{"id":1372,"date":"2020-07-30T19:00:56","date_gmt":"2020-07-30T19:00:56","guid":{"rendered":"https:\/\/www.pbmv.com\/blog\/?p=1372"},"modified":"2020-07-30T19:00:56","modified_gmt":"2020-07-30T19:00:56","slug":"the-big-lie-the-eu-is-fixed-the-dollar-is-dying-and-covid-will-kill-you","status":"publish","type":"post","link":"https:\/\/www.pbmv.com\/blog\/?p=1372","title":{"rendered":"The Big Lie: The EU is Fixed, The Dollar is Dying and COVID Will Kill You"},"content":{"rendered":"

by Tom Luongo<\/a><\/p>\n

Dyin\u2019 ain\u2019t much of a livin\u2019, boy
\n\u2013 The Outlaw Josey Wales<\/p><\/blockquote>\n

The Davos Crowd is desperate. That much has been clear to me for months.<\/p>\n

From the moment they tied COVID-19 to the breaking of the oil markets back in March they have worked like no other time in history to convince us the world we knew was gone.<\/p>\n

\"the_big_lies01.jpg\"<\/p>\n

The latest iteration of this big lie is the all-out assault on the U.S. dollar. Now for months a few analysts like me have been steadfast in reminding everyone that no matter how much money the U.S. prints in the short run, it is only doing so because of the extreme levels of latent and active dollar demand in the world.<\/p>\n

So, there is narrative and there is reality. And reality is that today there is huge demand for the U.S. dollar regardless of what the headlines tell you.<\/p>\n

That said, that doesn\u2019t mean that demand doesn\u2019t ebb and flow. And now that we\u2019re on the other side of the first wave of this crisis period, marginal dollar hoarding has slacked off.<\/p>\n

This is most evident in the dramatic rise in the euro back above $1.17 and the British pound breaking back to challenge $1.30. But in the grand scheme of things these are just relief rallies within primary bear markets.<\/p>\n

\"the_big_lies02.jpg\"<\/p>\n

\"the_big_lies03.jpg\"<\/p>\n

But in the past couple of weeks, coinciding nicely with a massive rally in the precious metals, there\u2019s been a deluge of talk about the end of the dollar.<\/p>\n

It\u2019s easy to dismiss the perma-bears like Peter Schiff who has become a parody of himself at this point. But it\u2019s not easy to dismiss it when all of a sudden Schiff is everywhere, taking the bait to be the guy who will tell everyone that the dollar is going to fail because, you know, money printing.<\/p>\n

And, as an Austrian economist kinda guy, I agree with Peter, I just don\u2019t agree that the dollar is going anywhere anytime soon.<\/p>\n

It may gall him and other Austrians that the dollar can still be so thoroughly debased and still make up 62% of total foreign exchange reserves the world over or still dominate global trade (latest SWIFT Data).<\/p>\n

\"the_big_lies04.jpg\"<\/p>\n

But with China keeping its capital account closed and the European Central Bank holding rates below zero destroying any possibility of anyone diversifying their capital reserves into euros, where else can the big pool of capital go at this point?<\/p>\n

And just don\u2019t tell me gold.<\/p>\n

Because while I love gold, own gold, advocate for gold, gold cannot and will not resume a central place in our monetary system until the day the dollar fails.<\/p>\n

And no one who matters right now really wants the dollar to fail. And that includes the villain-of-the-day, China.<\/p>\n

But it\u2019s not just guys like Schiff or Alistair McLeod who are calling the tune right now. They were joined this week by none other than members of the the International Monetary Fund , the mouthpiece of the Council on Foreign Relations and Goldman Sachs\u2026<\/p>\n

\u2026 but I repeat myself.<\/p>\n

Goldman\u2019s call is certainly reasonable, based on the idea that real interest rates have plummeted sending gold higher as the argument against holding it fails.<\/p>\n

\"the_big_lies05.jpg\"<\/p>\n

But when you have this many big stories planted in the media at the same time just ahead of an FOMC meeting, something is up.<\/p>\n

They have all now called into question the U.S.\u2019s central role in the global economy. This is a concerted effort to push this narrative during a period of extreme dollar weakness. They have tied it to the extraordinary measures taken by the Fed and the U.S. Treasury dept. earlier this year and the likelihood of another massive stimulus bill and\/or bailout package between now and the election.<\/p>\n

And it\u2019s not even that I disagree with them, because I don\u2019t. I just don\u2019t agree that 2020 is the Year the Dollar Failed, no matter how tempting that title is to write.<\/p>\n

Because, as always, you have to ask yourself the questions, \u201cWhy this? Why Now?\u201d<\/p>\n

The answer to those questions, in my opinion, is simple. They are timing this with the fundamental change to the European Union via the EU\u2019s bright new shiny budget and COVID-19 relief plans which were agreed upon by the EU Council last week.<\/p>\n

It\u2019s a simple enough narrative that also neatly coincides with everything else we\u2019re being bombarded with daily. And it goes something like this.<\/p>\n

The EU is Fixed, The U.S. is Fucked.<\/i><\/b><\/p>\n

So given that gold and silver are the most manipulated markets on the planet doesn\u2019t anyone think it\u2019s strange that silver, of all assets, explodes more than $8 per ounce over a three-week period? Climaxing into the end of a delivery month on the COMEX?<\/p>\n

Really? After nearly twenty years of watching the silver market I can tell you that when we see behavior this out of the ordinary it\u2019s because the people who wag the tail of the market dog want it to happen not because they\u2019ve lost the script.<\/p>\n

But I digress.<\/p>\n

Everywhere we look there is another instance of U.S. lawmakers fighting among themselves, like the fiasco hearing with Attorney General William Barr or the pathetic grandstanding over the size and scope of the next massive stimulus bill which will rob savers and future generations of even more wealth.<\/p>\n

It\u2019s Mayor Jenny Durkan in Seattle throwing out the Federal troops there while issuing orders to her police chief to not escalate the violence as the violence on the streets escalates.<\/p>\n

It\u2019s the relentless propaganda trying to create a \u2018second wave\u2019 of COVID-19 to scare us all into staying home, canceling elections, and screaming obscenities at people who won\u2019t wear a useless mask.<\/p>\n

Europeans will play soccer but the baseball games are cancelled because a few players tested positive for COVID-19.<\/p>\n

Meanwhile in Europe, everything is fixed now that they\u2019ve given the European Commission tax and spend powers they don\u2019t legally have.<\/p>\n

But Trump is shredding the Constitution by sending Federal troops to defend Federal property after 50+ days of rioting, looting and trying to set the Federal Courthouse on fire in Portland, Oregon.<\/p>\n

Am I the only one who sees the game here?<\/p>\n

A rising euro, a falling dollar, gold touching $2000, Merkel\u2019s \u201cAlexander Hamilton\u201d moment, U.S. cities burning and the ones not on fire are under siege from his incompetence in handling the virus.<\/p>\n

Economic depression mixed with incompetent leadership is supposed to lead you to lose faith in the currency of that government. That\u2019s the big lie.<\/p>\n

It\u2019s like that scene in Minority Report where they find the guy who supposedly kidnapped Anderton\u2019s son. There was a quote, \u201corgy of evidence.\u201d<\/p>\n

The sheer volume of it is supposed to make you believe a lie because how can you argue with such a vast array of evidence, right?<\/p>\n

And in the curious case of the collapsing dollar I\u2019m Tom Cruise. I\u2019m not throwing the dollar out the window to its death. I\u2019m calling bullshit and saying, \u201cNope I\u2019m not buying what they are selling.\u201d<\/p>\n

I\u2019ll buy that story in a couple of years but I won\u2019t today.<\/p>\n

Just like I\u2019m not buying that I\u2019ll die from the Corona-chan, that hydroxychloroquine and zinc won\u2019t protect me from it or that the EU doesn\u2019t have a whole lotta real work to do before anything in Europe can be reasonably described as \u2018fixed.\u2019<\/p>\n

Look, not to be too blunt about it but the U.S. is approaching screwed in the long run. And that\u2019s nothing but a shame because when I look around the world and I\u2019m not seeing a whole lot of rule of law or even nods to constitutionally-protected individual rights.<\/p>\n

When I talk with readers they uniformly weep for what\u2019s happening in the U.S.<\/p>\n

So, while we may be at a low ebb in this cycle, there\u2019s still a way back from which doesn\u2019t involve complete collapse. That choice has yet to be made.<\/p>\n

Butt forces have been unleashed to make that choice for us, to destroy the United States and its most productive people, of that I have zero doubt. But not all forces are irresistible. Some objects are immovable and when your currency dominates 86% of all global trade that\u2019s not something moving.<\/p>\n

So, ignore the big lie of The Davos Crowd because when there\u2019s this amount of pressure to manufacture a false reality it is more indicative of desperation than omnipotence.<\/p>\n

And there\u2019s a lot more distance along this road to travel.<\/p>\n

~=~<\/p>\n

Join My Patreon<\/a> if you want help navigating the road to the end of the road<\/p>\n

Download and install the Brave Browser<\/a> if you don\u2019t think Google should be directing where that road leads.<\/p>\n","protected":false},"excerpt":{"rendered":"

by Tom Luongo Dyin\u2019 ain\u2019t much of a livin\u2019, boy \u2013 The Outlaw Josey Wales The Davos Crowd is desperate. That much has been clear to me for months. From the moment they tied COVID-19 to the breaking of the oil markets back in March they have worked like no other time in history to […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1372","post","type-post","status-publish","format-standard","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1372","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=1372"}],"version-history":[{"count":1,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1372\/revisions"}],"predecessor-version":[{"id":1373,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/1372\/revisions\/1373"}],"wp:attachment":[{"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=1372"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=1372"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pbmv.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=1372"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}