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Did I mention that Monday is option expiration on the Comex?
C'est la guerre des monnaies.
It appears that the US and its client states are engaged in Management of Perception Part Deux, and pretending that it is 'risk off' and prices will not rise if we pretend that all is well. So they released some oil from the Strategic Petroleum Reserve to supplement the release of gaseous emissions from Zimbabwe Ben earlier in the week.
Concerns about the Greek debt situation and the US economy may drive next week's market action. Today was a bit of a toss because of the Russell rebalancing.
Another junior silver miner was taken out today when Golden Minerals and ECU Mining announced a 'merger' that is really a stock acquisition (and a msall cash kicker) of ECU. I expect this trend to accelerate.
Have a pleasant weekend.
Or as the ticker tape said at the end of day, October 29, 1929, 'Good Night.'
The resolution of the Greek financial crisis, the Fed's decision not to overtly engage in QE3, and the rebalancing of the Russell indices drove the US equity market action today.
I believe that there will be a vote by the Greek government on Tuesday regarding their decision on the debt packages. There are a range of discussions regarding the sale of private assets, haircuts for bondholders, and the sale of public assets. There is even talk of the US or IMF sponsoring 'Brady Bonds' backed by US Treasuries.
The people of Greece will have a national referendum on the decision in September I believe, as happened in Iceland.
As with most summations it compresses much of the complexity and therefore loses information in the process. I know he is a smart man, and is doing this out of necessity to achieve brevity and conciseness.
He never mentions the various unfunded wars, over 700 global military bases, and out of control health care costs, only glosses over the profound corruption in the bloated financial sector, a culture of greed and selfishness, and the government intrusions into private rights of citizens as a reflexive response to their problem with a credibility trap. How can one allow free discussion, disclosure, and transparency during an ongoing widespread financial fraud that has compromised the political process?
He does not address the international trade regime based on mercantilism and 'free trade agreements,' started in the Clinton Administration, that have become predatory killing fields of the middle class workers and their rights.
But it is a good job given the time constraint, and an excellent starting point for the core of the discussion. The current level of inequality of access to power in the US is perhaps the root of much evil.
If only people have the ability to discuss things rationally, without resorting to slogans and caricatures fed to them by a well funded corporatist propaganda machine.
As Herman Hesse said, "When the suffering becomes acute enough, one goes forward." So it is almost a certainty that the pain will become worse before the US moves forward.
But forward into what, only time will tell.
