Here Comes A Hawkish, A Dovish, Or A Zombie Apocalypse Scapegoating Fed: How Will Gold & Silver React?
Unfortunately, it's all eyes on the Fed this week. Here's what it means for gold & silver...
(by Half Dollar) I use the word "unfortunate" because people are thinking about the Fed all wrong.
That is to say, don't even think about things changing for the better in the markets or in the economy until we take the very first step ourselves, which is to think about the Fed differently, and, more importantly, for what the Fed really is:
Although currently, we look at the various Fed Heads as if they were heroes.
Amazing, isn't it?
In a, you know, "Camp FEMA, USA", kind of way.
Because look at the ease with which words and terms are thrown around by the MSM Propagandists:
I'm not sure what is happening in Cuba right now, but aside from the elaborate, artsy protest costumes, which we've all seen over the last several days, I'm pretty sure there is not armed warfare taking place between the Cuban government and some other faction, much less that kind of faction.
But to not look ignorant, or idiotic, or whatever, I'll make the same point in a different way, representing the other side of the "United" States of America, by way of a simple search, and we see the barrage of words and terms thrown not just at Freedom and Liberty in general, but at Patriots specifically, be them honest, sincere, duped, or some other kind of American Patriot:
Not ISIS, not the Taliban, not Al Qaeda, and not Alf, but American Patriots are the enemy?
That's not good.
Again, for anybody who cares about Freedom or Liberty, this kind of setting-the-stage word association is doubleplusungood, and for Joe Deplorable, well, let's just say one should be well into an advanced stage of readiness because the collapse of America is happening fast, and the Deep State as well as the Deep State Globalists are not too happy with Joe Deplorable thinking he can walk, talk and act for himself.
Sadly, many, including all of the Brainwashed Masses, all of the Walmart Zombies and all of the Sheeple, will be caught off guard, they will be overwhelmed, and the ones that survive the collapse will be left in Economic Misery and Financial Ruin.
This is all to say, while it can still be said, what is taking place today should prompt any remaining thinking Americans into action, and, of course, there is only one type of action that could ever be taken: Starve the Beast.
There is no other way.
That is the only chance for Silver Bugs and Joe Deplorable to keep America alive, and, more importantly, Freedom and Liberty, all three of which are not doing so good right now.
Not at all.
And that's not to get too far off topic today, either, for I bring up the very first point about the Fed because unfortunately, it's going to be all eyes on the Fed again this week, in between the other tabloid noise news which, sadly, is pretty much all of the "news" today.
The real news is attacked, brutally, behind-the-scenes, and in positive correlation with the rise of American Fascist-Totalitarianism, but that's the topic for some other article on some other day.
Today, it's all about the Fed concluding its latest 2-day FOMC meeting on Wednesday, July 28, 2021.
Let's briefly review what has happened from the last FOMC meeting until this week:
Powell turned hawkish at the June FOMC meeting in what I have called the "hawkish surprise".Biden recently tripled-down on the "transitory inflation" narrative as he pushes for the so-called "infrastructure" package.The Zombie Apocalypse has been worsening.Of course, none of those things are actually true, because the Fed is not at all "hawkish", Biden is little more than a totally corrupt, evil liar who just so happened to be "elected" as our "President", so any and all infrastructure "spending" will be fraudulently wasted and abused without going to any actual "infrastructure", and as far as the Zombie Apocalypse goes, for anybody who didn't read my Friday article, the true, current state of the Zombie Apocalypse can be summed up in a fun little numbers' game:
Cedar Point Amusement Park, arguably the best rollercoaster thrill ride park in the country, was JAM PACKED over the 4th of July Weekend.Less than 1% (when rounding up) were wearing you-know-whats.More than half of the rides/attractions/food stands/souvenir shops/etc were closed, so people were highly concentrated in high traffic areas.That was two weeks ago.Use pre-school level critical thinking skills to complete today's numbers' game.But again, I do not write these things to drift too far off topic, but rather, to hope that the message is getting across that the situation in America is rather dire.
And that's putting it lightly.
Back to the Fed: What will the Fed do and say this week, and, more importantly, what will it mean for gold & silver?
If the Fed is hawkish, that could be "bad for gold" in the sense that interest rates can rise in anticipation of the Fed "fighting" inflation, or so the mainstream narrative goes, even though interest rates are still and would still be corruptly below any historical averages, but nonetheless, rising interest rates could be some ammo that the Cartel could use on gold & silver if the smash continues or even worsens.
If the Fed is dovish, this is more problematic for the Fed when it comes to gold & silver because market "participants" will be looking at a Fed signaling even looser monetary policy, meaning even more reckless currency debasement.
But either way, the MSM Propagandists get to have their cake, and they also get to eat it, because that's how the Ministry of Truth works, so if the Cartel can continue to smash gold & silver, a dovish Fed will be spun as "bad for gold"!
One example of this could be, "investors sold their gold as they fear missing out on a rising sock market!".
Now, I think the Fed is going for some sort of "Goldilocks" situation, which would mean the Fed is "hawkish", but is also extra-cautious because of the whole Zombie Apocalypse flare-up, and as such, Fed Chair Powell will focus more on the "Fed is prepared to do more" mantra, which would mean a dovish slant, and again, theoretically, a dovish Fed is "good for gold", but when used in conjunction with being hawkish, that is to say, hawkish on the markets & economy but cautious on the Zombie Apocalypse, A Goldilocks Fed could also mean a wash and more choppy sideways agony.
If one thing is certain, however, it's all about the Fed, the Federal government and the MSM Propagandists maintaining and controlling the narrative.
Regardless, gold is beginning the week at, yup, you guessed it:
$1800.
Again.
And on Friday I was wondering who was really getting excited about $1800 gold?
I am not, because for me, platinum has been much more exciting, but as I think about gold some more, I think we have got to breach at least $2000 to the upside before some excitement comes back, and not just tagging the whole number either but pushing through it with authority.
Alternatively, another drop in gold would get some excitement back.
For me personally, however, I'm still looking at platinum if I feel like going with a more expensive precious metal than silver:
Because I just can't really get excited about $1650 gold, or even $1550 gold, but not only did I get excited about $1050 platinum, but I pulled the trigger around that price level, and if platinum drops even more while silver holds in the mid-$20s, then I'll still be looking to platinum as what I'm currently purchasing.
Palladium, not so much:
Palladium has been a good barometer for the precious metals, and right now that barometer is showing us that we're in the middle of some unstable weather conditions.
Yikes!
Silver has been all over the place in the mid-to-upper $20s, but silver is starting out the week at the lower end of that range:
While everybody is looking at the upcoming options expiration as a possible date for launch, just like Silver Bugs, Stackers and other Smart Investors have been looking at pretty much all of the options expiration dates since early this year as possible dates for silver's launch, with the exception of myself and very few others, if there are any others, I'm still not totally convinced the pain is over.
We're getting close, and we have seen some capitulation, but in my opinion, there has not been enough capitulation.
Additionally, if possible, I'd like to see the ratio converge even more with silver overshooting gold in performance to the downside:
Silver's recent tapping of gold, in my opinion, just isn't going to be enough, especially since we have that whole "silver overshooting gold to the downside" tradition going on, so a quick run towards 80 in the ratio (meaning silver dropping faster than gold) would do wonders for market sentiment, investor psychology, and all of that fancy-talk stuff.
Silver, like gold, is also in one of those "who's excited" spots on the chart?
In other words, since we've been in this sideways choppy channel of pure agony, it's hard to get excited about silver between, call it, $24 and $29, so perhaps the Cartel's plan is not to pound so much as it is to grind?
Don't expect Powell to discuss Dr. Copper if asked on Wednesday:
Being down slightly over 6% from its record high in mid-May, and well up year-to-date, copper doesn't sit too well with the whole "transitory inflation" narrative.
Unless crude oil starts correcting in a more meaningful way, the Fed is also quickly losing the ability to point to crude oil prices as evidence of transitory inflation:
Which is why the Fed, in my opinion, will come out somewhat hawkish, but with more focus on the resurgence of the Zombie Apocalypse and the Fed's readiness to "do something" about it, like print more money to buy up more bonds, bail out their BFF hedge funds, and stuff like that.
On Friday, I think I used the S&P 500 as the US Stock Market of choice:
Just pick any of them, really, with the exception of The Index Formerly Known As The Heartbeat Of America Index.
Although let's not get it twisted: If some friends need some favors, I wouldn't entirely rule out a record high in the Russell 2000 too, because the Deep State Globalists are, after all, destroying America, and some of the Deep Staters who aren't necessarily Globalists have corruptly built up huge stakes in America, stakes which would rather not be let go of, much less become financially problematic to corrupt people.
Something about a big club?
As usual, "market" "participants" are oblivious:
Is it just me, or does anybody else get annoyed when hearing the mainstream media or the wannabe alternative media saying "fearless investors sold treasuries today because of falling blah, blah, blah" or "cautious traders sold gold today because of rising blah, blah, blah", as if our markets continue to resemble some scene out of an overplayed 1980s movie about the stock market?
I have been looking for a rise in yields in the short-term:
A rise in yield does two things this week: It helps maintain the illusion the Fed is getting ready to "fight inflation", even though rates are artificially low right now and would still be artificially low after Fed action, and a rise in yields gives the Cartel cover to smash the precious metals in a "kick-em when they're down" kind of way.
Lost in the sauce will be the US Dollar:
Which has become a super fragile ingredient that we all must use in our daily lives, but an ingredient which, in my opinion, should not be stocked up on.
Thanks for reading.
Stack accordingly,
Paul "Half Dollar" Eberhart
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