skip to main |
skip to sidebar
Crazy days in the metal trade as the recent bear raid, using the infamous Dr. Evil strategy, did not stick.
The people and traders of India and China may have liked the buying opportunity, but I suspect it just gave Blythe and her merry pranksters a headache.
Most commentary on the economy carried on the television financial networks is astonishing. How many moons do these people have on their planets?
It is almost a curse to know anything these days. But it is as I forecast it, so it should come as no surprise. The monied interests will keep pushing their agenda until they and the country hit the wall, in the manner of the obsessive-compulsive addicts that they are, like an alcoholic who finally wraps his car around a tree. And then the job of rebuilding and recovery can begin.
The next big events for the metals are likely to be the FOMC September 20-21 meeting, and the Comex October Option expiration on September 27.
I doubt that Obama will say anything useful, other than staging another raid on Social Security with a payroll tax cut, an infrastructure bank, and perhaps a refi program, all vetted by his Wall Street cronies.
The only thing he could do to satisfy this Jacksonian is to fire a number of his appointees in the CFTC, SEC, and Justice, bring in Eliot Spitzer as his Attorney General, William K. Black to head the SEC, Liz Warren at Consumer Protection, Bart Chilton as Head at the CFTC, Robert Reich at Labor, Ron Paul at Defense, Michael Hudson at Treasury, and to let justice be done, though the heavens may fall.
Fat chance of any of that, so gold and silver look like enduring safe havens.
Timmy addresses Jamie Dimon and his troops, Kelly on the Asian trading desk gets her buying opporunity, and Blythe has her shorts in a twist, and a headache.
The market paused to listen to an address from Bernanke, and for the Jobs Talk by Obamination this evening.
I do not hope for anything innovative. Perhaps a refi program and some payroll tax break.
A payroll tax suspension is tantamount to taking the money from Social Security, which is why the Republicans might favor it.
America is being held hostage by the monied interests.
Obama speaks tomorrow, and the Swiss are joining the fiat flight to the bottom of the barrel, as each nation tries to beggar their neighbor and join the mercantilist daisy chain.
So the financiers had to hit gold to take it out of the spotlight. We may see more bear raids in the paper trade, supported by physical buying as Asia and the developing world recapitalizes their banks with precious metals, shedding the dollar reserve currency, which is a holdover from the declining order of international finance.
The most blatant raids were put on gold last night with orchestrated selling hitting it in the off hours, including a two percent drop in minutes as massive paper selling hit the bids.
"Spot gold dropped nearly $40, two minutes after U.S. gold tumbled about $50 over three minutes. Cash gold prices since regained some lost ground to $1,836.26 an ounce by 0559 GMT, down 1.5 percent. U.S. gold GCcv1 dived to as low as $1,818.2, and was trading at $1,839.10, down 1.8 percent from the previous close. "Someone dumped a big position with little care, which set off stops and caused the price to cascade even lower," said a Singapore-based trader. Some traders talked about some 4,000 lots of gold being dumped on COMEX…"
Reuters
And yet the price found resilient support in the 1820 area where we expected it, despite the overshoot on the big decline into the 1790s.
I bought back some of my gold position today as the price overshot support and dropped below 1800. We have a confirmation of a familiar support level around today's lows.
They try to make these things look complex, and frightening, but they are really not.
The debts will be discharged by growth or by default, or some combination thereof. The defaults will be done largely by printing money.
Growth is a dirty word in the west, because the fortunate and powerful are in control and wish to impose their brand of neo-feudalism, similar to that which is already in place in China and Russia with their own brands of authoritarian oligarchy, masquerading as capitalist markets.
And so we will see printing around the world, by the debtors and the exporters. Where this will all end who can say with certainty. But it will end, and badly.
Big rally today and a relaxation of the fear trade.
Republican candidates debate tonight.
Obama, more right of center than the raving socialist than the spinsters paint him, should join them as a placeholder for the Nelson Rockefeller wing of that party.
Ron Paul will stick out like a sore thumb. He is third party material, although his libertarianism suits the rapacious. Still, he is not in favor of supporting the Wall Street Welfare Queens and the Military Industrial Complex in the manner to which they have become accustomed, so he will be marginalized by the GOP.
Better accept your corporate masters, or the socialists will take your money and give it to the weak, the immigrant, the unworthy. Such simplistic arguments rarely fail to sway the unthinking and the fearful.
The plight of US corporations, which are enjoying the lowest effective tax rates and fattest profits in years, and who are still digesting the gains of fraud from deregulation and pocket politicians, will be trotted out en masse like a Memorial Day Telethon for Pig-itis.
Cut corporate taxes, deregulate, free the market from the burdens of government, and the riches will trickle down to the middle class. That is what we will hear, with little to the contrary.
One would think that CEOs are standing in breadlines, the banksters are going to Coney Island instead of frolicking in the Hamptons, and their wives are driving Fords instead of Ferraris.
Where is the Justice? Where is the Reform?
