Can you follow up on it? Do you think that legally you’re not required to leave? No. That was Jerome Powell yesterday during his press conference after the FedOMC open market rate cut decision. We’re going to be discussing that and how to end the Fed based on that statement. Let’s start with the markets first though. The dollar is up 20 at $104.56. Ten year yields are $4.30 down almost three basis points. The S&P 500 is down almost three handles, very small considering the last two days. $59.75. The VIX is $14.94, continuing its sell-off. Gold is $26.89, giving back 16 of its significant recovery yesterday.

Silver 31.51 down 51 cents. That’s a lot. Hopefully copper’s down more. Copper’s down more. Copper, $4.32 down 10 cents down 2.3%. WTI is down almost $1.56. Natural gas, $2.45 up 3 cents. Bitcoin on all-time highs, up $1.73, $76,000 in change. Ethereum, $29.35 in change. Palladium down $27,000 and Platinum down $15,000 in grains are all mixed at unchanged. There’s the home page. We’ve already sent out the premium piece. We must read bank gold tactical comment. That’s all we’re going to say about it here. Except that it is must read and that it’s a prominent bullion bank’s gold tactical comment and it can give you an idea not of just what they’re doing, literally what their prop desk is doing, but what their clients are doing as well in a rare, frank, insightful, but cryptic comment that we translate for you.

All right. There’s APM post and Rabbo MAGA team 2.0 knows the levers of power. That’s Michael Avery and he happens to be right. Okay. As you’re looking at the end the Fed carefully screen there, just a quick recap of the markets yesterday. The markets themselves reacted in a front running fashion before the Fed cut. The markets were strong. When I say the markets, I mean gold, silver commodities, as well as bonds. The markets reacted favorably expecting a 25 basis point cut. Then when the cut came, the markets continued reacting favorably. There was no buy the rumor, sell the news.

Now, you could make the case that just means the market has little money to go into it. That’s probably true, but there’s going to be a little bit of that. That’s actually, I think the press conference was a little bit more dovish than it should have been. In my opinion. Let’s go through the press conference and that’ll tell you what happened there yesterday. Starting off at the top, number one, Fed cuts 25 basis points as expected. The statement, the statement had a significant, I think it was significant change. They literally took out the red line version there.

A phrase saying the committee has gained greater confidence that inflation is moving sustainably towards 2%. They removed that. Okay. And they put in the committee seeks to achieve maximum employment and inflation at the rate of 2% over the long run. That’s essentially throwing into town and 2% target. It’s everything about throwing in the town. The committee judges that the risks to achieving its employment inflation goals are roughly in balance. Okay. So they have moved from, as I mentioned yesterday with profanity, they have officially before it came out, I said this, they have officially moved from worried about inflation, which is now on its way back up to worried about unemployment, which is on its way up.

So governments always choose inflation. That’s all you need to know, unfortunately. Okay. The press conference. Now, before we get into the whole, no, I will leave. Powell added that even with today’s cut, that policy is still restricted with the potential to still accelerate the pace size of cuts. Now, he was net, net dovish in the conference. So he said, we’re still restrictive, implying we have room to ease. So he doesn’t seem to be concerned at all about inflation. He seems to be more concerned about jobs. Okay. In a question planted by the Fed to be asked that answered, yes, it was planted.

That’s how these things happen. Unfortunately, he had to make his statement. Powell was asked in multiple ways, if he would leave the Fed, if asked to by president-elect Trump, he plainly stated no. Now, many likened his comment to an authoritarian above the law, unelected officials, arrogance, and I’ll show you a couple of statements of that effect. Others praised his attempt to stand firm against government interference. Let’s show you a couple of those pictures. All right. There’s Alex Jones, breaking bombshell, federal reserves above the law and answers to no one, according to Fed chairman Jerome Powell.

And he wasn’t alone in saying that. Nothing says the federal reserve is anti-American private entity more than its chairman Jerome Powell saying no multiple times to resignation. Trump won the popular vote and the electoral college. If we, if, if he tells you to step down, we need you to step down. I think it’s what he, what he finished there. Now, on the other side of that coin, uh, what is this about? Powell said he would not resign as Fed chief if Trump asked for his resignation. No one is above the law. This would make me want to replace him.

I’m sorry, that’s not the other side. Here’s the other side of the coin. Oh, wrong way. Bear with me. There we go. Fed chair Jerome Powell signals he’s not going anywhere. Even if president-elect Trump tries to replace him next year, Powell just made it clear and hold his ground on his role and independence at the Fed. Jerome plan, pal flat out refuses to step down from the Fed, even if Trump demands it saying the president doesn’t have the power to remove or demote in power standing firm on Fed independence, resisting Trump’s push to influence him.

Okay. There is, um, because it’s a political season, there are, there are a couple of things that are, that are obvious. And I think I’m going to, hopefully this will help you make your own decisions on the Fed. I have an opinion and we’re about to hear it, but, um, ideologically, right? Left and right. Powell saying that aligns him with the leftists with like, he’s standing up to Trump, whatever. Right. And on the right, which is where it’s much more interesting, there’s a split and the split is between we want to end the Fed, right? That’s the end of Fed types.

And I happen to be one of those versus, uh, fed independence, which is a very, you know, also, uh, libertarian, there’s, you know, it’s like a libertarian split. And I think, um, uh, I felt the split as well. Anyway, uh, whether the fed is independent or not is up for debate, depending on how you define independent, we don’t see how they can be 100% independent ever. It’s just not possible, but to make that statement for pal to make that statement after Trump had already said he would not ask pal to resign is to pre-address any changes of heart Trump may have, or to put on a suit of armor against any future pressures.

Trump may levy it is even more important for the fed to directly address others who are concerned about a possible resolve collapse over the next two years under what could be relentless pressure from Trump. Nixon successfully did this to burns in the seventies. And that’s why pal did this. It was a large instigator of their reef relapse and inflation back then. There is okay. This is Nixon and he did this. I’ll give you an idea of, of here’s an example, December 10th, 1971, before reelection, burns and Nixon have a private telephone conversation.

Burn States. I wanted you to know that we lowered discount rate, got it down to 4.5%. Good, good, good replies. Nixon burns indicates that the announcer of the discount rate reduction will be accompanied by the usual statement that it was done in order to bring the rate into line with market conditions. These are from Nixon’s own recordings. Now, before that, Nixon’s calling him asking him, dude, I want to win basically. Don’t raise rates. Now, the reason he was successful with this, aside from the fact that maybe burns was a little bit soft, was burns had a history of being a staunch conservative and Nixon kept saying to him, you want a conservative as a president, don’t you? You want it.

And so, and so pal, it’s not pal. Listen to me. I’m Freudian. Burns was saying, yes, I do. Well, then we have to do that. And, and burns burns capitulated. He totally capitulated. Since then, since this disaster, the Fed has tried very hard to remind. Oh, there she is a little bit early, but we’ll pop her up there anyway. Since then, the Fed has tried very hard to remind people it won’t happen again, at least not as obviously as it did back then. So you can’t fire pal individually. All right. I think I’m, I think I’m quoting the law directly here.

You can’t fire pal individually. Individual is the key word. You can ask him to step down as president and he can say, no, his board is ultimately who fires him. If he loses their confidence, he would step down. Now the pressure to get pal to leave if you’re Trump, if Trump wants to, must be indirect. That said, and here’s the catch, but Jerome pal can’t stay in office if there’s no office for him to stay in. Right. If you end the Fed, then there is no need to fire the chair. There is no chair.

So and the Fed, why do I have yelling up there? Old mushroom head. If you end the Fed and replace the Fed with something that’s efficient, that’s going to regulate money without with, with the proper automatic faucet, like a gold standard or something similar to it. And it’s managed properly in a, in a, in a, in a Milton Freeman style, you’ll be fine. But there’s another way to end the Fed. When you fold the Fed into the treasury, you castrate the position entirely and you pave the way for MMT. You don’t need monetary policy under modern modern monetary theory and ending the Fed or folding it more closely under the treasury’s control.

There’s a step in that direction and the Fed replace it with something stable, like a gold standard, as opposed to a Marxist regime. How, how true is this? It’s very true. Modern monetary theory postulates that all inflation can, every session can be controlled with taxes and spending. So if you believe, sounds very Democrat, right? If you believe that inflation is too high, then you would raise taxes. And if you believe that the economy is too weak, then you would lower taxes or you would do more spending. And so they think they can regulate the whole economy instantaneously with taxes and spending.

So as a result of that, you don’t need monetary policy. In fact, you don’t need money the way they define it, which brings us to the roots of modern monetary theory goes back to Marx, but I’ll just give you a little, a little anecdote here to give you an idea of what they think. There’s a, it may be true. I think it’s true, but there was a, there was a debate in communist quarters with comrade Stalin present and there was a leftist communist and a rightist communist, so conservative liberal, right? The liberal communist said they were debating the existence of money in a pure, iconic communist world.

And the one on the left said, there would be no money. We don’t need money. It’s a utopia, you know, something like at a Star Trek Federation, you know, everybody’s provided for, you know, and then the one on the right said, but there has to be money because, because there just has to be money, right? For his reasons. And they both turned to Stalin and they said, and this is ultimately the path of all communism. They turned to Stalin and they said, comrade Stalin, tell us, will there or won’t there be money in the communist utopia that’s coming? And Stalin said to them, well, there will, and there won’t be money comrades.

And they said, how can that be? He said, well, in my communist utopia, some will have money, some won’t have money. And that’s the point. There will always be money, whether it’s, whether it’s gold, whether it’s silver, whether it’s Fiat, there will always be a store of value that powerful people use to leverage against people without power, without money. And so, and the Fed, but replace the Fed with something we want, not with something we don’t want, like gold mushroom head. Okay. Oh, there you go. Ron Paul, right? Good man.

Thank goodness for him. All right. Let’s take a quick look at the markets again. One of the thing I wanted to mention, I wanted to reach out to Jake, right? Jake has a, I’m not sure it’s a, it might be a niece or a granddaughter, I’m not sure. And he would like her to learn a little bit more about coins and collecting silver. And I’m going to be creating a video for her today, for him to give to her today. And it will be about, about all my grandfather gave me my first coins.

And so, I think it’s kind of appropriate that he’s doing this and I’m honored to be asked to do this. And I’m going to tell a little story about how I came to start collecting coins. All right. So, Bitcoin, that’s Bitcoin. That’s a weekly chart. Gold people who hate Bitcoin, listen up. I don’t care if you hate Bitcoin. Do you want to make money? Well, that’s a similar pattern to what happened in gold and Bitcoin, even though it’s not gold and even though it’s this or even though it’s that Bitcoin is traversing the same pattern.

They’re going to get on the same page as the government keeps printing. You know, the government keeps printing, the government keeps spending and Bitcoin, you know, may not be something that’s ideal to you, but it is something that the country is starting to see as an inflationary edge or monetary debasement edge. So, whether you’re a maxi, whether you’re a skeptic who’s long, like me, or you’re a hater, make some money, buy gold with it. Make some money and buy silver with it. Okay. The markets. Gold. I like this. I like this a lot.

I was worried last night, gold’s down 20, Asia’s not buying, yada, yada, yada, copper’s weak, silver’s down, but, you know, let’s go to the hourly. But it’s being bought during U.S. hours again, which is, frankly, it’s fascinating. This is what happened the other day is where I got worried, right? And this is where the algo came in. I mentioned. This is the bind before the Fed. This is the waiting for the Fed. This is the Fed reaction. And this is the boom. So this is probably hot money. Now that I’m seeing this behavior, this is probably some hot money that front ran the Fed and it’s getting out now.

If there’s one thing you can take away from, just to plug my own work here, if there’s one thing you can take away from this must read gold tackle comment, it’s that. Macro discretionary is still long. They haven’t sold much and they’re not looking to get out tomorrow. That all the song that we had two days ago, that was CTAs and hot money and ETF American buyers who were just puking. So fingers crossed. Looks good. Have a great weekend, everyone. Well, thank you for watching this morning’s markets and metals with Vince Lancy.

Sure. Hope you enjoyed the show and had a great week with everything that happened between the election and the Fed meeting yesterday. And also the fact that we might not have to go through a couple of months of lawsuits surrounding the election. In either case, I just wanted to remind you that we’re covering this all on our new Arcadia Golden Silver Daily sub stack, where we send out a written column each day that has been going on for about a month now that people have been enjoying. And this week, obviously we covered the Fed meeting.

Some of the implications if Trump did become elected, how some of the plans that Trump and his team have talked about could impact our path in the golden silver markets. And that really could be some uncharted territory. And of course, some questions that were left unanswered from the Fed’s press conference this week. So if you’re getting ready for the weekend and want to recap a lot of the things that happened and perhaps most importantly, what you might want to keep in mind going forward. Well, just click on the link below to check out the Arcadia Golden Silver Daily sub stack at GoldenSilverDaily.substack.com.

I think you’ll enjoy what we have there. And with that said, go out and have a great weekend and we’ll see you again next week. Please note that this video is not intended as legal licensed financial trading advice and is to be used for informational purposes only. Please contact your financial advisor before making any decisions. And thanks for watching. [tr:trw].

See more of Arcadia Economics on their Public Channel and the MPN Arcadia Economics channel.