Murphy wants to know if he can sponsor this article? He keeps jumping up and down, hootin’ & hollerin’ something about some stinkin’ law!
(by Half Dollar) I know, right?
Silver’s technical indicator can’t be wrong, and it’s telling us that silver is about to rocket launch to unfathomable heights!
And the squeeze is on!
Everybody sees it, everybody knows it, and everybody agrees!
Everybody, well, except for ‘Ol Half Dollar, of course, but that’s what you get for being a contrarian and always having to do the opposite of what everyone else is doing.
Right now, everybody is so sure that silver’s moonshot is imminent, and “everybody” includes all of the so-called gold & silver “advocates”, and as such, that is, in part, exactly why I think the Cartel is about to bring the hammer.
Think about it this way: There is currently maximum exuberance in the silver “market”, and many free thinking people are starting to learn about silver for the first time, with the old school cheering on the newcomers, and this has caused a level of excitement in the gold & silver community that is starting to make me feel uncomfortable.
Call it a gut feeling.
Remember, above all else, the Cartel fears silver more than anything in the entire world, because silver is the real power of the people, and a lot more people are starting to get it, figuratively, and literally, and since excitement has been steadily building for a couple of weeks now, the Cartel is looking to nip it in the bud while they still can.
Furthermore, we have to take a step back and discuss a matter of even more pressing importance to the Cartel: Inflation.
The biggest driver of silver right now is not the so-called “silver squeeze”, but inflation.
However, inflation is a huge can of worms, especially when we’re talking about inflation in terms of rising prices, and I think the Fed and the Federal Government in general, and the Cartel specifically, are still trying to figure out how they’ve going to handle the surging price inflation.
Most people believe and accept that universal basic income is coming, but I think a lot of people are missing the fact that it’s a process not unlike learning to run, and in this process, we’re just now learning how to crawl.
More specifically, universal basic income implies a kind of ongoing, monthly stipend, and that is what is being set-up first and not cost of living adjustments to that stipend, but those are coming soon, and I think the Fed and the Federal government are trying to stay ahead of it, thinking they have the markets and the economy under control.
But let’s not get it twisted: They do kind of have the markets under control, for now.
Here’s the pressing problem: A lot of people in the mainstream have learned to run, so to say, and now they’re totally shouting, practically in unison, “inflation risk is through the roof”.
And well, as my teenager would say, “duh!”.
Therefore, if the Fed and the Federal government are not prepared to face the reality of rapidly rising prices, which people at the bottom of the barrel have already been feeling for quite some long time, the Cartel needs to pull off a little deflationary magic trick to maintain the “no inflation” narrative.
I mentioned this yesterday, but I’ll go a little more into specifics now: The main informal inflation barometer the Fed and the Federal government have been using is the price of gold and, by extension, the price of silver.
The problem, however, is that now everything is going up in price, from agricultural commodities, as in, food, to raw materials such as crude oil and copper, so when everything is going up in price, except for gold & silver, suffice it to say that a couple of people are finally starting to catch on to the extent of the market manipulation.
So where the Fed and the Federal government have had no problem sitting on the price of gold & silver over the last several years, the Cartel now has the problem of either letting gold & silver rise, or, alternatively, crashing the markets to buy more time, and by crashing the markets, the Cartel would take a lot of attention away from inflation.
In fact, the word “inflation” would drop off of the mainstream’s radar in no time if the markets are suddenly “crashing”.
Said differently, crashing the stock market would give the Cartel cover to bring down the commodities somewhat, which will be temporary, of course, and as an added bonus, the Cartel would have the narrative of a fierce bid in the bond market in order to drive interest rates back down.
But wait, there’s more!
That’s right folks, and it has to do with the
Circus Side Show “Second Impeachment Of Trump”.
You see, that has been the one single dominant piece of news in the mainstream this week, regardless of what the Bitcoin Fanboys, Pumpers and Shills say, and the word on the streets is that the impeachment could be over by this very weekend, and as such, it would be totally out of the news cycle.
What comes post-impeachment?
Perhaps reality hitting the markets like a two-by-four to the back of the head?
It won’t take much to get “inflation” off of peoples’ minds, all the while giving the Fed and the Federal government a little more time to fine-tune their plan for dealing with the hyperinflation of the US dollar.
Their efforts to control the hyperinflation, however, will be futile at best.
Some temporary strength in the dollar will also help take the mainstream’s attention off of inflation:
Which is just one reason why I think the US dollar is taking a trip up to 95 before falling again.
It’s baffling to think that many people think interest rates are simply “rising”:
When you get blown out of the sky, however, there is no attempt at a crash landing, which is why I think the Cartel stays in this dogfight and keeps attacking interest rates for as long as the bullets still penetrate.
Besides, we’ve arguably had some melt-up fun:
But the real fun for the Cartel is in taking the public to the cleaners!
The public, which, by the way, keeps shrugging off any and all worries:
Have we already seen a melt-down in the VIX to go along with a melt-up in the stock market?
Or do we get a blow-off top in the stock market and a spike low in the VIX?
Here’s a look at that inflation:
Would a trip down to $35 for a third and final filling of that massive gap do the trick?
Copper tagged $3.80 today:
Copper has been on fire, especially over the last six trading sessions.
Checking in with palladium, we see everything is unfolding as expected:
Is palladium an outlier, or is palladium telling everybody, everywhere, “not so fast!”.
Speaking of fast:
Platinum is up 18.5%, year-to-date.
That’s a pretty wide divergence:
Is it a problem that gold has been falling since early January, yet silver has been rising since around the same time?
If they bring everything down, it looks like they’ll target $1700 in gold:
I do not think the market mayhem will be particularly long lasting, however.
That said, a good beating will do wonders for sentiment:
It will also humble a bunch of the Silver Squeeze Groupies who think they are the top dogs now, but who have really just blindly placed their faith in numbers representing supposed bars moving to and from vaults somewhere, which may or may not even be happening.
A good beating will also drive a lot of the suddenly everywhere Chart Huggers back into the woodwork with their fancy, paint-by-numbers silver charts!
Finally, remember “Trust the Plan” and how well that worked out?
This is kind of like that, only, it’s “Trust the Silver Squeeze”.
And the Bank of Canada, or the Royal Canadian Mint, or the Queen of England, or Whatever.
And so on.
And so forth.
So, um, yeah.
Good luck with that…