15 October 2026

Stocks and Precious Metals Charts - The Power Elite Are Cannibalizing the Great Western Democracies

 

"Some people feel an insatiable hunger for power.  They crave control and dominance over others, and are willing to do whatever it takes to achieve it, including climbing the political ladder.  Such individuals exhibit high levels of psychopathic and narcissistic traits, and are marked by a profound lack of empathy and remorse, which allows them to exploit and abuse others without hesitation.  Worse still, they tend to believe they are superior to others and therefore entitled to dominate them.

In contrast, highly compassionate, just, and responsible individuals feel genuine concern for others and have little interest in exercising power over them.  Therefore, they tend to avoid positions that elevate them above their fellow humans.

As you can understand, this dynamic leaves positions of power open to ruthless individuals.  Once they seize authority, they have no intention of ever relinquishing it.  On the contrary, they are willing to take any measures necessary to remain in power, including making anti-democratic decisions.

Those individuals hate democracy, although they might pretend to love it.  For democracy is, at its core, about distributing political power among the people, protecting them from rule by a self-serving minority. Perhaps needless to say, our political system fails miserably at this, rewarding — for the most part — the ones who are best at deceiving, exploiting, and outmaneuvering others for their personal gain.

One of the most significant ways power-hungry, yet often highly charismatic. individuals tend to gain power is by leveraging the media to present themselves as confident, decisive, and 'tough' defenders of the people — even though, in reality, they are deeply insecure and driven primarily by a desire for self-importance.

In addition, they attract similarly pathological individuals, forming coalitions that strengthen and consolidate their power.  As a result, what we call democracy is, in practice, a pathocracy  — a term coined by Polish psychologist Andrzej Łobaczewski to describe systems of government dominated by pathological personalities.

This is not to say that all politicians are corrupt.  Some are genuinely kind-hearted and aim to serve society, but sooner or later they tend to exit the political arena — driven out, or simply disgusted with, their malevolent colleagues.  Psychopathic politicians, by contrast, persist to the end.  Even after reaching the top, they feel their power is still insufficient.

At that point, they may begin projecting their ambitions onto the nation itself, seeking to expand its power and prestige on the world stage.  This can trigger financial or military conflicts with other nations, disrupting or devastating the lives of hundreds of thousands — or even millions — of people.

Pathological leaders not only seek to expand their power but also work meticulously to protect what they already hold.  For example, they may scare the public with made-up threats, while portraying their political opponents as the only cause of those threats and themselves as the only solution.  Or, to offer another example, they may attempt to weaken or dismantle democratic institutions that threaten their authority, such as independent media, legislatures, and anti-corruption bodies.

So what can we, ordinary citizens, do to safeguard democracy from such leaders?

First, we must recognize that they hold power only because we collectively permit them to.  It is easy to blame, accuse, or demonize politicians, for it requires no self-reflection.  The uncomfortable truth, however, is that each of us bears some responsibility for the political reality we inhabit, and acknowledging this is the first step toward meaningful change.

Second, we need to understand why so many of us unconsciously gravitate toward pathological leaders.  Humans are drawn to strongman figures who appear capable of protecting and providing for the group.  This tendency is especially pronounced in times of crisis, which helps explain the recent global rise of authoritarianism.  By becoming aware of this instinct, we can consciously evaluate leaders based on their vision, ideas, and proposed policies, rather than being swayed by charisma or fear.

Finally, we must honestly acknowledge that our so-called democracy is deeply flawed — and commit to changing it.  Electing representatives every few years, heavily promoted by corporate media and rarely held to their promises, leaves citizens with very little real power.  A truly democratic system would be participatory, enabling people to shape laws, policies, and community affairs directly through mechanisms such as referendums, citizen initiatives, recall elections, and town hall assemblies."

Sofa Archon, Why Psychopaths Rise to Power

"When I was a child, I spoke as a child, I understood as a child, and I thought as a child.  But now that I am a man I have put away childish things.  Now we see through a glass, darkly.  But then we will see face to face.  Now I know in part, but then shall I know fully, even as I am fully known.  For now these three remain, faith, hope, and love. But the greatest of these is love."

1 Corinthians 13:11-13

Here is what is going on in a nutshell in the markets and in Washington.

This is the very heart of an extractive economy that is slowly cannibalizing itself for the sake of a greedy and corrupt elite. 

Gold and silver were hit hard but rebounded some ahead of the stock option expiration tomorrow.

Stocks were hammered led by tech, which is looking very skittish.   

But never fear, the wiseguys bought them back up into the close.

Oil is trying to break out.  

The propaganda smoke and mirrors machine is running at full speed.  

But do not be deceived, for God is not mocked.  

What a man sows, so shall he reap.

Have a pleasant evening. 


14 October 2026

Stocks and Precious Metals Charts - Failure Is an Option: The Extractive Spiral of Kleptocracy

 

"Countries differ in their economic success because of their different institutions, the rules influencing how the economy works, and the incentives that motivate people,” write Acemoglu and Robinson.  Extractive institutions, whether feudalism in medieval Europe or the use of schoolchildren to harvest cotton in contemporary Uzbekistan, transfer wealth from the masses to elites.

In contrast, inclusive institutions—based on property rights, the rule of law, equal provision of public services, and free economic choices—create incentives for citizens to gain skills, make capital investments, and pursue technological innovation, all of which increase productivity and generate wealth.  Economic institutions are themselves the products of political processes, which depend on political institutions.

These can also be extractive, if they enable an elite to maintain its dominance over society, or inclusive, if many groups have access to the political process.  Poverty is not an accident: “Poor countries are poor because those who have power make choices that create poverty.”  Therefore, Acemoglu and Robinson argue, it is ultimately politics that matters.

The logic of extractive and inclusive institutions explains why growth is not foreordained.  Where a cohesive elite can use its political dominance to get rich at the expense of ordinary people, it has no need for markets and free enterprise, which can create political competitors.  

In more fortunate countries, pluralistic political institutions prevent any one group from monopolizing resources for itself, while free markets empower a large class of people with an interest in defending the current system against absolutism."

James Kwak, Failure Is An Option, Democracy: A Journal of Ideas, Summer 2012

"I have this feeling in my stomach that I felt in other countries, much poorer countries, countries that were headed into really difficult economic situation. When there's a small group of people who got you into a disaster, and who were still powerful. Disaster even made them more powerful. And you know you need to come in and break that power. And you can't. You're stuck.

The powerful people are the insiders. They're the CEOs of these banks. They're the people who run these banks. They're the people who pay themselves the massive bonuses at the end of the last year. Now, those bonuses are not the essence of the problem, but they are a symptom of an arrogance, and a feeling of invincibility, that tells you a lot about the culture of those organizations, and the attitudes of the people who lead them.

But it really shows you the arrogance, and I think these people think that they've won. They think it's over. These people are throughout the system of government. They are very much at the forefront of the Treasury. The Treasury is apparently calling the shots on their economic policies. This is a decisive moment. Either you break the power or we're stuck for a long time with this arrangement."

Bill Moyer's Journal - Interview with Simon Johnson, February, 2009.

 

I think that the problems are well known now, and the the probable course for a revitalization of the economy and the nation are withing the grasp of reasonable informed people.

The difficulty is that so many are paid and otherwise motivated to prevent any reform that might disadvantage the Western kleptocracy.

Why bother then to restate solutions and a call to sensible reforms that favor growth and general prosperity? 

Gold and silver were hammered.  

The dollar bounced.

Oil is threatening to break out along with natural gas.

Inflation is running strong.   Duh. 

Stocks took a pretty stiff hit today, led by the tech concentrated NDX.

Things do not look good.  This has to be the most understated crisis in the US that I have ever seen.  

During the fall of Berlin gangs of ardent Nazi cultists went around hanging their own citizens, lashing out against the innocent as ashes consumed their mad fever dreams.   

We are starting to see some of that here today — the drowning of innocence in madness and the great apostasy from love.  

The wages of sin will be paid, and it will get ugly.

Have a pleasant evening. 

13 October 2026

Stocks and Precious Metals and Charts - Tokens and Instruments of Evil

 

"We must scrupulously guard the civil rights and civil liberties of all our citizens, whatever their background. We must remember that any oppression, any injustice, any hatred, is a wedge designed to attack our civilization."

Franklin Delano Roosevelt, Speech to The American Committee for Protection of Foreign Born, January 9, 1940

"I swore never to be silent whenever and wherever human beings endure suffering and humiliation. We must always take sides. Neutrality helps the oppressor, never the victim. Silence encourages the tormentor, never the tormented. There may be times when we are powerless to prevent injustice, but there must never be a time when we fail to protest."

Elie Wiesel, Nobel Peace Prize Acceptance Speech, 10 December 1986

"Surely, there is at this day a confederacy of evil, marshalling its hosts from all parts of the world, organizing itself, taking its measures, enclosing the Church of Christ as in a net, and preparing the way for a general Apostasy from it. Whether this very Apostasy is to give birth to Antichrist, or whether he is still to be delayed, as he has already been delayed so long, we cannot know; but at any rate this Apostasy, and all its tokens and instruments, are of the Evil One, and savour of death."

John Henry Newman, The Patristical Idea of Antichrist, 1838

"Laws exist to protect society from the actions of aberrant personalities. It does not shock us when they wield a gun. Why then does it surprise us when they utilize a pen, a glib personal patina, a reckless disregard for others, and a persistent, amoral cunning? Until there is reform and a restoration of justice there will be no sustained and genuine recovery."

Jesse, A Brief History of the Greatest Financial Fraud in History, 15 December 2008

"Where justice is denied, where poverty is enforced, where ignorance prevails, and where any one class is made to feel that society is an organized conspiracy to oppress, rob and degrade them, neither persons nor property will be safe."

Frederick Douglass, Speech on the twenty-fourth anniversary of Emancipation, April 1886

"When we join together in serving our local community, we add strength to our national community, we help to fortify the structure of our whole Union. Human kindness has never weakened the stamina or softened the fiber of a free people. A nation does not have to be cruel to be tough."

Franklin Delano Roosevelt, Radio Address from Washington, D.C., October 13, 1940.


There will be a minor stock option expiration on this coming Friday.

I did not listen to the news while I was in China for the past couple of weeks.  So I do not have much to offer at this time. 

The primary force that will be driving the markets is the macro conditions proceeding from the ongoing conflicts in Iran and the Ukraine.

The US and much of the West is lurching towards a generational economic crisis. 

Have a pleasant evening. 

 


12 October 2026

There and Back Again

 

"Oh what a tangled web we weave,
When first we practise to deceive."

Sir Walter Scott

We are back in the States, arriving late last night.

Here are the state of the charts today.

As you know US markets are closed for Columbus Day.

Options expiration (run of the mill) coming up on Friday.

Let's see what happens tomorrow.