"The Supreme Court said today it would not hear Argentina's case against hedge fund creditors, and Argentina's stock market got killed on the news.Argentina's Merval Index, a price-weighted index designed to reflect the performance of Argentine listed companies, fell 12%."
16 June 2014
Gold Daily and Silver Weekly Charts - The Emperor Wears Nada - Blood on the Pampas
Gold and silver pulled back a bit today after an exceptionally good week. They were higher most of yesterday evening, if one could distract themselves from the season finale of Game of Thrones.
I really need to go back and reread the first five books of the series. I remember the highlights, but keep forgetting some of the details. Its been about five years since I read them. And Lord knows when G. R. R. Martin will get around to finishing volumes six and seven.
Martin is a great story teller, and certainly has found his voice with this particular series. I have read his Dunk and Egg series, which should be a good 'fix' for frustrated Martin aficionados. But most of his other things like the science fiction were meh. I have not read his vampire story Fevre Dream yet, which is set in the 19th century on the Mississippi River, but it did not sound inviting. I think what is intriguing is the expanse of the world he creates in A Song of Ice and Fire, and the highly engaging details and characters.
As you know this is an FOMC meeting week, so we will have to see how well the precious metals hold their levels. I would certainly like to see silver take out 20, but that may or may not be in the cards.
In case you missed it, the Merval stock index (Argentina) crashed today. I mentioned it in the stock market commentary below. This was courtesy of the US Supreme Court's refusal to hear the case that is forcing that government's hand in its dealing with some funds who refused to negotiate the debt, demanding full payment.
This sets up the government for a potential default since the lower US court had ruled it could repay no debts without first settling with funds who have purchased Argentine debt and have refused to enter into the restructuring, instead demanding full payment. The world seems to have viewed this market drop as a secular event. I find it interesting that the US Courts have precedence here.
Some additional ounces of gold were 'stopped' on Friday, but there continues to be little movement in the Comex warehouses, which seem to be like the Hotel California. Bullion can check in but it never seems to leave.
Actually this is not all that hard to understand, if you keep in mind that the US markets are where the elite meet to cheat, and that actually BUYING bullion and taking delivery in any serious amounts happens elsewhere. What is more surprising is how the LBMA is becoming the same sort of market with the movement of precious metal action to the East.
I have almost reached the conclusion that there will be no reform until something unfortunate and unavoidable happens to wake people up. I continue to hope not, but it does seem to be in the cards. People are growing hungry for justice.
Perhaps we will see a Stannis Baratheon riding down the wildlings of Wall Street someday. I am sorry to say that it rarely happens in real life as it does in fictional worlds. Most of the time the would be savior turns out to be a betrayer, a type of Judas goat.
But as with Jon Snow, there are quite a few who 'would like to fight for the side that fights for the living.' And one can hope that they may eventually prevail with the right kind of encouragement and assistance. After all, the real fight is not among the power hungry gamesters at King's Landing, but with the Night's Watch on the Wall.
Winter is coming.
Have a pleasant evening.