“The tyrant is a child of pride, who drinks from his sickening cup recklessness and vanity, until from his high flown crest he plummets headlong into the dust of hope."
Sophocles, Oedipus Rex
“So much for Caligula the Emperor; the rest of this history must deal with the Monster."
Suetonius, The Twelve Caesars
Stocks were digesting their recent gains today, while glorying in the weak economic data.
It was announced today that Trumpolini intends to nominate Herman Cain as a Fed governor. This easily tops his most recent nomination of Stephen Moore, who was at least nominally qualified despite being a certified Art Laffer collaborating supply-sider.
Thank God Trump does not own a favorite horse.
Having this many knuckleheads managing the world's most powerful currency and providing significant regulatory oversight to the US economy may be unintentionally very good for gold.
This reminds us of the need for checks and balances, and oversight as a restraint on the abuses of authority. While it is tempting to unleash the power of nearly unrestrained fiat money in order to solve short term problems, one must consider who might one day be wielding such dangerous, highly discretionary power.
Speaking of restraints on reckless behaviour, gold and silver were hit hard and early, but managed to recoup their losses and actually finish higher on the day. They closed higher as did the Dollar. One might have thought it was a furtive, early move by some towards safe havens.
Sooner or later a crash is coming, and it may be terrific.
Non-farm payrolls report tomorrow.
Have a pleasant evening.
