Silver's 5% Rally Gets Physical

This is a free preview of a paid episode. To hear more, visit vblgoldfix.substack.comHousekeeping: Good Morning. Today:* Premium Analysis: Spooky Parallels to the 1970s* News: China’s Bazooka Fires Silver BulletsPremium Analysis: Spooky Parallels Between the 1970’s and NowArthur F. Burns, was Chairman of the Board of Governors of the Federal Reserve System from 1970 to 1978. The paper referenced and included at bottom is a reprint of the address Dr Burns gave as the sixteenth Per Jacobsson Lecture, at Belgrade, Yugoslavia, on September 30, 1979.​In October 1979, Fed Chairman Paul Volcker announced new measures by the Federal Open Market Committee aimed at reining in the inflation that had afflicted the US economy for several years.In his lecture, Dr. Burns goes through some of the reasons, drivers, and likely explanations why things got out of hand.Burns in 1979:* Central Banks can’t stop politically driven inflation. They have the tools, but not the will.* Fed had tools to stop the inflation, but chose not to use them because it had been caught up in the social movements of the day* Desire for a more interventionist govt* Unevenly spread prosperity * Overwhelming goal of full employment * Not understanding what the appropriate level of "full employment” was* Environmental policies added to the inflation* Entitlements diminished the work ethic* Inflation was fed by high unemployment, deficits, money creation * Ultimately led to a conservative political movement Full Breakdown in The 1979 Inflation Lecture That Scared Paul VolckerBonus: Michael Every’s Latest at bottomNews Analysis: Global Shifts: An Expert’s Take on Metal Market Trends and “BRICS Influence”Chris Marcus discusses the recent dynamics in gold and silver markets, highlighting record short positions and their potential impact on prices. LinkChina’s Bazooka Fires Silver BulletsStory: Silver (+5%), Copper (+4%) Get “Stimulated” by ChinaThe day started with gold sideways and choppy; silver strong, up about $20, and copper absolutely ballistic up 4%. Then Silver proceeded to blow sky high. LinkEquity Recap:US equities rallied on Tuesday, with the S&P 500 and Dow Jones Industrial Average closing at record highs. Large caps and small caps advanced: S&P 500 (+0.25%) vs. Russell 2000 (+0.17%). MSCI Emerging Markets (EEM) and MSCI EAFE (EFA) rose 3.41% and 0.59% respectively.Market News: More Cuts and More Inflation Coming"Consumers’ view on the economy tumbled in September, falling by the largest level in more than three years as fears grew about jobs and business conditions, the Conference Board reported Tuesday.CNBC"The Justice Department sued Visa on Tuesday on allegations that it illegally monopolized the market for consumers’ payments worth trillions of dollars every year WSJ"China has unleashed a swath of stimulus measures including cuts to its benchmark interest rate as Beijing battles a slowdown in the world’s second-largest economy FT"Anthropic, OpenAI's largest startup competitor, has started talking to investors about raising capitalThe Information"Buyers and sellers in US commercial real estate are increasingly convinced that the beleaguered market is reaching a bottom. BloombergPolitics/Geopolitics: Not Until Oil Spikes* Hezbollah confirmed its senior commander Ibrahim Qubaisi was killed in an Israeli strike on Beirut, while it was separately reported that Hezbollah said it targeted Israel's Atlit navy base south of Haifa with drones.* Hezbollah urged Iran in recent days to launch an attack against Israel as fighting between the Lebanese militant group and the Israeli military dramatically escalated, but Iran has so far refrained, according to Axios.* China's PLA rocket force successfully launched an intercontinental ballistic missile with a simulated warhead in international waters in the Pacific Ocean with the launch said to be routine and part of the rocket force's annual training, according to Xinhua. Data on Deck: More cuts expectedNow that the cuts are in and the recession debate will become academic as stocks have their restored liquidity, focus will again return to inflation risks* MONDAY, SEPT. 23 PMI Sept* TUESDAY, SEPT. 24 Case-Shiller home price index/ Consumer confidence * WEDNESDAY, SEPT. 25 New home sales Aug* THURSDAY, SEPT. 26 GDP everyone speaks* FRIDAY, SEPT. 27 8:30 PCE index .FINAL MARKET CHECKPremium: ***DO NOT SHARE THIS***