NAV Premiums of Certain Precious Metals Trusts and Funds

As expected we have a bear raid on the precious metals in honor of the FOMC meeting.

Make no mistake, this is political messaging. Buy our paper.

And a great deal of the world is ignoring it.

Harvey Organ Comments on the Gold Inventory at the COMEX

Time to send a distress flare to their friends and cohorts at the central banks?

Hey Rocky. Watch me pull a rabbit out of a hat.

From Harvey Organ this evening:

"Ladies and Gentlemen, we have a three-fold problem:

i) the total dealer inventory of gold is at a very dangerously low level of only 44.32 tonnes, and none of the 9.5 tonnes delivery notices from May and the 30 tonnes from June have been removed from inventory as of yet.

ii.a)   JPMorgan's customer inventory remains at an extremely low 136,380 oz.
If you are a customer of JPMorgan and have your gold in its vault, I think it is best to remove it before we have another fiasco like MFGlobal.

ii.b) JPMorgan's dealer account rests tonight at 413,000 oz. However all of this gold has been spoken for plus an additional 81,000 oz

iii) the 3 major bullion banks have collectively only 30.08 tonnes of gold left!"

I do not watch the Commitments of Traders and the broad sweep of inventory levels like Harvey and others do.

As you know I do not think that this is where the scheme breaks, except as a secondary effect perhaps. The COMEX is a paper shell game. The real fireworks will begin more likely in a run on the bullion banks, and the depletion of physical supply sparked by some major scandal or failure to deliver.

Keep an eye on silver. The central banks don't have any.

And do not think for a moment that this will go down easily. There are desperate but powerful forces at work.

But I do enjoy watching this sort of thing unfold.

"You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out!"

President Andrew Jackson, February 1834, from Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels

Pictures In an Exhibition: Who Profits?

Why keep the median wage low, despite rising profits and productivity?

Whom does an increasingly debt-based economy serve?

Who profits from the status quo?

Pictures in an exhibition of elephantine greed.

US Civilian Employment To Population Ratio Since 1970

What recovery was that again?

The lower employment to population ratios of the early post war decade were more manageable because it was prior to the long wage stagnation despite rising productivity. 

It was also an era when single worker households were able to maintain a livable income.