Stocks and Precious Metals Charts - Better Call Powell - Black Swans a-Swimming

 

“So that the question is: would there be any advantage, at this particular stage, in going back to the gold standard?  And the answer is: I don't think so, because we're acting as though we were there.  So I think central banking, I believe, has learned the dangers of fiat money, and I think, as a consequence of that, we've behaved as though there are, indeed, real reserves underneath the system." 

Alan Greenspan, 20 July 2005 

 

"Complex systems that have artificially suppressed volatility tend to become extremely fragile, while at the same time exhibiting no visible risks.  In fact, they tend to be too calm and exhibit minimal variability as silent risks accumulate beneath the surface.  Although the stated intention of political leaders and economic policymakers is to stabilize the system by inhibiting fluctuations, the result tends to be the opposite.  These artificially constrained systems become prone to 'black swans' — that is, they become extremely vulnerable to large-scale events that lie far from the statistical norm and were largely unpredictable to a given set of observers. 

Such environments eventually experience massive blowups, catching everyone off-guard and undoing years of stability or, in some cases, ending up far worse than they were in their initial volatile state. Indeed, the longer it takes for the blowup to occur, the worse the resulting harm in both economic and political systems."

Nassim Taleb, The Black Swan of Cairo

 

"...we stood talking for some time together of Bishop Berkeley's ingenious sophistry to prove the nonexistence of matter, and that every thing in the universe is merely ideal.  I observed, that though we are satisfied his doctrine is not true, it is impossible to refute it.  I never shall forget the alacrity with which Johnson answered, striking his foot with mighty force against a large stone, till he rebounded from it— I refute it thus." 

Boswell, Life of Johnson

Stocks moved a bit higher today ahead of the Federal Reserve meeting on Wednesday.

Tesla beat expectations after the bell, but the stock just moved sideways. 

Bitcoin is one of their corporate assets

The Dollar chopped sideways, and failed to take back the 91 handle.

Gold and silver moved slightly higher.

There will be a precious metals option expiration on the Comex tomorrow.

It is not a significant contract month for gold.

JPM is going to be offering a 'bit coin fund' for its wealthier clients.

Have a pleasant evening.