09 April 2015

Gold Daily and Silver Weekly Charts - Currency Wars and the Gathering Darkness

“We first crush people to the earth, and then claim the right of trampling on them forever, because they are prostrate.”

Lydia Maria Child

Gold and silver were under pressure most of the day, starting with a trend to weakness yesterday evening in the globex market.
A brief rally this morning back above 1200 in gold was shoved back down fairly hard.  Again, this is just the tyranny of round numbers and perception management.
There was negligible activity in the Bucket Shop on the Hudson, although they were certainly moving silver bullion around the plate in the warehouses, with little net affect.
There was intraday commentary on the currency war here.   I think it is fairly important to read this and understand it, even if you don't agree with all of it.   The issue is that quite a few people in the rest of the world see things this way, and are acting on it.  So the effect is there, even if your particular domestic media choose to ignore it for whatever reasons.
Personally I think it is spot on, and the greatest macro financial trend of my generation, ie the resolution of the settlement and basis for global trade, both in terms of rules and valuations.  Its ramifications are being manifested ever more strongly across all three levels of international relations:  diplomatic, economic, and military.
I think it is not too much to say that the currency war is the Rosetta stone for understanding what is happening in our world today.   The most surprising thing is how such great events can be taking place, affecting so many lives around the world, while so few non-specialists are even aware of it.  And I suspect that quite a bit of that is by design. 
First by inflation, and then by deflation.  More income producing assets end up in fewer and fewer hands.  Policy and law are bent to the service of greed and injustice, until the lands are impoverished.  And our house will be made desolate, not by fantastical beasts and beings, but by our own hardened, wicked hearts. 
Have a pleasant evening.