"We run carelessly to the precipice, after we have put up a façade to prevent ourselves from seeing it.”Blaise Pascal
Gold and silver were hit by selling in NY this morning.
Hey, why not? Things are just what we say they are, especially when they have an increasingly tenuous connection to reality.
There was intraday commentary about 'Debt Is Just Money That We Owe Ourselves Here.'
This is beginning to feel a whole lot like 2006, where a few were just about crawling out of their skins with the nonsensicalness of what they were hearing, and the looming disaster which they saw coming.
No one really listened. I remember vividly making noise on economic chatboards, with participants saying things like 'what does he want' and 'what is he saying?' After all, Greenspan had assured us that housing was invincible and incapable of being in a bubble, and Bernanke had things well in hand, with theory triumphing over all.
And then as it is now, the herd was just blithely rolling along, following Wall Street into the next unforeseeable financial crisis.
We are there again. And like then, they know it. But they think they can manage it to their benefit, so why would they care?
And given the chance, they will do it again. It is the pleasant cycle of financialisation and accumulation. We are diverted by bread and circuses, the media's sturm und drang that anesthetizes thought.
Have a pleasant evening.
