01 September 2015

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls On Friday

"The existence of cash — a bearer instrument with a zero interest rate — limits central banks’ ability to 'stimulate a depressed economy.'  The worry is that people will change their deposits for cash if a central bank moves rates into negative territory."

Financial Times, The Case For Retiring Another 'Barbarous Relic'

Since the Nikkei bought the Financial Times earlier this year one wonders if they are able to interpret the real meaning of their own editorial policy.  Could anything be more blatantly repugnant than the above?

'Negative rates' is a euphemism for the slow but steady confiscation of all savings, a broader 'bail in.'  It is designed to drive people into financial paper assets and consumption. It is all about the elimination of safe havens, of places to hide from gross incompetence and wealth transfers.

Negative interest rates are the signature moment in the decline of a republic and the rise of corporate feudalism.   They take our wealth at no cost or effort for themselves, and lend it back to us at interest and without risk, being assured of a continuing supply of subsidy from their central Bank.

There will be quite a bit of economic news at the end of the week, including a Non-Farm Payrolls report for the month of August.

Gold is in an interesting position here, as can be seen on the chart.

The Bucket Shop was quiet, except for a small but steady stream of bullion out of their warehouses for both metals.

Have a pleasant evening.