10 June 2019

Stocks and Precious Metals Charts - Gold & Silver Drop, Stocks Pop on Resolution of Phony Mexican Tariff Crisis

"Cult leaders [demagogues] arise from decayed communities and societies in which people have been shorn of political, social and economic power.  The disempowered, infantilized by a world they cannot control, gravitate to cult leaders who appear omnipotent and promise a return to a mythical golden age.

The cult leaders vow to crush the forces, embodied in demonized groups and individuals, that are blamed for their misery.  The more outrageous the cult leaders become, the more they flout law and social conventions, the more they gain in popularity.

Cult leaders are immune to the norms of established society. This is their appeal.  Cult leaders demand a God-like power.  Those who follow them grant them this power in the hope that the cult leaders will save them."

Chris Hedges, Cult of Trump

"Mounting a campaign against plutocracy makes as much sense to the typical Washington liberal as would circulating a petition against gravity. What our modernized liberal leaders offer is not confrontation but a kind of therapy for those flattened by the free-market hurricane: they counsel us to accept the inevitability of the situation."

Thomas Frank, Rendezvous With Oblivion

"We of the Republic sensed the truth that democratic government has innate capacity to protect its people against disasters once considered inevitable, to solve problems once considered unsolvable. We would not admit that we could not find a way to master economic epidemics just as, after centuries of fatalistic suffering, we had found a way to master epidemics of disease.  We refused to leave the problems of our common welfare to be solved by the winds of chance and the hurricanes of disaster.    In this we Americans were discovering no wholly new truth; we were writing a new chapter in our book of self-government.

Franklin Roosevelt, Second Inaugural Address

"The problem of the last three decades is not the 'vicissitudes of the marketplace,' but rather deliberate actions by the [corporatist] government to redistribute income from the rest of us to the one percent."

Dean Baker

The  the public at large, and their leaders and the professional classes, have lost their sense of common purpose and mutual dependency.   And sooner or later that is going to bring some serious consequences to bear.

Stocks popped on the phony trade tariff conflict with Mexico being created and then resolved by Trumpolini.

Alas, the sugar high of such antics did not last, and stocks gave up much of their gains from the open, but managed to hang on to the phony pop.

Gold and silver were hit hard, which was not entirely unexpected for the day after a Non-Farm Payrolls report and the recent run up to some very stiff resistance at $1340.

The Dollar was slightly higher against the DX index of currencies.

Tomorrow we will be getting the PPI inflation number, and CPI the day after. This will all be input to the FOMC meeting next week.

Have a pleasant evening.