"To know and to serve God, of course, is why we're here, a clear truth, that, like the nose on your face, is near at hand and easily discernible but can make you dizzy if you try to focus on it hard. But a little faith will see you through.
What else will do except faith in such a cynical, corrupt time? When the country goes temporarily to the dogs, cats must learn to be circumspect, walk on fences, sleep in trees, and have faith that all this woofing is not the last word.
What is the last word, then? Gentleness is everywhere in daily life, a sign that faith rules through ordinary things: through cooking and small talk, through storytelling, making love, fishing, tending animals and sweet corn and flowers, through sports, music and books, raising kids — all the places where the gravy soaks in and grace shines through.
Even in a time of elephantine vanity and greed, one never has to look far to see the campfires of gentle people. Lacking any other purpose in life, it would be good enough to live for their sake."
Garrison Keillor
Gold and silver were hit by some of the usual sharp and short selling, but most of the gains were taken back by gold during the afternoon. For silver, not so much.
As noted intraday in the NAV chart, the gold/silver ratio is historically high at 75.
It was heartening that gold held the 1080 level despite the attempt to push the metals lower.
There were no bullion deliveries yesterday, and nothing of note occurred in the warehouses of The Bucket Shop.
Note that the USD DX index has fallen for two straight days.
There is some correlation between gold in dollars, and the Swiss franc and Euro in dollars as well. I show that in the first chart below.
This does not always happen, but sometimes it does. And I describe this as 'gold trading as a currency.'
This in itself is not a problem per se. But it does ignore the hard reality that while the central banks may own a printing press, and are most assuredly not afraid to use it, they do not own a gold bullion machine over which they have the kind of discretion which they enjoy with fiat money. And so we end up with a marketplace choked with leverage and backed by multiply hypothecated, papier-mâché bullion.
Despite a good show and talk of 'tightening' and pricier risk, it looks like the Banks will be just engaged in the usual antics of the privileged, offshoring in a tag team currency cage match of the major western currencies and their descent to the bottom of real values.
The reckless short selling, speculation, and derivatives pyramid created by the big trading desks that they encourage may come back to bite them, abyss-wise.
Let's see how that works out for their financial combine. Especially in light of increasing leverage in the face of the massive movement of bullion from West to East. Record Gold Exports From the UK To China
Accountability. It's not just for the little people, all the time.
At some point of extreme hubris and irrational excess, a banquet of consequence will be served.
Have a pleasant evening.
