01 March 2021

Stocks and Precious Metals Charts - Everybody Knows, But Who Could Have Seen It Coming?

"I have one other issue I'd like to throw on the table. I hesitate to do it, but let me tell you some of the issues that are involved here.  If we are dealing with psychology, then the thermometers one uses to measure it have an effect.  I was raising the question on the side with Governor Mullins of what would happen if the Treasury sold a little gold in this market.

There's an interesting question here because if the gold price broke [lower] in that context, the thermometer would not be just a measuring tool.  It would basically affect the underlying psychology. Now, we don't have the legal right to sell gold but I'm just frankly curious about what people's views are on situations of this nature because something unusual is involved in policy here.  We're not just going through the standard policy where the money supply is expanding, the economy is expanding, and the Fed tightens. This is a wholly different thing." 

Alan Greenspan, Federal Reserve Minutes from May 18, 1993 


"We looked into the abyss if the gold price rose further.  A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.  Therefore at any price, at any cost, the central banks had to quell the gold price, manage it.  It was very difficult to get the gold price under control but we have now succeeded.  The US Fed was very active in getting the gold price down.  So was the U.K." 

Sir Eddie George, Governor Bank of England in conversation with Nicholas J. Morrell, of Lonmin Plc, 1999


"The information in this report is taken from sources believed to be reliable; however, the Commodity Exchange, Inc. disclaims all liability whatsoever with regard to its accuracy or completeness.  This report is produced for information purposes only." 

Statement at the bottom of the CME Gold and Silver warehouse inventory reports


"On January 30, 2012 the Wall Street Journal did a hilariously bad job of reporting when its front page article stated that a 'person close to the investigation' said that as a result of chaotic trading in the week before MF Global's October 31 bankruptcy, customers' money 'vaporized.'  Money doesn't vaporize...

The habitual filching of customers' funds -- even if the funds are later replaced -- goes way beyond sloppy bookkeeping.  It goes way beyond bad judgment.  Just because MF Global got away with it for a long time before it blew up in its face doesn't mean one can call it sloppy bookkeeping and have any reasonable person believe it."

Janet Tavakoli,  MF Global:  Crime, Comedy, and Cover-Up, February 28, 2012


"But there is a sort of  'Ok guys, you're mad, but how are you going to stop me' mentality at the top." 

Robert Johnson, Audacious Oligarchy


“If you shut up truth and bury it under the ground, it will but grow, and gather to itself such explosive power that the day it bursts through it will blow up everything in its way.” 

Émile Zola


I just thought these statements were an interesting reminder, and a modern truth to be relearned, bluntly and plainly stated. 

Promises and commitments these days are writ on the water of the fine print, and in the laws which the corporations have paid to have written. 

Who can say where and when the next Madoff moment will appear.

Gold and silver rallied strongly overnight.

Alas, they were hit in the London and NY trading, finishing slightly lower.

The Dollar drifted sideways, managing to hold a toe over the 91 handle.

Stocks soared today, taking back much of their recent losses, but still falling short of their recent highs.

Who could see it coming?

Risk on.

Have a pleasant evening.