Gold Daily and Silver Weekly Charts - Metals Rigging Worse Than LIBOR

"Or one may say that there were no real human villains; that given the economic and political cues, actors would have been in the wings to come on and play the parts which circumstances dictated.

Certainly there were many others as reprehensible and irresponsible as those who played the leading roles. The German people were the victims. The battle, as one who survived it explained, left them dazed and inflation-shocked.

They did not understand how it had happened to them, and who the foe was who had defeated them."

Adam Fergusson, When Money Dies: The Nightmare of the Weimar Collapse

The loss of confidence in their money, their fiat currency, which to some people becomes the touchstone for all value in their life, is almost too difficult to adequately describe, and for most people too awful, unthinkable, to fully understand.

And yet it happens. I have seen it happen first hand in Russia. It is happening now again in Europe and elsewhere. And it will bring a sea change, and an anger and despair that is hard to imagine in advance in its enormity.

The work of one's life can be stolen in an instant by the modern money masters and their criminal accomplices, with a few touches on the keyboard and a newswire release. If you do not believe it is possible, have a discussion some time with one of the account holders at MF Global, or the holders of a tech stock post bubble.

This is the pernicious nature of a fraud, because it robs not only the confidence in the peculiar aspects of the con itself, but undermines the very confidence that allows the commerce of society among people to continue.

All the transactions of life are based on some level of confidence in the honesty of measures and the integrity of contracts and product representations.

And if that trust is sufficiently undermined, shaken to its foundations, the people will at first freeze up in fear and stop buying and selling, and then eventually rise up in anger looking for redress and justice, if they are still free to think and to act. 

And there are those that would welcome that crisis, and attempt to use it for their own ends. Anarchists. Demagogues. Oligarchs. They would subvert the Constitution and the rule of law, and create a new way for themselves and their adherents, a grab for resources and power, thereby subjugating the common people, whom they secretly despise, to their will to power.


Intraday commentary here.

SP 500 and NDX Futures Daily Charts - the Muppets Are Restless

Non-Farm Payrolls Report tomorrow. My forecast is that whatever the monthly number might be, high or low, it will be much ado about nothing. What is important is the trend, the quality of jobs, and median wages paid.

The people, primarily of Europe and the UK, are perturbed over the LIBOR scandal and its implications.

Americans for the most part, with a few significant exceptions, toddle on in blissful ignorance, although they have a sneaking suspicion that 'something is not right' and are feeling restless, ripe targets for demagoguery.

Volume on the exchanges are very thin, not unusual for a summer holiday week. And as Joe Saluzzi observes below, much of that volume is phony activity generated by the parasites of the HFT world.

The financial world is sick, in critical condition, infested with fees and frauds and cons. And no one is even sending flowers, so great is the denial.

Is this how it ends, not with a bang but a whimper? That is how the Soviet Union fell.

Taibbi, Spitzer, and Kelleher On LIBOR - But Even They Don't Understand the Bigger Picture

"Bleed, bleed, poor country!
Great Tyranny! lay thou thy basis sure,
For goodness dares not check thee!"

William Shakespeare, Macbeth. Act IV. Sc. 3.

The LIBOR scandal is shaking the remaining confidence that people have in the financial system.

It is the equivalent to rigging the US benchmark interest rates with advance insider knowledge to benefit the banks' personal accounts to the loss of everyone else.

 Oh wait, they already do that, don't they?

Bear in mind, the Federal Reserve is a private institution, owned and managed by the Banks. The government itself uses the bankers to achieve their own policy ends, both domestically and abroad, and turns a blind eye to their more brazen extracurricular privateering for their own accounts out of professional courtesy, and blackmail.

What is equally outrageous is the long term manipulation of gold and silver, which are also foundational benchmarks of the monetary system. 

The manipulation in the metals has been exposed for some time now, and is virtually in plain sight. 

The same parties involved in LIBOR are involved in manipulation across multiple markets, actively mispricing risk and misallocating capital to serve the greed of the privileged few.

And the pity is so few people get it.  But they will.  As I had forecast, this is the year of revelations.

When it comes out they will say, 'we did it for the sake of the system.' 

And don't be a sap, because after all, everybody knows.



(h/t Capitalism Without Failure)





"Separate But 'Equal'"

Synchronized Easy Money: Central Banks Cutting Key Rates - Denmark Goes Negative

"Decency, security and liberty alike demand that government officials shall be subjected to the same rules of conduct that are commands to the citizen. In a government of laws, existence of the government will be imperiled if it fails to observe the law scrupulously. Our Government is the potent, the omnipresent teacher. For good or for ill, it teaches the whole people by its example.

Crime is contagious. If the Government becomes a lawbreaker, it breeds contempt for law; it invites every man to become a law unto himself; it invites anarchy."

Louis D. Brandeis, US Supreme Court Justice, Olmstead v. United States, 1928

Gentleman, start your presses, and rig the markets to both enhance the effect in some and to hide it in others.  And this produces a mindset towards manipulation in all the key market participants.

Bob Diamond is a sociopathic child of a monied culture of privilege and deceit, a collegiality of crime.

They may try to bury the stench of corruption in the banking system by further diluting the value of money, but this will not restore vitality to the real economy.  It will only continue the malicious trends and increase the misery of the people.  And this energizes the feedback loop of repression.

Eventually the monied interests must accept reform, but because of the credibility trap this will be something that is more likely forced upon them when they go too far.

US Non-Farm Payrolls Report for June on Friday. It may appear a little better than expected, or it may not.

The monthly figures, as are several key market indicators and prices, all a part of the show, masking the real trends at times like these. This was shown clearly in the manipulation of LIBOR by the Bank of England, in addition to the extracurricular privateering of the banks for their own accounts.

USAToday
Central banks worldwide cut key interest rates
By David McHugh, Associated Press
5 July 2012

FRANKFURT, Germany – The European Central Bank has cut its key interest rate by a quarter percentage point to a record low of 0.75% to boost a eurozone economy weighed down by the continent's crisis over too much government debt.

The move followed a rate cut by China's central bank and new stimulus measures by the Bank of England as global financial authorities seek to shore up a slowing global economy.

Stock markets rose briefly on the news, mainly because China's rate cut was unexpected. But the gains did not last long as investors seemed worried about the extent of the slowdown in the global economy. Germany's DAX was up 0.4% while the Dow futures were flat...


 

Reuters
Denmark cuts rates, one to negative for first time
By John Acher and Ole Mikkelsen
5 July 2012

* Central bank cuts main policy rate by 25 bps to 0.20 pct
* Cuts CD rate by 25 bps to negative 0.20 pct
* Keeps current account rate unchanged at 0.0 pct
* Lifts current account limits

COPENHAGEN, July 5 (Reuters) - Denmark's central bank cut interest rates by a quarter point on Thursday, shadowing the European Central Bank's action earlier in the day, in a historic move that put one of its secondary rates below zero for the first time.

"The interest rate reduction is a consequence of the reduction by the European Central Bank of its monetary policy rates by 0.25 percentage point," the Nationalbank said in a statement.  (a spiral of competitive devaluations of fiat currency - Jesse)

The Nationalbank cut its lending rate to 0.20 percent from 0.45 percent and lowered its certificates of deposit (CD) rate to negative 0.20 percent from 0.05 percent to match the ECB's move and to curb strength in the Danish currency...