No Updates Tonight

 

Computer problems.   

Hopefully be back later tonight or tomorrow.

 

 

Stocks and Precious Metals Charts - What Is Empire Without Wisdom and Without Virtue

 

“But what is liberty without wisdom and without virtue? It is the greatest of all possible evils; for it is folly, vice, and madness, without tuition or restraint. Those who know what virtuous liberty is, cannot bear to see it disgraced by incapable heads, on account of their having high-sounding words in their mouths.”

Edmund Burke, Letter to a Member of the National Assembly, 1791

"China's central bank reported its biggest monthly increase in gold reserves in more than two and a half years in June, official data showed on Tuesday, although bullion prices tumbled. China's ‌central bank ⁠maintained ⁠gold purchases for a 20th straight month, with its reserves hitting 75.44 million fine troy ounces by the end of June, versus 74.96 million a month earlier.  The 480,000-ounce rise, equivalent to near 15 metric tons, marked the biggest ⁠monthly addition ‌since October 2023."

Reuters, China gold reserves rise most since 2023, 7 July 2026

"Nor can private counterparties restrict supplies of gold, another commodity whose derivatives are often traded over-the-counter, where central banks stand ready to lease gold in increasing quantities should the price rise."

Alan Greenspan, Congressional Testimony, July 24, 1998

“Control frauds are seemingly legitimate entities controlled by persons that use them as a fraud “weapon.” A single control fraud can cause greater losses than all other forms of property crime combined. Financial control frauds’ primary weapon is accounting. Fraudulent lenders produce exceptional short-term 'profits' through a four-part strategy: extreme growth (Ponzi), lending to uncreditworthy borrowers, extreme leverage, and minimal loss reserves.

These exceptional 'profits' defeat regulatory restrictions and turn private market discipline perverse. The profits also allow the CEO to convert firm assets for personal benefit through seemingly normal compensation mechanisms. The short-term profits cause stock options to appreciate. Fraudulent CEOs following this strategy are guaranteed extraordinary income while minimizing risks of detection and prosecution.

The optimization strategy causes catastrophic losses. The “profits” allow the fraud to grow rapidly by making bad loans for years. The “profits” allow the managers to loot the firm through exceptional compensation, which increases losses.

When many firms follow the same optimization strategy a financial bubble hyper-inflates. This further optimizes accounting control fraud because the frauds can hide losses by refinancing. Mega bubbles produce financial crises."

William K. Black, Control Frauds: Recurrent, Intensifying Bubbles and Crises, 15 April 2010

"[Martin] Hennecke stressed that investors should go for physical forms of gold and other precious metals rather than "paper gold investment scheme where there isn't full backing, where the metal might be leased out or used for derivatives. That's crucial because there is 80 times more paper gold in the market than actual physical metal in existence in the planet."

CNBC Asia, Go for Gold and Silver, 2 September 2009

"The problem is that sensible liquidity support can easily become inappropriate subsidies, particularly when some financial institutions are considered 'too big to fail'.  Outsiders will never observe the real-time information on which central banks make decisions, so we need to be able to trust the people running our central bank, otherwise the system will go badly wrong — again.

But it is also an all-too-accurate reflection of where we stand today with regard to global mega-banks and the large, nontransparent and highly dangerous subsidies they extract from the rest of society by being too big to fail.  The people who run global mega-banks get the upside when things go well – they are paid based on their return on equity unadjusted for risk, so they prefer a lot of debt piled on top of very little equity.

When things go badly, the downside is someone else’s problem – in the first instance, typically, the Federal Reserve’s.  In the run-up to 2007, the complacency of the entire Fed System can be traced in part to the cozy relationship between the New York Fed (headed then by Mr. Geithner) and the Wall Street elite.  We cannot let this happen again."

Simon Johnson, Institutional Flaw At The Heart Of The Federal Reserve, 14 June 2012

Stocks popped yesterday on Monday, and flopped back today on Tuesday.

There seems to be a pattern here.    lol

Gold and silver were hit fairly hard, with silver taking it on the chin.

VIX rose a bit.

The Dollar drifted a little higher onto the 101 handle.  

Dollar strength is euro weakness.   And Europe's 'leaders' seem content to wear their gimp suits for Trump.

SpaceX is underwater from its IPO.   The only surprise is that there were those who bought it believing in anything more than a quick, cynical flip.   

I included a chart below showing the composition of the US gold reserves since 2012.  I could have gone further back but the result would have been pretty much the same.   Unchanging.

The steadiness of the Mint's 'working stock' is a result of their policy of continual replenishment.

Now we know, by Greenspan's own admission above and from other sources, that the US engages in swaps and loans of its gold quite frequently.   But those changes are never reflected in the official inventory.

I wonder what a thorough audit of not only the bullion but the claims on it would tell us?   

It appears that the 'peace' MOU with Iran is falling apart.

"The US is revoking Iran's newly issued general license to export oil and is reimposing full sanctions on production and sales after Iran struck four commercial vessels in the Strait of Hormuz today, per a US official. The US says Iran's latest actions are 'wholly unacceptable' and will be 'met with consequences.''   And Iran responds, 'The MOU just ended here.  If Washington wants to push, Tehran will respond by widening the front — closing Bab el-Mandeb is also on the table.'"

"Multiple loud explosions heard in Qeshm Island, Bandar Abbas and Sirik, near the Strait of Hormuz in southern Iran, with initial reports of US conducting strikes."

Still time to prepare and stock up. 

Have a pleasant evening. 

Stocks and Precious Metals Charts - The Lawless Entitlement of the Power Elite

 

"The Panama Papers opened yet another window on the global system of financial corruption, showing how political leaders and businesses use shell companies in secrecy havens like the British Virgin Islands and many US states to evade taxes and hide corruption and other crimes.

Yet the system of corruption depends on another factor beyond secrecy, one that is perhaps even more important: impunity.  Impunity means that the rich and powerful escape from punishment even when their malfeasance is in full view.

Impunity is epidemic in America.  The rich and powerful get away with their heists in broad daylight. When a politician like Bernie Sanders calls out the corruption, the New York Times and Wall Street Journal double down with their mockery over such a foolish 'dreamer.' 

The Journal recently opposed the corruption sentence of former Virginia governor Bob McDonnell for taking large gifts and bestowing official favors — because everybody does it.  And one of its columnists praised Panama for facilitating the ability of wealthy individuals to hide their income from 'predatory governments' trying to collect taxes.  No kidding.

Our major institutions, the ones that should know better, are often gross enablers of impunity.

Jeffrey Sachs, The Age of Impunity, 13 May 2016

"The bureaucrats, politicians, professional enablers, and financial elite are so intricately complicit in, and so benefited by, the broken system which we have now that they cannot talk about the systemic problems that are driving the real economy into a perpetual stagnation. They may talk a good game, and pledge themselves to reform in passing, but quickly turn the conversation to some emotional distraction, some other group of people to blame, some other social cause, anything but the serious subject of substantial financial reform.

They are very much a part of the problem, if not at the heart of it.

They cannot engage in effective reforms because in doing so they would: a) indict themselves and their predecessors and colleagues, and impugn their reputation for competency and/or integrity, and b) would hamper their very lucrative careers in a system that they cannot afford to change or meaningfully reform.

There are very serious consequences for speaking the truth these days. Insiders do not speak ill of other insiders, or they lose access to information and power. This explains much of our current problems.

Perhaps the slogan for these pampered princes and princesses should be 'it may be a rotten, broken system, but I am personally doing just fine by it.'

"A credibility trap is a condition in which the financial, political and informational functions of a society have been compromised by corruption and fraud, so that the leadership cannot effectively reform, or even honestly address, the problems of that system without impairing and implicating, at least incidentally, a broad swath of the power structure, including themselves."

This is the credibility trap.

Jesse, Above the Law: The Age of Impunity and the Credibility Trap, 17 May 2016

 

Stocks managed to put together the usual Monday rally, without the vanguard of false news of peace.  And that rally faded badly in tech, but with the SP 500 holding it a bit higher.

Gold and silver were under a bit of pressure, but proved a little more resilient than normal.

VIX fell.

Price discovery is a fundamental principle of markets in what is often appropriately called 'market capitalism.'

When that process is subverted, malinvestment and harms to productivity and the prosperity of the public become commonplace.

This is what we are experiencing now.

Have a pleasant evening. 

Stocks and Precious Metals Charts - To Be a Friend of God

 

"I appeal to you, brothers and sisters, to be wary of those who sow divisions among you, and undermine the faithfulness of the people with controversies concerning the teachings that you have received.  Avoid them, for these people do not serve the Lord, but their own passions and schemes.  By their lying tongues and smooth flattering they deceive the naive and the unsuspecting."

Romans 16:17-18

"Avoid foolish controversies, and detailed analysis and pedigrees, and arguments and quarrels about our teachings, because they are unprofitable and useless.  Warn a divisive person once, and then a second time.  After that, have nothing to do with them.  You may be sure that these people are disturbed and sinful; by their actions they condemn themselves."

Titus 3:9-11

"This kind of person finds fault, complains constantly and sows discontent to promote their own desires and preferences.  If you listen they are arrogant, and they use flatteries to gain advantages.  Remember the predictions of His apostles, that in the last age there will be scoffers driven by their own desires, creating divisions and controversies, Worldly, and devoid of the Spirit, which is love."

Jude 1:16-19

"And then many will fall away, and will hate and betray one another.  False prophets will arise, and lead the people astray.  And because of the increase in wickedness, the love of most will grow cold.  But those who stand firm in faith to the end will be saved."

Matthew 24:10-14

Stocks flopped this morning after the end of quarter paint job.

The SP was a little more resilient and managed to gain back much of its losses into the close.  Tech, not so much.

Gold and silver rallied, and the Dollar backed off to the high 100 handle.

Bitcoin is bouncing along the bottom of its trading range.

VIX fell even as stocks broke lower.  There is little fear among the masters of the universe.

 BREAKING: The US has offered Iran a new $6 billion bribe from Iran's own frozen funds of $100 billion to relinquish control of the Strait of Hormuz and drop its planned fees, but Iran has directly rejected the offer as it targets $40 billion in annual Hormuz fees and permanent control over the Strait, per WSJ.  Iran's chief negotiator Ghalibaf reaffirms the Strait is "under Iran's command, not the US's," with Iran's IRGC warning this morning that any ship not using Iran's approved route and any American interference will face an "immediate and powerful" response.

Let us remember the many blessings that God has bestowed on us this holiday weekend.  And bear the mind the many sacrifices in preserving freedom that were borne by those who have gone before us, sometimes paying a terrible price.

Each person we meet is carrying a heavy burden that is their own. Thank you all for your fellowship throughout the year, and know that you are always in my prayers, as I hope that I am in yours.

Even though at times he may seems distant, the Lord is even now walking among us, as he did when he walked the earth in the Apostles' days.  And by his loving kindness and tender mercies he calls to us, and bids us follow him, and yearns to bring us with him safely into His father's house.

What more could we wish for?  To be a friend of God and His creation.  A friend of God. 

Time to come home. 

Have a pleasant weekend.