The World Has Been Hoaxed; Hydroxychloroquine Works; Rent Strike, Mass Protests On Tap for May 1

April is over and done. The month that saw the WuHan Flu, coronavirus, COVID-19, SARS-COV II, or whatever you prefer calling it spread like wildfire throughout the United States and the world also produced the best performance in the S&P 500 since 1987.

As if the stock market's miraculous rebound off the March lows wasn't enough, the Fed's balance sheet, thanks to sopping up trillions in debt of all varieties - from corporate issuance to high yield (junk) to munis to the usual nasty mortgage=backed securities (MBS) and low-yielding treasuries - increased by some $2.23 trillion to a record amount of more than $6.6 trillion.

Also showing up on the national radar are people who are refusing to go back to work because they are making more on unemployment, states reopening businesses with some restrictions and precautions, Florida opening beaches while California closes them down, a GDP for the first quarter of -4.8%, and various misdirections, untruths, fabrications, and outright lies due to conflicts of interest by doctors (including the CDC's Dr. Anthony Fauci) promoting Gilead Science's remdesivir as a primary treatment of COVID-19 with little to no evidence that it does anything more than shorten the length of hospitalizations.

All the while, evidence continues to pile up showing hydroxychloroquine (HCQ) as a drug with a wide range of uses in not only diminishing the severity of coronavirus symptoms, but possibly acting as a preventive treatment, i.e., Lupus patients, who are prescribed Plaquenil (the brand name for HCQ), do not contract coronavirus.

Various studies from countries around the world have shown early use of HCQ is highly effective in combating the coronavirus, though the mainstream media refuses to report any positives about the drug, preferring to bombard the public with questionable research on remdesivir, a drug that can cost as much as $100 per dose, where HCQ can be produced in massive quantities for about a dime per dose.

Peak Prosperity's Chris Martenson, who has been doing incredible daily reporting on the crisis, has details in his latest video:



While the US continues to lurch toward some degree of normalcy at the end of a six-week near-nationwide lockdown, many questions linger, not the least of which being how badly the American public has been hoodwinked by the wealthy elite and their cohorts in government. From all appearances, it seems the public has been royally screwed this time around.

The economy is in tatters, more than 30 million lost their jobs, but what is likely going to be worse, are the millions of small businesses which have been severely hampered or outright destroyed by government overreach. Many of these businesses will not come back in the summer, or the fall. They are gone forever, and with them, their owners facing financial ruin. It will take years to undo the damage wrought by the government response to a virus that essentially affects people over 50 or those with pre-existing serious medical issues.

Friday, May 1, will offer some pushback agains the federal tyranny. There's a nationwide rent strike being waged in big cities and small, along with a May Day work stoppage promoted by employees of some of the multi-national companies that were not forced to shut down for the past six weeks, including Wal-Mart, Amazon, Target, and others. Protests will be very visible, as will the outrage expressed in Michigan, where governor Gretchen Whitmer is extending the lockdown until May 28.

Protesters there have already been storming the Capitol, and some were actually armed inside the Capitol building on Thursday, though that received scant notice on the evening TV news. This explosive situation merits closer attention, as what happens in Lansing, Michigan's capitol, may serve as a template for popular uprisings in places like Virginia, California, New York, Massachusetts, and any other state that believes they can keep the general population under lock and key indefinitely.

With warmer weather and a weekend ahead, some payback may be forthcoming from an angry, frustrated American public.

In other markets, gold and silver were beaten down as they usually are at the end of the month, though the dislocation between spot, futures, and actual prices for acquiring physical metal has completely blown up. Silver especially is out of whack, with premiums over the futures price of anywhere from 30 to 100% now commonplace. Gold premiums are still in the 10-15% range, though dealers have been and continue to impose minimums with lengthy shipping delays.

Oil markets continue to fluctuate wildly as the supply glut and demand collapse refuse to abate. Beyond giants Russia and Saudi Arabia, countries which produce oil as a primary revenue source are going to be devastated, while in the US, rig counts are plummeting as shale drilling operations are being shut down. They're unable to make money at the current prices and investors are being wiped out along with the lenders who financed operations. WTI crude, as of Friday morning is hovering just under $19 a barrel, though it's been as low as $10.64 earlier this week. The June futures contract is beginning to look like another disaster - as was the May contract - in the making.

Treasuries have been relatively unmoved during the week, though the 30-year bond has increased yield from 1.17% last Friday to 1.28% Thursday. The curve has steepened slightly, though not in any statistically meaningful way. 118 basis points covers the entire complex.

Equity futures are pointing to a very ugly open Friday, with Dow futures down more than 450 points.

Could this be the "sell in May and go away" signal? Possible, but the real fallout may not occur until late July or August when earnings and the first reading of second quarter GDP will shock the markets, not just in the United States, but globally. The Greater Depression is ramping up.

At the Close, Thursday, April 30, 2020:
Dow: 24,345.72, -288.14 (-1.17%)
NASDAQ: 8,889.55, -25.16 (-0.28%)
S&P 500: 2,912.43, -27.08 (-0.92%)
NYSE: 11,372.34, -245.89 (-2.12%)