14 May 2014

Gold Daily and Silver Weekly Charts - O Brave New World

Oh, wonder! How many goodly creatures are there here!
How beauteous mankind is! O brave new world,
That has such people in ’t!

William Shakespeare, The Tempest

The capping of gold and silver at these levels continues.

This being an inactive month for the metals, the CME offers even less insight as to what is going on in the real world than it normally does.

Three futures traders have filed a lawsuit alleging a conspiracy of price rigging and deception at the CME. 

The LBMA has decided to give up the silver fix, for a lack of interest in a thoroughly corrupted system of price discovery. Principled resignation is more of a British tradition; the Yanks will hang on, stubbornly to their lies, until the bitter end.   So I don't expect to see any reforms on the CME until it is forced into a de facto default and a conversion to pure paper.

I do not expect to see a real hyperinflation, or a 'proper bankruptcy' in the US.   On this the MMT crowd is most likely correct, at least technically, although all things are possible since the issue is one of human choice, and these jokers are certainly all too human in the worst sense.  If your debt is in dollars, and you can pay it in dollars, and you cant print dollars at will, the internal logic is sound.  But certainly circular and self-referential, and quite likely divergent from practicality.

There will likely be some sort of default on the debt, or a significant change in the system.  But technically it will not be a bankruptcy.   Again, more likely a serious bout of stagflation supported by increasing levels of fraud and force.

When the use of force starts to breaks down, if in fact it does, we will either see a managed devaluation, a consolidation, or a change in management.  We are in a long running Ponzi scheme of a fiat currency that must continue to keep expanding, or begin to collapse.

There is a method in the madness of Washington, and their insatiable desire for more.  But is has little or nothing to do with the public welfare or the health of the republic.  This is the 'me generation' and their watchword is greed. 

We may see Britain falter first.  Or a greater portion of Europe.  Self-love is throwing your own people and then your friends under the bus first, when your schemes begin to fall apart, because they are closest to hand.

We come in peace.

Have a pleasant evening.