The Four Challeges In Reforming Economic Governance

“It's easier to fool people than to convince them that they have been fooled.”

Mark Twain

This is an interesting discussion by Jeff Sachs, about where we are and why we are there.

It is from Jeff Sachs talk at the Martin School at Oxford.  I join it in progress. 

I have come to believe that nothing will change until the financiers blow up the system for a third time.  And then the variables will start filling in, and falling into place.  

I am especially interested to see what the 'outliers' do in response to this, they being the large actors outside the domestic system, primarily the BRICS.   China and Russia in particular, but also the rest of South America and East Asia and the subcontinent.  Africa not so much as of yet.

But to some extent a bellwether will be Europe, which will have a key choice to make.  And of course the Anglo-American public, but the poor souls are being let down badly and led astray by their leaders.

 

Gold Daily and Silver Weekly Charts - Option Expiration Next Week

As a reminder, next Tuesday the 26th will be an option expiration on the Comex.

There is intraday commentary about a South African bond denominated and paid for with gold.  This is the first issuance of a real gold bond in many a year.

I would expect most of official shilldom and the financial status quo to ignore this. Until another country or entity does the same thing, and then they will speak out against such flagrant barbarism.

The rest of the world (ROW) seems to have noticed that the Fed has a printing press, and that they are willing to create vast amounts of money, and distribute it to whom they please.  And they may not believe in the theory that says that such behavior by a sovereign monetary authority has no consequences. 

Add an almost blatant criminogenic financial system organized and controlled by its serial offenders, and those with the means and the will start to seek alternatives, wherever they may.  Sovereigns do not appreciate being bullied and cheated like the run-of-the-mill domestic customers.

We will be getting a bit more economic news next week.  A listing is included below.

So far this month about 593,400 ounces of gold have been 'stopped' at the Comex.  Nothing ever seems to leave their warehouses, however.  It has the character of a speculative shell game.  Wagers are made, and things are moved around the table, but nothing much changes hands except the bets.

If the BRICS have a mind to do things with their gold reserves, they may have to create a more robust and responsive system of price discovery than the Liar's Poker on the Hudson called the Comex.  So let's watch for developments there.

Remember the poor, the infirm and suffering, those who are tempted to despair, and those who have no one to care for them.  And when you cross paths with your fellows, keep in mind that they also may be having a hard time of it, and try to bring a little joy and consolation into their lives.  "Clothe yourself in light, the Lord's glory shines upon you,”

Have a pleasant weekend. 

 

SP 500 and NDX Futures Daily Charts - Jackson Holes, Hunger Games

Janet Yellen made her Fed debut at their Jackson Hole conference today.

Her remarks moved the markets back and forth a bit, and in light volumes with littler other geopolitical and economic news the markets did a sideways consolidation.

Well, there was some news. Various government figures have started warning about a large scale terror attack by ISIS. One can only wonder what time the next building falls down.

Not to worry one might think, at least judging by the VIX which continues to fall to relatively complacent levels, lulled by the Fed, with a milky smile on its lips.

The discussions are primarily useless on most financial television shows. They typically present the viewer with a false dichotomy.  Either the Fed must have done exactly as it has done, or it would have done nothing, with a 1930's Depression as the result. Take your pick of a purely binary choice, just like the US elections.

Perhaps there are a broader range of policy alternatives to consider? Not on the Capitol District's bubblevision.

Have a pleasant weekend.