Which on main street and within this fragile financialized system will get bankrupted or bought out dimes on the devaluing Fed notes?
Perhaps you thought the IMF SDR might be the mechanism to come in and hollow us out?
Maybe later, but for now, perhaps we need to think again.
A true economic depression has unfortunately arrived not just here in the USA but around the world.
In this latest economic crash, our supposed political leaders' response has once again laid bare unpleasant present-day truths about the United States.
An emergency bill signed into law today, supposedly to help main street victims suffering from this ongoing economic lockdown, has unfortunately illustrated yet again that our fiat financialized overlords have effectively captured our government by proxy.
Yea, that statement sounds hyperbolic, but these are extraordinary times.
Much of the data and the facts are shocking in their scope.
And we will cover some of them in the video you can watch above.
Late last week, we surmised from available data at the time, that the weekly unemployment number coming in would be a figure so large, it would dwarf all others throughout this full fiat currency era.
And even with state unemployment websites crashing, over 3.3 million individuals filed for employment
That number blows away all domestic data records
In the video check the over five decades of context. This represents more than just a chart or some data record.
Our collective condolences and prayers go out to the many many millions of people out there who have lost their jobs in this crisis.
Just two weeks ago, we asked and wondered aloud, what US Treasury Secretary Steve Mnuchin meant when he parakeet the words “Unlimited Liquidity” on this stock market cheerleading channel.
See the former Goldman, robo-foreclosure king, and part-time Fort Knox gold auditor, just about two weeks ago as the financial market was panicking.
This past Tuesday, March 24th 2020, National Economic Adviser Larry Kudlow dropped a $6 trillion bailout figure at his press conference.
Interestingly too, he went on to mention by mispronunciation, that the US Treasury’s Exchange Stabilization Fund was going to be kicked into high gear.
Shortly we will dig into why his last comment was a lie, but before we do a bit more information on the Exchange Stabilization Fund.
This screenshot is taken from the US Treasury’s website.
The ESF is a supposed stabilization slush fund, one which was born from profits made after confiscating US Citizens gold in 1933 paying them 20.67 an ounce, then arbitrarily devaluing the US dollar to gold months later in 1934 to a then still too deflationary price of $35 oz.
The US Supreme Court then refuted private contracts which explicitly stated the settlement of payments be in gold specie and instead could be settled in paper dollar bill payments instead.
The ESF gives the US Treasury Secretary, with the approval of the US President, the ability to deal in gold, foreign exchange, and other instruments of credit and securities.
This bill represents a potential of over $6 trillion in bailouts. Perhaps hoping to recoup the likely 1/3 of GDP we have already lost in 2020 due to the virus.
Of which, a potential $4 trillion fiat Federal Reserve note slush fund will be under the private and full discretion of both the private Federal Reserve Chairman Jerome Powell and US Treasury head Steve Mnuchin.
Specifically, here we want to focus in on section 4009, which explicitly states that we now have a Temporary Government and that Sunshine Act relief is temporarily repealed as well.
This means that any and all Freedom of Information Act Requests or attempted audits of what this $4 trillion bailout slush fund is up to are all denied.
At the very minimum of either the official end of this state of an emergency pandemic or through the end of this year 2020.
Whichever happens first.
This past Monday morning, financial twitter awoke with this TARP fund bailout clip, errr we meant this once failed homeless politician, now Minnesota Federal Reserve Chairman stressing the unlimited liquify line.
Then many scrolled further down their twitter feeds to find that the FDIC, our nation’s banking system’s supposed insurance backstop, advertising that all is okay and you are safer with your cash in the banking system than elsewhere.
Juxtaposed by that not so reassuring message, long time and legitimate financial journalists over at WallStreetOnParade.com published this chart, reflecting how ill-prepared all US banks collectively currently are for potential ban loan loss write-offs.
The lowest red line here specifically represents potential bank bail-in able megabucks such as Citigroup, JPMorgan Chase, Goldman Sachs, and Morgan Stanley.
Swinging finally now to the worldwide dislocated derivative vs physical bullion markets ongoing.
This chart represents how our bullion market typically operates. This 2020 update shows how things have been operating now for the last month and a half as bullion demand has spiked 5 to 10X at times, essentially clearing out what bullion supply was available for investors.
Backorders and nonexistent bullion products remain a real issue not merely for the retail gold and silver bullion buying public but also all the way to the central bank gold bar buying level.
At least half of the physical gold and silver bullion supplying industry from miners to the largest bullion refiners, to government mints are now shut down indefinitely.
This ongoing bullion shortage situation appears to be as indefinite as our very return to the lifestyles we had before this viral crisis brought us to this economic lockdown depression and financial coup by temporary government decree.
It truly appears that this ongoing and still growing global and domestic viral crisis has now been expeditiously exploited by this freshly signed law bill.
The small checks we might receive in the mail if we did qualify, that will not buy back but a mere fraction of what we are about to lose in our collective faith and credit.
Neither of which is unlimited, nor universal in the mind of humanity.
If and when broken, no decree by mere fiat can make one’s faith of belief return quickly if ever.
There is much more to be discussed in upcoming SD Bullion market updates.
In the meantime take good care of yourself, and those you love.
A bullion buyer years before the 2008 Global Financial Crisis, James Anderson is a grounded precious metals researcher, content creator, and physical investment grade bullion professional. He has authored several Gold & Silver Guides and has been featured on the History Channel, Zero Hedge, Gold-Eagle, Silver Seek, Value Walk and many more. You can pick up Jame's most recent, comprehensive 200+ Page book here at SD Bullion.
Given that repressed commodity values are now near 100-year low level valuations versus large US stocks, James remains convinced investors and savers should buy and maintain a prudent physical bullion position now, before more unfunded promises debase away in the coming decades.