like I wrote earlier, the Trump supporters and apologists will just find a way to justify it, but there really is no way.

OK, “Hey Half Dollar, you said it was the boldest, most brazen lie in a direct attack on gold and silver, so how do you explain that?”.

Good question.

I will answer your question with a question: What is the ultimate hedge against inflation?

It is actually two things: Gold & silver.

Therefore, by saying that we don’t see any inflation, and by saying there are no signs of inflation coming back, that, by extension, is a way of saying “don’t buy gold (or silver) because there is no such thing as inflation at all, nor will there be, so there would be no need to hedge against inflation”.

But here’s what really irks me –

President Trump is a gold bug.

We know this:

 

And while we have this booming, most bestest economy ever, what has the President done?

He has thrown a party, but left the gold bugs and silver bugs out in the cold rain, standing on the outside and looking in.

And that’s if you believe the “best economy, ever” stuff, which I don’t.

OK, “Hey Half Dollar, it’s a bit of a stretch to say President Trump just attacked gold & silver!”.

Is it?

Is President Trump a “good guy”?

I don’t know.

I’m asking.

I just have to call these lies out when I see them and tell it like it is because there is such a great divide in this torn country right now, and the “left” is too stupid to see these things because they are too focused on the character attacks and MSM propagandist slant, and the “right” just blindly accepts everything President Trump says, and the “right” generally thinks the President can do no wrong. And I say “blindly accept everything the president says” because President Trump hasn’t really done anything, unless of course you count making government bigger and more burdensome, things which he promised as a Candidate to do the exact opposite of.

Because If I don’t call it out and tell it like it is, who will?

You see, in my opinion, when I was living in Durham, NC when the “Duke Lacrosse Rape Scandal” went on, I knew Obama would get elected by what I experienced there, so in my experience, and based on what I say, I feel that half of the country got duped and sold down the river by Obama.

Now, sadly, half of the country, the other half, in my opinion, is being duped and sold down the river by President Trump.

So if the entire country is finally, totally, and completely sold down the river, what’s left and what comes next?

Again, I don’t know.

I’m asking.

I’m not smart enough to figure that out, and my intellect is spent on trying to make sense of what is going on in the economy and markets anyway.

Which is why I can hear something like “the numbers we’re producing”, which are not only record setting, but also showing no signs of inflation, and then hear it for what it is, which is a bold-faced lie

Here’s the government’s latest own “produced” numbers on inflation:

No signs?

Since Candidate Trump became President Trump, the inflation trend is clear and about as in-your-face as it can get.

Moving on.

Silver has been holding the line above $14:

My comment on silver will be to re-affirm what I have been saying all along: The price of oil is putting a floor under the price of silver.

I even Tweeted this out as a “thought of the day”:

I’ll say it differently: Unless the price of crude oil is going to drop into the mid-$50s, I really think the downside in the price of silver is limited here, and that’s not even taking premium creep into account.

We can officially call gold in its own Sideways Channel of Pure Agony:

I’ll draw the lines soon, probably for the Friday Wrap. For now, I’m thinking $1185 to $1205? Seems about right on the chart.

Investors, stackers and those looking to make a purchase may find some help in the gold to silver ratio:

It still takes over 82 ounces of silver to buy just one single ounce of gold, and that is an extreme number in the ratio. Historically speaking it takes way less silver than that to buy gold, and at a point the number will revert to the mean, so going heavy silver and lighter gold is a long-term arbitrage play that can turn into free ounces of gold down the line.

Palladium still looks the best of all four precious metals:

We’re about to see a new higher-high here after seeing a higher-low put in. A series of higher-lows and higher-highs is a bull trend.

Platinum, on the other hand, looks like it is forming its own Sideways Channel of Pure Agony:

That said, I don’t think neither gold nor platinum’s Sideways Channel of Pure Agony will end up like silver with the bottom falling out, because I think we are pretty much at the bottom now.

My reason is fundamental, and it has to do more with gold than with platinum, but I’ll write it here for those who may be unaware: The price of gold is pricing in total economic, market, political and geo-political perfection, and if you take the President’s words from yesterday at face value without understanding he said a bold-faced lie, then gold is also pricing-in the fact that there is zero inflation.

When something happens in the economy, market, political or geo-political scene which brings anyone of those dynamics down from pure perfection, gold will rally in price.

And when we have clearly peaked in my Peak Trump theory, that’s when gold & silver really start taking off in price.

Copper just doesn’t know what it wants to do right now:

I still think copper wants to test the 50-day moving average as support, but we may need to see the 50-day moving up before that happens.

We’ll see.

Crude oil has pulled back, but now looks like it wants to go higher:

When will President Trump quadruple down on the price of oil?

$77.50?

$80?

I don’t know.

I’m asking.

I apologize in advance for being of so little intellect.

The Heartbeat of America Index is still struggling:

There’s three tests of the support of the 200-day moving average. If I were a stock market bull, I’d be getting pretty nervous right about now.

Even if there has been a slight reprieve.

A slight reprieve in the Farce:

That said, I don’t think the volatility spike is behind us. I think the worst is yet to come.

We also see a reprieve in interest rates:

Come Friday, It will be very interesting to see where the yield on the 10-Year Note closes out the week.

Finally, it looks like the dollar wants to roll here:

I thought the dollar had the momentum to carry it back up to 97, and it still might, but I think the upside is limited in the dollar.

Which is also another way of saying the downside is limited in gold & silver.

Which is another way of saying to look for a surprise to the upside in gold & silver.

Which I still think is coming, if not imminent.

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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