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There was a very deliberate bear raid on gold this morning as someone or some group dumped a large number of contracts into a thin market. You know the drill: Dr. Evil.
What next? In the short term this is a technical market, meaning that those with the most power and money, the market insiders, get to cast the most votes on price, particularly as the regulators are bought off or sleeping on the job, waiting for their own spin through the revolving door.
In the longer term the primary trend will prevail, and the primary trend is higher as long as real interest rates on the sovereign notes are negative.
The US markets bounced today in relief that Citi was able to gin up some decent numbers to report, no matter how they did it, including a somewhat mysterious $500 million tax break that goes to profits.
What next? Let's allow the week to play out and we shall see if the trend is changing or if this was just a relief rally in a new downtrend. I cannot tell yet.
This presentation is joined in progress at the discussion of Woodrow Wilson.
Wilson is an interesting character. As I believe that I have said before, Obama reminds me more of Wilson than either Roosevelt or Hoover.
I do not particularly like Woodrow Wilson's tenure as president, for many of the same reasons that I find Barack Obama to be found wanting, compared to the progressive title to which he has pretended but to which he has only rarely delivered. He seems more like a traditional moderate Republican, with a nose for the deal rather than for a set of defining principles. And much the same can be said for Wilson and his own stumbling ineffectiveness, emphasis on ends rather than means, and servility to the financial interests.
