01 April 2014

After Many a Summer Dies the Swan


"Vanity and narcissism — the compulsive need to be admired and praised — undermine one's courage, for one then fights on someone else's conviction rather than one's own."

Rollo May


"Narcissus so himself, himself forsook,
And died to kiss his shadow in the brook."

William Shakespeare


"Alas! for this gray shadow, once a man —
So glorious in his beauty and thy choice,
Who madest him thy chosen, that he seemed
To his great heart none other than a God!"

Alfred Lord Tennyson, Tithonus

I had intended to write about the winds of change beginning to rise in Europe, but it is hard to find a proper beginning for such a vast and historic subject. But luckily a reader sent me Grant Williams latest newsletter, which you can read in its entirety here. So I may defer on my own effort, and provide a taste of things to come with this.

As you may recall I have said on any number of occasions that when change comes, it will probably come first at the periphery, as in all great changes in empire. In the east it is generally brutish, sturm und drang.   But watch when it comes to the UK, most likely first amongst the English speaking nations.  The backlash and repression there on the whole will be— polite but comprehensive.

The credibility trap takes its toll over time, and people lose interest in the status quo.   The ruling elite never see it coming, because they are so self-absorbed, enamored of themselves.  Their first reaction is disbelief, and then rage, because how can they be unappreciated, so betrayed, such beneficient gods?

I am not saying that the change will necessarily be for the good, but it will come, just as it did in the 1930's, with very mixed results.

Like so many things that approach the universal nature of art, our reaction to it probably says more about us than it does about it. And perhaps for this effort as well.

And the times, they are a-changin'.

THINGS THAT MAKE YOU GO Hmmm...
Fight Club
By Grant Williams
01 April 2014

...Elsewhere this past week in Europe, there was another sign of things to come — and this time it played out in the UK as Deputy Prime Minister Nick Clegg of the pro-European Liberal Democrats threw down the gauntlet to the staunchly anti-European Nigel Farage of UKIP to join him in the first of two live televised debates — ostensibly on whether the UK should remain part of Europe, but in reality a desperate attempt to both blunt the challenge presented by Farage’s surging popularity and at the same time restore some credibility to Clegg’s ailing junior coalition partners.

As regular readers will know, Farage is the very embodiment of the anti-establishment movement. A pint-drinking, chain-smoking everyman who looks like he’d be more at home debating the issues of the day in a London pub than in the European parliament, Farage spent 20 years as a commodity trader and is one of the few politicians amongst the current crop to have a background in the private sector.

Clegg, on the other hand, is the archetypal politician: public school and Oxbridge-educated, related to aristocracy (albeit of the Russian variety), and a man who has been involved in politics for his entire adult life. The debate was fascinating to watch.

Farage’s bluster and soapbox oratory versus the polished politics of Clegg. Farage’s passion and intensity versus Clegg’s measured tone.

In the aftermath, the political pundits had their say on who emerged victorious, and they were unanimous:

Mary Riddell:
No minds will have been changed. The Faragistes who see their champion as the battler against faceless, bloodless, heartless power-brokers will be happy. But Nick won. As he should have. Easily.

Dan Hodges:
Nick Clegg kept calm and stuck to the facts. And it became clear facts are Nigel Farage’s enemy. He became increasingly angry and bombastic. By the end Clegg was engaging easily and effectively with his audience. Nigel Farage appeared to be cracking jokes to amuse only himself. His explanation of his reason for employing his wife was especially embarrassing. Fortunately, by that point, few people in the audience appeared to be listening to him.”

Toby Young:
“Overall, Clegg came across as more in command of the detail (possibly because he’d been briefed by the civil service beforehand) and for that reason I think he edged it.... Farage will certainly have pleased his supporters, but not much more than that.”

So... a humiliating public mauling of poor Nigel. But here’s where it gets interesting. In the Telegraph’s poll more than 81 per cent of readers said they thought Nigel Farage had won the debate.

A YouGov poll found that 57 per cent of people thought Mr Farage won the debate. This is perhaps the most important point.

Regardless of what those who spend their lives around politics believe, the public is ready for change, and they will be very hard to sway unless somehow they feel that quality of their lives can improve drastically — and that is not about to happen.

Measuring political performance by traditional metrics is a waste of time in a world where the people will simply vote for change. We saw it in Greece, we saw it in Spain, and now we’ve seen it in France. Next up, European elections in six weeks’ time.

Public disaffection with the world’s leaders is growing by the day — you can feel it — and nowhere was that made more apparent recently than in Holland last week when Barack Obama, halfway through his tour of Europe, took to the stage alongside Dutch PM Mark Rutte.

Obama, so used to adoring hordes — not only at home, but wherever in the world he is reading a teleprompter giving a soaring lesson in oratory — was presented with the answer to the age-old question about the sound of one hand clapping after he concluded, at a press conference, remarks espousing the USA’s “core values” of privacy, the rule of law, and individual rights. ([See the video below] to watch the most awkward end to a speech since Sally Field accepted the Oscar for Best Actress in 1985.)

People can’t even bring themselves to be polite to the incumbent political class anymore — not even to a rock star like Obama. Make no mistake, from Ukraine to Holland, from the United Kingdom and France to Greece, Italy, and beyond, politicians are under immense pressure to “do something” in order not to lose their grasp on power.

From Nobel to Ignoble





Robert Hare: What a Psychopathic Corporation Might Be Like


Dr. Robert Hare is describing what a psychopathic corporate culture might be like, not what all corporations are.

Corporations can have personalities if you will, based on the character of their leadership, and the traits and tendencies which they tend to seek out and reward.

Is there a difference in culture between Costco and Walmart? Why might that be the case? How about the difference in treating the customer between St. Jude's Children's Hospital and Goldman Sachs, both putatively doing "God's work?" Do they seek certain personality types, and tend to cultivate and reward different behaviours? Not all hospitals are altruistic and caring, and not all financial firms are the same. Does Goldman Sachs have the same character as Charles Schwab? How about Bank of America and Edward Jones? Or BP and Whole Foods? Why might they be different? Or is it all just marketing and image?

Governments may have also have character traits, whether they choose to call it culture, or tone, or philosophy. Certain behaviours are rewarded, and others are suppressed and discouraged.  Quite often a few like-minded and powerful personalities may set the character of the organization, and choose subordinates who are either servile or of a simple mind. Is there a difference between a government run by Franklin Roosevelt and Adolf Hitler? Do their differences affect the people whom they attract and the behaviours that they reward?

Corporations are not people, and do not deserve the rights of people because it grants to the corporation mangers, those that actually give life to a company, a power that makes most other individuals unequal under the law.  It is an extension of power and rights by proxy, greatly leveraged.

If an individual has a voice, the individual managers of a major corporation can obtain a much greater voice, one applied by the power and money of a large organization.  These are the modern übermenschen that we are unwittingly raising like titans over the world of real people.

And when they are singularly amoral, or focused for anti-social purposes, or criminal activities, the resultant damage of which they are capable can be devastating, not only to individuals, but even to towns, cities, and small nations.





31 March 2014

Iron Grip of the Credibility Trap: The Ongoing War On Whistleblowers and Transparency


Sam Seder interviews documentary film maker Robert Greenwald on his 2013 film, War On Whistleblowers.

A reader informs me that this documentary is currently available on Netflix streaming.




“Often the best source of information about waste, fraud, and abuse in government is an existing government employee committed to public integrity and willing to speak out. Such acts of courage and patriotism, which can sometimes save lives and often save taxpayer dollars, should be encouraged rather than stifled. We need to empower federal employees as watchdogs of wrongdoing and partners in performance.”

Office of the President-elect Barack Obama, 2008 Transition Project

Gold Daily and Silver Weekly Charts - JPM Throws Down 229,400 Ounces of Gold To Meet Deliveries


Today was the end of quarter. The positions can be marked to market.

There was intraday commentary on a widely reported story concerning market rigging here.

On Friday JPM moved 229,400 ounces of gold from the eligible to deliverable category in their Comex warehouse, in preparation for the April delivery period which starts about now. 

It looks like that gold that was moved over to the registered category by JPM is to fill the delivery requests that the Comex received on Friday, according to this report.    I have included a screen shot of the relevant page below.

JPM filled 2,640 April futures contracts for 264,000 ounces.  So they needed to issue at least some of those additional warrants, since they only had 214,097 going in.  And most of that came out of their 'house account.'

I thought that it was interesting that a good chunk of that gold is being stopped by Nova Scotia, for their own house account.   Special thanks for the link to the famed Samoan gold analyst from Investment Research Dynamics, Salelologa Dave.

And the band played on.

Have a pleasant evening.