25 September 2023

Stocks and Precious Metals Charts - The Empire of Lawlessness


"Gold has worked down from Alexander's time.  When something holds good for two thousand years I do not believe it can be so because of prejudice or mistaken theory."

Bernard Baruch

"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."

Eddie George, Governor Bank of England, conversation with CEO of Lonmin plc citred in Reg Howe v. BIS, JPM et al. September 1999

"What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts.  On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur.  On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities, or anything else that might be deemed an indicator of inherent value."

Peter Warburton, The Debasement of World Currency, April 9, 2001 [gold at $259 per oz.]

"Synthetic gold, sourced in pyramids of credit extended to bullion bankers by central banks with little or no claim on physical substance, have provided a more efficient, better-camouflaged form of intervention.  COMEX synthetic gold and related over-the-counter derivatives are traded in macro strategies implemented by hedge funds, high-frequency trades, and commodity funds.  The volumes traded are huge, and bear little resemblance to actual flows of physical metal.  Above-ground 400-ounce .995-gold bars located in London, New York, and other financial capitals have steadily dwindled and disappeared into Asian financial centers, reformulated as .9999 kilo bars."

John Hathaway, Tocqueville Gold Newsletter 2Q 2015

"Time is coming when markets search frantically for physical collateral to find that paper far exceeds underlying collateral for several metals and other resources. I am warning that when markets fall in sustained negative response to bursting bubbles, widespread deleveraging will reveal insufficient hard collateral underlying traded asset-backed securities. The words rehypothecation and hyper-rehypothecation may be rediscovered or remembered again."

Harald Malmgren, 2019

Stocks dipped today, but managed to find a bottom and turn around finishing green into the close.

Gold and silver slumped, ahead of the Comex futures options expiration tomorrow.

The US may be approaching another debt limit standoff.  The deadline for this latest dark comedy is this Saturday.   

The political landscape is discouraging.

 "It can't happen here."

Some lessons of history need to be relearned again. 

"God has a way of standing before the nations with judgement, and it seems that I can hear God saying to America 'You are too arrogant!   If you don't change your ways, I will rise up and break the backbone of your power!  And I will place it in the hands of a nation that doesn't even know my name.   Be still, and know that I am God.'"

Martin Luther King, 1967

The madness serves none but itself.   


Have a pleasant evening.