Monday, April 21, 2025

The Dow-to-Gold Ratio: Is the Bubble About to Pop?

Money Metals News Service
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The Dow-to-Gold Ratio: Is the Bubble About to Pop?

(Mike Maharrey, Money Metals News Service) Stocks have taken a beating over the last several days. The conventional wisdom is that the sell-off is due to worries about the impact of the Trump tariffs.

The aggressive tariff regime certainly triggered the sudden and sharp downturn in the stock market, but is something deeper going on?

I think there is.

The big sell-off in response to tariffs is just one chapter in a much longer novel. A look at a metric known as the Dow-to-gold ratio hints at the larger narrative.

In a nutshell, the stock market is historically overvalued. In other words, it is a bubble. And one thing we know about bubbles is that they eventually pop.

All it takes is a pin.

Tariffs might be the pin.

But even if stocks manage to regain their footing, another pin is out there.

What Is the Dow-Gold Ratio?

The Dow-to-Gold ratio prices the Dow Jones Index in ounces of gold. Currently, the ratio stands at just over 12.5-1. In other words, it would take around 12.5 ounces of gold to “buy” the Dow.

As you can see from the chart, the ratio is starting to break down.

What is this telling us?

Ratios are valuable in revealing trends and cycles. For instance, a large spread in the gold-to-silver ratio (such as the 100:1 ratio today) tells us that silver is significantly undervalued compared to gold. When we get these large spreads, ratios typically revert back to the mean. For instance, the gold-to-silver ratio fell to 30-1 in 2011 after rising to over 80-1 during the money creation of the Great Recession in the wake of the 2008 financial crisis.

We can track similar trends in the Dow-to-gold ratio.

What we find is that historically, a falling Dow-to-Gold ratio precedes or coincides with financial crises or long-term bear markets.

Going way back in time, the ratio fell from around 18-1 to 2-1 in the early years of the Great Depression.

During the stagflationary years of the ’70s, stocks tanked, but gold took off on a long bull rally. In 1980, the Dow-Gold ratio briefly touched 1-1.

As we can see from the chart, stock valuations took off in the 90s. Between that low in 1980 to 2000, the index moved as high as 43-1.

How do we account for this massive runup in stocks?

There were certainly many factors, but one of the most significant drivers was money creation by the Federal Reserve that helped pump up the dot-com bubble. The extreme overvaluation of tech stocks drove the Dow-to-gold ratio to all-time highs.

And then the bubble popped.

The Fed managed to keep some air in the bubble for a while with a massive injection of easy money, but the bubble popped as we endured the 2008 financial crisis and the Great Recession. Between 2000 and 2011, the ratio fell to as low as 6:1.

And then the Fed went to work again.

The Dow-to-gold ratio peaked at over 18:1 in 2018, thanks to a decade of easy money. The ratio fell modestly in late 2018 as the stock market tanked and the central bank finally attempted to “normalize” monetary policy. But when the market crashed in the fall of that year, the central bank pivoted back to quantitative easing to keep the air flowing.

The pandemic gave the Fed cover to double down on loose monetary policy and blow even more air into the stock market bubble. The chart shows the post-pandemic rebound as stocks surged due to massive liquidity injections inflating the ratio yet again.

Since then, we’ve seen a relatively steady ratio until the drop in recent weeks.

Bubbles Pop

The relationship between Federal Reserve monetary policy and the Dow-to-Gold ratio underscores an important fundamental — the stock market is subject to inflation just like consumer prices. In fact, monetary inflation often shows up in equities first. In a nutshell, central bank money creation tends to blow up asset bubbles.

In effect, this means that while stocks have surged in nominal terms, they have made much less progress in real (inflation-adjusted) returns.

I have been saying for years that the stock market is extremely overvalued, thanks to the Fed’s monetary malfeasance. It is a bubble waiting for a pin. It started to deflate in 2018, but the Fed was able to use the pandemic as an excuse to pump the air back in. Now, it may have found its pin in Trump tariffs.

There is little question that the stock market is extremely overvalued. In December, CurrentMarketValuation.com called the S&P 500 “strongly overvalued” based on the price-earnings ratio.

If history is any indication, the sudden drop in the Dow-to-Gold ratio could be signaling the beginning of a massive selloff in stock and a major rally in gold.

An Opportunity for Investors

The recent breakdown in the Dow-to-gold ratio may signal that it’s time to consider getting out of stocks and into gold.

Even if Trump backs off the aggressive tariffs and provides some relief for markets, it won’t change the fact that stocks are overvalued. We still haven’t dealt with the ramifications of well over a decade of artificially low interest rates and multiple rounds of QE.

We will.

Consider this: if the Dow-gold ratio were to revisit the 1-1, we’d be looking at either a massive stock market crash, an explosive move higher in precious metals prices, or some combination of both.

While a return to a 1-1 ratio would be extreme, even a more modest contraction of the ratio presents an opportunity. If the ratio returned to 5-1, we’d be looking at $7,500 gold if there was no corresponding drop in the Dow. If the Dow fell to 20,000, gold would still be over $4,000 an ounce.

And don’t forget that silver typically outperforms gold in the latter part of a gold bull market. With the gold-to-silver ratio over 100-1, we know that silver is significantly undervalued compared to gold and set up for a major gain.  So this extremely high gold-to-silver ratio suggests one might be overweight to silver in comparison to gold.

Nobody has a crystal ball. Trump could relent on tariffs tomorrow and set off a relief rally in stocks. But it won’t change the fact that the market is a “big, fat, ugly bubble,” to quote Donald Trump in 2016. Smart investors are positioned for that reality.

Mike Maharrey is a journalist and market analyst for Money Metals with over a decade of experience in precious metals. He holds a BS in accounting from the University of Kentucky and a BA in journalism from the University of South Florida.

Silver Set to Explode as Gold Breaks Records

Money Metals News Service
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Silver Set to Explode as Gold Breaks Records

(Money Metals News Service) In the latest episode of the Money Metals podcast, host Mike Maharrey welcomes Peter Krauth—veteran resource market analyst, publisher of Silver Stock Investor and Silver Advisor, and author of The Great Silver Bull.

Together, they explore the rapid acceleration in gold prices, silver’s current lag, and why both metals may be poised for significant moves in the coming months and years.

(Interview Starts Around the 4:48 Mark)

Gold Hits $3,000 in Record Time

Gold’s recent price action has stunned even seasoned market watchers. The metal surged from $2,500 to $3,000 in just 210 days—an unprecedented move considering that past $500 price milestones took an average of 1,700 days.

Krauth expressed a mixture of surprise and validation.

While long-term bulls have anticipated such a breakout, the velocity and durability of the move have exceeded expectations. He noted that multiple global factors are creating the conditions for gold’s strength and argued that we remain in the early stages of a larger bull market.

Silver: Lagging But Loaded with Potential

The big question on many investors’ minds is, “What’s wrong with silver?”

Krauth’s answer: “Absolutely nothing.”

Silver is behaving in line with its historical pattern, trailing gold in the early stages of a bull cycle. Importantly, the gold-to-silver ratio remains near historically elevated levels, currently around 90:1, far above its long-term average of 55 to 60.

Krauth emphasized that this imbalance will eventually correct—and when it does, silver tends to move violently to the upside.

He acknowledged that some industrial headwinds, such as tariffs and economic uncertainty, may be tempering silver’s price, but those same conditions are also setting the stage for future gains.

History shows that during past Federal Reserve rate-cutting cycles, silver has delivered gains exceeding 300% within one to two years.

Industrial Demand vs. Investment Demand

Silver’s dual identity as both an industrial metal and a monetary asset adds complexity to its price behavior.

Over the past decade, industrial demand has grown from about 50% to nearly 60% of overall usage, largely due to solar panels, electric vehicles, and green energy technologies. This shift means there’s now less silver available for investment.

Krauth pointed out that when investor demand does come roaring back—as it often does during bull markets—the reduced available supply could send prices soaring. He sees the industrial base as providing a rising and more stable floor for silver prices, while investment demand brings in volatility and explosive upside potential.

Bullish Technical Signals: $50+ in Sight?

Technically, silver may be setting up for one of the most powerful breakouts in market history.

Krauth referenced the multi-decade “cup and handle” formation in silver, stretching back to the $50 highs of 1980 and 2011.

He cited technical analyst Jordan Roy-Byrne, who argues that a breakout above $35 to $37 would be significant, while a breakout past $50 would mark entirely new territory.

Such a move could catapult silver to $70, $80, or even $100 in a short time span. Krauth agrees with this view, emphasizing that even if one doesn’t trade technically, many investors do—and that alone makes such breakouts meaningful.

Monetary Policy, Tariffs, and Regime Uncertainty

Krauth and Maharrey both observed that gold’s rally has unfolded even without a dramatic loosening of monetary policy. This indicates the market may be anticipating a major economic event or crisis.

Krauth believes the Federal Reserve is cornered by soaring deficits and high interest rates, and when it inevitably cuts rates in the face of ongoing inflation, it will lose its remaining credibility.

This could trigger a massive move into gold—and then into silver, as investors look for more affordable alternatives. Krauth sees silver potentially reaching $40 by the end of 2025 and breaking through its all-time high of $50 sometime in 2026.

Since the recording of this interview, the White House has released its tariff plans. Gold and silver bullion, along with other precious metals and copper, will not have a tariff. 

Government Support and the Green Transition

Government policy is creating sustained demand for silver, particularly through green energy initiatives. Krauth pointed to recent data showing that renewable energy has surpassed coal for electricity generation in the United States for the first time.

Solar panels, a major consumer of silver, are becoming more efficient, with newer technologies requiring up to 50% more silver per panel. He also noted that Europe is aggressively spending on both rearming and the green economy, with Germany proposing a €900 billion package for defense and climate-related infrastructure.

Additionally, governments across Canada, Australia, and Europe are moving to streamline mining approvals to accelerate domestic production.

All of this points to a structural increase in silver demand in the years ahead.

Krauth’s Silver Price Forecast

Looking ahead, Krauth is highly optimistic. He believes a $40 silver price later this year is realistic and sees strong odds that silver will test or break its all-time high of $50 in 2026.

If gold continues to climb—possibly reaching $3,500 or $4,000—investors will likely shift attention to silver, which still offers more ounces per dollar.

This relative value, combined with limited supply and rising demand, could create the perfect conditions for a major silver bull run.

Where to Follow Peter Krauth

Peter Krauth offers a range of resources for investors. His paid newsletter, Silver Stock Investor, is available at silverstockinvestor.com. He also publishes a free newsletter, Silver Advisor, featuring lower-risk, more advanced companies, which you can subscribe to at thegoldadvisor.com/registration.

His book, The Great Silver Bull, provides a comprehensive yet accessible overview of the silver market, ideal for both new and seasoned investors. You can follow him on X (formerly Twitter) at @PeterKrauth and connect with him on LinkedIn.

Final Takeaway

The message from this episode is clear: Gold may be leading the charge, but silver is gathering strength beneath the surface.

With tight physical supplies, government-fueled industrial demand, and bullish technical setups converging, investors may want to prepare now—before silver’s breakout comes hard and fast.

Dr. Fauci’s Wife Transferred to an Indian Reservation—but Natives Don’t Want Her There

Ken Silva
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Dr. Fauci’s Wife Transferred to an Indian Reservation—but Natives Don’t Want Her There

(Ken Silva, Headline USA) Last week, the New York Times revealed that numerous top government health officials have been reassigned to regional offices of the Indian Health Service, which provides federal health services to Native Americans and Alaska Natives. The reassigned officials include none other than former COVID-19 czar Anthony Fauci’s wife, Christine Grady.

However, Native Americans are “insulted” by Grady’s reassignment, according to the Times.

The Times reported Monday that Native Americans are already made at recent changes made to the Department of Health and Human Services—including the shuttering of regional offices that cover much of the Indian population. Grady’s reassignment is apparently the straw that broke the camel’s back, so to speak.

Dr. Fauci's wife, Christine Grady. PHOTO: NIH
Dr. Fauci’s wife, Christine Grady. PHOTO: NIH

“The final indignity, Native leaders say, came last week, when Mr. Kennedy reassigned high-ranking health officials — including a bioethicist married to Dr. Anthony S. Fauci, a tobacco regulator, a human resources manager and others — to Indian Health Service locations in the American West, when what the chronically understaffed service really needs are doctors and nurses who are familiar with the unique needs of Native people,” the Times reported Monday.

“More than half a dozen leaders of Native American groups used words like ‘cruel,’ ‘disingenuous’ and ‘offensive’ to describe the proposed transfers.”

It’s unclear whether Grady will actually go to the reservation. She reportedly had until last Wednesday to accept the reassignment or to resign. The Times reported that she declined to be interviewed.

Of the other officials who were ordered to the reservation, one reportedly said she’d consider the reassignment, while another declined. Both spoke to the Times on condition of anonymity.

The Indian Health Services has offices in Alaska, Albuquerque, Bemidji, Billings, California, Great Plains, Nashville, Navajo, Oklahoma, Phoenix, Portland, and Tucson.

The Times further noted that Health and Human Services Secretary Robert F. Kennedy Jr. has lamented that the Indian Health Service has been “treated as the redheaded stepchild at H.H.S.,” and that said President Trump wants him to “rectify this sad history.”

The reassignments are part of a massive restructuring of the HHS.

As many as 10,000 scientists, senior leaders, doctors, inspectors and others across the department have already received layoff notices as part of an HHS effort to cut a quarter of its workforce.

“This overhaul is about realigning HHS with its core mission: to stop the chronic disease epidemic and Make America Healthy Again,” Kennedy said on social media. “It’s a win-win for taxpayers, and for every American we serve.”

The move, the department has said, is expected to save $1.8 billion from the agency’s $1.7 trillion annual budget — about one-tenth of 1%.

The department has not released final numbers but last week said it planned to eliminate 3,500 jobs from the Food and Drug Administration, 2,400 jobs at the Centers for Disease Control and Prevention, and 1,200 from the National Institutes of Health.

The Associated Press contributed to this report.

Ken Silva is the editor of Headline USA. Follow him at x.com/jd_cashless.

OPINION: As Tariffs Tank Markets, Economy Thirsts for Tax Cuts

Headline USA Editor
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OPINION: As Tariffs Tank Markets, Economy Thirsts for Tax Cuts

(Deroy Murdock, Headline USA) More carrots, please!

Feeling flogged by sticks, Wall Street greeted President Donald J. Trump’s Liberation Day with a bellowing Bronx cheer.

On Wednesday, Trump unveiled 10% across-the-board tariffs on all imports, plus reciprocal taxes tailored to foil foreign tariffs on U.S. goods. Financial markets opened Thursday and swiftly wilted.

After China slapped a retaliatory 34% tariff on American products early Friday, the key indices dropped like bombs from a B-52. The Dow Jones Industrial Average tumbled 2,231 points (5.50%). The S&P 500 plunged 322 points (5.97%). The NASDAQ plummeted 962 points (5.82%).

If the USA must absorb tariffs as long-run expenses (rather than watch Trump use them, short-term, to lean on foreign leaders), they should strike a vibrant, very special economy. Instead, tariffs are smacking Americans still anemic from Bidenomics.

Nonetheless, Trump predicted Wednesday in the Rose Garden: “We will supercharge our domestic industrial base.” He pledged, “Jobs and factories will come roaring back into our country,” along with “more production at home.”

Hooray!

But where will companies find the cash to repatriate foreign assembly lines, expand domestic operations, and otherwise reinvigorate U.S. manufacturing — especially after $6.6 trillion in market value evaporated on Thursday and Friday?

Trump’s stick-heavy recipe lacks one key ingredient: Carrots.

The all-American industrial renaissance that Trump rightly envisions would arrive sooner, if lower taxes, instant amortization, and other catalysts were humming within days, not whenever Congressional Republicans get around to them.

From twisting arms on Capitol Hill to rallying taxpayers across America, Trump should push tax cuts as hard as he presses tariffs. Indeed, tax cuts should have come first.

What a pity that Trump did not promote these policies in reverse:

First, slash taxes and let embattled American citizens and companies keep more of their money. A boom promptly would have erupted.

Second, as output soared, Trump should have invited world leaders to the White House and proposed 0% tariffs among these trade partners. If they agreed, Hallelujah! The world would enjoy pure, free trade.

Third, if these countries rebuffed Trump’s offer, however, he then could have hurled reciprocal tariffs like lightning bolts from atop the moral highlands.

Instead, uncertainty remains the enemy of growth. This suggested timetable would have furnished answers, not today’s burning questions:

What tax rate will corporations pay after January 1? How quickly may a factory amortize a brand-new boiler? Will Canadian aluminum prices include a 25%, 10%, or 0% tariff?

As of second quarter 2025, nobody knows.

Congressional Republicans appear to be coalescing around One Big, Beautiful Bill, brimming with permanently low Trump-45 tax rates, a new 15% corporate tax (down from 21%) for domestic manufacturers, and other vital reforms.

Alas, Republicans lack the urgency that this moment demands. Senators, in particular, discuss tax cuts by Memorial Day or “later this year.” Others would postpone Trump’s repeal of taxes on tips, overtime, and Social Security benefits until 2026!

This is dangerous.

These tax cuts should be passed and signed by May Day. Tax relief should take effect that morning, if not retroactively to January 20 or even January 1, 2025. At once, this would leave additional money in American wallets. Businesses would bloom among lower tax rates, more generous deductions, and, ideally, immediate depreciation for factory construction and equipment.

A burgeoning economy would position Republicans to keep Congress. However, GOP dithering on tax reduction could delay prosperity and buoy Democrats’ mid-term prospects.

Meanwhile, some Republicans reportedly are considering hiking tax rates up to 40% on $1-million-plus earners. It is abominable that any Republican would parrot Bernie Sanders’ chief talking point: Tax millionaires and billionaires — good and hard.

Trump’s policy is an audacious wager.

Best-case scenario: Scores of nations mirror Israel’s and Vietnam’s ambitions to negotiate with Trump and set reciprocal tariffs at 0%.

Worst-case scenario: Trade War I explodes, nations dig financial trenches, and attack each other with tariff gas.

Mr. President, let’s avoid that second destination.

More carrots, please!​

The above column does not necessarily reflect the editorial views of Headline USA.

Deroy Murdock is a Manhattan-based Fox News Contributor.

CA Fails Audit of Federal Programs, 66% of COVID Unemployment Benefits in Question

Headline USA Editor
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CA Fails Audit of Federal Programs, 66% of COVID Unemployment Benefits in Question

(Kenneth Schrupp, The Center Square) California did not materially comply with the requirements for seven of the 22 federal programs the state auditor examined, including “pervasive” noncompliance in its unemployment benefits program, which could put essential federal funding at risk.

“This report concludes that the State did not materially comply with certain requirements for seven of the 22 federal programs or clusters of programs (federal programs) MGO audited, including one program for which the noncompliance was pervasive,” wrote Deputy State Auditor Linus Li.

“Additionally, although MGO concluded that the State materially complied with requirements for the remaining federal programs it audited, the State continues to experience certain deficiencies in its accounting and administrative practices that affect its internal controls over compliance with federal requirements.”

The audit found that even in 2023 — years after the state made $55 billion in fraudulent COVID lockdown-era benefits payments — the state likely made “potentially ineligible payments” of nearly $200 million. The audit also found that of 138 pandemic unemployment assistance claimants that were tested, 91, or 66%, had verification issues.

“While Gavin Newsom chases the national spotlight, Californians are left with an administration that can’t accomplish the basic functions of government,” said California State Assembly Minority Leader James Gallagher to The Center Square. “The federal government is right to take a look at this spending and decide if it’s appropriate to keep throwing resources at an administration that treats it like Monopoly money.”

Last year, the state’s Legislative Analyst’s Office said the state’s unemployment fund runs a structural deficit of $2 billion per year, beyond the $20 billion debt and $1 billion in annual interest payments to the federal government. Because the unemployment fund is paid for by payroll taxes on employers and their employees, the LAO said payroll taxes would need to rise from $42 per employee making $46,800 or more per year, to $889.20, or over 21 times higher than the existing base payroll tax.

Tentative Deal is Reached in GOP Fight over Proxy Voting for New Parents

Headline USA Editor
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Tentative Deal is Reached in GOP Fight over Proxy Voting for New Parents

(Headline USA) A tentative deal has been reached with the Florida Republican leading a bipartisan push to allow proxy voting in the U.S. House for new parents, potentially ending a standoff that halted legislative work for days and threatened to delay a vote this week to advance President Donald Trump’s agenda.

House Speaker Mike Johnson and Florida Rep. Anna Paulina Luna, who has been leading the bipartisan push on proxy voting, reached the deal, Luna said in a social media post on Sunday.

Rather than allow proxy voting, Luna said the agreement would formalize a “pairing” system long used in Congress where one member who is physically present in the House cancels out the vote of someone who is absent. Luna said the voting option would be open to all Republicans who are unable to vote, including new parents, the bereaved and lawmakers facing various medical and family emergencies.

“If we truly want a pro-family Congress, these are the changes that need to happen,” Luna said.

No further details were immediately available. It was also unclear if the deal would be agreed to by the other lawmakers who had signed on to the proxy voting proposal.

The agreement with Luna could end days of back-and-forth over allowing new parents in Congress to vote by proxy for 12 weeks as they care for their newborns. Johnson has vigorously opposed the effort, calling it an affront to the Constitution that would open “Pandora’s box.”

But some Republicans refused to go along with Johnson’s bid to kill the resolution, with nine of them defying him in a vote last week.

By reaching a deal, Republican leaders will likely be able to move ahead this week on key legislative priorities — most critically a revised version of the budget framework that opens the door to Trump’s push for trillions of dollars in tax breaks. The Senate approved that budget framework early Saturday morning after grinding through a late-night session.

Trump had said he was in favor of allowing proxy voting for new parents after speaking with Luna, though he said he would defer to Johnson how the House should operate. “I don’t know why it’s controversial,” Trump said.

Luna, who gave birth during her first term in Congress, had championed the proxy voting resolution alongside Democratic Rep. Brittany Pettersen of Colorado, who has a 4-month-old son. The effort drew significant bipartisan support, with 218 lawmakers — the majority of the House, many young parents themselves — signing onto a petition that could trigger a floor vote.

The resolution would allow proxy voting for lawmakers who have given birth or pregnant lawmakers who are unable to travel safely or have a serious medical condition. It would also apply to lawmakers whose spouses are pregnant or giving birth.

Pettersen, who has carried her son onto the floor during recent House votes, said the institution needs to change with the times. About a dozen women have given birth while in Congress over the years, and there are many new fathers as well.

“It is unfathomable that in 2025 we have not modernized Congress,” she said.

But Johnson, like GOP leaders before him, loathes proxy voting, which had been put in place for about two years during the COVID-19 lockdowns when Democrats had control of the House.

“It was quickly abused. Republicans put an end to it then, and we cannot allow it again,” Johnson said in a social media post.

Adapted from reporting by the Associated Press

Meat-Cleaving Maniac Shot by Police after Stabbing 4 Girls

Headline USA Editor
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Meat-Cleaving Maniac Shot by Police after Stabbing 4 Girls

(Headline USA) Police shot a meat cleaver-wielding man named Longqian Chen, who allegedly slashed and stabbed four of his young female relatives during a bloody rampage inside a Brooklyn home on Sunday morning, officials said.

New York City Police Commissioner Jessica Tisch said the four girls — ages 16, 13, 11 and 8 — had serious stab and slash wounds but are expected to survive.

Tisch said the 11-year-old victim called police around 10:15 a.m. to alert authorities that she and her siblings had been attacked by their uncle. Officers heard screams after they arrived at the home in southern Brooklyn and were met near an entrance by the suspect, who was holding a blood-covered meat cleaver and ignored several calls to drop the weapon.

Two officers, who could see blood on the floor and walls of the home, shot the man after he began to advance toward them, Tisch said.

A police spokesman said the 49-year-old suspect has been hospitalized. The suspect was identified as Longqian Chen, and there are initial reports that he was related to at least one of the victims.

Police found a bloody knife, in addition to the meat cleaver, in the home. An investigation into the incident is ongoing.

Adapted from reporting by the Associated Press

 

Trump Voters Outraged over Kash Patel’s Promotion of Jan. 6 Hunter to Senior FBI Position

Ken Silva
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Trump Voters Outraged over Kash Patel’s Promotion of Jan. 6 Hunter to Senior FBI Position

(Ken Silva, Headline USA) The betrayal cut so deep that many Trump voters didn’t want to believe it at first.

On Friday, the New York Times reported that FBI Director Kashyap Patel promoted agent Steven J. Jensen to run the FBI’s Washington DC field office. As the Times reported, Jensen was in charge of the bureau’s domestic terrorism operations section during the Jan. 6, 2021, Capitol Hill uprising. According to testimony from the Democrats’ Jan. 6th Commission, Jensen called J6 protestors “terrorists” and promised to “round them all up.”

At first, some conservative influencers said that the Times report might be fake news. And when the Gateway Pundit published an article Saturday that the Times report was indeed false, many were quick to believe it.

However, it was the Gateway Pundit article that was fake news; not the Times report. Jensen’s promotion was reported by numerous sources, and confirmed by none other than Patel himself—the FBI director retweeted a Newsmax report about Jensen’s promotion.

Once Patel’s betrayal was apparent, Jan. 6 protestors and other Trump supporters turned from skeptical to outraged.

“Dan, we didn’t vote for y’all to promote anti American clowns like Steve Jensen. The dude setup the system that tracked parents who protested at school board meetings. The dude called J6ers terrorists That dude needs to be fired, this is embarrassing brother,” said the conservative influencer Hodge Twins.

Patel hasn’t addressed the matter, while FBI Deputy Director Dan Bongino made cryptic posts on Twitter/X on Sunday.

“I want to reassure you that nothing that is happening here is happening by accident. Because of the sensitivity of what the FBI deals with, both the Director and I have to be circumspect in what we can make public,” Bongino said, pleading: “Neither one of us came here to play games. Measure us by results. You will see them.”

Jensen’s promotion is just Patel’s latest promise he broke to the MAGA constituents—what the Friday Times article aptly described as a “bait and switch.”

Before his appointment, Patel  reversed his position on Section 702 of the Foreign Intelligence Surveillance Act. Patel previously expressed support for implementing warrant requirements for FISA 702, but he abandoned that position during his confirmation hearings—meaning he supports warrantless surveillance of Americans.

Patel also said that he’d shut down its headquarters and turn it into a “museum for the deep state.” Additionally, he’s yet to live up to promises such as that he’d release all the FBI’s files on notorious pedophile and likely federal informant Jeffrey Epstein.

Ken Silva is the editor of Headline USA. Follow him at x.com/jd_cashless.

At Least 16 Dead in Flooding and Tornadoes as Storms Slash South and Midwest

Headline USA Editor
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At Least 16 Dead in Flooding and Tornadoes as Storms Slash South and Midwest

(Headline USA) A storm system sweeping over large areas of the U.S. South and Midwest resulted in at least 16 weather-related deaths by early Sunday, with overnight tornado and flash flood warnings setting up more severe weather that forecasters say could cause rising waterways for days to come.

Many of the impacted areas already are heavily waterlogged by days of severe storms that spawned deadly tornadoes. New tornado warnings were issued overnight in Alabama and Mississippi, along with flash flood warnings for several counties in Kentucky, Mississippi and Tennessee.

Saturday included more of the torrential rain and flash flooding that has pounded the central U.S., rapidly swelling waterways and prompting emergencies from Texas to Ohio. The 16 reported deaths since the start of the storms included 10 in Tennessee alone.

The National Weather Service said dozens of locations in multiple states were expected to reach what the agency calls “major flood stage,” with extensive flooding of structures, roads, bridges and other critical infrastructure possible.

A 57-year-old man died Friday evening after getting out of a car that washed off a road in West Plains, Missouri. Flooding killed two people in Kentucky including a 9-year-old boy swept away that same day on his way to school and a 74-year-old whose body was found Saturday inside a fully submerged vehicle in Nelson County, authorities said.

Also Saturday, a 5-year-old died at a home in Little Rock, Arkansas, in a weather-related incident, according to police. No details were immediately provided.

Tornadoes earlier in the week destroyed entire neighborhoods and were responsible for at least seven of the deaths.

There were 521 flights cancelled and more than 6,400 flights delayed within the U.S. or coming into or leaving the country on Saturday, according to FlightAware.com, which reported 74 cancellations and 478 delays of U.S. flights early Sunday.

Interstate commerce also could be affected. The extreme flooding across a corridor that includes the major cargo hubs in Louisville, Kentucky, and Memphis could lead to shipping and supply chain delays, said Jonathan Porter, chief meteorologist at AccuWeather.

Louisville Mayor Craig Greenberg said Saturday that the Ohio River rose 5 feet (about 1.5 meters) in 24 hours and would continue to swell for days.

“We expect this to be one of the top 10 flooding events in Louisville history,” he said.

Flash flood threat looms over many states

Flash flood emergency and tornado warnings continued to be issued Saturday across Arkansas, Mississippi, Tennessee and Kentucky, with more heavy rains and damaging winds in the mix. All of eastern Kentucky was under a flood watch through Sunday morning.

Hundreds of Kentucky roads across the state were impassable because of floodwaters, downed trees or mud and rock slides.

Downtown Hopkinsville, Kentucky, reopened in the morning after floodwaters from the Little River receded, giving a much-needed reprieve, but still more rainfall was on its way, Mayor James R. Knight Jr. said.

“We got a little rain, but most of it went north of us,” Knight said. “Thank goodness on that. Gave us a little break.”

In north-central Kentucky, emergency officials ordered a mandatory evacuation for Falmouth, a town of 2,000 people in a bend of the rising Licking River. The warnings were similar to catastrophic flooding nearly 30 years ago when the river reached a record 50 feet, resulting in five deaths and 1,000 homes destroyed.

In Arkansas, weather officials pleaded with people to avoid travel unless absolutely necessary due to widespread flooding.

BNSF Railway confirmed that a railroad bridge in Mammoth Spring was washed out by floodwaters, causing the derailment of several cars. No injuries were reported, but there was no immediate estimate for when the bridge would reopen.

Why so much nasty weather?

Since Wednesday, more than a foot of rain has fallen in parts of Kentucky, and more than 8 inches in parts of Arkansas and Missouri, forecasters said Saturday.

Forecasters attributed the violent weather to warm temperatures, an unstable atmosphere, strong wind shear and abundant moisture streaming from the Gulf.

At least two reports of observed tornadoes were noted Friday evening in Missouri and Arkansas, according to the National Weather Service. One, near Blytheville, Arkansas, lofted debris at least 25,000 feet high, according to NWS meteorologist Chelly Amin. The state’s emergency management office reported damage in 22 counties from tornadoes, wind, hail and flash flooding.

In Dyersburg, Tennessee, dozens of people arrived Saturday at a storm shelter near a public school in the rain, clutching blankets, pillows and other necessities.

Among them was George Manns, 77, who said he was in his apartment when he heard a tornado warning and decided to head to the shelter. Just days earlier the city was hit by a tornado that caused millions of dollars in damage.

“I grabbed all my stuff and came here,” said Mann, who brought a folding chair, two bags of toiletries, laptops, iPads and medications: “I don’t leave them in my apartment in case my apartment is destroyed. I have to make sure I have them with me.”

Adapted from reporting by the Associated Press

2 States Poised to be First Since 1980 to Eliminate Income Tax

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2 States Poised to be First Since 1980 to Eliminate Income Tax

(Headline USA) About 45 years have passed since a U.S. state last eliminated its income tax on wages and salaries. But with recent actions in Mississippi and Kentucky, two states now are on a path to do so, if their economies keep growing.

The push to zero out the income tax is perhaps the most aggressive example of a tax-cutting trend that swept across states as they rebounded from the COVID-19 pandemic with surging revenues and historic surpluses.

But it comes during a time of greater uncertainty for states, as they wait to see whether President Donald Trump’s cost cutting and tariffs lead to a reduction in federal funding for states and a downturn in the overall economy.

Some fiscal analysts also warn the repeal of income taxes could leave states reliant on other levies, such as sales taxes, that disproportionately affect the poor.

Which governments charge income tax?

The 16th Amendment to the U.S. Constitution grants Congress the power to levy income taxes. It was ratified by states in 1913. Since then, most states have adopted their own income taxes.

Eight states currently charge no personal income tax: Alaska, Florida, New Hampshire, Nevada, South Dakota, Tennessee, Texas and Wyoming. A ninth state, Washington, charges no personal income tax on wages and salaries but does tax certain capital gains income over $270,000.

When Alaska repealed its personal income tax in 1980, it did so because state coffers were overflowing with billions of dollars in oil money.

Though income tax eliminations have been proposed elsewhere, they have not been successful.

“It’s a lot easier to go without an individual income tax if you’ve never levied one,” said Katherine Loughead, a senior analyst and research manager at the nonprofit Tax Foundation. “But once you become dependent on that revenue, it is a lot more difficult to phase out or eliminate that tax.”

What is Mississippi doing?

Republican Mississippi Gov. Tate Reeves recently signed a law gradually reducing the state’s income tax rate from 4% to 3% by 2030 and setting state revenue growth benchmarks that could trigger additional incremental cuts until the tax is eliminated. The law also reduces the sales tax on groceries and raises the gasoline tax.

If cash reserves are fully funded and revenue triggers are met each year, Mississippi’s income tax could be gone by 2040.

Supporters of an income tax repeal hope it will attract both businesses and residents, elevating the state’s economy to the likes of Florida, Tennessee and Texas. Their theory is that when people pay less in income taxes, they will have more money to spend, thus boosting sales tax collections.

The tax repeal “puts us in a rare class of elite, competitive states,” Reeves said in a statement. He added, “Mississippi has the potential to be a magnet for opportunity, for investment, for talent –- and for families looking to build a better life.”

Mississippi is among the most impoverished states and relies heavily on federal funding. Democratic lawmakers warned the state could face a financial crises if cuts in federal funding come at the same time as state income tax reductions.

The income tax provides “a huge percentage of what the state brings in to fund things like schools and health care and services that everybody relies on,” said Neva Butkus, senior analyst at the nonprofit Institute on Taxation and Economic Policy.

What has Kentucky done?

A 2022 Kentucky law reduced the state’s income tax rate and set a series of revenue-based triggers that could gradually lower the tax to zero. But unlike in Mississippi, the triggers aren’t automatic. Rather, the Kentucky General Assembly must approve each additional decrease in the tax rate.

That has led to a series of tax-cutting measures, including two new laws this year. One implements the next tax rate reduction from 4% to 3.5% starting in 2026. The second makes it easier to continue cutting the tax rate in the future by allowing smaller incremental reductions if revenue growth isn’t sufficient to trigger a 0.5 percentage point reduction.

Democratic Gov. Andy Beshear signed the legislation for next year’s tax cut but let the other measure passed by the Republican-led legislature become law without his signature. Beshear called it a “bait-and-switch” bill, contending lawmakers had assured the guardrails for income tax reductions would remain in place while pushing for the 2026 tax cut, then later in the session altered the triggers for future years.

What actions have other states taken?

New Hampshire and Tennessee already did not tax income from wages and salaries, but both states had taxed certain types of income.

In 2021, Tennessee ended an income tax on interest from bonds and stock dividends that had been levied since 1929.

New Hampshire halted its tax on interest and dividends at the start of this year.

Some other states also are pushing to repeal income taxes. The Oklahoma House passed legislation in March that would gradually cut the personal income tax rate to zero if revenue growth benchmarks are met. That bill now is in the Senate.

New Missouri Gov. Mike Kehoe, a Republican, also wants to phase out the income tax. The House and Senate have advanced legislation that would take an incremental step by exempting capital gains income from taxes.

Adapted from reporting by the Associated Press

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