12 August 2015

Gold Daily and Silver Weekly Charts - Weighed, and Found Wanting

"Caution in handling 'generally accepted opinions' that claim to explain whole trends of history is especially important for the historian of modern times, because the last century has produced an abundance of ideologies that pretend to be keys to history but are actually nothing but desperate efforts to escape responsibility.”

Hannah Arendt, The Origins of Totalitarianism

Gold and silver had a minor rally today, that was long overdue given the protracted period of calculated selling that marked the last few weeks at least.

There was intraday commentary about Net Asset Values and the extreme we reached in negative sentiment on the metals driven to a large extent by Wall Street's windtalkers here.

My commentary from last night about the currency war and what I call 'peak junk' is worth reading carefully, and if you have not done so you might take a second look at it here.

I am pleased that with these more overt actions by China that 'the currency war' is penetrating the consciousness of more people, even if they only see it as a short term event.

This is the kind of change that is seen only once in a generation or so, thank God.  It is certainly nothing new if you are familiar with history in more than the comic book versions so often taught in schools.

And it will continue to play out slowly, probably for the remainder of this decade and a good part of the next.

The lack of reform in the financial system and the systematic gaming of public policy on behalf of the one percent and multinational corporations has, after a long period of stagnant wages and predatory usury, stripped the broader public of disposable income.

Low paying, part time service jobs are no fuel for a sustainable recovery, especially when it is clear that the gains from massive amounts of monetary stimulus and debt are flowing into the hands of a greedy few, the same hands that brought the economy low in the first place through their shameless deceptions.

Buying goods without income, money or affordable credit, if you will forgive the analogy, is like expecting people to make bricks without straw.

This is not a difficult concept to grasp.   Look where all the money is, and where it is not, and then perhaps you will understand why things cannot continue on like this.  And history has many examples of how this sort of thing might end.

But how can you quit when you are winning?

Exciting times are yet to come for the exceptional.

Maybe the popular music will get better.

Have a pleasant evening.