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Wednesday, 29 April 2020

Can the United States Government Survive the Next Disaster?


As the coronavirus pandemic continues, Bloomberg Opinion will be running features that consider the long-term consequences of the crisis. This column is part of a package on politics and government. For more, see Clive Crook on rethinking resilience, Mihir Sharma on the global failure to protect migrant workers and Andreas Kluth on the future of the European Union.

Among the many political shortcomings that the pandemic has laid bare is that the U.S. suffers from constitutional and statutory gaps that make its democracy, and even its basic governing ability, vulnerable in an emergency. The good news? The hard thinking about this problem has mostly already been done. The bad news? No one who can do anything about it seems to care — and the incentives for undertaking the needed reforms are slim indeed.The last time the U.S. perceived a major threat to the functioning of the republic was after the Sept. 11 attacks. It didn’t take much to realize that the nation was vulnerable; in fact, the post-9/11 culture rapidly produced fictional scenarios in which some obscure cabinet secretary ended up in the Oval Office after a crisis, or devious politicians manipulated the existing and poorly designed order of presidential succession. If people cared more about Congress, there would’ve been just as many doomsday stories centered on the legislature, which is similarly ill-prepared.

In response, two Washington think tanks put together an all-star commission to study how to safeguard the government in a crisis. It duly published its reports, and then … nothing. The government remains as vulnerable now as it was in 2001. Unfortunately, this is exactly the kind of long-term planning that individual politicians have few incentives to engage in, aside from patriotism or a sense of responsibility.Long-term planning is always a problem in democracies. No one will reward the officials who stockpile ventilators and masks for years before they’re needed. In fact, politicians who invest in overflow capacity may wind up facing criticism for wasting precious resources. But at least tangible items like ventilators might be readily defended; not one in a million voters is going to care about the mechanisms for keeping the government running in an emergency until it’s too late.

Just because this inaction is understandable doesn’t excuse it. Perhaps the pandemic will finally offer a much-needed call to action. So what needs to be done?

I'll start with the presidency. The good news is that the Constitution specifies what happens if a president dies or is incapacitated, and the Presidential Succession Act stipulates procedures if the vice presidency is also vacant. The bad news is that neither the Constitution nor the law plug all the foreseeable loopholes. Two are particularly glaring.

One is that the current statutory line of succession after the vice president — in which the powers of the presidency would go to the speaker of the House, then to the president pro tempore of the Senate and then to cabinet secretaries based on when their departments were established — relies entirely on people who are based in Washington. In any scenario in which anything more than the first few successors are needed, having a geographically compact group is dangerous. This would be just as true for a terrorist attack as for the current pandemic.

The second problem is that members of Congress shouldn’t be in the line of succession at all. It’s contrary to the design of the U.S. government, and introduces perverse incentives. It’s not hard to imagine a case — with a divided government and a disease-ravaged Washington — in which the vice president dies and the president is incapacitated, but refuses to yield power to a speaker from the other party, leaving no one at the helm during an emergency.

The solution put forward by the Continuity of Government Commission was to remove members of Congress and all but the most senior cabinet secretaries from the line of succession, then to add a few specially designated successors at the end of the line. These new officers would be nominated by the president and confirmed by the Senate. In theory, they’d be former senior officials, based outside of Washington, who would have much broader experience than a typical secretary of transportation or veterans affairs. A Republican might select Dick Cheney or Condoleezza Rice; a Democrat might choose Hillary Clinton or John Kerry.

The president could pick, say, four of these officers, and they’d then get regular security briefings so that they’d be ready in case of a disaster. *****Congress presents a harder challenge. Both chambers lack provisions for functioning when they’re unable to meet in Washington. Neither has a procedure for dealing with the possibility that a large number of legislators become incapacitated. And while vacancies in the Senate can be filled by gubernatorial appointment (with procedures set by each state), members of the House can only be replaced by special election. These deficiencies leave open the possibility of a Congress utterly unable to act in an emergency.

Some proposed changes would require new laws, while filling House vacancies more rapidly would require a constitutional amendment. But one fix — allowing Congress to meet and vote remotely during an emergency — only requires each chamber to change its own rules, something that both should do immediately. (There have been recent discussions to that effect.) Most congressional scholars oppose allowing members to vote remotely during normal times. If allowed to, many members might never venture beyond their districts, leaving governing to the leadership. Still, that’s no rationale for prohibiting remote voting in emergencies.

Although the continuity commission did an excellent job studying governing institutions, it didn’t consider one of the most important aspects of a democracy: elections. The political scientist Norman Ornstein, who was a senior counselor to the commission, has been urging action to secure elections since at least 2004. The recent fiasco in Wisconsin, where the state legislature (with the backing of the Supreme Court) forced the presidential primary and some state elections to go ahead during the pandemic, demonstrated how important it is to have procedures drafted in advance for safeguarding elections — procedures that both parties could agree to before the partisan implications of election difficulties become apparent.For now, the immediate need is to arrange for and fund no-excuse absentee voting for elections held during the pandemic. I’m not a fan of universal vote-by-mail; I think that it’s (mildly) more susceptible to fraud than in-person voting, and that something is lost when voting as a communal activity is replaced by voting from home. In normal times, those values have to be balanced against the imperative that voting be made easy for all eligible citizens. Right now, though, the balance tips sharply in favor of vote-by-mail, and that requires making immediate preparations for November.*****What all these scenarios have in common is that the problems are clear and feasible solutions are at hand. Unfortunately, that’s not the recipe for success that it might seem.

Going forward, it’s still as necessary as it was in 2004 to set procedures in law for dealing with emergencies that disrupt elections. The main principle is that elections are, as Ornstein said back then, “the single most significant symbol of democracy,” and without a system that citizens accept as free and fair, democracy can’t survive. I’m fairly optimistic about achieving universal no-excuse absentee voting in the near future, since states have been moving in that direction for some time. But I’m less confident that the federal government will install permanent emergency procedures to secure future elections.

And that’s really the case across the board. The aftermath of the Sept. 11 attacks demonstrated that even with a disaster fresh in everyone’s minds, the incentives for politicians to engage in long-term emergency planning are simply insufficient to the task. Perhaps this time will be different. It certainly should be: The possibility of another pandemic disrupting the U.S. government now looks all too real.

Whether for the presidency, the legislature or the electoral system, there are fixes available that would help secure a nation in such a crisis — and most of the heavy intellectual lifting has already been done. All that’s needed is for Congress to act.

- Source, Yahoo Finance

Monday, 27 April 2020

Economists Warn: $6 Trillion Contraction Could Be "Too Optimistic", Eyeing Second COVID-19 Wave

Bloomberg Economics estimates that the global economy will contract 4% in 2020 due to coronavirus lockdowns. However, these estimates are overly "optimistic," assuming a V-shaped economic recovery would be seen in the back half of the year.

The narrative of a V-shaped recovery before the November election has been recently drummed up by the Trump administration. Wall Street has bid stocks up in the last 24 sessions with high hopes that stimulus will stabilize asset prices, and lockdowns will be lifted across many states that would enable the economy to soar. MSCI All World has seen a near 25% gain in price on these hopes.


While optimism of stimulus, virus curve flattening, vaccines, and lifting lockdown restrictions in many regions across the world have aided in the idea that a second-half recovery is a sure bet, many are ignoring the unfolding economic depression and several other scenarios that could derail the economic rebound.

Bloomberg's Tom Orlik and Jamie Rush offer this reality check:

"The economy has entered a downturn of unprecedented speed and severity, with most advanced economies facing their weakest performance since the Great Depression," they said in a report, adding that, "relative to expectations at the start of the year, the cost of lost output is more than $6 trillion."

Their global $6 trillion estimates are based on "optimistic assumptions about both the outbreak and the recovery." In this scenario, the US GDP will plunge 6.4%, Euro Area GDP -8.1%, and Japan -4%, while China's rate of economic growth will be the slowest on record.

The economists said, "downside risks are significant" and derailment of the second-half recovery is indeed possible:

They warned about the risks of a second coronavirus wave that would prevent a global economic rebound.


They said a deeper contraction of 5.6% would then be possible, and if stimulus proved ineffective, a worst-case scenario of a 7.2% decline would be seen.


"But unlike the Asian crisis in 1997 and the global recession in 2009, the current shock isn't caused by fundamental economic and financial imbalances. This means that countries that have mobilized enough stimulus to compensate for the lost income could stage a swift recovery," the economists wrote.

"Governments should err on the side of doing too much stimulus. In the end, the cost of doing too little would be higher."

As central bank stimulus is flooding financial markets, the Organization for Economic Cooperation and Development warned in early April that their leading indicators detected a turning point in the global economy, suggesting a crash has been underway in all major economies.


China managed to flatten the pandemic curve in late February. Months later, Beijing is closing movie theaters and imposing travel restrictions on certain regions as the dreaded second wave could be materializing. If so, this would mean, since China created at least half of the world’s credit in the last decade, that the economic rebound forecasted for the second half of 2020 is pure fiction.

- Source, Zero Hedge

Sunday, 26 April 2020

Gold is Just Starting its Bull Run to Stupidly Higher Prices


Gold has seen some strong gains so far this year with prices holding above $1,700 an ounce, but it’s not too late to get into the market, which currently has unlimited potential, said Mike McGlone, senior commodity strategist at Bloomberg Intelligence.

- Source, Kitco News

Saturday, 25 April 2020

The United States Government Spent Fort Knox Gold, Hundreds of Times


Once upon a time, the Fort Knox Bullion Depository was a vast storehouse for American gold. Official records claimed 20,000 tons in the 1950s. Over 640,000,000 ounces of real money sat behind those massive locked doors.

That gold gradually disappeared until President Nixon refused to exchange dollars for gold in 1971. Officially in 2020, 147,000,000 ounces of gold remain inside those locked vaults.

Fort Knox gold has not been audited since the 1950s. Supposed audits since then have been… unsatisfactory. Don’t ask, don’t tell works in the military, in COVID-19 testing, and with Fort Knox gold.

Legends about gold include:

  • Yamashita’s gold
  • The Seven Cities of Gold
  • Grand Canyon Gold
  • King Solomon’s Mines
  • Buffet’s “Bury It” story
  • The Fed’s “Traditional Asset” dismissal
  • Fort Knox still contains 147 million ounces of gold

WE DON’T KNOW THE TRUTH ABOUT THE QUANTITY OF GOLD THAT REMAINS VAULTED IN FORT KNOX!

The Better Question is: Does it matter?

The gold exists, is partially gone, or is missing. But there is nothing to be gained by a Treasury Audit. They support the narrative and don’t tell.

Besides, 147 million ounces is “only” worth (2020) $250 billion dollars. Congress just passed (but did not read) a stimulus bill worth over $2 trillion, eight times the supposed value of Fort Knox Gold. Wow!

Congress authorized $250 billion in checks and direct deposits for Americans during the COVID-19 shutdown. That “help” was the equivalent of Fort Knox gold.

Because Congress is tossing around $trillions, does $250 billion in Fort Knox gold matter?

The Fed has quickly increased its balance sheet by over $2 trillion, eight Fort Knox Gold Units. Is Fort Knox gold important?

U.S. official national debt passed $24 trillion. Projections from many analysts suggest this year’s deficit will be $3 – $4 trillion. If congress passes another $2 trillion stimulus package, the increase in national debt for 2020 could be $5 – $6 trillion.

Assume the official national debt jumps by $5 trillion in 2020. That is twenty Fort Knox gold units for this year.

Is Fort Knox gold important when the official national debt will soon reach $30 trillion, over 100 times the national treasure supposedly vaulted in Fort Knox?

- Source, Silver Bear Cafe

Friday, 24 April 2020

Ron Paul: Is the Continuing Lockdown Medical... Or Political?


They say we must "follow the science" and not resist the near-total lockdown of the economy and our way of life. But is "the science" tainted by politics and ideology? Also in today's program: Houston Police push back against Harris County "mandatory mask" orders, the potential danger of ventilators, and a look at Bill Gates' dreams for 2020...

- Source, Ron Paul

Thursday, 23 April 2020

565 Americans Have Lost Their Job For Every Confirmed COVID-19 Death In The US

In the last week 4.427 million Americans filed for unemployment benefits for the first time.


Source: Bloomberg


That brings the four-week total to 26.5 million, which is over 10 times the prior worst five-week period in the last 50-plus years.

And of course, last week's "initial" claims and this week's "continuing" claims... the highest level of continuing claims ever.


Source: Bloomberg

A breakdown of initial claims by state shows that the weekly devastation is easing, with the number of (not seasonally adjusted) claims in New York, California and Michigan declining notably over the past week, while Florida and Connecticut still showing dramatic increases.


And as we noted previously, what is most disturbing is that in the last five weeks, far more Americans have filed for unemployment than jobs gained during the last decade since the end of the Great Recession... (22.13 million gained in a decade, 26.46 million lost in 5 weeks)



Worse still, the final numbers will likely be worsened due to the bailout itself: as a reminder, the Coronavirus Aid, Relief, and Economic Security (CARES) Act, passed on March 27, could contribute to new records being reached in coming weeks as it increases eligibility for jobless claims to self-employed and gig workers, extends the maximum number of weeks that one can receive benefits, and provides an additional $600 per week until July 31. 

A recent WSJ article noted that this has created incentives for some businesses to temporarily furlough their employees, knowing that they will be covered financially as the economy is shutdown. Meanwhile, those making below $50k will generally be made whole and possibly be better off on unemployment benefits.

Furthermore, as families across the nation grapple with lost jobs and struggle to get meals on the table, The Epoch Times' Zachary Stieber reports that food stamp benefits are up 40%, according to the Department of Agriculture.


The increase will “ensure that low-income individuals have enough food to feed themselves and their families during this national emergency,” Secretary of Agriculture Sonny Perdue said in a statement.


“President Trump is taking care of America’s working-class families who have been hit hard with economic distress due to the coronavirus. Ensuring all households receive the maximum allowable SNAP benefit is an important part of President Trump’s whole of America response to the coronavirus.”

Families receiving food stamps can typically get a maximum benefit of $768. Through the increase in emergency benefits, the average five-person household can get an additional $240 monthly for buying food. Families already at the maximum won’t get additional benefits. SNAP normally costs the U.S. government approximately $4.5 billion each month. 

The allotments made under the Families First Coronavirus Response Act, which President Donald Trump signed, is adding nearly $2 billion per month to that total. The emergency funds are made available through waivers the Department of Agriculture makes for each state.

But, hey, there's good news... well optimistic headlines as Treasury Secretary Steven Mnuchin said he anticipates most of the economy will restart by the end of August.

Finally, it is notable, we have lost 565 jobs for every confirmed US death from COVID-19 (46,785).

Was it worth it?

- Source, Zero Hedge

Wednesday, 22 April 2020

Is the Extreme High in the Gold to Silver Ratio Setting Up For an Extreme Reversal?

There are a few times in an investor’s life where, as Jim Rogers once put it, you see a pile of money sitting in a corner and you can go pick it up. In other words, an investment opportunity that’s not just obvious, but has a high reward-to-risk ratio.

It may not have been expected by many investors, but the gold/silver ratio (gold price divided by the silver price) has stretched to never-before-seen levels. It’s soared to not just a generational high, but a historic high. As in 5,000 years of history.

Does this extreme reading suggest there is a pile of money sitting in a corner that we can go pick up? At a minimum it suggests a highly compelling investment opportunity.

Let’s take a look at the ratio and see what message it might be sending…

Three Centuries of the Gold/Silver Ratio

To put the current gold/silver ratio into perspective, it’s useful to look at its long-term history. That can tell us where we sit today.

In various periods throughout history gold and silver prices have been fixed. Sometimes one or the other, sometimes both, occasionally neither. But this picture of the past 333 years puts a glaring spotlight on the extreme ratio we have today.


In all of recorded history, the gold/silver ratio has never registered a reading this high. The recent high of 123.5 was recorded on March 17, but it still remains highly elevated in historical context.

Let’s zoom in on the past few decades for a closer look. The following chart shows the modern day high and low, along with the current reading.


The prior record high was 100.8 in 1991. The new high is now 22.5% above that all-time high. In contrast, you can see that in 1980 it bottomed at 14.

The gold price has climbed in response to Covid-19 headlines, while silver has not. Gold ended the first quarter of 2020 up 5.6%, while silver fell 22.8%. In fact, it was silver’s worst quarter since 2013.

Perhaps this is not surprising: investors rushed to gold as fears of the black swan event spread, but since that event was deflationary they didn’t turn to silver. As much as 88% of silver is used in non-monetary applications—jewelry, industrial, silverware, religious objects, etc., implying demand would fall for those items in an economic pullback.

It may take inflation to reverse silver’s lagging performance and begin to outperform gold (and thus push the ratio down), or perhaps some other monetary event, but what we do know is that if the ratio did not reverse it would be the first time in history.

What might silver’s gains look like? Here’s an analysis of some of those prior reversals…

- Source, Gold Silver, read more here

Keith Weiner: Crouching Silver, Hidden Oil

The price of gold has been up steadily for the last 30 days (with a few zigs and zags), now re-attaining the high it achieved prior to the big drop in March. Gold ended the week at $1,662. Alas, it’s not quite the same story in silver, whose price drop was bigger. Now its price blip is smaller. Silver ended the week at $15.19.

One does not need to look to the gold-silver ratio, which is currently off the charts, to see that the world has gone mad. Silver, it has long been understood, has both industrial as well as monetary demand. With the plunge in economic activity of all kinds due to the response to the coronavirus, the industrial component of silver demand is drastically reduced.

As an aside, we feel compelled to say that many lives will be lost by impoverishing people. This is an iron law of economics. There is no way to work around it. If you give them subsidies, you are just taking precious capital from those who are still solvent to feed those who are insolvent and jobless. One needs capital to employ someone, so by depleting the capital of those who are still solvent, the would-be do-gooder government ends up plunging more people into jobless poverty.

The Modern Monetary Theory cranks are proposing, you guessed it, printing money to solve all of these problems, and more. Some of them are now calling us cranks, not having an answer to our charge of capital consumption.

The price of oil is continuing its epic collapse. It ended the week well under $20. And today as we wrap this report, it is around $11. Yes, that’s right, an ounce of silver will buy about a barrel and a half of oil (and you thought silver was cheap)!

We have no opinion whether oil can drop more, or whether it has overshot. However, we would look now for copper (and other commodities) to catch down. With people locked down and not commuting to work or going on vacations or even to the amusement parks and sports stadiums, they are driving less. Hence lower demand for oil. Hence lower oil prices. This also means lower demand to buy new cars. Not to mention that many dealerships are closed by government orders, and that unemployed people don’t buy new cars.

Across the parking lot from our offices, they were about to break ground on a new hotel. They cleared the lot, put a fence around it, and set up some construction management trailers. Now the site lies abandoned.

Notwithstanding the free money (well, dollars anyways) doled out by the government, both to consumers and the forgivable loans to businesses, where will demand come from for oil, steel, copper, cement, and all the other things that people were buying (on credit) prior to the lockdown?

We prefer to look at the prices of raw commodities, rather than finished goods at retail, to best understand the effects of monetary policy and its positive feedback loops with resonance. That’s because the manufacture and distribution of goods are subject to innumerable regulations, which force companies to add what we call useless ingredients.

For example, gasoline in the US is subject to a byzantine regime that includes different formulas mandated by each state. Building a new pipeline is highly politicized, and hence in many cases there is a shortage of capacity. So a breakdown could cause a localized spike in the price of gas. And the burden of compliance causes much higher prices across the country.

Regulation mandates many costly activities that are not well understood, for example, the change in formula in the spring and back again in the fall. What does it cost the refiners to retool twice a year, not to mention either let inventories dwindle to zero, store unsalable inventory, or waste it?

The production of crude also has mandatory useless ingredients, but more and more pile up as you go downstream from there.

What has not set in yet, is the magnitude of the losses. Clearly, many oil producers cannot service (much less repay) their debts with oil under $20. And many car dealerships, restaurants, and other businesses, closed by government decree, can’t service theirs. And many unemployed workers cannot pay theirs. The question is how quickly the banking system reckons with it. We are not accountants, but we understand that when a debtor does not pay, the receivable goes through an aging process. First, it’s 30 days past due. Then 60. Then 90. Then the fun begins, as the debt has to be written down (or written off).

Speaking of unemployment, 22 million Americans have filed unemployment claims over the past four weeks. That’s almost 15% of those who were working prior to the virus. Countless more are working fewer hours and/or making less per hour. And this does not count business owners who currently have no revenue (but who are not eligible for unemployment), nor investors who are losing their investments.

This is a depression.

It cannot be corrected by socialist fiscal or monetary schemes. Doling out your capital as income to be consumed by others will not rectify the underlying problem. Nor will lending more, at lower interest rates. At best, these schemes will juice up another boom (though we are skeptical this could occur so quickly after the bust, much less during a lockdown).

Back to gold, we have said that two things explain the incredibly high gold basis (calculated, in essence, as future price minus spot price). One is that speculators are bidding up futures contracts (the opposite of the “price disconnect of paper and physical metal” described by many gold bugs). The other is that, due to scarcity of credit, the banks are unable to arbitrage this spread. Normally, they borrow dollars to buy gold and simultaneously sell a futures contract. They store the gold in the meantime, and pocket the basis spread.


This chart clearly shows the incredible rise of the basis, which spiked to just under 15% on April 9. It is now back down to around 5%. A normal value would be more like 1% or less.

To put that in perspective, at the peak, the profit to be made by buying spot at the offer price, and selling the June contract on the bid price, was $51. Whereas, on March 16 just prior to the crisis, it was $1.48.

Along with the blowout in the basis, something similar happened to the bid-ask spread in spot gold. This, too, is coming back down, though still elevated.


According to the World Gold Council’s John Reade, in comments he made to Bloomberg, there is another factor. Logistics disruptions make banks wary of carrying gold. This is due to the mechanics of the trade: you are buying 400oz bars in London and selling 100oz contracts in New York. The concern is not a shortage of gold, per se. It is disruption in the capacity to melt a 400oz bar to cast four 100oz bars (or twelve kilobars) for delivery in New York.

Interestingly, the extraordinarily high basis has caused the calculated Monetary Metals Gold Fundamental Price to crash. It hit $1,095 on March 24 before shooting back up to mostly recover. It is $1,643 on Friday. This is an artifact of the anomalous spike in the basis.


Another item in the news this week, the US Mint announced it was closing a plant that manufactures gold Eagles. A real shortage is developing, not in gold metal per se (virtually all of the gold ever mined in human history is still in human hands), but in the coins preferred by retail gold buyers.

The premium offered to anyone with coins to sell is already much higher than it was a few months ago, and could rise further. Normally, there is no good way to take advantage of this for most people. If you sell your gold, then you are stuck holding paper dollars. Monetary Metals has a way for investors to earn that premium, and keep their gold (please contact us if you’re interested).

Finally, let’s look at silver. Silver, in the best of times, is less liquid.


It’s starting to come down, but the basis is still around 7% (31 cents an ounce to buy silver metal and sell a July contract).

We are living in interesting times. And an exciting time in the gold and silver metals business (we are seeing growth in both investment and leasing demand).

- Source, Keith Weiner via Silver Bear Cafe

Monday, 20 April 2020

AI Fibonacci Modeling Predicts Silver at $26

Our Adaptive Fibonacci Price Modeling system incorporates an intelligent “Inference Engine” into internal decision-making and future analysis. This type of “Adaptive Learning” is one of the core elements of Artificial Intelligence – the ability to read inputs, adapting to price structures and setups and infer expected outcomes/results based on a complex decision-making process. Today, we are alerting you that our Adaptive Fibonacci Price Modeling system is suggesting $26 is the next target level for Silver (which is currently trading near $15.65).

Learning how to interpret the data presented by our Adaptive Fibonacci Price Modeling system is simple – it does the internal analysis automatically and presents future target levels and trigger levels on the charts as lines and blocks. Trigger levels are set up as both GREEN and RED lines for current Bullish and Bearish Trends. Each of these trends also has target BLOCKS drawn out into the future representing where the Adaptive Fibonacci system believes the next price target will be located. These target levels are determined by the Adaptive Learning Inference Engine and represent the best outcome of the true Fibonacci price structure we can deliver.

WEEKLY SILVER CHART

This Weekly Silver chart highlights the incredible +66% upside opportunity setting up based on our research. Silver continues to underperform compared to Gold and it continues to be overlooked as a safe-haven metal. Back in September 2019, we authored this article suggesting Silver would become the “Super-Hero” of precious metals. That research is still very valid today.

This Weekly Silver chart highlights our Adaptive Fibonacci Price Modeling system’s results and clearly shows you the upside price target near $26. We believe the US and Global stock markets may continue to weaken as earnings and forward guidance continue to rattle investors’ expectations. This uncertainty will translate into a continued upside price rally in Metals. Gold will obviously lead the way higher, yet we believe the sleeper metal is Silver. Once silver clears recent highs near $19.75, be prepared for an incredible parabolic upside move.


DAILY GOLD CHART

The other aspect of this move is that Gold will continue to move higher as well. The next upside target for gold is $1840, followed by a brief pause in price, then a continued rally to levels near $2000. If you think the metals rally it sputtering out right now, we urge you to reconsider your thinking.


Before we continue, be sure to opt-in to our free market trend signals before closing this page, so you don’t miss our next special report!



WEEKLY GOLD CHART

Precious metals will likely continue to rally higher and higher, eventually entering a parabolic upside price rally, as global concerns reach a peak. After the US and Global stock markets set up a real price bottom, metals will continue to rally for 8 to 12+ months after that bottom has setup. Metals are about to become one of the fastest-growing assets on the planet and may not stop until well into 2021 or 2022.


CONCLUDING THOUGHTS:

Do yourself a favor and take a minute to review some of our most recent market research and really prepare for the rally in metals. That last Weekly Gold chart highlights what we believe will be the initial upside price rally (in YELLOW) and shows how Gold will target $2000, then briefly pause, then attempt another upside move to levels above $2300. Our real upside price target for the long-term Fibonacci peak in Gold is near $3750 – that should tell you something really important.

As a technical analyst and trader since 1997, I have been through a few bull/bear market cycles in stocks and commodities. I believe I have a good pulse on the market and timing key turning points for investing and short-term swing traders. 2020 is going to be an incredible year for skilled traders. Don’t miss all the incredible moves and trade setups.

I hope you found this informative, and if you would like to get a pre-market video every day before the opening bell, along with my trade alerts. These simple to follow ETF swing trades have our trading accounts sitting at new high water marks yet again this week, not many traders can say that this year. Visit my Active ETF Trading Newsletter.

We all have trading accounts, and while our trading accounts are important, what is even more important are our long-term investment and retirement accounts. Why? Because they are, in most cases, our largest store of wealth other than our homes, and if they are not protected during a time like this, you could lose 25-50% or more of your entire net worth. The good news is we can preserve and even grow our long term capital when things get ugly like they are now and ill show you how and one of the best trades is one your financial advisor will never let you do because they do not make money from the trade/position.

If you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my Long-Term Investing Signals which we issued a new signal for subscribers.

Ride my coattails as I navigate these financial markets and build wealth while others lose nearly everything they own during the next financial crisis.

- Source, Chris Vermeulen via Silver Bear Cafe

Saturday, 18 April 2020

Loading Up On Silver: The Whole World Will Soon Enough

I’ve made my career living by this mantra: DON’T try to change the world, ADAPT to it. In the next two years, WHOEVER is willing to SEPARATE his personal DISGUST of how corrupt, useless and UNFAIR the financial system is from the OPPORTUNITY to capitalize on the INHERENT flaws that this very system can’t fix, will potentially make a GENERATIONAL FORTUNE in the coming transition.

You can shout from the rooftops, but this won’t change the REALITY we live in one bit.

I’ve seen the HOURS-LONG traffic jams that are forming in cities to receive FOOD ASSISTANCE from the government. Millions of people are THRILLED to receive the free stuff because they haven’t the SLIGHTEST CLUE how the system works or where the government gets its funding from; they don’t care about civil liberty, but only about security.

Don’t get frustrated with the collective ignorance of your fellow countrymen. You were not put on this planet to lecture others or to “fix” them. All you can really do – and for that matter, anyone else – is LEAD BY EXAMPLE. Some will resonate with your personality if it proves to be a WINNING ONE, while most won’t.

Only 3% of the population live INTENTIONAL LIVES, according to the most comprehensive study ever conducted on the subject. What I mean by intentional is that (1) they KNOW what they want, (2) BELIEVE they can achieve it, no matter what’s going on in the world, (3) they DEVISE a plan to pursue their goal, and (4) they EXECUTE with everything they’ve got.

Don’t look outside of yourself for the answer to your problem. Never in history has anyone achieved anything of lasting value by leeching off the government.

All great things were made by HARD WORK and careful planning.


Courtesy: Zerohedge.com

NEVER should one let others dictate his trajectory in life – that’s SLAVERY.

This coronavirus is such a CONTROVERSIAL subject because it was initially a medical emergency, but in managing it, governments have made it so that in order to save the lives of the ones that the virus would otherwise defeat, the PLANET has been put on hold.

There’s no right or wrong here; it’s the decision that we collectively decided was appropriate.

We may call it BULLSHIT or say it is TOTALLY JUSTIFIED, but our opinion means nothing.

Successful people concern themselves with two things:
What is my goal?


What am I doing about it right now?

These two questions have NOTHING TO DO with a virus or anything else; it’s a DEEP psychological conviction that you CAN and SHOULD be on the escalator to new heights all the time.

Nearly 16 million Americans have filed for unemployment in the past three weeks. I don’t like that at all. Too many of them will depend on government and that could place a heavier burden on America’s DEBT MONETIZATION out-of-thin-air schemes.


Courtesy: Zerohedge.com

Silver is the ultimate asset for these times. Since INDUSTRY has basically been ground to a halt, traders have already PRICED no industrial demand. Then, Powell said that HIS LAST CONCERN is that his lending programs would generate inflation.

The Federal Reserve isn’t worried about inflation and it is BLANKETING THE ENTIRE bonds market with purchases.

All I can say is that now EVERYONE, including all of the world’s governments, understand that we are in the REAL endgame. It’s a RACE TO DEBASE!

In the face of this, the markets are RALLYING hard. The reason is that bonds are essentially worthless, so money is flowing only to STOCKS, if anywhere.

But, there’s literally no REASON to assume that they’ll continue going up. Earnings don’t justify that.

As bullish as I am on silver and gold, my BULLISH outlook is even stronger for copper, which is going to be the TRUE BENEFACTOR from the infrastructure SUPER-BOOM that’s coming shortly!

China has caused other nations to doubt it. America’s companies will start to move back and Washington (as well as Europe) will ramp-up projects on roads, bridges, and new construction.

Copper is the main metal in electric vehicles as well and all governments will ban gasoline cars pretty soon.

You watch as these new metals SOAR!

- Source, Tom Beck via the Silver Bear Cafe

Friday, 17 April 2020

Ron Paul: Unnecessary Coronavirus Policies Made Things Worse, The Fed's Bailout is Doomed to Fail


In a matter of just weeks, 22 million Americans have been thrown out of work by politicians. So many small businesses and livelihoods have been destroyed by political decisions. 

A federal government that has blown trillions on endless wars, and that has promised trillions in welfare, looks to The Federal Reserve to counterfeit trillions of dollars to bail everyone out. 

Overwhelming government interference in our lives, and The Fed that enables it, are both doomed to fail.

- Source, Ron Paul

Saturday, 11 April 2020

Why Gold and Silver Confiscation Will Not Work, Can't Happen


A meme circulates from time to time that causes a fuss in the gold community: The government's coming for your gold. Here is a metric ton of reasons why confiscation won't work.

Friday, 10 April 2020

Another Day Another Bailout: Fed To Start Buying Junk Bonds, High Yield ETFs


Why did the US stock market indexes rally despite another enormous (now 3 weeks in a row) jobless claims number? 

US weekly jobless claims jump by 6.6 million and we’ve now lost 10% of workforce in three weeks.

Because the Fed's balance sheet is set to expand even further after they committed today to buying up hundreds of billions of dollars worth of junk bonds and junk bond ETFs!

Wednesday, 8 April 2020

Panic in the Paper Markets and Shortages of Physical Silver


Gregor discusses the silver market and how we see the same pattern that happened back in 2008, 2011, and 2013. 

The markets are crashing, and investors are getting margin calls and need liquidity. This need for liquidity is pushing down the price of silver. 

Prices for silver and premiums from suppliers continue to rise, while available supply is contracting. 

Silver is a metal that can't easily be substituted. The price of silver seems incredibly cheap today, especially considering the current monetary environment.

- Source, Palisade Radio

Ron Paul: Behind The Scenes At The $2 Trillion Coronavirus Bailout


Rep. Thomas Massie (R-KY) became "the most hated man in America" when he dared to demand that Congress actually vote on the biggest bailout of Wall Street in history - the two trillion dollar "coronavirus" bill. What happened behind the scenes and what are the dangers? Rep. Massie tells all in today's Liberty Report.

- Source, Ron Paul

Monday, 6 April 2020

Disunited Nations: Who Wins Or Loses When Global Order Breaks Down?


Peter Zeihan "U.S. consolidation is the order of the day". Following depression the U.S. will see the fastest re-tooling in world history.

Saturday, 4 April 2020

Global Supply Chain is Broken? More Factories Coming Back to the United States


Central bankers at the Federal Reserve can promise unlimited liquidity but that will not get the global supply chain and goods manufactured, shipped and delivered back to pre-coronavirus levels any faster.

Friday, 3 April 2020

Systemic Shocks will Lead to a Loss of Trust in Central Banking


Ronald discusses their annual report "In Gold We Trust" which is due out in May and how last year's report focused on the coming breakdown of trust in society. 

This year that erosion of trust may spill over into central banking. Multiple systemic shocks are now occurring, including a global demand crisis, deflationary reactions in assets, a global supply crisis, an oil collapse, a rising U.S. dollar, and credit shocks. 

The worst may be priced into the market, and as a result, things could quickly become positive again after Easter.

- Source, Palisade Radio

Thursday, 2 April 2020

Ron Paul: Is It Time To End The Shutdown?


Yesterday the Mises Institute published a brilliant article titled "End the Shutdown," making the point that continuing the "house arrest" of Americans and the shutdown of the economy will have much worse consequences than the coronavirus itself. 

With the infection to fatality ratio at about the rate of the seasonal flu (as per a new Lancet study), is the continued destruction of American economic and social life worth it?

- Source, Ron Paul

Doug Casey Sorts Through Recent Events in America, Where Does it Go Next? Can We Recover?


Doug Casey sorts through recent events in America to help us locate our place in this cycle and provide his best advice about how we can best respond.

- Source, Jay Taylor Media

Wednesday, 1 April 2020

Man Who Predicted The Global Collapse Says It Will Be Devastating in the Next 6-12 Months

Today the man who predicted the global collapse told King World News it will be devastating in the next 6-12 months.
“Don’t wait for the storm to pass – Learn to dance in the rain! This is very important advice to survive the coming virtually non-stop storms that the world will experience in the next few years. But sadly most people will not learn to dance to cope with the coming storms. The abrupt downturn in the global economy, triggered but not caused by coronavirus, came as a lightning bolt out of the blue. Thus, most people are paralysed and will fall helplessly as the world unwinds 100 years of mismanagement and excesses, caused primarily by bankers, both central and commercial.

2006-9 WAS JUST A REHEARSAL

I have for years warned about the enormous risks in the financial system that inevitably would lead to a collapse. As the bubble continued to grow for over ten years since the 2006-9 crisis, very few understood that the last crisis was just a rehearsal with none of the underlying problems resolved. By printing and lending $140 trillion since 2006, the problem and risks weren’t just kicked down the road but made exponentially greater.

So here we are in the spring of 2020 with debts, unfunded liabilities and derivatives of around $2.5 quadrillion. This is a sum that is impossible to fathom, but if we say that it is almost 30x global GDP, it gives us an idea of what the world and central banks will have to grapple with in the next few years.

THERE WILL BE NO V OR U RECOVERY

No one should believe for one moment that once CV is gone we will experience a V shaped recovery. There will be no V, there will be no U and nor will we see a hockey stick recovery. What few people understand, including the so called experts, is that there will be no recovery at all. An extremely rapid decline of the world economy has just started and will be devastating in the next 6-12 months, whether CV ends soon or not.

CORONAVIRUS CASES EXPONENTIALLY HIGHER THAN RECORDED

There always had to be a catalyst to trigger the inevitable end to the biggest economic bubble in history. Catalysts are normally a financial event like a default of a financial institution. But this time the world could not have been hit by a worse event than Coronavirus. In just over one month the disease has spread like wildfire all around the world. Currently there are 600,000 identified cases. 

The problem is that the number of cases are only a function of how many have been tested. Since most countries only have a limited number of test kits, the real figure of infected people is most probably exponentially higher than 600,000. CV was discovered in Wuhan back in November 2019. The disease probably spread a lot faster around the world than anyone realised since no one was tested for a long time and still today very few are tested.


LOCKDOWN WILL BE DEVASTATING

The effects of CV have been to shut the world down for an unknown period. With schools, shops, hotels, airlines and factories, etc, closed, most countries are not producing anything currently. This total lockdown will not only be devastating for the world economically. It could lead to more people suffering due to hardship, famine and health problems with lack of essential items like medicines and food. I pointed this out already 3 weeks ago, but politically and humanely this solution has not been considered acceptable.

What the world is now encountering is the perfect storm. That the debt infested global economy would one day come to an abrupt halt has been clear for a while as I have written in many articles. But instead of a gradual downturn, the world economy is now going to experience a fast and devastating collapse which will lead to a decline in real terms of most assets like stocks, property and debt by more than 90%. Real terms means measured in constant purchasing power like gold.

In the Dow for example, we have just seen on the quarterly chart a downturn in the MACD indicator from a very high level. This is a very important trending signal which indicates that we are likely to see at least 10 years downtrend in stock markets. The alternative is that we will see a very rapid decline in the next 6-24 months and then the index going along the bottom for a decade or more.


UNLIMITED MONEY PRINTING HAS STARTED

Central banks around the world have so far committed $12 trillion of direct support via money printing. In addition global fiscal stimulus or tax reductions of $5 trillion have been committed by governments. But these amounts are just a drop in the ocean. Just take a company like Volkswagen. They are now experiencing a cash drain of $2.2 billion per week. If we multiply that by factories and businesses around the world plus assistance to individuals, we will soon see liquidity requirements of $10s followed by $100s of trillions as the financial system implodes.

If we take the Fed as an example, it has cut rates to zero and already expanded its balance sheet by $700 billion to $5.5 trillion since September 2019. Another $2 trillion have been committed but that is just the start. Just to remind ourselves, during the 2006-9 crisis the Fed’s balance sheet only grew by $1.2 trillion to $2 trillion in 2009. We will most likely see the balance sheet grow by $ trillions in the next few weeks.

- Source, King World News, read more here

Mike Maloney: $10 Per Barrel Oil, It Happened


Join Mike Maloney as he revisits his prediction of $10 oil from 2010. The mere thought of a deflationary depression and lower oil prices was ridiculed at the time - but look what has happened. Mike also gives an update on the latest news, and covers questions from you, the audience.

- Source, Gold Silver