Print till it Dies

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Published : October 11th, 2017
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Category : Opinions and Analysis

The US Dollar has had a wonderful run in its life time. Not too many fiat currencies have had the ability to sustain its usage for as long as this mighty experiment has and all who have reported on this instrument of trade are pretty much pointing to the same outcome that it can’t last much longer.

Today, the US Dollar trade sits at 93.55 down 8.6 points in the early morning on this Columbus Day. Not too long ago the dollar broke thru a multiyear downside target of 91.88 which originally happened in May 2016, just before we all went thru the election cycle and surprise of a lifetime, MAGA! That is until we hit a newer low of 90.795 on Sept 8th, 2017 which was just 1 week before the Triple Witch Roll Over (which includes the rolling over of all US debt as well as rolling out of the G7 currencies).  It is also the end of the fiscal year for the United States Government (Sept 30), and another point of interest, the beginning of the Chinese National Golden Week.

Since these events have occurred we have witnessed nothing but a lull in all things trade-able. We even had an eclipse that covered almost all of United States and since that event, our side of the planet has had numerous catastrophic weather events surrounding the “New World” with the USA, Mexico, Cuba, The Virgin Islands, Puerto Rico, Tortola, and countless other islands. These people living in these areas have had life altering changes in infrastructure and livelihood, yet, when it comes to the markets, all we get is float.

Hundreds of billions of dollars (and possibly topping a trillion) have been lost in all things from daily life to all the jobs that are needed to have one. Yet, our stock market has done nothing but continue to rally as if the consequences that have affected millions of citizens no longer matter. What are we watching here in the markets when we have so much at stake and yet nothing works like it did in the past?

We can go back to when the Working Group on Financial Markets came into play and start there because the sole purpose for the creation of the “un-recordable and no transcripts to review” team of bankers, was to make sure the stock market would never have a major correction again that would wipe out traders on the wrong side. But then again, this creation was simply another support mechanism created to hold up the Dollar value after the Federal Reserve was created 75 years before and only 17 years after Nixon removed the dollar from its peg on gold. What we may be witnessing is the complete separation of all things humanity from the markets. Can it be that the market makers have finally made a market that no longer matters to you and me? The answer of course is yes because all emotions have been negated.

Gold, the money of kings and kingdoms, is still sitting just below $1,300 with no possible chance of going higher while the Working Group continues to vibrate without anyone else knowing what they are doing or how they do it. Silver, the money of the people, is under the same influence and is still below $17. These 2 commodities use to be the barometer in which investors could measure the amounts of money being printed and the fears generated by governments run amuck but that too is no longer working.

We watch Open Interest in the precious metals, we watch deliveries, we keep an eye on production numbers globally but these stats point to shortages in the products yet the prices remain stable. What gives? One thing for sure, it’s not a reality we can live with for much longer.

Many of us have already gotten out of the financial system and have made the purchases of the physicals and we keep accumulating the physicals. But not everyone has heeded the words of those that are standing up to the giants of fiat, in fact, we prepares are very few compared to those stuck within all things fiat.

We have no choices anymore when it comes to the future. Our nation has to print because the damages caused by the hurricanes and floods will drain what is our stock market and this drain will go against this working group full force. In other words, they have a problem and it consists of Houston and a bunch of islands and flooded lands.

We also have to note that those jobs that used to be on the islands as well as the flooded areas are no more. Puerto Rico has 3.5 million people living on that island and if one is not in construction or repair work, there is no jobs to go to. No income taxes being generated, nor sales taxes being processed, only unemployment and sickness abounds in full force. These people have to be sustained and the financial infrastructure of a whole island will have to be put to use in order to get these people working and prospering again. What will the real numbers be in total, and how much of this money will be extracted from positions within the financial markets and how much more has to be printed to cover other unknown costs?

This is where we are right now, in a form of limbo waiting for the markets to give us an answer yet, the S&P is higher, Dollar is flat, and Silver and Gold are still sitting at the prices quoted earlier. Nothing indicates an emotion at all.

With these issues facing us, we also have to look at the other nations on this crazy rock to see what they are doing. Mexico went to the most recent BRICS gathering making arrangements with the other nations working hard to remove themselves from the G7 Swift System of Terror and now we have Saudi Arabia buying weapons from Russia and selling Oil in Rubles and Yuan. Venezuela as well has also refused to use the US Dollar for any purpose. How many more are leaving the Swift System?

Silver and Gold have been held back with such force and under the Working Group on Financial Markets it is almost believable (almost) that the prices will never rise. That was till this past month passed now the “planners of print” have no other choice but to print more and more at the same time they also are forced to let the markets find equilibrium in all things physical.

Yes, the dollar is the issue and this issue is about to expire into the realms of failure as all the other fiat currencies eventually hit their true number, zero. When the failure is finally admitted within the media folds, it will be too late to purchase anything on the cheap like our beloved Silver and Gold and we will finally see the emotional reactions of a failed game called Print till it Dies.

Stay Strong

J. Johnson

Data and Statistics for these countries : Cuba | Georgia | Mexico | Russia | Saudi Arabia | Venezuela | All
Gold and Silver Prices for these countries : Cuba | Georgia | Mexico | Russia | Saudi Arabia | Venezuela | All
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Andrew Hoffman was a buy-side and sell-side analyst in the United States (including six years as an II-ranked oilfield service analyst at Salomon Smith Barney), but since 2002 his focus has been entirely in the metals markets, principally gold and silver. He recently worked as a consultant to junior mining companies, head of Corporate Development, and VP of Investor Relations for different mining ventures, and is now the Director of Marketing for Miles Franklin, a U.S.-based bullion dealer.
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