Gold Daily and Silver Weekly Charts

Two day FOMC meeting next week with the announcement on Wednesday at 12:30 PM.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Divergence

There was a significant divergence between the Nasdaq and the SP today. It was driven by the financials and AAPL.

As you know, the Jobs Report was 'better than expected.' The drop in unemployment was due in large part to the shrinkage of those considered to be seeking employment, as reflected in the drop of the Labor Participation Rate.

The BLS has been playing it a little loose with the seasonality factor. The year over year of factor spreads are a bit wide.

Fiscal cliff is scheduled to arrive by Dec. 21 which is the last day for submitting legislation for 2012, unless they decide to make a special arrangement.

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

The Financial Crisis (With Subtitles)

This comes from a group of students at the University of Missouri at Kansas City.

There is something very wrong about hearing R. Lee Ermey speaking French. Even if the words do not match the subtitles. And would he have ever used the word 'rhetorical' in real life?

I wonder if having Darth Vader explain Modern Monetary Theory, and then arrogantly choke off any serious discussion, was intentionally satirical?   

MMT is little more than a de facto debt default through monetary inflation backed by official coercion, pure and simple. It doesn't have to be, of course, but it always turns out that way. Hyperinflation and the Pernicious Myth of Modern Monetary Theory.

There is a third alternative between modern monetary inflation and destructive austerity. Reform the financial system and make the bond holders and investors take the downsides of the risks which they have incurred, in the manner of Iceland. But there is little knowledge of this, because the monied interests are controlling the discussion.

For a related topic see The Debt Prisoner's Dilemma.

Enjoy.