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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: TobagoJack who wrote (155118)	3/25/2020 1:18:13 AM
From: sense	Respond to of 218131

Inflection complexion upon reflection. Prior to policy shifts... QE is hugely deflationary... a practice of a sleight of hand that drives a transfer of wealth from the public to a few private owners... it is fake inflation... a lie about "easy money" being sold to induce the expectation, and to mask the wealth transfer while the pockets are being picked. Dislocations are induced in result. Expectations are... in error. In the degree there is real inflation risk realized in financial assets... its perception is suppressed because "gold isn't rising" as they pay to ensure it does not. In large positions, it isn't ever the price of assets that matters... but the % of the whole that is owned ? Silver / Gold suppression trade... long running part of sustaining public faith in value of fiat... whatever brand... comports with the transfer schemes... with a clear divide enforced between "public policy" and "private" use of gold within the banking system... as only bankers are allowed to use "real money" as money... while the rest of us are consigned to use their scrip, only. February 24. Something breaks under the stress. All hell breaks loose. Markets inflect lower... broadly. New highs in the silver/gold ratio... are coming... after Feb 24. March 13.... I notice it and mention... "gold is leaking out of the system" as a reason for the changing ratio... the awareness also generating an inflection in the trade... the suppression trade doubled down but is running out of steam, as it focuses on silver (tiny) only with a vengeance... while actually supporting gold as value in trade while gold as collateral is being liquidated. As dollar liquidity continues its decline and suddenly evaporates... banks are selling positions for cash... liquidating... in any trade they can, as that need for cash suddenly became far more important for banks than the objectives in any trade. The crash occurring is not primarily a "retail" event... at first... but a bank driven liquidation event that is required as a function that is made necessary to enable banks to continue to meet collateral obligations. Fed does a rain dance once or twice... and sure enough... it rains... all the natives get wet for 5 minutes... while the bankers all get an early bird heads up on what's coming next, before anyone else, so they can front-run their trades to try to stop the bleeding... as machinations proceed behind the scenes... March 15 Reserve requirements are "set to zero" otherwise known as "repealed"... freeing banks to sustain prosecution of the suppression... or any other trade they might... right up until they suddenly and dramatically run out of ammo, again... which is inevitable... at which point there will be no more "real" capital left available to them to enable them to fight market fires in the future. The markets spike on the "great news" of the repeal of reserve standards for banks... we get a short rally... all fueled by the use of the last few crumbs of money left in the banks vaults... 3.... 2.... 1. and it's gone. March 16 QE to Infinity March 18. Silver suppression trade mostly ends. What's the real point of "artificially sustaining the value" of the dollar with a silver suppression trade... when the problem is that its over-priced ? More, what's the point of doing that... when you're giving up on the thing having ANY value... with QE to infinity along with everything else you can think of to do in the opposite ? It was that event in QE to infinity... which drove silver, in slow motion, from $8 in January 2009 to $48 in May of 2011 ? Events now happening much faster ? Probably also means banks used up all their reserves and are out of powder again... this time with no real source of any "trusted" capacity to use in trade... to keep people believing the currency has value. But, dollars are skyrocketing in value anyway, with the liquidity shortage. Silver drifts slowly and mostly steadily higher... after a few days, it does so even without many of the typical and expected large swings or violent beat downs... but there continues to be a growing gap between "spot" silver prices... and real silver prices. Futures markets catch the whiff of that... and begin to side with metals dealers instead of "markets" as they are anticipating future prices. Metals dealers haven't been honoring "spot" prices since before the March 13 inflection point... and after that, they've begun talking openly about the imbalances in supply and demand... but also the price divergences... March 19 Fed opens liquidity lines with more central banks If giving more free money away to your own bankers doesn't work... find other bankers to give free money to ? This actually works to solve the dollar liquidity shortage... it stops the dollar from soaring in price... while also proving that the problem is banks are not transmitting the Fed's largess into the system the way they're supposed to... "Lack of liquidity" is just a euphemism that blames the money for its behavior, not the banks for their unwillingness to use the free money, instead of lining their pockets with it. Still, the only answer is MOAR... Silver price continues rising... now with relatively very little noise in the price charts although the pace is constrained by keeping the focus on a step wise reduction in ratio inflation: Still giving a highly unusual (SPOT / PAPER / FAKE) silver chart... showing an almost smooth upward glide: The "fight" to prevent the silver price rising... is not only over... it has been lost... It is highly unlikely that it will take two years this time, for silver to find new highs from the new low... Meanwhile, the sea change occurring in result of the Fed's actions in expending everything it has to expend... and more... with all of that still apparently ending in futility... as it must... at any point in time prior to that when the virus is calling retreat ? Their dragster has the back tires being held off the ground by a jack... and uncertain why it is they have found no traction at all... the only answer is to call for "more fuel".... and when that fails, the answer is "all of it at once"... that leading, by about a week or two... the arrival of the first burst of FISCAL stimulus... which is likely to happen at exactly the time that it is no longer required... In about that same two weeks time, some junior mechanic passing by will have a need for the jack... and he'll lower it... and the thing will take off like a rocket... unguided... who knows what its going to hit... or what impact in result ? The markets are hardly even realizing, yet... that the banks are flying blind. now... with zero reserves... ? Staving off a depression, right now... means creating inflation... on purpose... without fail. The one thing I do trust them to do without fail... is to get that started...