SD Friday Wrap: In reality, the US economy is collapsing, and that reality puts the gold & silver price-capping cartel in one serious bind…
The US economy is collapsing.
But don’t take ‘Ol Half Dollar’s word for it, see for yourself from a Yahoo Finance Anchor/Editor:
This holiday season,
everybody’s just spending 100%,
of their “entire budget”
in online shopping.
Nothing to see here.
Carry on… https://t.co/kKervd0gyI
— SilverDoctors.com (@SilverDoctors) November 29, 2019
Is it just me, or do those empty parking lots on Black Friday remind anybody else of the opening scenes in some of those post-zombie apocalypse movies?
Of course, Yahoo Finance is trying to spin it as something that is neutral at worst, and one quick scan of CNBC and Market Watch show similar coverage.
Bloomberg, on the other hand, acknowledges the slowdown:
Of course, now that Michael Bloomberg has entered in the Presidential Race, I’m wondering if the MSM is about to make the flip from “booming economy” to “economic collapse”?
Do you even conflict of interest, bro?
If I’m right about maximum pain coming to the United States in the form of economic misery and financial ruin, timed to the 2020 election, then we’re not very far off from the Deep State Globalists flipping the switch at all.
Here’s something to think about.
Actually, make that over 28,000 things to think about:
The US stock market does not reflect economic reality, which means that one of two things needs to happen.
Either the US stock market catches up to economic reality, which means a stock market crash, or, the economy grows at what people like to call “escape velocity”, which means the economy finally experiences robust growth without the need for emergency stimulus.
I wonder which thing it will be?
OK, “Hey Half Dollar, it’s not black or white like that, because it can be a little bit of the economy doing well and the stock market pulling back a little bit to reflect this reality”.
Sure, but if we are actually entering an economic recession, then at the very minimum, economic activity will be in contraction.
That said, if the Fed’s got the market’s back, it will simply buy futures, squash fear and naked short gold & silver contracts to keep the stock market propped-up.
However, and this is really important, so let me put it in bold and with italics at that: The Fed must understand, even though they will not say it, that with each artificially-induced tick higher in the stock market, the Fed is one second closer to being dragged out of their posh offices and down through the streets.
In other words, I believe the Fed understands quite well that if they quite literally want to save their own butts, they cannot have the stock market’s back.
I do not say that lightly, either.
When the chaos comes to the United States, I’m sure Americans will not be as kind in the streets as the Venezuelans, or the French, or Bolivians, or Peruvians, or Iranians, Or Iraqis, or __________________ (FILL IN THE BLANK WITH ANY NUMBER OF COUNTRIES IN THE MIDDLE OF AN ECONOMIC COLLAPSE RIGHT NOW) are.
I’ve been wondering when the MSM was going to actually flip the switch to change the narrative, and the switch appears to now be flipped.
Case in point, Bloomberg on Black Friday of 2018 (from archive.org):
A Blow out!
Stormin’ the stores!
Quite the change in tone from last year to this year, is it not?
Here’s why it matters: If the MSM propagandists are indeed changing the narrative, this is going to give the cartel problems because gold & silver will begin to catch those “flight to safety”, “wealth preservation”, and “hedge against uncertainty” bids.
The VIX had the audacity to move back above 12.5:
Is the bottom in, and if the bottom is in, would that mean the top is in for the stock market?
Yield on the 10-Year Note looks like it could be one massive bear wedge:
Because does anybody really think rates can drift back up to 3.0%?
I think the trend is lower until the bond market blows-up because the debt is starting to go parabolic.
Other than a couple of intra-day moves lower, the dollar index has stayed above its 50-day moving average all week:
I do not see this as bullish, however, because I think part of bringing on maximum pain will be to weaken the US dollar.
Crude oil puked its guts out today:
Is this the start of the move into the $40s that so many analysts have been expecting, or is it simply getting price back towards the middle of its allowable range ($52.50 to $57.50)?
Copper shared crude oil’s pain today:
I do think the bottom is in, however, and I have thought that for some time.
The cartel has actually painted a bullish engulfing candle on gold’s daily chart:
I just don’t think the bottom is in yet, and part of that thinking stems from the lower trading volumes over the past few days coupled with the fact that we didn’t really reach extremely oversold conditions.
Looking at silver, however, we see “bullish engulfing” candles have much less meaning in the metals than in other “markets”:
Remember: The cartel hates three up-days in a row, and the cartel hates follow-through from break-outs.
OK, “Hey Half Dollar, do you think the bottom is in for silver?”.
It depends on whether or not the MSM propagandists have flipped the switch for the Deep State Globalists.
If they did flip the switch, the cartel likely is at the breaking point with the physical markets.
Platinum has been rejected at is 50-day moving average:
Just looking at the charts, that is, gold, silver, and platinum’s charts, we clearly the cartel is now treating platinum more like gold & silver and less like palladium, and as such, platinum’s chart still is pretty bearish for the short-term.
Palladium is back above $1,800.
What’s the bottom line as we find ourselves here this beautiful Black Friday of 2019?
Black Friday this year looks to be more than just a total dud for most retailers.
And Bloomberg, the MSM outlet, looks like it has flipped the switch.
If that is the case, then the cartel is going to have problems.
But then again, if the cartel was already losing control?
Then it’s in fact the perfect time to flip the switch.
Just as everybody is nice and distracted.
Of course, why stop at the switch?
Which makes me feel uneasy.
Because things happen.
– 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.