Foreword:
In the spring of 1352, 100 years before Christopher Columbus began his adventures for the Spanish crown, the villagers in Andalucia, Spain, were blissfully unaware of the impending olive oil crisis.
For generations, they had relied on the versatile liquid for cooking, soap-making, machine lubrication, and lighting.
María Fernández, a local soap maker, and Carlos Ruiz, who maintained the village's olive presses, continued their routines as usual. However, by June, news of drought-induced crop failures spread, causing panic.
Initially olive oil prices collapsed but then the olive oil prices skyrocketed (unfortunately some villagers hastily sold their reserves.)
Antonio López, the village elder, urged calm, reminding everyone of past hardships overcome. Those who heeded his advice and held onto their olive oil stocks were rewarded when late summer rains partially salvaged the harvest.
The moral: patience and resilience often triumph over short-term panic
Understanding the Sahm Rule (Named after FED economist Claudia Sahm) and its implications on the current economic situation is not that important but if you were being whipsawed around the short attention span media cycle you would be led to believe it is crucial.
What in Sahm Hell is this nonsense again? (Remember the Silver Sunday School lesson #4, we should not adopt the language of our oppressors)
That being said, The Sahm Rule recession indicator surged to 0.53 in July from 0.43, suggesting the US economy is in a recession. (That's because two years ago, the Fed and its client, the Biden regime, tossed the old definition into the trashcan. The old definition was having two consecutive quarters of a shrinking economy)
The Sahm Rule signals a downturn once the unemployment rate increases 0.5 percentage points above its previous 12-month low.
The rule was triggered after the unemployment rate jumped to 4.3% in July from 4.1% in June.
Over the last 65 years, the Sahm Rule has allegedly not provided a single false signal, underscoring its reliability as a recession indicator.
Moreover, the unemployment rate surge has been observed to accelerate whenever the Sahm threshold is breached, further demonstrating the rule's predictive power. It's treated like its some Biblical prophecy when this is about as 2nd grade as it gets (NO JOBS MEANS BAD TIMES)
Do you know what else contributes to a spiking unemployment rate? The fact that the USA isn't a competitor in manufacturing like Cars in Detroit, Steel in Pittsburgh, Tires in Akron, or Textiles in the South. When it tries to do something like subsidize semiconductors to compete with China / Taiwan, it decides to locate a water-intensive endeavor in water-starved Phoenix.
Bloomberg (lying scumbag media that they are) reports it has been triggered even though the recession started over 18 months ago.
While some media sources may not interpret the data as we do, it's important to stay informed and consider multiple perspectives.
What else is going on?
The Everything Bubble pops as jobs collapse.
Japan's implosion is icing on the cake. Morgan and Citi are now predicting a full point of rate cuts in the next two meetings—that qualifies as panic in central banking.
Meanwhile, the not-so-magnificent seven have shed 1 trillion in the past few days. Instead of reporting on the Magnificent Seven, a more responsible question is why our market lacks depth.
The fact that TSLA is one of these seven is an even bigger joke than having a market propped up by SEVEN FVCKING COMPANIES.
NVDA down $325 billion
AAPL down $300 billion
GOOGL down $200 billion
AMZN down $135 billion
MSFT down $125 billion META down $80 billion
TSLA down $60 billion
Berkshire Hathaway has dumped more shares this quarter than any other quarter in its entire history.
Insiders know something is coming around the Mountain
Someone always knows
Buffet knew what was coming
Dumped equities like never before
Loaded up on T bills to where he now owns more than even the Fed Reserve
1/ For times like these you need Silver and Gold
2/ These two assets do not go bankrupt.
3/ They never have.
4/ They are your safe haven during recessions, wars, regime changes, global reserve currency transitions, market crashes, revolutions, and revaluations.
Instead of dreading the recession, profit from the recession
Yes, industrial demand for Silver will slow down initially (but Silver is a critical mineral with over 20,000 uses, and when traditional manufacturing slows down like it has emerging technology like AI steps up and the best way to play AI is not computing but Silver) and Silver will drop along with market for first three months.
Below, I will list 11 sectors that will explode globally even during this recession (All Huge Users of Silver)
Solar Energy
Aerospace
Military
Robotics
AI Data Centers
Fuel Cell Energy (HVAC)
Fuel Cell vehicles (trucks, cars, vans)
Fuel Cell maritime (ships, barges, ferries, yachts)
Security installations
5G
Government surveillance
We all know what comes next
The Fed slashes rates
QE restarts
FED prints trillions
and the price of silver skyrockets accordingly.
So why sell it in the first place?
Buy Silver from SprottMoney.com
1. Your transaction is private
2. Unlike banks which report to IRS…Sprott Money does not
3. Silver is on sale today
4. We cheer when the price rises
5. We cheer when the price is smashed by a 400 to 1 paper to physical ratio
6. Silver Solves 5 of the World’s Biggest Problems (Wars, Debt Crisis, Inflation, Recessions and Crime)
Get it while it’s cheap, folks! Bargains like this come along not once in a while, once in a lifetime or once in a generation, but once in human history.
The difference between today’s low silver prices and the great crash in silver prices that occurred during the Spanish conquest of the Americas, is that silver crashed back then because it suddenly became so plentiful. It’s crashing today because it’s scarce and becoming ever more so even as our need for it dwarfs the need for it during Spanish colonial times.Therefore the price must be artificially suppressed today, to give the illusion of silver abundance and keep the worthless dollar looking strong. And to discourage the peasants from owning any!
Thanks to this uniquely intense price suppression, the average Joe and Jane today have the opportunity to own more silver than most people except nobility could have ever owned in the past. That’s just plain amazing! Wealth insurance at such low prices has never been available before. So don’t fret if you’ve bought home or car insurance and the fire or accident never comes. Unlike home or auto insurance, silver “wealth insurance” never expires and never refuses to pay a claim. Just dollar cost average and put it aside until the current system is no longer viable and the ties that bind silver are finally broken. Your courage will pay off and you’ll look like a genius (because you were!).