Each day that goes by brings us one day closer to the “end game.” One would have to be genuinely silly to try and put a date on that event, but you all know it’s coming. The US dollar’s days as the world reserve is going to come to an end.
Last Friday, “someone” or a bunch of “someone’s” thought it a good idea to dump 34 billion worth of paper shorts onto the Gold and silver market. All of it at basically the same time. Yet it brings into question, well, several questions.
When you look at the open positions from that day, you see that they weren’t opened to close out shorts, they were opened as sells. In other words, they were shorting the price of gold and silver, and since it’s price is based on paper transactions at places like the COMEX, we saw big moves down on gold and silver that day.
What was that all about? Well, obviously those “someone’s” didn’t like the look of gold and silver both looking like they were about to break out into a nice run higher. But why? Who has the ability to conjure up 34 billion worth of paper? And why don’t they want the price of these two metals going higher?
Listen up folks, this wasn’t mommy and daddy in their PJ’s trading on their Etrade account while eating Cheetos in bed. This was big time. If you add up all the gold that all the contracts represented that day, we’re talking about over a hundred tons of gold. So obviously they didn’t want the price of gold or silver going much higher. But why?
One way to look at it is this: Back in the big run up from say 2007 – 2011, the gold and silver markets were just days away from being over run. The US mint had several times “run out” of silver to make one ounce Eagle coins and the amount of gold on the COMEX for delivery, was within one big buyer of default. ( Note, the COMEX has already defaulted in the past, by passing a rule that they could settle a delivery in cash in stead of a metal, if they couldn’t get the metal to satisfy the demand)
After they finally got a handle on it and turned gold and silver lower, the pressure came off and the metals have been forgotten for a long time. But that’s not really true at all. While a lot of mom’s and pops, stopped buying it, and a lot of people who got seduced into thinking that Crypto currencies were really like gold and swung from buying it, the “big guys” kept right at it.
Let me repeat that line for a second, just for clarity. An awful lot of people that were silver ( and gold) bullion buyers, got lured into thinking that things like Bitcoin were just as wonderful, as they were told it was anonymous, and there was only “so much of it” etc. They not only stopped buying gold and silver, a lot of them sold their metals and went into crypto.
...now that we are living in an era where India and China are being positioned as "rivals" of the American hegemon, it certainly makes sense that we will see the key tenets of Pax Americana challenged.
If you can’t say anything else, the last year and a half has been entertaining, hasn’t it! I can’t wait for the results of the investigations, not to mention the mid terms. This ought to be a lot of fun.
...it's that time of year when confabulators are conferring and conclaves are conspiring. Keep your wits about you and stay tuned to for more information on all of these events when, if, and as they transpire.
Logic says this had to end. History says it’s got to end. And yet they keep finding rabbits. I’ll be the first to admit, that I NEVER thought they could kick the cans down the road as far as they have. Yet, here we are.
...it seems that there is an alternate inscription that could be written above the gates of the Iranian sanction regime. Not "Abandon all hope ye who enter here" but "Where there's a will, there's a way."
I’m not against junk, it has its place. If you’re one that collects change in a jar or coffee can and then cashes them in ever 6 or 8 months, do yourself a favor and take 20 minutes and see if you’ve got any Pre 1970 and especially pre 1965 coins. If you do, you just hit a little jackpot.
I think that solar has been suppressed, because energy is power. THEY don’t want you to have any power, they want it for themselves. When someone has the power to flip a switch and shut off your electricity, or your water, you’re not very independent are you?
And so it boils down to this: The EU and its leading nations have some soul searching to do. Are they going to roll over and do what they're told, like Uncle Sam's dependable lapdog, or are they going to defy their erstwhile master and refuse to comply with a new round of Iranian sanctions?
The Japanese government is too busy buying US missile defense systems and building their own cruise missiles to worry about whether or not they get their way on the constitutional debate.
Rates are rising. We just hit 3% on the ten years. If rates bust through that and get out of hand, servicing the debt loads at the corporate level is going to get ugly. There’s more than a good reason to think that the stock market could truly roll over.
Given Washington’s permanent war policy, its long history of breaching agreements reached, its hostility toward all sovereign independent countries, it takes a giant leap of faith to believe it’ll turn a page on North Korea for peace on the peninsula.
We had a market that had run up for 9 years. We had valuations at nosebleed levels. We had people that didn’t sell in 2017 so they wouldn’t have to pay taxes on it in 2018. Some decided it was time to book profits. We had a lot of reasons for a correction to hit. And, hit it did.
So we'll also have to point out Google's own repeated violations and abuses of users’ privacy, and how, despite all the creepiness emanating from Facebook these days, Google still manages to find ways of being way creepier in its privacy invasions.
This is the real "nuclear option." Not the fiery explosion of economic Armageddon, but the slow and painstaking creation of an alternative system
A newsletter for economic news, global trends, politics, money, and investment. Published on Wednesdays and Saturdays for subscribers. Get a free sample of our full issue, or Subscribe today.