A Message From the Banking and Brokerage System

"At this late stage in the history of American capitalism I'm not sure I know how much testimony still needs to be presented to establish the relation between profit and theft."

Lewis H. Lapham


"In an oligarchy, private ownership is merely a concept, subject to interpretation and confiscation."

Jesse, Trustee to Seize and Liquidate Even the 'Stored' Customer Gold and Silver Bullion From MF Global

No comment about the bank notice below is necessary for those who understand what this means. And if one does not understand it at this point, no comment is sufficient.

Paper currency held in a bank is not a 'risk free' asset. To the contrary, it is like walking around with a very large and willfully powerful counterparty that has one hand in your pocket.  And in troubled times, a 'warehouse receipt' or a line item on a bank account statement held in another country is little more than another piece of paper.

And in the case of 'digital money' they do not even have to have a hand in your pocket.  They hold everything, all your savings, up front, and you have to apply for your money at a window, where they determine how much you may have.  And that window can be closed anytime at will.

They take your wealth, pay you almost nothing for it, and then offer you protection, with limits, from themselves.

The deregulation of banks and the overturn of Glass-Steagall was intended to create a license to steal, by design.  Hundreds of millions were spent in a decade long effort lobbying for it. These were the protections that were given to us, and fought for by our fathers and grandfathers.  And we squandered away that wisdom, having unlearned the lessons of the past.

This is predatory financial capitalism and modern monetary theory unrestrained by the rule of law and transparency.  This is the lesson from Cyprus, and of MF Global.  And it is no different in the US or UK, except in the matter of time and degree.    None are safe where there is no justice for all.

And the financial sociopaths and their enablers have no limit to their greed,  no sense of boundaries, and certainly no shame.  

The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.

Gold Daily and Silver Weekly Charts - Correlated to Comex Option Expiration Manipulation

Gold and silver are capped or go lower if stocks goes up. But they do the same thing if stocks go down.

I think it is fair to say that the precious metals are correlated to manipulation.

As a reminder we had another Comex option expiration today.

Meanwhile, Insider Buying of Gold Mining Stocks Surges to Multi-Year High

SP 500 and NDX Futures Daily Charts - Bail In Jitters

Futures were soaring overnight on the news of a Cyprus deal.

When the Dutch finance minister said this morning NY time that Cyprus could be a 'template' for further bank bailouts in the Eurozone stocks plummeted. He later amended that statement but the damage was done.

So what next. Cyprus is still not settled, and the Eurozone banks, especially those in the UK, are deeply troubled.

But the US equity market has ADHD and may forget all this tomorrow in the face of fresh domestic news about housing and consumption.

As I noted intraday, the 1550-1555 pivot area is proving to be quite a problem for bully, with six attempts in a row having failed to take it out.

So let's see what tomorrow brings. I did lighten up on the volatility I had bought on Friday during the lows today, but kept some bought 'on the cheap' on the open euphoria.

This is a swinging market. And Benny is the guy in the black and white houndstooth suitcoat.

SP 500 Futures Intraday - Buy the Rumour Sell the News Pop n' Flop?

The bulls are having quite a bit of trouble with the pivotal area of 1550-1555.
Today makes the sixth try. Perhaps they can take it by the end of the day.

As you know our intermediate target has been 1565 to 1570 since mid-January.
Let's see if they can take that price level and hold it for more than a day.

If not they may have to back up to big support at 1525 to 1530.

IF a 'significant' event triggers a selloff then we are looking into the 1400's at least with a 'must hold' at 1450.  Look at the turmoil that a relatively symbolic event like Cyprus was able to stir.

This is what I would call a 'fluffy' market.

I would not bet on that just yet. The Fed continues to ply their cronies at the Banks and Funds with $80+ Billion of easy money per month.

It is a bubble, but bubbles are notorious bear-busters since they have an internal logic of their own.

I think gold is fundamentally undervalued relative to the financial and currency risks, but values are not very relevant to the kleptocracy at this time of papier-mâché economies, except as a rival to their control frauds and a reflection of their general perfidy.

In that sense Cyprus was a watershed event, despite its seeming insignificance, as the MF Global style confiscations of the oligarchs become official government policy.