The End Game

About seven months ago Raoul Pal of Global Macro Investor put forward a analysis called 'The End Game.'

I prefer to call it 'The Great Reset.'

I am not sure I agree with his analysis or his timing.    That is a genteel way of saying that it is possible, but not probable and quite possibly crackers.  A gentleman never wishes to inflict discomfort on anyone.

But this does seem to be that time of year to review forecasts predicting doom, gloom, and demise in 2013, and this is one of them that has made the rounds, then and again.  

If nothing else, there is good money to be made in the gloom and doom business.   People often like a whiff of danger-at-a-distance to jolt their jaded psyches. That explains the attraction of horror movies.  And schadenfreude is always diverting for the aspiring ubermench and less amibitious sociopaths.  It is always the other guy that gets it, and well deserved, at least in their minds.

Such a financial reset and reallocation of wealth is not necessary, but it is only necessary that people think that it is.  And there are those who would always enjoy the opportunity presented by a crisis, especially when their illusions and delusions seem to be running out of steam.   A fresh scam beats working for a living.

Now that the 21 December 2012 Mayan end- of-all-things-as-we-know-them has belly flopped, let's see how we do next year.

And by the way, Happy New Year, in advance.

The End Game

Gold Daily and Silver Weekly Charts - See You Sunday Evening

"A shocking crime was committed on the unscrupulous initiative of few individuals, with the blessing of more, and amid the passive acquiescence of all."

Tacitus

The market action was not worth any comment.

The fiscal cliff heats up again on Sunday as the House meets in the late afternoon.

I don't think any deal will be made, and I doubt that Boehner will allow a vote on the motion to not raise taxes on those who make less than $200,000.

And we might expect to do this all over again as the debt ceiling intrudes in January, and the government accounting gains should run out of gas by month's end.

See you Sunday evening.

SP 500 and NDX Futures Daily Charts - Out on the Lows

The fiscal cliff approacheth.

As I have thought from the beginning, I think any deal will come in January. It is much easier to 'lower taxes' than to raise them.

See you Sunday evening.