NAV Premiums of Certain Precious Metal Trusts and Funds - Currency Wars Enflammé

"Among the calamities of war may be justly numbered the diminution of the love of truth, by the falsehoods which interest dictates and credulity encourages."

Samuel Johnson

There is a very little bit of a 'flight to safety' today as the war of words in the Ukraine heats up.  Propaganda is flying hot and heavy from both sides of that border. 

Equities are downright complacent, and the precious metals are capped with fair regularity.  All is good, nothing to see here.  Move along.

This entire episode seems to be a manifestation of the keen disappointment that Uncle Sam felt when Russia started refusing to play ball with the Anglo-Americans in any number of areas, from dissidents to global economics.  In some ways this can be seen as the last gasp of the extended British Empire, with America and France on board along with the usual suspects.

The Yanks keep waving the NATO flag, but the Russians call that coalition FUKUS:  France, UK, US.   Of note is the absence of Germany in that analysis.  Germany is a pivot point.

There is certainly a difference of opinions and interests.  China is quiet, but I think we know where they are likely to be positioned.  If you understand the moves on both sides within the context of the currency war things make quite a bit more sense than otherwise.

This is not to say that Russia and China are the 'good guys' in this, not one bit.  I tend to see this as competing power blocs, or crime families if you will.  I don't see much altruism or activity on the moral high ground by anyone.  We live in a particularly self-centered and cynical time.

What we are seeing in so many areas at once is an extension of philosophy and objective expressed in The Project for the American Century, and a fairly cynical one at that. The neo-cons will work with extreme jihadists in the Mideast and crypto-fascists in Eastern Europe. 

Big Money and the will to power have no loyalties except to themselves and will gladly fight to the last drop of your blood.  I don't see many good actors in this scenario on either side.

I am reminded of this wonderful section and quote from Nomi Prins' new book, All the President's Bankers about the lead up to WW I.

“The war should be a tremendous opportunity for America.”

Jack Morgan, of JP Morgan in a personal letter to President Woodrow Wilson, September 4, 1914

I have written before about the striking parallels between Obama and Wilson.

A real flight to safety would crush the precious metal shorts if it spills over from paper to the bullion markets.  And so I would look for the Banks to do all that they can to avoid it, diffuse it, deflect that possibility.

Premiums are a bit low on the Central Funds.   Sprott Silver is a bit wide on the premium, especially with the likelihood of a secondary offering increasing.

Credibility Trap: The War On Whistleblowers

“Everything secret degenerates, even the administration of justice; nothing is safe that does not show how it can bear discussion and publicity.”

John Dalberg Lord Acton

“A popular Government without popular information or the means of acquiring it, is but a prologue to a Farce or a Tragedy, or perhaps both."

James Madison

"There is little value in insuring the survival of our nation if our traditions do not survive with it. And there is very grave danger that an announced need for increased security will be seized upon by those anxious to expand its meaning to the very limits of official censorship and concealment.

That I do not intend to permit to the extent that it is in my control. And no official of my Administration, whether his rank is high or low, civilian or military, should interpret my words here tonight as an excuse to censor the news, to stifle dissent, to cover up our mistakes or to withhold from the press and the public the facts they deserve to know."

John F. Kennedy

It comes down to money and reputations.  It comes down to the personal and narrowly selfish priorities of a powerful and often complacent status quo.

Managers and executives who form close and personally profitable relationships with outside suppliers and money managers seek to drive more and more business to them, even when it may greatly disadvantage their own people and their own organizations. 

They may choose to serve their own pride, their own careers, and too often personal gain above their oaths of office.  And they may go to great lengths to hide mistakes and to ignore and excuse incompetency.

This is the self serving money vortex of Big Oil, Big Pharma, Big Security, and Big Finance, in partnership with their patrons in the government bureaucracy.

This is the credibility trap.

 The only questions are what do they have to hide, and why?

The US War On Whistleblowers

This documentary is also available on Netflix streaming. 

 

"He was hated and rejected, a man of sorrows, acquainted with the deepest grief. We turned our backs on him and looked the other way. He was despised, and we did not care."

Isaiah 53:3


"O Jerusalem, Jerusalem,  who kills its prophets and stones those who are sent to help her. How often I would like to have gathered your children in safety, as a hen gathers her brood under her wings. And you were not willing."

Matt 23:37

Gold Daily and Silver Weekly Charts - Cap, Cap, Cap

This was a very quiet trade for the day after a Comex Option Expiration. That in itself was notable.

There are those who claim that there is a 'China Put' under the metals markets here. Well, let's hope so.

As you may know, we are sliding into the Labor Day three day weekend that will mark the end of Summer, and have us looking forward to September which is an active month for Silver, but not for Gold.

The Comex did not bother producing any data for the metals as you can see from the notice below. The warehouse activity was not worth noting from Madame Tussauds-on-the-Hudson, Liar's Poker edition.

Other than that, it was cap, cap, cap.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Dog Days of Summer

These are very lazy, almost languid, markets as the hot weather of Summer has the denizens of the canyons of New York out frolicking in the Hamptons or wherever.

Our local town, which is on a long established commuter rail line into the City, is almost like a ghost town.

But the A-Team will be coming back to the markets next week, after the three day Labor Day weekend.

And they will see an equity market well levitated up to some fairly lofty levels, based on expectations of easing in Europe, and continuing soft money policy out of the Fed. With light volumes, because while Wall Street is thriving, Main Street is barely surviving. Ah, the new normal.

If the massive Alibaba IPO was not coming up in the latter part of September, I would expect the wiseguys to dump this market for about five percent. But there are so few retail buyers in there to be knocked about, they will probably have to home in on the institutions. Otherwise it is a matter of professional courtesy for the Banks not to skin the funds, or at least the bigger ones. Or perhaps not.

I think we have a good shot at going back down to the trendline anyway, in a classic wash and rinse at least once more before the Forty Thieves show up to peddle Alibaba's riches.  They will want to bring it out into a rising market and honestly, how much further do you think the market can go from here?

Incident risk remains highly elevated. This is a 'sponge cake' market, with liquidity possessing a half-life of microseconds. This market has a Panic button wired to a pile of dynamite, and the Yellen Fed is pouring gasoline over it every day.

Have a pleasant evening.