Stocks and Precious Metal Charts - Night of the Living Fed

Fed Chair Powell Gives Humphrey-Hawkins Testimony to the House

"In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is equally entitled to protection by law; but when the laws undertake to add to these natural and just advantages artificial distinctions, to grant titles, gratuities, and exclusive privileges, to make the rich richer and the potent more powerful, the humble members of society — the farmers, mechanics, and laborers — who have neither the time nor the means of securing like favors to themselves, have a right to complain of the injustice of their government.

There are no necessary evils in government.  Its evils exist only in its abuses.  If it would confine itself to equal protection, and, as Heaven does its rains, shower its favors alike on the high and the low, the rich and the poor, it would be an unqualified blessing."

Andrew Jackson, Veto of the Second Bank of the United States


"Gentlemen! I too have been a close observer of the doings of the Bank of the United States. I have had men watching you for a long time, and am convinced that you have used the funds of the bank to speculate in the breadstuffs of the country.

When you won, you divided the profits amongst you, and when you lost, you charged it to the bank. You tell me that if I take the deposits from the bank and annul its charter I shall ruin ten thousand families. That may be true, gentlemen, but that is your sin!

Should I let you go on, you will ruin fifty thousand families, and that would be my sin! You are a den of vipers and thieves. I have determined to rout you out, and by the Eternal, (bringing his fist down on the table) I will rout you out."

From the original minutes of the Philadelphia bankers sent to meet with President Jackson February 1834, from Andrew Jackson and the Bank of the United States (1928) by Stan V. Henkels
Stocks were off a bit again today, although it was very quiet, orderly selling.

The dollar was higher, which put gold off a bit. Silver was indifferent to it all.

The big tickle tihs week, unless something exogenous occurs, geopolitically or tweet-wise, will be the Fed Chairman Powell and his Humphrey-Hawkins testimony, first to the Senate and then to the House.

I have included the economic calendar for this week below.

Why is the Fed's opinion on things so paramount? Because due to the lack of real economic growth and recovery, the primary factor in determining market valuations at these levels is the amount of hot money that the Fed is willing to provide into the gambling purses of the Banks.

Have a pleasant evening.

Physical Gold and Silver in Trusts and Funds - Shanghai Gold Exchange Deliveries

Long Term Gold Daily Chart

To understand where you are going, it is useful to know where you have been.

What I am showing here is the very long consolidation and trading channel from which gold has broken out.

Stocks and Precious Metals Charts - Non-Farm Payrolls, Again - The Mythical Recovery

"There is no clean way to make a hundred million bucks. Somewhere along the line guys got pushed to the wall, nice little businesses got the ground cut out from under them. Decent people lost their jobs. Big money is big power, and big power gets used wrong. It's the system."

Raymond Chandler, The Long Goodbye


"I’ve seen it for years. I’ve seen a media, which has basically ignored the declining middle class, that doesn’t talk about poverty at all, and has no sense of what is going on in the minds of millions of ordinary Americans.  They live in a bubble, talk about their world, worry about who’s going to be running 18 years from now for office.  Meanwhile, people can’t feed their kids."

Bernie Sanders


"There is no trap so deadly as the trap you set for yourself.”

Raymond Chandler, The Long Goodbye

Most of the adults are on a long holiday weekend, so the trading was light, and fairly predictable.

And the weather here is just steamy!

Gold and silver and stocks were all smacked down hard by a stronger than anticipated Non-Farm Payrolls Report.

All recovered somewhat into the close.

All in all it proved to be a decent opportunity to replensih the short term gold positions that I sold into that last try at 1440. Not all. Now is not the time to have no longs in gold. Or too many longs in equities.

The charts seem somewhat straightforward.

I am concerned a bit about the future, and the failure to achieve a sustain recovery and meaningful reform.

The elite continue to pursue their unjust privileges, and deny their felonies and insults to justice and office with a comfortable pride and smug, habitual deception.

Although this is nothing new, we have not seen the magnitude of this sort of reckless greed in over a hundred years.

"The US labor force has actually contracted by more than 600,000 workers this year via Bloomberg opinion. Household Survey jobs down this year by almost 200,000, while twice as many who were earlier unemployed have given up looking for jobs. Every time the Fed has embarked upon a rate cutting campaign on average you get about 23 and a half basis points of cuts per month…which suggests the markets pricing in 3 to 4 rate cuts in the next 12 mos might not be aggressive enough.  Another piece of the puzzle...multiple job holders...why doesn’t MSM at the very least try to give people a real sense of where this economy is...these jobs numbers are so misleading."

Danielle DiMartino Booth

I am watching The Big Sleep, the later version with Robert Mitchum and Joan Collins. I am going to watch the classic with Bogart and Bacall later on this evening.

Need little, want less, love more.

Have a pleasant weekend.