Spoiler alert: If the US doesn’t get off scot-free, the worst is yet to come…
It’s all unicorns and rainbows in the United States.
Mnuchin and the Dems are close to half-a-trill in the latest “virus aid” deal.
Just print that stuff up!
Small businesses, of course, go to the end of the line and pray there is any money left after Stevie and his buddy’s begin dishing it out.
I’m sure Stevie’s ex-roommate from college, you know, the guy who was supposed to bring back Sears from the brink, is making a killing!
While small businesses increasingly shut down or soldier on.
Here’s the $64,000 question, not on the minds of the few business owners out there, but on the minds of the masses: Will there be another round of direct cash injections to individuals who have their bank account information on file with the IRS, even though many people have yet to receive a nickel, and even though many people will not even qualify to ever receive a nickel?
The difficult part, of course, are state and local tax revenues plummeting throughout all of this, because unlike the Federal government, localities can’t just print dollars, so they’re actually in a pickle.
This ultimately means that the Federal government won’t just be supposedly keeping small businesses and people afloat, which they aren’t really doing, but rather, the Federal government will be keeping states, cities, counties, and myriad forms of governmnet afloat too!
And people still think there’s going to be deflation?
If everybody gets paid, what’s the currency worth?
But I digress.
On Fox News, they’re talking about the bi-partisan plan to get “back to work” America, and “re-start” that economy!
Spoiler alert: When one side of the false left-right paradigm is all huggy with the other side, that usually means the Deep State has something planned.
And that can’t be good.
Regardless, what is one thing that has been missing throughout all of this?
Well, I don’t know about one thing, but a few things come to mind – the protests, the civil unrest, and the riots.
Now, I’m not talking about the luring-in of people waving Gadsden flags, for the Deep State wants those people out-and-about and spreading this bugger amongst themselves, but rather, I’m talking about the real looting and rioting that comes from sheer rage and in many instances, madness.
Like when drugs stores and grocery stores get looted first, and fast, and within minutes of getting looted, then get set on fire in some of the more problematic cities?
Kinda like that.
I mean, does the Federal government literally shut down America for a period of months, and not once have to worry about civil unrest, looting and rioting, much less face any?
I don’t think so.
I don’t think the economic collapse, which includes the death of the US dollar as we know it, consists of a mild pandemic that apparently nobody can agree on regarding if it’s serious or not, and has some mild debate mixed-in about how the Federal government can swoop-in to the rescue of Main Street, and especially of Wall Street, ends with nary a Molotov cocktail being thrown.
In the meantime, the US dollar is still strong:
The plummeting standard of living in the United States can still be enjoyed for a relatively low cost, at least for now.
Imagine loaning your money to the US government for 10 years, and getting a whopping 0.62% interest on that loan:
It really is a sick world we live in with the artificial, forced suppression of the time-value of money coupled with gross understatement of price inflation.
I wouldn’t go calling the VIX in some sort of consolidation pattern:
You know how in the casino, or in Chuck-E-Cheese for that matter, the electronic devices say the prize is void if the machine malfunctions, even if you hit the jackpot?
Kinda like that.
Lots of analogies today.
Is that weird?
What’s weird is this most epic stock market crash followed by an equally epic rise:
They surely have set the stage for one epic next leg-down!
Crude oil is coming back down to earth after surging 25% on Friday:
I have been saying for quite some time, there is only so much crude oil that can be stored above ground, and it appears we’re very near that point now.
The question is, what happens then?
If you can’t give it away, then what?
I mean, I guess the Federal government could pay people to get back to work by digging a big hole in the middle of the country, filling it up with crude oil, and then putting even more people back to work cleaning up the environmental disaster?
That would surely stimulate something!
At least, for a few weeks anyway.
OK, “Hey Half Dollar, that sounds absurd!”.
That was my point.
It’s absurd to think the government can pull the people out of this hot mess we’re in.
To the contrary.
The people will pull themselves out, and hopefully, during the process, the people allow the government to emerge from this hot mess too, however, drastically downsized from what government was before.
Copper is still telling me the period of painful inflation is beginning:
Some would even call it a “crack-up boom”, and I would agree.
Platinum looks good here at $800:
We could go lower, but just like with gold & silver, premium creep is a factor to contend with.
Palladium is still straddling its 50-day moving average:
It will be interesting to see what palladium does once gold plays catch-up.
Speaking of playing catch-up, the GSR is beginning the week under 110:
Is this the week silver finally begins to out-perform gold?
Gold does look like it will let the white metal catch up:
I’ll happily take gold consolidating at $1700 so silver gets a chance to begin its move.
Bottom line as we find ourselves here this beautiful Monday of late April?
Everybody thinks the Federal government’s “got this” under control.
But are we really just going to emerge from Covid-19 scot-free?
I don’t think it works that way, so I don’t think that we will.
Government might say something like “we’re open”.
That doesn’t mean people will go to the mall.
That doesn’t mean people will see a move.
That doesn’t mean people will eat out.
I’m concerned with what’s missing.
Specifically, where’s the looting?
Where’s the civil unrest?
Where’s the rioting?
Collapse isn’t free.
Madness is real.
And so is rage.
– 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.