Gold Daily and Silver Weekly Charts - FOMC Tomorrow - The Gathering Storm

“The combination of power, optimism and abstract thinking makes powerful people more certain. The more cut-off they are from others, the more confident they are that they are right.”

Margaret Heffernan, Willful Blindness


"I think this is where the academics are kind of clashing with the practitioners. I think on paper negative rates make a lot of sense if you're running academic models, but in reality they make no sense. Having seven or eight trillion dollars of debt trading at negative rates, having thirty year JGB's trading at fifty basis points is absolutely ludicrous. This experiment that's going on we all know will end poorly at some point in time, I just don't know when that time is...

I think that one of the fears that they have is a run on cash. If they told you and I that they're going to tax your deposits by a hundred basis points, well it's better to put it in a safe or under your mattress. And that's why you see a resurgence in gold. The more they move to negative rates, the more gold is gonna take off because there's no carrying cost."

Kyle Bass, Hayman Capital

Gold showed some strength today despite the long run up from the bottom it experienced for the expiration of the June options on the Comex.

FOMC tomorrow.

It is not so much the unethical and almost stupidly selfish actions that are so corrosive to trust, but the increasingly brazen, criminal coverups that are stretching the social fabric to the breaking point.

And they 'never see it coming.'  Because they are willfully blind.

Let's see what happens.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Brexit Jitters and the Central Banks

Given the depth of the negative yields across the durations of the major sovereign debt in Europe, it is fairly obvious that a 'flight to safety' is ongoing.

The FOMC is meeting and will make a sage pronouncement tomorrow afternoon.

The people of Britain will cast their votes on June 23.

Have a pleasant evening.

Gold Daily and Silver Weekly Charts - Flight to Safety

My father used to play with my brother and me in the yard. Mother would come out and say, 'You're tearing up the grass.' 'We're not raising grass,' Dad would reply. 'We're raising boys.'

Harmon Killebrew


"And the peace of God that surpasses all understanding will guard your hearts and minds."

Phil 4:9

We continued to see an extension of the rally in gold, off the bottom that was set for the June option expiration.

In particular the current tilt in the polls for Brexit has the international banking community shifting from foot to foot. After all, if the Brits exit the EU, who will be there to bail out the continental banks as the neoliberal economic madness continues to destroy the real economies of one nation after another.

There was a tragic mass shooting over the weekend in Orlando, and all of the victims and their families have been in our thoughts and prayers.

There will be more economic news this week, as well as some central bank actions that could influence the price of gold. Silver seems to be following gold at this point, but that will change when we move to an active month for the silver trade.

I have been having some fun with the Queen, helping her to reorient herself to every day activities. Today I was able to get her behind the wheel of a car, even though it was in a parking lot, just to get the feel of it again. It will be a little while before she can go out on the highway, but I know she enjoyed it.

And then I took her for a drive to the car wash in her car, and picked up a large pizza at one of her favorite places. I then took her to the bank, and watched as she made out a deposit slip and banked a check she had received from a small life insurance policy from her father. Watching her delight as she realized that she could write normally again was quite a joy. What a change from just a few weeks ago. It is a gift of infinite wonder.

We have liked doing these little chores together for some years now, and go to most places together, but for the sake of our marriage I do not do any clothes shopping with her. I drop her off at Kohls and go to Lowes. But it is still fun, and does not seem like a chore when you do it with an amiable companion.

Its the little things that make life worth living.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts - Sell Off On European Jitters

Stocks were in sell off mode today, and VIX measure of volatility spiked higher.

The primary driver of this is the recognition that the world economy is deeply troubled, and the public in general is starting to reject the corporatist globalism that lies at the heart of constructions like the trade treaties and the transnational bank bailouts.

We will be watching for the economic news from the US for the rest of the week, and especially for any actions from the Feds, Bank of Japan, and the ECB.

Have a pleasant evening.