Gold Daily and Silver Weekly Charts - Bonus Army and Business Plot

Another bear raid.

As a reminder this is the big 'triple witching' option expiration for stocks this week. The miners are fair game.

As you may recall, there was a significant amount of civil unrest in 1932, which was a presidential election year.

The Bonus Army of WW I veterans occupied Washington until they were forcibly dispersed by the US military led by Douglas MacArthur. The veterans had been encouraged in their peaceful occupation by Smedley Butler, Major General of the US Marine Corp.

Butler later testified in 1934 that he had been approached by several powerful industrialists who asked him to bring the Bonus Army back to Washington and take the government by force of numbers from then President Franklin Roosevelt, in a scheme that was known as The Business Plot.

This reminds me of the co-opting of the Tea Party, which started as a protest against TARP and the bank bailouts, by today's monied interests.

Fortunately our modern day Herbert Hoover is not so much the liquidationist as his business friendly predecessor.

Obama understands the need for bread, and Wall Street supplies the circuses.

But if history rhymes once again, this could be a long, hot summer.

SP 500 and NDX Futures Daily Charts

Just another glorious day in the Pax Americana.

At least we have the Republican primary for comic relief. 

I heard one of the funniest lines of the season so far from Chris Matthews.

"When you watch footage of Mitt Romney on the campaign trail in Mississippi and Alabama, he looks like Prince Charles on a royal tour of New Guinea."

It is remarkable how the Party and their Media ignore Ron Paul. I don't think he has the traction to run as a Third Party candidate, but there is always room for hope.

Currency Wars: Are American Derivatives Dealers Leaving Europe?

Or possibly being invited to leave?

It is probably nothing, but I could not help but notice that Mr. Greg Smith, who has famously resigned from Goldman Sachs and company, was

"an executive director and head of the firm’s United States equity derivatives business in Europe, the Middle East and Africa."

Perhaps in addition to the anger he felt in the spoiled climate of his firm, Mr. Smith was also disgusted that the greed of Goldman had gotten their wings clipped, and gotten them effectively tossed off the continent.  There is no more disgruntled employee than one who works hard, and see the foolish decisions of his management needlessly ruin it.  I remember talking to traders and brokers in the 1970s who cursed the foolish greed of the higher ups that had driven the public from the markets and left them scratching for a living.

And just the other day, we had the somewhat terse, and very quiet, announcement from the CFTC that the CME was vacating their license to be a clearing broker for derivatives in Europe located in the City of London.

March 13, 2012

CFTC Vacates CME Clearing Europe Limited Registration as a Derivatives Clearing Organization

Washington, DC—At the request of CME Clearing Europe Limited (CMECEL), pursuant to Section 7 of the Commodity Exchange Act, the Commodity Futures Trading Commission issued an Order on March 13, 2012, vacating the registration of CMECEL as a derivatives clearing organization.

Is the European leadership doing something behind the scenes to clamp down on the rampant speculation and fraud in the paper derivatives market that has almost wrecking their economy?

Probably too good to be true.

But I am also thoughtful about the recent moves in Germany and Switzerland to audit and even repatriate their gold from the States where much of it has been kept in trusting custody these many years, fearing that perhaps it has been re-hypothecated.

All a part of the currency war, perhaps. And it is notoriously hard to see what's what when the fog of war descends.

David Stockman on Crony Capitalism

David Stockman on crony capitalism.

David should know, because he has been knee deep in serving the monied interests and profiting from their activities for most of his life. He often strikes one as a very sly and self-serving 'reformer.' And he may be a Judas goat.

While I do not agree with his characterization with the extent of the panic that froze the paper markets necessarily, and do not trust him in general based on his past performance, much of what he says is very much to the point. It was he does NOT say that is just as interesting.