SD Friday Wrap: It is all too clear that President Trump & the Fed are losing their control over the economy & the markets…
It is all too obvious now, and it is crystal clear for anybody who is willing to just take a look.
The Fed & Trump are losing control of the economy & markets.
The movie sure is getting good!
Is it not?
With Powell following the script by maintaining radio silence this week, we can only look to President Trump for our specific example.
On Monday, I said, and I’m phrasing, “get ready for President Trump to attack the Fed real good this week”.
I paraphrased myself in quotes.
Stay on point.
On Monday, I said, “get ready for Trump to bully the Fed”.
I immediately got the hate email, but Trump did exactly as I said.
Let’s check out this example from Wednesday:
If that is not an attack on Powell and the Fed, I’m really not sure what is?
I mean, he even went so far as to set-up the word “naivete” with not just one but both special characters!
But I digress.
There is a point here: Trump attacking the Fed and Powell like this is super bullish for gold & silver because the President is flat-out calling for negative interest rates and for extending the duration of bonds, and as such, this “good for gold” Tweet needed to be offset by something like, oh, say, peace, love and happiness in the trade war with China, whereas before, President Trump could attack Powell & the Fed in the form of demanding easy money policies and escalate the trade war with China, but now, it’s just one or the other.
Was there progress in the trade war with China this week?
Was there some sort of cease fire or truce?
Why yes, there was indeed!
….on October 1st, we have agreed, as a gesture of good will, to move the increased Tariffs on 250 Billion Dollars worth of goods (25% to 30%), from October 1st to October 15th.
— Donald J. Trump (@realDonaldTrump) September 11, 2019
President Trump, who likes to go hard on the bad hombres, has acted on “good will” this week when only a short time ago our President called China’s Xi either our biggest enemy, or our second biggest enemy.
Yet now Trump’s full of “good will”?
Dang right he is, because both he and Powell have too many plates spinning in the air all at the same time, and they’re starting to wobble:
Sooner than later, not just one but all of those plates will come crashing down.
What happens after the plates come crashing down?
In my opinion, gold & silver really start moving higher in price.
For now, however, gold & silver have been subjected to a brutal cartel beating.
How has this particular tour of the backside of the woodshed been conducted?
By means of the Exchange Stabilization Fund ramp job of yield on the 10-Year Note.
In early September, gold was on the verge of breaking-out above $1600, and silver was threatening $20:
And then came the hammer.
But since gold & silver were so strong, it needed a whole bunch of hammer, which is seen in the massive move in yield beginning on September the 5th:
Yield is up 30% in just a matter of days!
Silver was also recently up over 30%, but in a matter of months, in a matter of days, so if the apologists, enablers and chart huggers out there think silver had a “parabolic”, “extreme”, or whatever you want to call it move to $19.50, well, silver’s 30% move took three full months whereas the move in yield hasn’t even taken two weeks.
Of course, I’m just some tin-foil hat wearin’ wannabe analyst, so what do I know?
That is what they do say.
So after last week’s initial plunge, gold & silver held their own this week:
That is, until today.
Side Note: Does anybody else notice this whole “hammer time” on Fridays is becoming, like, a thing?
The cartel finally got the effect they wanted:
This is a sweet opportunity for stackers and other smart investors, and we thank them for that.
If they’re looking to “wash rinse and repeat”, well, we should have a good “flushing of the specs” today.
Silver’s paint-by-numbers is revealing a pretty bearish picture for the near-term:
“Price discovery” is what they call it.
I call it a flash sale on real, physical metal!
Speaking of which, the gold-to-silver ratio arbitrage is still a once-in-a-cycle opportunity:
Which is why I have been so heavily biased towards silver lately.
Gold looks to be losing whole number support at $1500:
I’ll be the first to say the cartel will attempt to paint a “head-n-shoulders” pattern on gold’s daily chart.
How do you know gold & silver’s moves aren’t natural?
Well, in part, we can look at palladium hitting fresh new record highs this week:
Palladium is showing us which direction these metals naturally want to move.
Just to make myself clear, however: I do think that all markets are manipulated, all the time, but for now, it’s just that some markets are more manipulated than others.
We’ll know soon enough if platinum’s giving us a “dead-cat bounce”:
If so, we seriously need to consider the possibility of revisiting the upper $800s, somewhere close to platinum’s 50-day moving average.
Crude oil is ready for some shock-and-awe:
I still think that shock and awe will be to the upside.
Looks like I did in fact call the bottom in copper:
In addition to my call for nations to begin stockpiling the red metal, with such a big move in a relatively short amount of time, I’d say the cartel is starting to wonder how its going to source silver?
Remember, most of the silver that is mined is a bi-product of base metal mining such as the mining of copper.
For the cartel, however, in my opinion, it is too little too late.
The stock market has yet to reach all-time record highs:
Most likely they’re waiting until next week for the ramp job, you know, just to rub it in our faces as the Fed declares themselves Monetary Masters of the Universe next Wednesday at 2:00 p.m. EST.
They might need to bring the VIX even lower to maintain the illusion of the stock market surge:
Do you even triple-bottom bro?
Here’s yield on the 10-Year Note again, just to let what they’re doing sink in:
That is a crazy big move in yield in just a couple of weeks.
During all of this move, the US dollar has still basically gone nowhere:
It will head lower, however, when the Deep State Globalists want to bring on max pain to the US.
What’s the bottom line as we find ourselves here this beautiful Friday in mid-September?
The moves in gold & silver are not natural moves, they’re cartel induced moves.
I thought we’d see the reversal this week, but instead came the hammer.
All the cartel is doing is hammering the nails in their own coffin.
Nobody will ever even bother trying to pry that one open.
It’s funny that they think they’re killing our morale.
At this point, how can we not laugh at it?
They are really committing suicide.
Everything is going up in price.
Everything is costing more.
Except for gold & silver.
Here’s a reminder.
‘Price vs value’.
– 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.