March 18, 2020
The Miles Franklin Newsletter
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From The Desk Of David Schectman
Jay Powell Shows New Fed printing strategy if QE doesn't work -- Richard Saler
They're printing future toilet paper anyway, so they might as well print the real thing, as there's a fortune to be made in this commodity right now. "The Fed's Fluffy Fiat"...in the paper business since 1913.  Kind of catchy, don't you think?
 
Central banks have exhausted almost all their usable ammunition under existing rules yet still failed to calm markets or to unfreeze critical parts of the global financial system.
 
This moment what we all feared. The danger now is that global recession -- it is no longer "if," as we are weeks into it already -- will morph into something more intractable: a deflationary depression with a wave of defaults that breaks the capitalist system as we know it.
 
So, what can be done? Let me take an instant stab. Either the rules are changed fast or we risk uncontrolled global liquidation. The Federal Reserve must be unshackled to act as a buyer-of-last-resort for the corporate debt markets, for great swaths of the credit system, and for Wall Street equity indexes.
 
The European Central Bank must acquire powers to act as a genuine lender-of-last resort for eurozone sovereign states. It must do exactly what Christine Lagarde refused to do when she blurted out last week that "the ECB is not here to close bond spreads" -- an expression lifted word for word from the German board member, Isabel Schnabel, which tells us who is in charge of that institution in the post Draghi era.
 
This must be backed by a fiscal blitz even greater than in 2008-09, with pledges to "socialize" the drastic losses faced by industry and private firms. What was done for banks last time despite misconduct must now be done for others.
 
There must be tax holidays, sweeping state guarantees for firms, credit forbearance, a temporary suspension of mortgage payments (pushing out the maturity), and moral hazard be damned -- all under the umbrella of financial repression.
David's Commentary (In Blue):

This is good news. The economy will recover and stocks will rebound as they always have in the past. How could I have doubted that?
Time Heals All Stock Market Wounds
By Teeka Tiwari, Editor,  The Palm Beach Letter
Friends, I want to talk to you today about the monstrous volatility ripping through global markets.

I’m not going to insult your intelligence and sing kumbaya in your ear.

Make no mistake: We investors are getting brutalized.

What you do next could be the difference between retiring on time or working an extra five to seven years.

That’s why this could be the most important essay you read this year.

Here is the ugly truth: The coronavirus is NOT like the flu.

It’s anywhere from 10x to 40x more lethal than the flu.

If you’re young and healthy… chances are, you’ll be fine.

But for the over-60 set – and folks with certain preexisting health conditions – the mortality rate skyrockets.

The virus has infected over 190,000 people in more than 150 countries. And the World Health Organization has declared the outbreak a pandemic.

It’s estimated we won’t have a vaccine for 12 to 18 months. In that time frame, hundreds of thousands of people – perhaps millions – could die from COVID-19.

So, I want you to take this very seriously. But I don’t want you to be paralyzed by fear.
So, this is our current reality. Make no mistake: It will slow the global economy.

Here is the key message I want to share with you: The economic slowdown from the coronavirus will be temporary.

Humans have been dealing with pandemics since the dawn of civilization. But somehow the wheels of global commerce continue to grind on.

What we’ll experience is a one-time demand shock to the global economy. Corporate earnings will crater… People will lose their jobs… Economic growth will stall.

There is no doubt about that.

Wall Street knows this. It’s readjusting stock prices accordingly. But it’s nothing to fear, because it’s temporary.

Let me repeat that: The earnings and economic slowdowns from the coronavirus are temporary.
Teeka is right, but if this rages on for 18 months the stock market could be down 90%. He is building a case that it is safe to own or buy stocks because they will come back. Maybe, but when and from what level? 18 months of economic stagnation will absolutely kill the stock market. This will be temporary he says. Sure, but what exactly is “temporary?” A few months? How can that be when he acknowledges that we are 18 months away from a vaccine. How about “temporary” turns out to be two years. Can we ever recover from the ashes of a two-year economic shutdown? Come on Teeka. You know better than that. I expect more from you.
He then goes on to say , Remember the lessons of 2007-09. Please do not make long-term decisions based on short-term facts. And the fact is, while the economic and human fallouts from the coronavirus are very serious… they are temporary.
Do you really think this is like 2008-09? How? 2008 was a financial crisis that could be rescued with money. A bunch of trillions from the Fed and the damage was reversed -quickly, plus the money went to the banks, who were the big losers then. Money won’t cure the virus. What about all the small businesses who will never reopen? Jobs that will never be replaced? This is so different how can anyone take that position, let alone someone as smart and savvy as Teeka? He isn’t the only one singing this song. I am a music expert and I say they all are singing OUT OF TUNE. 
 
O.K. he makes a living recommending stocks and bitcoin and other investments, I get it. And I make a living selling gold and silver. We all have our motivations, but at some point, the truth will prevail, and anyone betting on a fairly quick recovery of our economy and a quick rebound in the stock market is looking at a whole different set of data than I am. If I had to take anyone’s advice at this point in time it would be Egon von Greyerz, who says The Demise Of The Financial System Is Imminent. (see his article below) I love his information – I could have written it myself – come to think of it, what he is saying is exactly what I have been saying for a long time. How long? Long enough that my best friend just told me “Everyone has to be right at least once.” I think that was a backhanded compliment. Yes, but this is THE ONCE that counts. He forgot about how right I was from 2000 to 2012. I guess I was right twice, not once. 
 
Before the onset of Covid-19 I expected that we were headed toward a deflationary Depression. Like the 1930s. It was not far off. But now, everything is different. We are headed for a hyperinflationary Depression. And that’s the worst kind. That’s the environment that allowed an unemployed nobody, a no talent painter, to become the Fuhrer of Nazi Germany. Hyperinflation in Germany in the 1920s was so destructive that the most intelligent and educated people in Europe (the German people) could flock to his rhetoric. It was the Jews who lost the war for Germany. It was the Jews who were responsible for the hyperinflation. Actually, it was the Versailles Treaty that forced Germany to deal with such a heavy debt load that it forced the Weimar Republic to print so much money to pay for the war reparations that it destroyed their currency. By 1923 it was totally worthless. I don’t expect the dollar will ever be totally worthless, though measured against gold, the dollar has lost over 95% of its value in the last 100 years. That’s pretty close to worthless. 
 
We have lived through decades of manageable inflation, but hyperinflation is a whole different animal. Argentina, Venezuela, Zimbabwe, and all the countries who print money to buy their bonds know exactly what it is. Prices start to increase so fast that as soon as people get their pay checks, they rush out to spend it, immediately because tomorrow it will buy less. A friend of mine who was in sales and marketing for Minnesota Mining was in Argentina in the 90s. He was a car fanatic and he told me when he went into the luxury car dealership where they sold Ferraris and Lamborghinis the dealership had a blackboard on the sales floor with the prices and they would change them several times a day. That, my friends, is hyperinflation and that is what happens when the central banks print unlimited amounts of money to buy the country’s bonds.
 
What is frightening is that the Fed has already signaled that they stand ready to bail out anyone and everyone, from banks to hedge funds to corporations and even send money to everyone in America who is not a millionaire. (check out the three Zero Hedge articles at the end of the newsletter.) Isn’t this Alan Greenspan’s dropping hundred-dollar bills from helicopters? Yes, it is. As many as it takes, but no matter how many they distribute they will not succeed in repairing the damage. It is too big to paper over. And when the central banks and sovereign wealth funds stop buying our bonds, which are paying virtually no interest, and our currency is being debased to the tune of a few trillion a year, which is where we are headed, the buyer of last resort is the Fed. The Fed will buy the bonds. That is monetizing the debt. That is hyperinflation. Welcome to the new world of hyperinflation. It is just around the corner. Gold is smiling. No one else will be.
 
You will not understand the future, this time, if you try and understand it by looking at the past.
 
Here is an Email I sent to a friend of mine from my high school days. He is very successful and very bright, and also very mainstream.
LR,
 
You are smarter than virtually anyone I know. You are very successful. But I have come to the conclusion that you have a big blind spot. Up until now, you have been able to see things clearly by looking back and basing your views of the future by looking at the past. What is happening now has no precedent in our history. We are sailing in uncharted waters. Really, it all started in 1971 when Nixon took us off the gold standard. Since then we have created the mother of all debt-base credit-induced bubbles. The sound you just heard was the bubbles popping. I can sum it all up in two words: We’re screwed.
 
Using your past experiences no longer works, my friend. In the past few weeks, the world has changed forever. The past will no longer guide you to the future. No, the coronavirus is not the cause. It is merely the pin that broke the bubble(s). The world is now Humpty Dumpty’s eggs. It can never be put together again. If you don’t understand that or believe that then there really isn’t much I can say. I have given you a very advanced way of seeing the world and everything I have told you is coming to pass, right before your eyes - It is here. The speed of it even shocks me.
 
Our prosperity since the end of WW2 has been based on a strong dollar (which is about to end) and unlimited credit, which fostered ridiculous bubbles in real estate, stocks, bonds, in most financial assets. It all should have come apart in 2008, BUT since the problems were mostly FINANCIAL, they could be minimized with many trillions of dollars and uncommonly low interest rates. The world moved ahead on credit and debt, multiplied many-fold with Derivatives (1.5 quadrillion worth). 
 
It all works until it doesn’t. The virus pricked the bubble and now the financial markets around the globe are in turmoil. You have to ask yourself if they will it ever work again, and if they do, chances are it will not be in our lifetimes. You don’t believe it? Probably not, based on the way you are wired. But what worked for you in the past no longer matters. This is a new world. Eventually things will normalize but not for maybe a decade or longer. If the stock market doesn’t fall by up to 90%, I will be surprised. Everything will be decimated in a deflationary storm that all the Fed’s money and negative interest rates will not be able to stop. And out of the ashes a very destructive deflation will arise a devastating hyperinflation. Think of Weimar Germany after WW1, when they went from depression to hyperinflation. In just two years the currency totally collapsed. By 1923 it was absolutely worthless. When governments print, print, and print to fight deflation (depression) hyperinflation is the result and that destroys virtually all wealth - except gold, silver, diamonds, etc. Tangibles survive, paper investment do not.
 
The few surviving banks will own everything, at pennies on the dollar, just like they did here in the Great Depression.
 
I am not wrong. The Greyerz article below is brilliant in its simplicity. This is the new world. Embrace it. Change with it. Or not.
 
No one you know will talk to you like this or at this level. Believe it or not. I have said all I can say. I have to believe you are savvy enough to understand the logic in my position. It is not doom and gloom - it is seeing things as they are.
 
I am not afraid of the future. I am well positioned to navigate through it. I am healthy. I have a great wife and family. My assets will not only survive this, they will thrive. We have never experienced business like this in the 35 years we have been around. The phones never stop ringing. Millions and millions of dollars of gold and silver are being taken off the market by the few who do understand what is happening. All we need is a few hundred savvy clients and we do fine - and they do fine too. We have a few thousand and it is growing by the hundreds every day now.
 
When 20% or more of all the businesses in Europe and the US go bankrupt, due to shutdowns from the virus, and the banks are hit with all the losses, credit will dry up and the economy may never recover, or if it does it will be years or decades. Think of our Great Depression, but on steroids. And by the way the only reason we got out of the Great Depression was because of WW2. I fully expect the problems I am talking about will lead to WW3. God help us.
Egon von Greyerz

THE DEMISE OF THE FINANCIAL SYSTEM IS IMMINENT  

“Next five years is not about winning but surviving.” This is the headline of an article I wrote in early August 2019. At that point I was primarily thinking of economic survival. But now the world is facing multiple threats and multiple failures. As I have already stated, the Coronavirus is not the cause of global market crashes but the catalyst.

But even if I have been totally certain that the world will see an economic collapse greater than any crisis for 100s of years, this is the worst catalyst that anyone could have expected. Yes, a global virus was always one of the potential risks but of all triggers, this one was certainly the most unwelcome and horrible.

CORONAVIRUS IS FAR MORE SERIOUS THAN THE WORLD REALISES

Before I talk about markets and gold further on in this article, I will mention some of the horrific effects that are now hitting the world due to Coronavirus. Just to summarize that my market views haven’t changed.

Stocks will go down by at least 90% from here and gold will surge to levels that few can imagine.

No one knows the extent of people affected by the CV. China has never given us the real figures. And the rest of the world hasn’t got a clue where they stand. Every country thinks they are in control of the situation until they panic. Outside of Asia, poor Italy got it first and there we have seen an exponential growth of the number of people affected. And still, in Italy like in most other countries, they haven’t got a clue how many people have been infected.

Same in the UK, US, Sweden, Switzerland, Germany and most other nations. No country has the capacity to test a fraction of the population. You hear from most countries that when people have the symptoms, they are just told to stay home. So, the real numbers are certainly 10x greater than reported or much higher. Somebody forecast that 70% of the world will be infected and that doesn’t sound improbable.

DOCTORS AND HOSPITALS HAVE NO CHANCE TO COPE

And as Italy discovered, there is not a fraction of ventilators available that are required to treat the seriously ill. There is on average only 12 critical hospital beds available per 100,000 in the EU. The EU has 500 million people. If the estimate of 70% becoming infected will be correct, that would be 350 million will get CV. Say that 10% need a critical hospital bed. That is 35 million people who would need to share 60,000 critical beds available. I am sure that the US figures for critical beds available are no better but probably much worse. No wonder Italy’s health system has no chance to cope with the situation as we have seen from many reports and nor has any other country.

EUROPE IS SHUTTING DOWN

Any government and health authority just needs to look at Italy to understand how quickly Coronavirus spreads. But every government, including the US and UK, think that they are different and are therefore totally lethargic and irresponsible in their actions to fight the disease. In the winter, I spend time in the Swiss Alps. On Friday the 13th, the Swiss government decided to close all ski resorts and all schools. Many European countries have closed their borders like Poland, Czech Republic, Denmark, Slovakia and Malta.

Italy is totally paralyzed with virtually everything closed. Shops, except for food and pharmacies, major part of industry, hotels, restaurants, schools etc. are all closed. I have heard from Italian friends that they are just shutting their businesses since there are no customers. How tragic.

Spain is starting to close a major part of the country including the whole tourist industry.

Most European countries are likely to follow although they are too slow to react swiftly.

And so is the US who still hasn’t understood how serious the situation is.

If we just take Italy as an example since Corona is more advanced there than in any other country, it is a total disaster for this great nation. Italy has wonderful culture, history, heritage, food and people. But the country was already on its knees before this crisis. The economy is broken and so is the financial system. Much of this is due to the EU. I have difficulties seeing Italy coming out of this intact. But sadly, the same thing will happen to Greece, Spain, France, Germany, the US, the UK and most other nations.

SMALL BUSINESSES DON’T EVEN HAVE CASH FOR 2 WEEKS

For a world economy that is totally dependent on credit to the extent of $265 trillion, what is happening is a total disaster. Small business will not have cash to survive for even a couple of weeks. Same with ordinary people. Virtually nobody has any savings, only debt.

Many are being laid off already. The airline industry was extremely weak before the crisis. Norwegian Airlines has already made 50% of staff redundant. The tourist industry with its thin margins is collapsing. The same is happening in a great number of industries.

The banking industry will not survive the next phase but will initially be the beneficiaries of massive global money printing.

MARKETS

What is now happening economically in the world was totally predictable even though the catalyst was not the most obvious one. But what is not obvious for 99.5% of investors is what will happen next. And for most people, it is of course impossible to understand a market that can go down 2,000 points in one day and up 2,000 the next, like the Dow. This is obviously totally illogical and irrational behavior. With High Frequency Trading and irrational investors creating a lot of this volatility how can we expect markets to behave in a logical manner. And more importantly, with dip buying investors having been supported by central banks for decades, it has been impossible to lose money.

But those days are now over even if after Friday the 13th 2,000-point Dow rally, the false optimism will return for a day or so. Sadly, anyone buying the dips in the current market is going to be burnt for years.

Let me summarize how I see markets in the short and long term.

STOCKS

Stocks globally have topped and crashed as I forecast in January and February. See my articles:



We are now facing a secular bear market which will last for at least 5-7 years. The economy will be in a recession and depression for much longer than that.

There will of course be volatility on the way down with major pullbacks. But there is absolutely no question that all stock markets will decline by 90% or more in coming years. There will of course be violent corrections up, like we saw last Friday, often assisted by the Plunge Protection Team in the US and similar in other countries.

GOLD

Often when a crisis starts, the public focuses on the wrong area. Thus, shops both in Europe and the US have run out of toilet paper. Yes, toilet paper is useful in the short term, but history has taught us that in the medium term, as hyperinflation ravages, gold will be much more important to own. For the very few Venezuelans who understood this 10-20 years ago, it saved their lives.

Let me categorically state that  there is no shortage of gold, YET.

Some gold dealers are reporting that they are running out of stock. There was a recent article on Zerohedge on this subject by a Singapore dealer. Precious metals dealers who mainly deal in retail quantities are probably running out gold and silver coins.

But as we are based in Switzerland where 70% of all the gold bars in the world are made, we can state that there is currently no shortage of physical gold at the wholesale level. There is ample supply of gold bars currently from the Swiss refiners. But there is high demand for smaller retail bars.

That is the good news. The bad news is that this situation is not going to last long. As we know, the gold price is set in the paper market currently. And when global markets panic, many speculators in paper gold sell their positions for liquidity reasons. This gives the manipulators, with the BIS leading the exercise, a chance to push gold down $100 on a Friday afternoon in Europe over a 3-hour period like they did on Feb 13th. The BIS and their lackeys, the bullion banks, clearly wanted the opportunity to pick up gold at bargain prices before the real rally starts.

STOP PRESS

Due to Coronavirus, the Swiss refiners are now cutting down on production as they must reduce the work shifts. At some point it is possible that production must shut down completely. At this stage decisions are taken from day to day. This is likely to lead to shortages of both gold and silver in the short to medium term.

GOLD IS AT THE VERY BEGINNING OF A LONG-TERM BULL MARKET

Let’s be very clear. Gold is at the very beginning of an extremely strong long-term uptrend.

Current volatility is just temporary due to global conditions. This will soon change. The state of the world economy and the extremely precarious financial system guarantees that.

Coronavirus is the catalyst and not the cause of the coming economic and financial collapse. The trigger could have been any event such as a credit default or a bank in trouble. But unfortunately, Murphy’s law prevailed and anything that could go wrong did and also at the worst possible time.

I have for years warned about the risks in the world economy and most recently that a market collapse was imminent as I mention above. This collapse has now started. I have also stated that gold will surge and this is still to come. There is absolutely no doubt in my mind about this.

The current correction in gold could last a bit longer and at worst go down to $1,450 where the price was in November and December 2019. But that is not my preferred scenario. At some point soon, I expect gold to turn up strongly on its way to new highs, also in US dollars. In all other currencies gold has already surpassed the 2011-12 highs.

CENTRAL BANKS ARE GOLD’S BEST FRIEND

I have for many years stated that the Central banks are gold’s best friend. Sure, most CBs prefer to hold gold down since a high price reflects their mismanagement of the economy.
But unlimited money printing, especially since 2006, is the best support gold can ever get. Incessant printing of worthless currencies has zero positive effect on the economy but a massive effect on gold since it debases the value of paper money. Due to suppression, the price of gold is not reflecting the total effect of this, but will very soon as central banks start the next phase of accelerated money printing.

Back in late August 2019 I stated the central banks were starting actions that were similar to August 1971 when Nixon closed the gold window. In August 1971, China was the only country to realize the effects of Nixon’s actions:

“ These unpopular measures reflect the seriousness of the US economic crisis and the decay and decline of the entire capitalist system.”

The above quote is from the People’s Daily in China in Aug 1971.

CHINA HAS 20,000 TONNES OF GOLD AND THE US VERY LITTLE?

Since then the dollar and most currencies have lost 98% against gold and global debt has exploded. The Chinese saw it clearly then and that’s way the Chinese government has probably accumulated gold of at least 20,000 tonnes whilst the US probably has very little left of their official 8,000 tonnes. How right the Chinese were already 50 years ago. And the world is likely to find out who really holds the gold and the power in the near-term future.

The Central Banks around the world started panicking already in the early Autumn of 2019 with Repos and QE in the $100s of billions. Major parts of the world are today in total lockdown due to Coronavirus. No one understands or can estimate the effects of this. But what we can say with certainty is that a world which was already very fragile economically and financially before the Virus, will suffer immeasurable financial and human consequences due to the CV.

$1.5 QUADRILLION OF DERIVATIVES ARE NOW AT RISK

With economic activity virtually shut down in many countries and more certainly to follow, like the UK and US, the amount of money printing coming will be endless and of unimaginable quantities. It will start in the $ trillions, but as the banking system comes under pressure, it will grow to $10s of trillions. When one day Deutsche Bank, with $50 trillion in derivatives, comes under real pressure, which is not far away, the Bundesbank and ECB will have to print in the $100s of trillions. Remember that counterparties will fail simultaneously and JP Morgan for example also has around $50 trillion in derivatives. And soon at least $1.5 quadrillion is at risk when all counter parties fail.

The collapse of the banking system might not be in 2020 but once it unravels, Central Banks have no chance of stopping it but they will still use the only tool they know which is unlimited money printing. As I have said many times, YOU CANNOT SOLVE A PROBLEM WITH THE SAME MEANS THAT CREATED IT IN THE FIRST PLACE. Thus, the money printing will fail, but before that many clueless investors will buy stocks again before the next big fall.

THE BOND MARKET WILL NOT SURVIVE

I must finish this newsletter now since it must be published. The bond market is the biggest danger globally combined with the derivatives. The artificial manipulation of interest rates might last for some time yet. It could go on for a year but the bond market might also collapse tomorrow. There is so much junk and so much bad debt in the system that it would be surprising if Central banks could maintain this charade for much longer.
Thus, the bond market will default and collapse at some point not far away. The question is only when. What is certain is that investors will soon start bailing out. And as Central Banks accelerate money printing, they will be the only buyer of their own junk debt. The end of the financial system as we know it today is guaranteed. Its demise is imminent.

THIS TOO SHALL PASS

But please remember that This Too Shall Pass. The world will have difficult times ahead for some time. It is obviously made worse due to many people, and especially the old, being isolated. Still we have phones, FaceTime, Skype, Zoom etc. so it is still possible to keep in touch with our loved ones and friends. At some point in the next few months Coronavirus will hopefully weaken and we can then function better. 

The financial implications will last a lot longer and the world will have to get used to a much lower level of economic activity. But as I have stated many times, there are so many wonderful things in life that are free – like family friends, nature, books, music, television etc. Hard times bring people closer together for as long as we have a roof over our head and enough food to eat. 

PS Italy just reported a 20% increase in CV cases in one day. Italy is sadly the model for the world. I implore everyone to be extremely careful and self-isolate themselves. Doctors and hospitals will not have the capacity or the tools to help us all.

2)  VIX closed at a record high  - higher than the highest close during the Great Financial Crisis...
Ed Steer
 
As has been the case ever since the Big 8 traders began these engineered price declines, not only are they buying every long contract that they can get their hands on in the COMEX futures market, they are also buying precious metal mining shares hand over fist -- and that was more than obvious on Monday. I would suggest, as I did on Saturday, that the bullion banks and their ilk in the deep state own a sizeable percentage of every major precious metal producer out there.
 
Well, the commercial traders were busy boys and girls yesterday. Not only were they buying up every COMEX long contract being offered up by the non-commercial and small traders, they were also buying every precious metal-related equity that was being sold out of necessity, or panic -- and then some.
 
As for these [non-commercial] Managed Money, Other Reportables -- and Nonreportable/small traders, they were puking up long positions by the truckload on one hand -- and going short with the other.
 
'Da boyz' blew the gold price down through its 200-day moving average like a hot knife through soft butter by almost 50 bucks intraday -- and they also closed gold below it as well. As I said earlier, Ted said that one should never underestimate the treachery of the Big 8 shorts when their financial backs were against the wall. He was right about that, as he is about most things.
 
And silver, from its almost $19 high on February 24, they had it down $7+ from that mark intraday on Monday -- and closed it well over four bucks below both its 50 and 200-day moving averages. 
I can absolutely guarantee you that there's not a single solitary technically-oriented Managed Money long position left. The only Managed Money traders still long will be the non-technical types -- and we'll get a look at what's left of them in Friday's COT Report.
 
Well, the commercial traders were busy boys and girls yesterday. Not only were they buying up every COMEX long contract being offered up by the non-commercial and small traders, they were also buying every precious metal-related equity that was being sold out of necessity, or panic -- and then some.
 
As for these [non-commercial] Managed Money, Other Reportables -- and Nonreportable/small traders, they were puking up long positions by the truckload on one hand -- and going short with the other.
 
'Da boyz' blew the gold price down through its 200-day moving average like a hot knife through soft butter by almost 50 bucks intraday -- and they also closed gold below it as well. As I said earlier, Ted said that one should never underestimate the treachery of the Big 8 shorts when their financial backs were against the wall. He was right about that, as he is about most things.
 
And silver, from its almost $19 high on February 24, they had it down $7+ from that mark intraday on Monday -- and closed it well over four bucks below both its 50 and 200-day moving averages. 
I can absolutely guarantee you that there's not a single solitary technically-oriented Managed Money long position left. The only Managed Money traders still long will be the non-technical types -- and we'll get a look at what's left of them in Friday's COT Report.
 
With every one of the Big 6 commodities now engineered in price well below their respective 200-day moving averages, all we can do is await their next rallies. That will occur when the powers-that-be allow it -- and not a moment before.
 
What JPMorgan et al. have in store for us, I don't know. But with the non-commercial and small traders most likely blown out of their net long positions -- and most likely now massively short, the stage has never been more carefully set for some sort of sea change in the world's financial system. It's Ted's of the opinion that the Big 8 traders will be no-shows when the next rally commences in the Big 6 commodities -- and the traders holding short positions will blow the price sky high in what will immediately evolve into a 'no ask' market. Then we'll see upside price moves that will take your breath away.
 
The reason that's possible is because there are no daily trading limits in gold and silver in the COMEX futures market currently...none, zero, nada. So, it can rise  any  amount on any given day -- and most likely will.
 
Yesterday's price action in the precious metals and their associated equities certainly looked like the bottom is in for all four, although the jury might still be out on gold. 
 
U.S. Mint  sales exploded yesterday, as they reported selling 40,000 troy ounces of gold eagles -- 9,500 one-ounce 24K gold buffaloes -- and 747,500 silver eagles.
Here are several Zero Hedge articles that tie in with my opinion’s expressed at the beginning of the newsletter.
Zero Hedge
 
 
"As many as 80% of the population are expected to be infected with Covid-19 in the next 12 months, and up to 15% (7.9 million people) may require hospitalization."
 
 
In short: bail out everyone... everywhere.  
 
 
...without action, the US unemployment rate could spike to a stunning 20%.
 
 
"Think of a number, then double it."
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Miles Franklin
801 Twelve Oaks Center Drive
Suite 834
Wayzata, MN 55391
1-800-822-8080
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