Main Street’s No Win Situation (Or, Gold & Silver To Rally And Dollar To Fall As Worsening Riots And Looting Are Guaranteed)

Whether the people get another helicopter drop of “Economic Impact Payments” or not, there is no way to stop the riots and the looting…

There is no way to stop the riots and the looting.

For now.

It seems like the riots and the looting will only get worse, and who is funding who doesn’t even really matter.

After all, the funding is one thing, but without the people, there are no riots and there is no looting.

The riots/looting will continue to worsen on Main Street because of the next government bail-out, the next round of the so-called Economic Impact Payments, the $3,400 direct deposits for a family of four, but if mailed-out in hard-copy form, the free government checks with President Trump’s signature on them.

As a friendly reminder, Stevie Boy said President Trump wanted them to go out in August, so President Trump has already failed in that regard:

In fact, corrupt banker turned b-rate hollywood special effects producer turned US Treasury Secretary Steve Mnuchin’s direct words were, “the President’s preference is to make sure we send out direct payments quickly, so that in August, people get more money”.

The next Federal government bail-out guarantees there will be continued riots and looting, and it’s a lose-lose situation for Main Street because the riots and looting are coming if the people get another round of free government money or not.

It’s simple, really.

You see, individual companies that are too large and need to make very deep cuts, cuts in number of employees, cuts in physical assets, or cuts in whatever, such as American Airlines, feel entitled, and they also have the nerve to think that they are too big to fail, so they are lining-up and demanding another round of free government bail-outs, and not only that, but they’ve pretty much set the date of “by October first”!

That date is, after all, when the new fiscal year for the US government begins, so what American Airlines is really saying to the US Government is, “give us a dang bail-out in September, and on October first, let’s immediately begin cranking out the details for Bail-Out 3.0”.

And as of Thursday, August 27, 2020, the US Treasury had a cash balance of over $1.6 trillion on deposit:

The new fiscal year for the US Government begins on October first, and there is a saying in government – “use it or lose it” – which means that any government agency with a cash balance will be going on a spending spree in the last month of the fiscal year if there is any money leftover at said government agency, or, in the case of the Military Industrial Complex, well, that’s simply a blank check anyway, because we’re always in some National Security Incident, or in a State of Emergency, or in a State of War, or in a State of Whatever, so the spending spree is simply turbo-charged in September.

So I think there will in fact be CARES 4.0 in September, and in the most likely of scenarios, that round of stimulus involves the Federal Government spending the $1.6 trillion cash balance on hand, and in October, the “Democrats” can begin looking for more spending, which the “Republicans” will happily go along with, albeit with perhaps a facade or two of do-goody, moral high-ground spending, if there even is such a thing.

It’s all funny money, and our elected “leaders” are addicted.

And can’t stop.

But I digress.

Back on track: It’s a losing situation on Main Street on the one hand if American Airlines gets another bail-out but the People do not get another round of Economic Impact Payments, and this losing situation is particularly nasty because there will also be much resentment and straight-up hate in general towards corporate America and the government.

Here’s the thing: If there is not another helicopter drop of money for the people, well, broke Americans have already justified the rioting and the looting as social justice, “reparations”, and more, so with regards to the looting, when it is no longer a matter of Air Jordans but of Digorno’s Pizza, in the minds of the looters, the looting is even more justified because, hey, it’s food!

And the looting goes hand-in-hand with the rioting because, well, why the heck not?

It’s much easier to loot Store A two blocks over when Store B is on fire and police are facing off with “Protesters”.

In other words, the police are overwhelmed, and they can only be in so many places at once, so depending on the size of the rioting and the scope of the looting, some areas of a city can barely be protected, if we could even call it protection, whereas it’s more like retarding the spread of the destruction than protecting anything at all, and in other areas of a city, it will be open season for the rioters and the looters, and as things get more randomly violent with all sides now increasingly arming themselves and showing a willingness to engage, um, yeah.

It’s going to get worse.

Much worse.

It is also a losing situation on Main Street if the people do get another round of Economic Impact Payments.

Paying people to “do nothing”, as the analysts, experts, and pundits like to say, is not really paying people to do nothing, but rather, “enabling people to riot and loot”.

See how that works?

Said differently, the government, by giving the people some more bread crumbs, is giving the people just enough incentive to not have to look for honest work and be productive in life whilst making contributions to society.

To summarize, it’s a lose-lose situation for Main Street if the people get another round of Economic Impact Payments or not, which means more rioting and more looting, which means more loss of life, limb and property.

The sad part is that we’ve done it to ourselves because we’ve allowed our elected “leaders” to take us off of the US Constitution’s requirement for a bi-metallic Gold & Silver standard, as in, “Honest Money”, or “Sound Money”, or “God’s Money”, or “Whatever-You-Want-To-Call-It Money” and it’s a dang shame too, because Trump was supposed to be an American Patriot, and I can’t think of anything more Patriotic than doing the one single thing that would benefit every single American, which, coincidentally, would be the very best thing Trump could do for America: Bring back honesty in our money.

Only honest money can Make America Great Again, and only honest money can Drain The Swamp, and it’s too bad we’ll destroy ourselves first before going back to honest money, and, quite possibly, an unrecognizable America, if it’s still even called that.

Call the Gold-to-Silver Ratio a 69-handle:

Bullish.

Silver’s looking good to start the week:

I think the rally begins this week, and I think it will be a strong break-out.

This could be the week gold closes above $2,100:

If silver breaks-out, however, I would look for silver to perform better than gold this week, even though I’m still expecting gold to perform.

If the break-outs are coming this week, platinum should kiss goodbye to being in the red, year-to-date:

Platinum’s chart looks uber-bullish to me right now, including platinum’s technicals, such as the imminent MACD bullish crossover, if the technicals matter.

Palladium looks ready for its break-out:

What can I say, for the charts are straight-up bullish?

Even Manipulation Denier Peter Brandt would have to admit that.

Note to Peter Brandt and other old-market “wizards”: So-called “professionals” in all things retire, and many of you really look bad on the court, so to say.

Question for old-school Gold Bugs, Silver Bugs, and advocates, who I’ll leave un-named: Why the hate?

People hate the fact that copper’s breaking-out:

What’s really happening, however, is that people are coming to terms with the fact that they’ve been lied to their whole lives, and in the case of copper, that’s with regards to inflation, so it’s more of a self-hate that’s taken out on the red metal.

Crude oil is ready to break-out or break-down:

I just don’t see the global crude oil industry in such a precise state of perfection that there can be so little movement in price and so much stability overall.

I still say we’re heading lower.

We’ll see.

We’ll also see if this is a break-out fake-out on yield:

I think it is a break-out fake-out because, well, the Fed is unaccountable to the American People and not audited, and the Fed can simply be the buyer of first resort at the click of a mouse.

And then there’s the Exchange Stabilization Fund which can also manipulate any market, at any time, and for any reason.

Question: What person taking a vacation or travelling for business would honestly want to come to America right now?

Follow-up question: What does that mean for the US Dollar?

I think it means a turbo-charger kicking-in as the move out of the dollar picks up speed:

The bottom could really fall out of the dollar index this week.

OK, “Hey Half Dollar, you’re clueless man, for the dollar is in demand, and there is so much demand for the dollar, by emerging markets, by fat cats looking to flee their own currencies, and by corporations, that the dollar is going to strengthen from here!”.

Uh, ok.

Have fun playing that game of hot potato because history tells us it is always hyperinflation.

Hopefully we get some fear back into the “markets” this week:

I mean, eating the same thing over and over and over again, every single day, gets a little boring, doesn’t it?

Everybody is expecting market anxiety leading-up to the election, first, as if the markets weren’t rigged, and secondly, as they begin to price in election “uncertainty”, which is exactly why it would not surprise me if they also haphazardly break-out the Dow 30,000 hats:

The S&P 500 confirmed the Nasdaq, and if the Dow confirms them both, is the bear market dead?

The bottom line as we find ourselves here this beautiful Monday, the last day of August?

The riots and the looting on Main Street are only going to get worse from here.

In fact, it’s a lose-lose proposition for Main Street because of the bail-out.

That is to say, if there is a bail-out of the people or not, it gets worse.

Because the people will riot and loot if they don’t get paid again.

Looters justified the PlayStations, so why not the Pop-Tarts?

This will be some massive looting on a whole new level.

Think “flash mob” looting of entire grocery stores.

Some think the National Guard will take over.

Question is, before the looting, or after?

If the crack-up boom has begun.

The looting turbo-charges it.

There is not much time.

So do finish prepping.

If money comes?

Then spend it?

So very fast?

Oh so very.

Very fast.

Zoom.

Zip.

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, a former 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.

***