06 September 2016

Gold Daily and Silver Weekly Charts - Like a Wrecking Ball For the Real Economy

Gold and silver came roaring out of the long weekend as the US ISM Services number came in far under expectations, taking some of the wind out of the sails of the economic elite.

The pundits have been pushing the meme that US manufacturing, which is horribly weak, is an 'old economy' thing, and that the US ISM Services number would shine like the bright new era of economic growth that it is (not apparently).

So the markets thought it over, and decided that this additional bad news puts the Fed off of a September rate increase, and that they will continue to dilly dally around, jawboning all the passing strangers with tales of their hawishness.

As you might expect, the US dollar took a serious dive, which is somewhat justified by the ridiculous rally it had just the week before.  The wash and rinse cycle is a forex wiseguy's favorite.

So let's see if the Fed can come in, without a shred of remaining credibility, and convince the world that indeed they are raising rates to cool off the overheating US economy that has surely reached and surpassed full employment.

In the meanwhile, silver seems to be quite lively this month, as noted in the box scores below.  Gold not so much for now, at least since the bullish call options have been thoroughly taken out and shot for their expiration.

Don't count the Fed out of this.  The notion that they are implacably kindly philosopher kings who make serene judgements based only on the data is sheer nonsense, a nice cover story for the rule of the financial class.

If that independent and data driven objectivity were the real case, then the solons of the Fed must be having Jimson weed salads for lunch, because to all appearances they have been like a wrecking ball on the real economy for the past ten years at least, while they keep raising their hands for more latitude and more regulatory power.  And of course the political cravens in DC keep giving it to them.

They are well represented by the two presumptive presidential frontrunners, who seem to have little or no shame, and an ethical grounding as firmly rooted in morality as a reality show contestant.

But they have succeeded in clearing the way for a royal pillaging of the republic by their masters, the Banks, who keep growing fat on malinvestments, subsidies, and bailouts.

Have a pleasant evening.