Inflation, Off The Chart ?

Or … Massive Supply Restriction

Use the miss-information and propaganda to your advantage.

The following items are just a partial list of recent inflation, so-called ‘news’.

$3,000 Gold Imminent

Gold & Dollar Soar, CPI Surge

Consumer Prices Soaring …

Gold & Crypto Surge

Transitory” Debate Is Over

That last one … is that like “The science is settled”?

To be fair, there is some truth in the articles. Prices are indeed rising. All types of costs are going up like food, gasoline and on.

Supply Restriction:

Here’s a strange bit of information from an unlikely source.

It turns out that copper (mining) supplies are being restricted in Minnesota. Go to time stamp 2:52, at this link and listen to the next 30-seconds.

Sure, it’s a data point of one but then again, what about all the talk of shutting down sources of oil production?

On it goes. This is supply restriction, not inflation.

It depends on what the definition of ‘inflation’ is.

Here we have one of the usual suspects parroting the now-accepted (but likely incorrect) definition of inflation. Go to time stamp 1:23.

I’m sticking with Robert Prechter Jr.’s definition of inflation and that is: Expansion of credit that causes increased spending that in turn causes demand to rise and then prices rise in turn.

Do we have expansion of credit now … or the destruction (or, soon to be) of credit? That’s called deflation.

Dollar … Still Not Dead

The dollar of course, is the wild-card.

Everybody’s expecting a collapse but darned if that’s just not happening. Actually, the opposite is taking place.

Now, all of a sudden it’s a “Contrarian Trade”. You can’t make this stuff up.

We’re coming up on the one-year anniversary of this post.

It postulated there was potential for a significant, medium-to-long term reversal in the dollar.

Getting The Picture

In a way, the dollar post and subsequent ZeroHedge one-year-later recognition of the obvious, define what this site’s all about.

As stated in the ‘About’ section, not every analysis works out. To borrow a quote from David Weis, ‘Sometimes I’m 100% wrong’.

Presented here are analysis, actions, course changes, attempting to maneuver through the largest economic and population collapse in world history.

The main focus is not to increase followership … although that is happening.

As the follower numbers increase, it’s a good sign that more are becoming aware of how manipulated and controlled is the entire narrative.

One way to separate from the effect of the falsehoods, is to become proficient at reading price action. As David Weis used to say, ‘What’s the market saying about itself?’

Which brings us to the current juncture. Gold

Gold, At A Crossroads ?

The current assessment of gold (i.e. bearish or reversal potential) is similar to the dollar from a year ago.

Different from the dollar, are the momentum (MACD, etc.) indicators … which are currently pointing higher.

In the dollar, there was a bullish weekly MACD divergence helping us along.

Not so with gold (GLD).

What we do have, and what the linked list above provides, is a look into a type of mass hysteria.

The ‘pegging the meter‘ article that came out late Friday caused only a blip higher in GLD and GDX.

If we’re at max persistent inflation already, is there any more upside left?

Stay Tuned

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.

The Danger Point®, trade mark: No. 6,505,279

Deflation = Credit Destruction

Silver Collapse Ahead?

If and when food shipments halt nationwide and there’s nothing at the grocery store, is everyone going to run to gold and silver?

Will that be the savior?

It certainly wasn’t during the ‘Texas Freeze’. Not even on the list of must-haves.

The next planned event(s) are in plain sight for those who can see.

Mega drought in the corn belt (whether real or not), power substation blows up in Houston (that one was real) and planned destruction (or total control) of semi-trailer shipping (also real).

It’s the food supply and infrastructure first; then gold and silver (not advice, not a recommendation).

The Wells Fargo incident; inflation has likely run its course.

The dollar (and bonds) are in strong upside reversals; gold and sliver are (still) inversely correlated to those markets.

Inflation is credit expansion. Deflation is credit destruction. That’s where we are now.

Analysis: Silver

It’s the job of the mainstream financial media to make sure as many as possible are on the wrong side of the trade.

They have done well with the ‘inflation’ narrative.

Uneducated Economist puts it well; price increases are the result of supply constriction not inflation.

Which brings us to silver.

The weekly close of silver proxy SLV, has the ‘short squeeze’ already complete.

Shortages of product, continued inflation pummeling by the press, have not moved the metal higher; that’s the ‘tell’, something’s wrong.

Wells Fargo has kicked off the next round; deflation or deflation impulse.

One has to be prepared; silver may (even if only for a few days or weeks) head down to below where it started the squeeze.

Even to single digits … $9/oz., anyone?

If that happens, it means that gold and silver are being dumped onto the market while everyone’s scrambling for food, water and protection.

Stay Tuned

Charts by StockCharts

Note:  Posts on this site are for education purposes only.  They provide one firm’s insight on the markets.  Not investment advice.  See additional disclaimer here.