Since the U.S. went off a gold standard in August 1971 economic recovery and bail out packages have grown at an exponential rate. Between 1970 and 1972 a total of $54 billion in economic related funding bills were approved. Between 2020 and 2022 a total of $7.59 trillion in congressional bailout and economic rescue plans were approved. This does not include annual government budget funding that continues to raise the national debt.
It has been observed that silver charts develop within an ascending triangle either during, or within a year after each of the periods listed below. For example, after the 2008 and 2009 bailout packages were approved an ascending triangle formed, as show in the second chart below. After moving through this triangle, silver quickly moved up to the $49 range by April 2011.
Once again, numerous bailouts and rescue packages were approved by Congress between 2020 and 2022. At this point a silver chart structure is developing within an ascending triangle that it is on course to be completed in the first quarter of 2024. A quick move up in silver during 2024 is expected to be similar to what occurred during 1974 and 2011.
Note that daily Engrbytrade™ Silver/U.S Dollar derivative calculations are moving quickly in a direction that confirms silver is nearing the completion of a long term ascending triangle structure and is similar to what was developed during 2008 and 2009.
U.S. Economic Recovery and Bailout Packages
1970 – 1972
$15 billion Economic Stabilization Act of 1970 signed on August 15, 1970
$2.25 billion Emergency Employment Act of 1971, signed on July 12, 1971
$15.8 billion Revenue Act of 1971, signed on December 10, 1971
$21 billion Education Amendments of 1972 signed on July 23, 1972
Total = $54 billion
1974 – 1979
$11.9 billion Housing and Community Development Act signed on August 22, 1974
$23 billion Tax Reduction act of 1975 signed on March 29, 1975
$56 billion Health Education and Welfare Programs (majority approval by Congress) September 30, 1976
$20 billion Economic Stimulus Appropriations Act of 1977 signed on May 13, 1977
$18.7 billion Revenue Act of 1978 signed on November 9, 1978
Total = $129 billion
2008 – 2009
$700 billion Emergency Economic Stabilization Act of 2008 signed October 3, 2008
$787 billion American Recovery and Reinvestment Act of 2009 signed February 17, 2009
Total = 1.487 trillion
2020 – 2022
$2 trillion Cares Act was signed on March 27, 2020.
$1.9 trillion American Rescue Plan was signed on March 11, 2021.
$1 trillion Infrastructure Investment and Jobs Act was signed on November 15, 2021.
$2.2 trillion Build Back Better Act was signed on August 16, 2021.
$750 billion Inflation Reduction Act of 2022 was signed on August 16, 2022.
Total = $7.85 trillion = 5.28 times larger than the 2009 and 2009 bills noted above.
Stock charts courtesy of StockCharts.com.
