Things look bad, right about now, especially if you're a UK Cultural Marxist, in which case you're universally loathed. Regardless, here in Texas we're stacking silver and waiting for ICE to kick in. And listening in amazement to Zadok. Wow.
Uplifting, eh? And that's just silver. Hope you're not short.
Word to the wise, fake money isn't real money.
All Best,
LSP
OK, you might say "jail," but the song remains the same. Are the Clintons too powerful to be imprisoned? Looks that way, doesn't it. Then there's precious metal, notably silver. Have you noticed? More paper than physical, and surely there's a parable for our times in this fiscal skulduggery, to say nothing of malfeasance. Here's Danny:
THIS HAS NEVER HAPPENED BEFORE
I’ve been analyzing this for the last 24 hours and this is VERY BAD.
World silver production: ~800M ounces
BofA & Citi shorts: 4.4 BILLION
I’ve spent two decades in macro, and I thought I had seen it all.
I WAS WRONG.
If silver keeps going up, the biggest banks in america will collapse.
Here’s what I uncovered:
Yesterday, silver hit $92. Then it dropped over 6% in a few minutes, pumped back up to around $91, and now it’s crashing again.
I’ve spent 20 years in these markets. Most people see a normal correction, but I see a TRAP.
At $90/oz, their combined short position is now a ~$390 BILLION liability.
That’s larger than the market cap of most global banks.
This is literally survival. The banks are doing everything they can to stay afloat.
WHY THE DIP TO $86 OVERNIGHT?
They had to do it. If silver had broken $100 yesterday, margin calls would have liquidated those banks.
They unloaded paper contracts during thin overnight liquidity to FORCE THE PRICE DOWN.
But look closer at the physical market:
While the paper price dropped $6, lease rates just went vertical.
The cost to borrow physical silver is skyrocketing.
We are in BACKWARDATION.
Spot Price > Futures Price.
It means people don’t want paper promise in 6 months, they want the metal NOW.
THE MATH IS TERMINAL:
We know the shorts are 4.4B ounces.
We know annual mining is ~800M ounces.
But at $90+, the recycling supply dries up because people hoard.
And industrial demand (AI chips, solar, EVs) is inelastic, they must buy at any price to keep factories running.
BofA and Citi aren't just short the metal, they’re short the industrial revolution.
THE "FORCE MAJEURE" IS NEXT
I warned you 2 weeks ago about "cash settlement."
It’s already starting in the wholesale markets.
Dealers are quoting unavailable or 6-week delays for volume delivery.
When the price snaps back above $92, and it will, it won't stop at $100.
It will gap to $150 overnight when the first major short declares force majeure.
THE TWO MARKETS ARE DETACHING:
1. Screen Price ($88): A fiction maintained by algorithms.
2. Street Price: Unobtainable.
They’re shaking the tree one last time to get your physical…
BUT DO NOT SELL.
We are witnessing the death of the paper derivative market in real-time.
Ladies and gentlemen, welcome to the commodities supercycle.
How do I know all of this?
I’ve studied macro for 10 years and I called almost every major market top, including the October BTC ATH.
Of course history has a way of cheating the prophets, but you might want to hold onto your physical silver even as you hope for Hillary's imprisonment. Oh, and let's add genius vocalist Yoko Ono too.
Your Best Pal,
LSP
Now look here, so-called 'LSP,' all that silver and crystal ain't gonna clean itself. To say nothing of guns, if you still shoot, which we doubt. Admonition in mind, I set about cleaning the Compound today, polishing the sterling, shining the floorboards, and glinting up the glassware.
Must get more and better servants, I uttered grimly, all the while polishing mahogany, cleaning up Steuben, it glitters, and making silver shine. And don't forget guns; clean those dirty beasts to inspection level. Good work, Commandant. Next step? Vacuum all those Moslem rugs and take the cleanliness evolution upstairs, to the rooms of the Mess.
Well, whoever said life'd be easy, eh? So we clean our houses in the same kind of way that that the house of government should've been clean but most clearly wasn't, up until now, we hope. Speaking of which, what's you're take on Bongino?
Cheers,
LSP
What a beautiful Texan May evening in this small rural haven betwixt the Metrosprawl and Waco. Not too hot, not too cold, just right. A bit like California, perhaps, with the benefit of not being in California.
Ah yes, how delightful, but of course this will change, as 6 digit temps come blasting through the ether like a troop of TOS 2s working out on the Unicorn Brigade in Chasov Yar. Terrifying.
Still, for now, all's well unlike, for example, worshiping attendance in the Church of England, being a member of Iran's top governance or living in Oakland, where they've got rid of traffic lights because homeless thieving.
In other news, Crypto's surging, with ETH leading the pack, and everyone's favorite token isn't doing badly either. Come on, DOGE, stop messing around and run.
Speaking of which, more than a few bulls see exponential crypto growth between 2030-35. That in mind, I'm diamond hands long and we'll see how this strategy plays out in the fullness of time. In the meanwhile, you might want to watch silver too, just in case you're not.
Cheers,
LSP
Have a great day! Getting all up in the crystal and silver here at the Mess as we prepare to pound the mahogany. And here's a prayer:
O MOST merciful Father, who hast blessed the labours of the husbandman in the returns of the fruits of the earth; We give thee humble and hearty thanks for this thy bounty; beseeching thee to continue thy loving-kindness to us, that our land may still yield her increase, to thy glory and our comfort; through Jesus Christ our Lord. Amen.
God bless you all,
LSP
