The Problem of Corruption in the Professions and the Pressure to Remain Silent

"This is the Golden Age of fraud, an era of general willingness to ignore and justify the wrongdoings of the rich and powerful, which makes every lie bigger and widens its destructive path.”

Reed Albergotti

There is tremendous pressure on professionals to remain quiet about corruption, sometimes obvious and pervasive, in their own professions.

This video discusses a shocking level of systemic corruption in Canada.

US Debt and the Restraint of a Gold Standard

Although FDR ended the use of gold in domestic circulation as currency in 1933, the US dollar remained on the gold standard until 1971.   The international currency system was formalized by the Bretton Woods Conference in 1944.

When Nixon arbitrarily shut the 'gold window' in 1971 the world entered a reserve currency system of fiat dollars, restrained somewhat by the debt markets and floating exchange rates, often called Bretton Woods II.

The existing monetary system is still under development, even though we assume it is well established and settled because of the Pax Americana.

As these things go, its relatively short reign from 1971 does not guarantee its continuing longevity. The inherent instability introduced by having one nation essentially own the reserve currency, and subordinate to its own domestic policy requirements, has not been sufficiently resolved. Certainly not to the satisfaction to the rest of the world, even if it is a jealously guarded privilege.

Related:   The Continuing Endgame For Bretton Woods II and the Role of Gold
                 An Essay Considering the Current Monetary Order and Gold
                 Europe Finally Has an Excuse to Challenge the Dollar

Draining Physical Gold From Funds and Trusts To Supply the Markets of Asia - An Extreme In Speculation

Numbered — God has numbered your reign, and will end it.
Weighed — you are weighed on the scales, and found wanting.
Divided — your power will be divided up and given to others.

Daniel 5:25-28


“QE [quantitative easing] puts beer goggles on investors by creating a line of sight where everything looks good."

Peter Boockvar

It is interesting, but little noted, that during similar price declines, physical gold is removed from the funds and trusts, while silver remains almost untouched.

That is because the 'gold float' of physical gold available to supply the steadily aggressive demand is critically low, whereas silver, while also beaten down by speculators, sees no decline, because there is an adequate supply of physical silver, for now.

Compared to the physical delivery market of Shanghai, the NY Comex looks like a game of Liar's Poker, an exercise in pure speculation, almost like a bucket shop.

The number of 'claims per ounce' in gold has risen once again to 315 claims per ounce offered at these prices.

In the way that the Fed implements it, Quantitative Easing is like beer goggles for financial paper.

A purposely misaligned, an arbitrary valuation and mispricing of risk in any asset class, commodity or currency, can be sustained only by force and fraud. As the fraud becomes weaker and less effective, the force must increase.  Eventually the scheme breaks down, and a more market-based equilibrium will reassert its presence. That is monetary or value theory based on history. 

Gold is moving from West to East, and is unlikely to return anytime soon, and at anything near to these prices.

Our markets will have been weighed, and found wanting.

Stocks and Precious Metals Charts - Mean, Nasty, and Entitled - Our Low and Hypocritical Elite

Mammon, God of Markets

"Wherever your treasure is, there the love of your heart will also be.  Your eye is like a lamp that provides light for your body.  When your eye is healthy, your whole body is filled with light.  But when your eye is sickened, your whole body is filled with darkness. And if the light you think you have is actually darkness, how deep that darkness will be.

No one can serve two masters.  For you will hate one and love the other; you will be devoted to one and despise the other.  You cannot serve both God and Mammon."

Matt 6:21-24


"Beware the leaven of the Pharisees, which is a pious, hollow hypocrisy."

Luke 12:1

How lucky we are to have such important and accomplished luminaries to guide us, as demonstrated by these these elite creatures from all the finest institutions.

Today was the end of the third quarter, and the paint was drying on the tape.

I think US equities are approaching another short term blow off top.

And the vulnerability of the markets to a trigger event is likely to be heightened for the next month or so at least, until some of this reckless disregard for risks becomes resolved.

Gold and silver especially had nice rallies today. I was pleased because I took new position in silver yesterday along with some gold. I don't take trading positions in silver all that often, but it seems to have been beaten down substantially enough to demand some attention.

The smackdown in silver and gold yesterday was so obvious and heavy-handed as to remarkable.

I cannot say if they have put in a durable bottom or not. And I am not sure how they might react in the case of a major market dislocation in equities. But the antics of Wall Street are so clumsy and brazen now that only the ruling elite and its regulators could miss it— along with the other courtiers and poobahs in the employ of the moneyed interests.

Puzzling evidence— 

Next week we will see a Non-Farm Payrolls report for September.

Need little, want less, and love more. For those who abide in love abide in God, and God in them.

Have a pleasant weekend.

Stocks and Precious Metals Charts - Living the Dream - Life Imitates High School

"You who make wicked judgements,  who write oppressive laws, to deprive the needy of justice, and to rob the poor of their rights, that widows may be your victims, and that you may make the orphans your prey— what will you do on the day of reckoning, when the consequences come from afar? To whom will you run for protection, and where will you hide your wealth?"

Isaiah 10:1-3

Gold and silver were lower today as the Dollar regained some strength within its recent trading range.

It may be cynical, but I also expected gold futures to take a gut check after the recent expiration. And there it is.

Stocks were marginally higher on a renewed appetite for risk, although they gave up much of their gains into the close.

I did not have the opportunity to watch the confirmation hearings on television today, which seemed to occupy most channels.

Life, indeed, imitates high school.  Especially among a pampered, ruling elite.

We will be seeing a Non-Farm Payrolls report for September next Friday, as well as the ISM Manufacturing and Service numbers.

Have a pleasant evening.