Gold Daily and Silver Weekly Charts - Through the Darkness Love Is Among Us

"We are slow to master the great truth that even now Christ is, as it were, walking among us, and by His hand, or eye, or voice, bidding us to follow Him."

J. H. Newman

 

This morning the US economic news came in rather badly.

 

Empire manufacturing missed rather badly coming in at 6.9 versus 8.8 expected.

 

Industrial Production and Capacity Utilization missed consensus at .1% and 78.9% respectively.  Even more surprising, however, was the revision of last month's Production to -.3% versus the positive .2% that was previously reported.

 

And the NAHB housing index missed as well.

 

Stocks rallied and the dollar took a break from its parabolic rally as the markets looked at the real economic data and casts doubts on the Fed's raising rates anytime soon.

 

As you may recall, the Fed is having a two day meeting this week.  It is widely expected that they will remove the word 'patient' from their verbage, but will do nothing else.  Removing 'patient' is supposed to clear the way for a small interest rate increase in the next meeting in June.

 

The Fed would like to raise rates at least 100 bp to 1% largely to get off this extraordinary zero bound in rates, which is serving little except to help to stimulate an asset bubble in bonds and stocks.  It is certainly not helping the real economy.

 

And having created another asset bubble, the Fed would like to have some room to cut rates when the next financial crisis comes, which is due in the next 24 months or so.  This largely depends on the trigger, that being some exogenous event that will provide the spark that will light the bonfire of the vanities which the Fed has constructed.

 

Gold and silver moved lower and then sideways today after a brief overnight rally.  This is the 'normal pattern' these days as Asia buys physical and the West, largely led by London and New York, sell paper.

 

We are an unfortunate people in our leaders, who have become obsessively preoccupied with lining their own pockets, and interfering with the lives and governments of others.   They create weakness and disorder, in order to provide more opportunities for plunder, while calling them 'investments.'

 

And yet, like in most troubled times, with wars and rumours of wars, love moves among us.  The worldly will soon be fearful and scattered, not knowing which way to turn. And things will look dark indeed.

 

But through the darkness comes the call, and the comforting presence, in which His own may have reassurance and confidence, despite the breaking storm.   His hand has never been closer, or more certain, and in this we may be quiet and glad.

 

Have a pleasant evening. 

 

 

 

 

 

 

 

 

 

The hem of His robe is where our healing lies

The wounds in His hands are where our life resides

Love is moving, moving among us

The beat of His heart our steady rhythm

A soul of a King and a Kingdom

Love is moving, moving among us

Love moves

Love is moving, moving among us

He illuminates with a holy fire

And it burns with the flame of God's desire

Love is moving, moving among us

The power of God is in His presence

And the mercy of Heaven in His movement

Love is moving, moving among us

Right now, yeah

Love is moving, moving among us

So we reach, we reach our hands to Him

To touch, to touch the Healer's hand

We fall, we fall in worship

Our God is with us

Love is moving, moving among us

Audrey Assad, Love Is Moving Among Us

SP 500 and NDX Futures Daily Charts - Bad News Is 'Good News'

The macroeconomic data this morning was so uniformly bad that the markets rallied, on expectations that the Fed is not likely to be raising rates to any degree anytime soon.

There is a yawning divergence between the stock market valuations and the real economy, supported largely by fat corporate profits and cheap debt fueling stock buybacks to increase management compensation, with little regards for the broader array of stakeholders, as they used to be quaintly called.

We are ruled by a perverse generation, which puts themselves first, and their duties last.

The rest of the commentary will be given in the gold and silver updates above.

Have a pleasant evening.

 

 

Samuel Beckett Does the US Federal Reserve

 

"To find a form that accommodates the mess, that is the task of the artist now..."

Samuel Beckett

Gold Daily and Silver Weekly Chart - Tender Mercies

 

March is a tough month historically for the metals. I would that it were not, but it is.

And don't the wiseguys know it, and they and their shills help it along.

 

And it seems to be a month that attracts quite few supercilious comments about values and valuations.

 

However, it is what it is.  Gold and silver have failed to break out of the downtrend.  That has been obvious for some time, since gold broke down hard through 1200.

 

Let's see what happens next week, with an eye towards Asia and the physical markets there.

 

This Eurodollar Riot by Cumberland Advisors is very much reading about the US dollar rally and the Eurodollar 'short squeeze' that I discussed a few times in the past.  I used to track these Eurodollar moves through the BIS reports. 

 

I have not done so lately.  They are usually about two quarters in arrears.  I think this example by Cumberland is good, but it ignores the primary impacts in the currency markets, and instead concentrates on the central bank impacts which are less volatile.  They also do not mention the large number of loans and transaction overseas that are denominated in dollars. 

 

There was a little action in the delivery department by the bucket shop boys, and nothing moves out of the gold bullion warehouses these days.  The Comex silver warehouses are being used as a delivery point interestingly enough, and there is a great deal of movement in and out.

 

FOMC meeting next week.  I think the big tickle will be centered on wording, specifically the word 'patient.'   The Fed is a failed institution.  But it is supported by a large and powerful infrastructure of vested interests.

 

The Fed's actions these days are somewhat disconnected from the real economy.  The idea of raising rates while the rest of the world is cutting, with a soaring dollar, is almost ludicrous.  

 

The Fed has the itch to raise because they ought to have done so before this latest stock asset bubble took off about two years ago, and changed their method of stimulus which does few outside the financial system any real good. 

 

They are raising rates, not to fight inflation of which there isn't any, even on the horizon except that which is monopoly-driven like healthcare and pharmaceuticals, and of course, paper financial assets.

 

Rather, they wish to raise rates for their own future policy reasons, so that they can cut them again when their latest asset bubble bursts. 

 

This is the credibility trap in action.  Past errors and complicity prevent them from addressing the real problems, or even stating what they are honestly and frankly. 

 

How can a co-conspirator gracefully introduce necessary reform without harming their credibility, or their cash flow?

 

Do you envy the rich and powerful?  Don't. 

"It would be far better for that man if he had never been born."

 

Remember the poor, and the creatures of the air as well, as Spring slowly arrives.  The harsh coldness gives way slowly to the warmer breezes and life giving sun.  And we can help nature to heal and bring forth its bounty anew. 

 

Remember the things that, in the end, are the only things that really matter, the only that are really worth remembering.  Life may be hard, but love endures.

 

Behold, He makes all things new.

 

Have a pleasant weekend.