Stocks and Precious Metals Charts - The FOMC Punch and Judy Show - Non-Farm Payrolls Tomorrow

“The tyrant is a child of pride, who drinks from his sickening cup recklessness and vanity, until from his high flown crest he plummets headlong into the dust of hope."

Sophocles, Oedipus Rex


“So much for Caligula the Emperor; the rest of this history must deal with the Monster."

Suetonius, The Twelve Caesars

Stocks were digesting their recent gains today, while glorying in the weak economic data.

It was announced today that Trumpolini intends to nominate Herman Cain as a Fed governor.  This easily tops his most recent nomination of Stephen Moore, who was at least nominally qualified despite being a certified Art Laffer collaborating supply-sider.

Thank God Trump does not own a favorite horse.

Having this many knuckleheads managing the world's most powerful currency and providing significant regulatory oversight to the US economy may be unintentionally very good for gold.

This reminds us of the need for checks and balances, and oversight as a restraint on the abuses of authority.  While it is tempting to unleash the power of nearly unrestrained fiat money in order to solve short term problems, one must consider who might one day be wielding such dangerous, highly discretionary power.

Speaking of restraints on reckless behaviour, gold and silver were hit hard and early, but managed to recoup their losses and actually finish higher on the day.   They closed higher as did the Dollar.  One might have thought it was a furtive, early move by some towards safe havens.

Sooner or later a crash is coming, and it may be terrific.

Non-farm payrolls report tomorrow.

Have a pleasant evening.

Stocks and Precious Metals Charts - These Violent Delights - Non-Farm Payrolls on Friday

Batoni, Return of the Prodigal Son

“The truth is that we were so spiritually and morally bankrupt that we could not even see some of those lines: we stepped over them blindly.  Other times we saw the lines alright, but we wanted to cross them...

It wasn’t God who was dead.  We were."

Ray A., Practice These Principles


“Religion used to be the opium of the people.  To those suffering humiliation, pain, illness, and serfdom, religion promised the reward of an after life.  But now, we are witnessing a transformation:  a true opium of the people is the belief in nothingness after death, the huge solace, the huge comfort of thinking that for our betrayals, our greed, our cowardice, our murders, we are not going to be judged..”

Czeslaw Milosz,  Discreet Charm of Nihilism


"These violent delights have violent ends
And in their triumph die, like fire and powder,
Which, as they kiss, consume."

William Shakespeare, Romeo and Juliet

Another blow off top in US stocks is underway.

We will have to wait to see the extent of it, both the zenith and the fall afterward.

I suspect that stocks will struggle higher until earnings season comes, and rude reality comes to bear on this fantasy of economic recovery.

Gold and silver are marking time for now.  It has been so for quite a long time.

We are in a time of a general madness,  when lies are commonplace, and greed reigns in the hearts of even those who would be faithful.

If you have not prayed in a long time, try to do so again, even if it is a little bit every other day.  And in your prayer, ask the Lord to show your sins to you, so that you might repent of them now, and seek his forgiveness, and try to sin no more.

And the peace of the Lord, which surpasses all understanding, will guard your hearts and your minds.

Have a pleasant evening.

Stocks and Precious Metals Charts - Damn the Recession, Stabilize the Green Shoots - Non-Farm Payrolls on Friday

"You have attributed conditions to villainy that simply result from stupidity."

Robert Heinlein, Logic of Empire

The words, or perhaps more precisely 'bullish totems', for the day were green shoots and stabilizing.

As in the economy appears to be stabilizing, and green shoots are appearing.

In short, it appears as though the moneyed interests are committed towards attempting to take out the prior stock market highs, and perhaps set up another blow off top.  Wax on, wax off.

Or at least extending this bubblation to allow a few more gig economy IPO pigs to hit the street, and still give them time to unload their positions,  taking their profits from the first quarter V-shaped, parabolic rally.

Thank you, Fed.

Let's see if timing and events favor this, or not.  I suspect that the interpretation of the news will definitely be leaning in their direction.  But the news can only torture reality so far.

Speaking of cons and zombie valuations, Bitcoin jumped 23% today for some unknown reason.  Did not some study just conclude that about 95% of the Bitcoin 'trades' are phony?

Gettin' paid.

According to a new book, Commander-in-Cheat by sportswriter Rick Reilly, Trumpolini does not cheat all that much at golf— he most often has his caddy do it for him.  Shamelessly and relentlessly.  Although he is so often inclined to aggressively kick his ball into the fairway for a better lie that his nickname amongst the caddies at Bedminster is Pelé.

He's a decent golfer.  He doesn't need to cheat to play a very respectable game, especially for his age.  And if he beats someone he apparently doesn't even take the money.  It's all about the bragging, about looking better than the other guy, about proving to himself and everyone else that the rules do not apply for someone as special as him.

Gold and silver were largely unchanged today, as was the Dollar, le douleur du monde.

Non-farm payrolls number on Friday may be important in the narrative which the sell side of Wall Street has been formulating.

There will be a third indicative vote on the various plans for Brexit in the British Parliament tomorrow, Wednesday.  Here is a brief video about the various choices which they have been considering.

Have a pleasant evening.

Audacious Oligarchy: The Rules Are For the Little People

“The essence of oligarchical rule is not father-to-son inheritance, but the persistence of a certain world-view and a certain way of life.  A ruling group is a ruling group so long as it can nominate its successors.  Who wields power is not important, provided that the hierarchical structure remains always the same.”

George Orwell


"We've become, now, an oligarchy instead of a democracy.   I think that's been the worst damage to the basic moral and ethical standards to the American political system that I've ever seen in my life."

Jimmy Carter


"Financial predators are usually narcissistic and audacious.  They regularly have an extreme sense of entitlement coupled with high self-efficacy.  Many of them have a charismatic quality and are preternaturally persuasive.  Financial predators are commonly shameless and quite adept serial liars. They perceive themselves having near unlimited guile and resourcefulness to extricate themselves out of any compromising situations."

Russ Alan Prince, Forbes


"Most of them became wealthy by being well connected and crooked. And they are creating a society in which they can commit hugely damaging economic crimes with impunity, and in which only children of the wealthy have the opportunity to become successful.  That’s what I have a problem with."

Charles Ferguson, Predator Nation


"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage. Intellectual myopia, often called stupidity, is no doubt a reason. But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right. The sensitivity of the poor to injustice is a trivial thing compared with that of the rich."

John Kenneth Galbraith

I cannot stress enough that this elitist attitude towards society is a learned mindset, that comes with a sense of extreme entitlement, and not some inherited tendency.   As it succeeds it can become contagious among those who are morally weak and easily influenced.

Who would not be tempted to believe people when they tell them that because of where they went to school and who they know that they are special, and entitled to bend the rules for their own benefit?

And unfortunately the corrupting power of easy money is in its ascendancy in US society, now as it has been at certain times in the past, and is to be found in the halls of established power on both sides of the aisle.

The oligarchy funds think tanks and personalities to persuade and lure in the disgruntled and the gullible in order to clear the way for the domination of society by a powerful and wealthy few.