you think, 'I am a god!
I sit on a god’s throne
in the heart of the sea.'
But you are a man, not a god;
yet you pretend
that you are a god at heart.
Oh yes, you are wiser than Daniel,
nothing secret is too obscure for you.
By your knowledge and cunning
you made yourself rich,
filling your vaults with gold and silver.
Through your great wisdom in trading
you heaped up riches for yourself—
your heart is haughty because of your riches.
Therefore thus says the Lord God:
Because you pretend you are a god at heart,
Therefore, I will bring against you
strangers, the most bloodthirsty of nations.
They shall draw their swords
against your splendid wisdom,
and violate your radiance.
They shall thrust you down into the abyss:
you shall die a violent death
in the heart of the sea.
Then, face to face with your destroyers,
will you still say, 'I am a god'?
No, you are a man, not a god,
handed over to those who will bring you low."
Ezekiel 28:1-9
"From the smallest to the greatest, they are all greedy for gain. Policy makers and spokesmen alike, they all practice deceit. They dismiss the pains of my people as though they are not serious. 'Peace, peace, they say, where there is no peace. Are they ashamed of their lawlessness? No, they have no shame at all; they do not even know how to blush. So they will fall among the fallen, and will be brought low when their judgement comes."
Jeremiah 6:13-15
And in the news...
US Diesel crack spread has crossed $100 for the first time in history. It has surged over 140% this year to a record $102.20, showing how expensive diesel has become compared with crude oil. Recent Houthis attack on a Saudi Arabia refinery pushed prices higher. Ukrainian strikes on Russian refineries and disruptions across the Gulf had already squeezed diesel supply.
US inventories have fallen to 107 million barrels, their lowest seasonal level since 1996. This is pushing the food prices higher. Trucks transport over 80% of US agricultural products including dairy, fruit, vegetables and nuts, making distribution more expensive.
Food Inflation is already up by 3% this year. With inventories falling and prices rising, it will get difficult for governments to control inflation globally despite hiking rates.
Stocks declined today, but it seemed to be fairly orderly selling.
This makes me wonder if this is a real adjustment to risk, or just the usual pre-option expiration wash and rinse.
Well, we will see in a day or two..
Gold and silver were hit hard.
VIX rose but in a very 'orderly' manner.
Bitcoin held steady, but if you look at a longer term chart below it is essentially flat-lining.
This is not constructive for crypto creatures like Micro-Strategy, which require a steadily rising price of Bitcoin to keep the machine running.
And as you can see in the first chart below, MSTR seems to be using share issuance to pay the dividends and the bills. And is not adding to its Bitcoin inventory.
Absent some change, this looks like a death spiral.
Speaking of spirals, although I do not comment or chart them here, I always keep an eye on the currency and the interest rates of Treasuries. And the rates on longer term debt in a number of countries, including the US, are flashing warning signs.
As Carl Quintanilla quoted on X today:"You are on a bus called the 30-year bond and there is a cliff coming, but you don’t know if it is 100 meters away or 100 miles away,” he said. “You are hoping you can get off the bus before it crashes.”
The situation in Hormuz is fairly ugly, and distracting from the other ugly situation in Ukraine.
Europe has boxed itself into a natural gas quandary, and it may be a very hard winter if the cold sets in.
Greedy foolish people can do enormous damage if they are given some power and leeway.
Don Tzu seems to be maxing out. The shame of the Congress, and to some extent the Supreme Court, in standing idly by and not fulfilling their oaths to defend the Constitution is a profile in cowardice.
And then there is the complicity in a genocide and ethnic cleansing being livestreamed, so that no one cannot say they did not know, except in the most devious of ways.
These are the gods of this world, that some have chosen to worship, or at least accommodate for 'practical reasons'.
And some of the more publicly 'fervent' Christians have made an evil cult of it, without shame in their betrayal and rebellion.
Such are the times.
Have a pleasant evening.
