America has been going through one rough week.
The saying, "out of the frying pan, into the fire" comes to mind. That is to say, just as more and more cities and states across the United States begin the challenge of opening back up and trying to bring their economies back to life, America, as a whole, takes a turn for the worse.
Unprecedented unemployment update, 40.8 million US citizens have officially lost their jobs over the last two and a half months to time. That's like 1/4th of the working population.
Do you know when the last time only 60.2% were working for a living was?
Interesting things are happening in the gold market, and many explanations for what's going on are equally valid.
For example, some may say "gold is consolidating in preparation for its next move higher". This is valid as the paper price of gold has basically traded between $1,700 and $1,750 since mid-April...
We are now in the crosshairs of a mega debt deflationary bankruptcy phase.
Some of our forefathers helped us understand how this cycle operates, they lived through the last one...
Last Wednesday, the price of silver had a closing price of approximately $15.75, and this morning, in the pre-opening bell hours, silver is poking its head above $18.
That's a surge of nearly 15% in one week!
What has happened over the course of the week that's giving us an impressive move in the price of silver?
It comes down to many factors, and here are two that are noteworthy: The increased uncertainty regarding the markets and the economy, and the ongoing US Treasury Secretary Steve Mnuchin & Fed Chair Jerome Powell reassurances to the public and to Congress...
Back in late 2008 we had a $1.3 trillion injection of monetary stimulus in 70 days and the price of silver went parabolic for the next 2 yrs.
This time in 2020 we have a situation where...
Over the course of the last week, there have been several economic data releases and market events that have all been historic in nature.
For example, on Friday, we learned that over 20,000,000 people lost their jobs in the month of April alone. Also, last Friday, the market's Implied Fed Funds Rate went negative for the first time, ever. The record-breaking didn't stop on Friday, however. For example, just yesterday, Tuesday, May 12th, core CPI crashed by the most ever, and we also learned the US Federal government racked-up the largest one-month deficit in April, coming in at nearly $750 billion, which means three-fourths of a trillion dollars was added to the US National Debt, in just one month!
When our brains get confronted with gigantic numbers and overwhelming data, it tends to shut down and or fall woefully short comprehending what it's being confronted with...
To nobody's surprise, varying degrees of bad economic data and reports continue to be released.
Interestingly, however, it seems market participants don't quite know what to do with the news.
For example, there have been around 30,000,000 people who have lost their jobs in recent weeks, averaging about 5,000,000 new, initial unemployment claims filed, but last week's Department of Labor News Release showed initial unemployment claims were under 3.8 million...
The Fed has already made unprecedented moves to bolster liquidity both amid this viral pandemic and also leading into it, for many months before it was reported in Wuhan, China.
