Robert Johnson: How We Broke the Bank of England

This is a continuation of the Robert Johnson interview which had been posted here.

As you know, Robert Johnson is one of my favorite economic voices. He brings both theory and practical knowledge to bear on our current problems.

And he is a mature and intelligent trader who is able to speak with depth on broader social issues, which is far too often a rarity.

Great money does not ordinarily confer great wisdom and virtue on its possessors, alas, and far too often it does the contrary. This is a principle of human nature which has been recognized from at least the time that our Lord walked the earth, if not much further before that. 'It is easier for a camel to pass through the eye of a needle...'


The Real News Network

Gold Daily and Silver Weekly Charts - FOMC Next Week - Calling Dr. Strangelove

Gold and silver continued their rally off a deeply oversold condition, well within their intermediate downtrends.

There was little action in the Comex warehouses, and a few more contracts were stopped.

Next week is an FOMC meeting.

 

We may then see how the cards will fall in the short term.   For now it seems that that status quo may continue to prevail, given the nature of pricing discovery.

 

It appears the Defense Department is funding universities 'to model the dynamics, risks and tipping points for large-scale civil unrest across the world.' 

 

Sounds like it will be a busy time in the Pax Americana.

 

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - The Death of Volatility

The US equity markets ended the week on a dull note, barely able to bounce after a lower open to end the week on a correcting note.

The question will be if this is just a consolidation after a widely noted great leap upwards, or will we see a bit more action to the downside before this is over.

The FOMC will be meeting next week, and as is their wont, they may be pouring more of their oily liquidity over the troubled waters of the mispricings of risk.

As the Financial Times most recently notes in this headline, the Central Banks have used their mighty power to eradicate risk.  All gain and no pain, a world without consequences (especially for the benevolent and enlightened rulers of finance).

 As if.

This is the pinnacle of moral hazards, the triumph of the will to print money, and an impermanent plateau of illusory prosperity.

Have a pleasant evening.