If they’re sticking with the transitory inflation narrative, then why would the commodities, gold and silver…
(by Half Dollar) Unfortunately, the Fed’s most recent two-day FOMC meeting concludes this Wednesday afternoon at 2:00p.m. EST, followed by the circus sideshow of a “press” “conference” at 2:30.
I say unfortunately because this is one of those weeks in which a Fed Intolerant person such as myself generally gets sick and throws-up a little bit at the sound of anything Fed mixed with MSM & Wannabe MSM Propagandists.
Anyway, welcome to our new found reality, where the transitory inflation really sucks if you’re building stuff and paying for the building materials:
We should probably look into adding “price stability” or something as a mandate for the Fed.
Of course, I’m sure the Fed’s Apologists, Armchair Quarterbacks, Butt Kissers, Enablers, Experts, Propagandists, Pundits, Shills, Sympathizers and Worse will point to the crash in the price of lumber and say, “see, the inflation is temporary!”.
And the irony will be totally lost on the Brainwashed Masses, the Sheeple and the Walmart Zombies just the same as the Fed and Jerome Powell have said on multiple occasions that it will take substantial, sustained high rates of inflation for years for the Fed to consider the inflation not transitory, yet the price of lumber can crash over one month and everybody can say, “see, told you so!”.
It would be funny if it wasn’t so pathetic.
But I digress, and since I’m digressing, we really need to start thinking about the Fed as a Domestic Terrorist Organization, and not just because the Fed kills Elderly American Savers via the Fed’s suppression of interest rates and deceitful inflation measures, and not just because the Fed enslaves America’s Voiceless Youth via the massive accumulation and enabling of Federal government debt, but because in what could only be the exact equivalent of allowing serial child rapists teaching sex education in US public elementary schools, the Fed is infecting the minds of America’s children in America’s elementary schools, and that’s pure evil.
No wonder there are so many Bitcoin Fanboys out there, and no wonder 99.99% of the people on the entire planet don’t understand money.
Now, the inflation is great if you bought a brand new giddy-up pick-up truck in the Summer of 2020, have barely put 1,500 miles on it, and keep the truck in a garage, because that has been one of those rare instances when a person drives off the lot with a brand new vehicle that goes up in price, not down.
I’m not kidding about that, and of course, it was such a no-brainer, that even an idiot like me saw it coming:
Strange times, indeed.
And I don’t write about my truck to brag, but to make a point: The various Fed Heads will say this is all transitory in nature due to the microchip shortage caused by the supply chain disruptions.
Of course, the microchip shortage has absolutely zero to do with companies engaging in share buybacks instead of investing in research & development or plant & equipment:
Why in the heck would a company look to bring more high-demand products to market when the company can simply boost its stock price to create “value” for its shareholders?
It’s not rocket science.
It’s called “bastardized financialization”, and the Gamblers in the Rigged Casino love it!
Now, agricultural commodities have pulled back somewhat:
Although the demand for food will be relentless, especially as the parents of 30 million kids are now receiving, on average, an additional $375 a month per child in direct cash benefits to be used exclusively for the purchase of food, channeled through the USDA’s Feed The Kids Over The Summer Program, or whatever it’s called, and automatically hitting food stamp/EBT accounts of welfare recipients with no extra signing-up needed.
Who said there was no such thing as a free lunch?
It’s just print and spend, baby, and just wait until mid-July when the Earned Income Tax Credit increases begin hitting peoples’ bank accounts!
Does anybody else notice the empty cereal isle at Walmart?
The Cult of Fed will say that food price inflation is up because of drought and other unpredictable, transitory factors, in addition to the temporary supply chain disruptions, so when food prices take off again, just be glad they’re fleeting.
Crude oil continues to be problematic for the “transitory inflation” narrative:
Here, the defense will be “pent-up demand” as nations around the world continue to “re-open”, for whatever that means.
Speaking of which, does anybody else find it weird that it’s taking years to “re-open”?
The problem with copper is that it’s not money, but it’s still currency:
Casting Gresham’s Law aside for a moment, the Fed, and the Federal Government, really, are cool with a rising copper price because of the whole Let’s Make A Green New Deal and Build It Back Even Better Than Making It Great infrastructure projects.
Silver continues to do battle at $28:
This could be one wild week, however, because in addition to the Fed’s Day of Make Believe on Wednesday, we get a lot of market-moving reports, such as the May Retail Sales Report, and options are expiring this week in the Rigged Casino, so there’s that too.
Gold got sat on to begin this super important week for the markets and the economy, as surely this week will be spun by the mainstream:
If we do have weakness this week in gold & silver, movement in the gold-to-silver ratio would be for the stacker friendly reasons of lower prices:
This may very well be the week gold & silver begin the process of re-coupling.
I’ve been looking for platinum to come down to its 200-day moving average:
If the charts matter, losing the support of our sideways choppy channel at $1150 could spark such a quick plunge and, hopefully, capitulation.
You know how I’m looking for the capitulation in silver?
Kinda like that.
Palladium’s kinda weak right now:
And why exactly should we not expect the Cartel to walk the commodities and the precious metals lower going into the Fed’s June FOMC Meeting?
When I talk about the Fed killing Elderly American Savers, what I mean is that because American Savers earn no interest on our dollar-based savings, and due to the Fed and the Federal Government actively suppressing interest rates and understating price inflation, Elderly American Savers must pick their poison between food, meds, and air-conditioning because they can not afford all three:
Just wait until our unbacked, debt-based fiat currency dependent on exponential, unsustainable growth, formerly called the “Federal Reserve Note” and commonly called the “US Dollar”, really starts plunging in value:
The canned dog food is gonna suck, but I’m pretty sure there will be plenty of YouTube videos for how to make it somewhat tasty, like, oh, I don’t know, maybe putting it into a blender and serving it up as a fancy pate spread or something?
Perhaps even serve it up with a fresh dandelion salad and some sliced crab apples?
People thinking they’ll be fine because their money is “invested” in stocks are thinking wrong:
Most people do have to lose most of the time, however.
Which is one of the reasons there is no “fear” in the markets:
Well that, and the fact that we’ve got direct market rigging going on, including the easily done suppression of the Fear Gauge.
Here’s the overall point: This is going to be a week of hard and heavy propaganda in the markets and in the economy, so be prepared for anything and everything.
What happens if the Fed botches the narrative?
Thanks for reading.
Paul “Half Dollar” Eberhart