"They were always complaining then, as they are always complaining now, that the poor do not understand political economy. But what was the political economy that they did not understand? It was not only paradox, but a piece of mysticism, almost like the mysteries of religion.It was the mystical dogma of Bentham and Adam Smith and the rest, that some of the worst of human passions would turn out to be all for the best. It was the mysterious doctrine that selfishness would do the work of unselfishness."G. K. Chesterton"Larry [Summers] leaned back in his chair and offered me some advice. I had a choice. I could be an insider or I could be an outsider. Outsiders can say whatever they want.But people on the inside don’t listen to them. Insiders, however, get lots of access and a chance to push their ideas. People — powerful people — listen to what they have to say. But insiders also understand one unbreakable rule: they don’t criticize other insiders."Elizabeth Warren, A Fighting Chance
Gold and silver held their levels today despite some early weakness.
Looking at the delivery report for gold in this active month of April, it was interesting to see a number of contracts let by customers, and for these to be stopped at $1208 by the house accounts at HSBC and JP Morgan.
Let's see how this month progresses. It seems now that gold is more active and silver less so, a distinct change from month.
Speaking of things that never seem to change, tomorrow we will see the Non-Farm Payrolls report for March. It would not be unusual to see it accompanied by the usual shenanigans, that are often a favored choice for the insiders and plutocrats.
A favorite trick of perception management is to put out a good number, and revise it lower, even sharply so, in the next couple of months, thereby rolling over the material obtained to the more current month, whether it be jobs, or factory orders, or whatever is on display. We saw an example of this today with the Factory Orders.
They do it so regularly that is only remarkable that the mainstream commentators seem to fall for it every time. Thereby we obtain a rolling enthusiasm of improvement, while in the midst of a secular stagnation.
Yes there are certainly more jobs. We are coming off a calamitous decline in economic activity brought on by an asset bubble founded in regulatory capture and widespread financial fraud.
Unfortunately all the abundant monetary stimulus that has flowed from the Fed's Balance Sheet into the financial economy to create these 'jobs' is finding it almost impossible to reach sustainability through a revival in aggregate demand. Instead, it is being used to prop up the balance sheets of the zombie Banks.
This is shown in the unadorned GDP numbers year over year and the flagging velocity of money. Another enormous headwind is globalization that is creating unmanageable social and financial units, and the rise of corporate monopolies that span national borders.
The US may already have slipped into recession. There will most likely be no alarm raised, because the looting of the ship into the first class lifeboats continues, and it is easier if the lower decks remain unaware of the risk.
The rigging of the gold and silver markets is founded in this desire to manage perception. Oh, it is based on a more 'noble' desire to inspire confidence and not make people panic.
But at the same time, it has become an enduring illusion, while the disparities in economic health become increasingly pronounced.
And so the looting by the nationless few continues, and justice is led down a hallway and strangled, draped in the national colors, to the sound of patriotic tunes. Such are times of currency war.
The self-serving policy errors of the Federal Reserve Bank are matched only by the horrendously destructive policy errors in political judgement by a Congress and an Executive that has been captured by the moneyed interests.
Who will dare even tell the truth, much less act on it, when the surrender of the truth for 'the story' is one's passport to the more favored classes, the insiders, with all that this implies in terms of comfort and security? The only resignation is to accept a permanent exile, to be without influence, without a voice, ignored.
One must go along to get along, to pay one's dues, extend and pretend, and never, ever, speak ill of the insiders and their schemes. Freedom, who needs it, when you can have security, comfort, and prestige.
So here we are, at peak illusion, just sitting on top of the world.
Have a pleasant evening.
