NAV Premiums of Certain Precious Metal Trusts and Funds

Sprott Silver has raised its cash level by selling 100,000 ounces of silver from the Trust.

They have essentially converted a small portion of their silver assets to cash in order to manage their ongoing expenses.

This is less interesting method than a secondary offering, but the appropriate response given the somewhat dampened enthusiasm in sentiment that is a portion of the bear market in metals.

 

The Fed's Next Doofenshmirtz Moment - 'Quicksilver Markets'

THE MISSION

“The FOMC is firmly committed to fulfilling its statutory mandate from the Congress of promoting maximum employment, stable prices, and moderate long-term interest rates. The Committee seeks to explain its monetary policy decisions to the public as clearly as possible.

Such clarity facilitates well-informed decision making by households and businesses, reduces economic and financial uncertainty, increases the effectiveness of monetary policy, and enhances transparency and accountability, which are essential in a democratic society."

THE REALITY

 

I do not think that this blog entry really isn't being a naysayer, just negatively commenting on those facing a difficult task. 

Or even really unfair.

After all, the Fed has been blowing up the US economy, and taking the world to the brink of economic and political disaster, about every eight years since 2000.  And less regularly going back 1987 at least.

 

And they have been getting plenty of help from the government and the media.

They all put the banking system and the financial elite first, and the devil take the hindmost. 

 

When the powerful are single-mindedly determined to have their way, even if it is horribly wrong, it is difficult and often dangerous to be right, or to even admit to knowing the difference. 

Their policy errors will be a new chapter in the backward predicting textbooks of the dismal science.  And I would probably enjoy this if I were reading about it in the more distant future.

 

What were they thinking? 

And they appear to be about right on schedule for their next Doofenshmirtz Moment.

 

US Treasury Warns Stock Market Is Approaching 'Two Sigma Threshold' and Quicksilver Markets

 

They are not evil.  Or even dangerously incompetent and frightened.  They are equal measures servile, bureaucratic, arrogant, and banal.

 

And they and their courtiers are caught in a credibility trap.

 

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 - Death of Exceptionalism - Rosebud

The economic news came in weak this morning.

 

If there was some link between the Federal Reserve and the real economy they would probably not do anything for the rest of the year.

 

But, policy being bank-centric, they will likely do a little jaw-boning tomorrow, and make a symbolic effort at raising rates sometime this year.

 

Stocks moved sideways and the dollar took off some of its recent gains.

Gold and silver were bought as physical overnight, and sold as paper during the day in New York and London.

FOMC tomorrow.

 

'Patient' is the new 'rosebud,' and exceptionalism is the mark of Kane. 

Have a pleasant evening.

 

 

 

SP 500 and NDX Futures Daily Charts - A Swing and a Miss

The economic news continued to come in weak this morning.

West Texas Intermediate settled at a six year low today.

Stocks were slumping most of the day, with techs managing a little green ahead of Oracle and Adobe after the bell.

Speaking of Oracle, they were in line for earnings per share and missed revenues. They did increase their dividend. And the stock was up slightly after hours.

As for Adobe, they beat both earnings and revenue numbers, and were trading lower after hours because of higher expectations.

The hope for Adobe and Oracle is 'the cloud' and subscription based models. And other echo bubble like metrics.

Is the US economy exceptional? Are Americans better than everyone else?

No.

 

All eyes on the Fed verbage tomorrow. 

Have a pleasant evening.