Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

Gold Daily and Silver Weekly Charts - 2012: The Year of Living Dangerously

There is nothing 'modern' at all in Modern Monetary Theory. It is the same old fish wrapped in slightly different paper. The godfathers of Modern Monetary Theory are John Law, G.F. Knapp, J.M. Keynes, and most lately Alan Greenspan.  But its roots go back to any ruling group that ever debased a currency or seized private property by fraud.

It is in the nature of a Ponzi scheme. As long as its sphere of influence can keep expanding, and the force by which people are compelled to accept it is maintained, a fiat currency will 'work.'   But as its expansion slows, as outlying regions begin to resist it, the currency begins a slow but deadly spiral of collapse that accelerates into a final reckoning and reissuance. 

Fiat currencies *can* work well in theory, but in reality they require the indefatigable dedication of people of extraordinary virtue, courage, and wisdom.  And so they have failed.  Always.

And it most certainly will not work with the craven and self-serving leadership which the Anglo-Americans have today. It is almost a cruel joke to promote such a system.  And yet there it is and here we are.  What comes next will be interesting.

SP 500 and NDX Futures Daily Charts - Light Volume, Phony Action

Richard Russell says what is on my mind quite well.

The outlier is the Fed, and a willingness to print to nominal results without regard to the value at risk of the currency.

“I talked with my good friend, Joe Granville, over the weekend, and Joe is as bearish as I’ve ever seen or heard him, based on his OBV volume figures. This checks with my own work and studies.

While fundamentalists scour the news for indications of bullish news, the internals of the stock market continue to deteriorate. Even the action of the stock market is bearish as the market rallies on dull volume but declines on higher volume. Furthermore, rising breadth is narrow on rallies while declining breadth is broad when the market heads down.

I don’t know what more I can do or say to convinced subscribers that we are seeing the resumption of the bear market. This means that we should be OUT of all stocks. As for gold mining stocks, this is a personal choice. In due time, I expect gold to fully express itself with a huge upside blow-off. At that time I expect gold mining stocks to follow, but between now and then gold mining shares will probably be hit like every thing else by the fury of the bear market.

I should add that I am expecting this bear market to be far worse than most people expect or are prepared for. The fact is that I don’t believe that Americans expect any thing more than a temporary spate of difficult times, an annoying patch that should be over in a year or so. This is not what I am expecting or predicting.

Once the Dow breaks under 10,000, I believe that the analysts and the PUBLIC will become frightened and start to cut back on their buying. The newspapers will halt their bullish stance, and a great stillness will envelope that land. That stillness will be the result of shock as it dawns on Americans that they are seeing something far different than what they were expecting.

By the way, the Dow is now trading below its 200-day moving average, which stands at 11,938. The 50-day MA is bearishly below the 200-day MA (50-day is 11,811)."

Richard Russell, Dow Theory Letters

JP Morgan's 'Suspicious Involvement' in the Collapse of MF Global

James Koutoulas on JP Morgan's involvement in the MF Global collapse:

"[JP Morgan] wears way too many hats in this situation. Their fingers are all over this. They were a custodian of customer segregated funds, they were a primary lender to MF Global,...they were head of the creditors' committee in bankruptcy court, they're buying customer claims for pennies on the dollar—vulture claims, and it appears that they just may have gotten favorable treatment by purchasing LME stock from MF Global...as well as buying these sovereign debt positions that have turned out to be profitable trades."

Read the rest here at BusinessInsider.

Also Dear Jamie Dimon at Reformed Broker.