Post FOMC Metals Rig: Right On Schedule

This is what the pampered princes of privilege do when they fail.

 

They try to hide it.  They lash out.   They cheat.

 

They are petty.  But vicious when frightened.

Most of the successes they have obtained throughout their lives have been gained by cheating, using inside information, rigging the game, exercising influence, position, and privilege.

They twist the fabric of society to weave their robes.

 

They make and break the rules to suit themselves and their friends.

 

They make our markets into bucket shops.  Our laws are just pieces of paper.

 

They try to make other people pay for their mistakes.

 

As they have been doing all throughout their lives.

Success.   They deserve it, one banal and disreputable way or another.

For the good of the system.   

 

 

 

Gold Daily and Silver Weekly Charts - A Policy of Plunder and the Sickness Unto Death

"An elite class that is free to operate without limits - whether limits imposed by the rule of law or fear of the responses from those harmed by their behavior - is an elite class that will plunder, degrade, and cheat at will, and act endlessly to fortify its own power."

Glenn Greenwald

"You!  You made us in the house of pain!   You made us... things!

Not men. Not beasts.  Things!"

H. G. Wells, The Island of Dr. Moreau

 

After the bell Moody's cut Greek bonds to CAA2 with the outlook negative.   Greece is facing the gravest threat to its national sovereignty, even worse than the American supported military regimes of the 'Greek colonels,' since 1941.

Who will be next?   Who can stand against the dark power of the world, and wickedness in high places?   C'est la guerre, sans fin.  Ainsi soit-il.

There was intraday commentary about the Fed's policy statement here.

Ex-accounting gimmicks, the US economy contracted in the first quarter.  The BEA fudged this advance estimate a bit, showing one of the lowest positive numbers possible,  but the economy is obviously teetering on recession driven by stagnant wages, policy errors leading to asset bubbles, and weak aggregate demand.   It is not that people are 'saving too much.'  The problem is that too many people have too little income.

They will show a revision of the truth at some point when no one cares as much about it.  The credibility trap forbids Beltway Washington from being honest critics of their policy and political failures to reform.  
 

I found it amusing that a few minutes after the Fed statement financial TV announced that 'gold was dropping,' and continued with that theme throughout the afternoon, without mention of the dropping dollar or stocks.  

Gold declined from 1210 to 1206 to the dollar.

Reports from The Bucket Shop show that 'deliveries,'  which are the exchange of claim checks, and warehouse movements were relatively quiet.

 

The bankers and financiers will have another shot at managing our perceptions of their own incompetence tomorrow.

 

I am keeping an eye on the upcoming elections in the UK.   As you know Europe and the UK are 'bellwethers' of a sort in my thinking.  

The situation in Greece might be more influential than some would allow.

The political and economic situation in the States is 'simmering.'

Uncle Oligarch, wrapped in the flag, is pushing the TPP with an almost desperate zeal.   It is surprising how many politicians and professionals have been 'rented' by corporate money in support of the cause.  

Smells like teen spirit.

 

Things are unfolding as badly as even a most cynical man might expect, alas. 

And so a group of fools, driven by greed, will push their perceived advantages, blind to the consequences, even to the point of plunging into the abyss.

They see strength and power in numbers, for they are many.

 

Have a pleasant evening.

 

 

 

SP 500 and NDX Futures Daily Charts - Frauds R Us

The GDP number came in fairly awful today, and was more likely outright negative, which may be shown in some future revision.

The Fed, not wishing to panic the herd or cause any uncomfortable questions about both their integrity and their competency to be raised, dismissed the slumping economy, attributing it to 'transitory' phenomena.

All as had been expected. 

They are no longer making policy for the real economy.  They are making it for themselves, and the Banks.

There will be no sustainable recovery until there is substantial and meaningful reform.

And the credibility trap of lies and canards that the professionals have woven will keep them from even discussing the problem frankly and honestly.

And so until then, the policy of plunder will continue, economic inequality will widen, and the gap between the facts and the perceptions will widen, even until it is a chasm.

They gather all knowledge, both good and evil, to themselves, and they would be as gods.

Have a pleasant evening.

 

'Transitory Factors' Affect Economy, But the Effete Fed Remains an Intractable Ass

"If the law supposes that," said Mr. Bumble, squeezing his hat emphatically in both hands, "the law is an ass".

Charles Dickens

As suggested, the Fed said what was to be expected— of a collection of elitist asshats, pampered princes, and supercilious elitist boobs caught in the credibility trap of their serial failures.

 

Although the credibility trap prohibits their mentioning it overtly, their statement omits all references to the tightening that they have led everyone to expect.   So although they exude confidence in their remarks, they must have felt that creeping fear going up their spines, of the broken wall, the burning roof and tower that is characteristic of imperial overreach and folly.

 

The immediate response from financial television is that stocks are up while the euro is dropping and 'gold is plunging.'  Yeah about six dollars.  Apparently the prepared reaction was not carried out properly.  Well, there is always an opportunity to rig the market reaction tomorrow.  One must keep up appearances.

 

The Fed has been horribly wrong about nearly everything they have forecast and most of the policy actions they have taken as both a central bank and a regulator for the past twenty years.   The only group that has put forward a more disreputable and counterproductive performance has been the Congress, and the deeply captured professional class.

Press Release

Federal Reserve Press Release

Release Date: April 29, 2015

For immediate release

Information received since the Federal Open Market Committee met in March suggests that economic growth slowed during the winter months, in part reflecting transitory factors. The pace of job gains moderated, and the unemployment rate remained steady. A range of labor market indicators suggests that underutilization of labor resources was little changed. Growth in household spending declined; households' real incomes rose strongly, partly reflecting earlier declines in energy prices (ROFLMAO), and consumer sentiment remains high.

Business fixed investment softened, the recovery in the housing sector remained slow, and exports declined. Inflation continued to run below the Committee's longer-run objective, partly reflecting earlier declines in energy prices and decreasing prices of non-energy imports. Market-based measures of inflation compensation remain low (not including food and healthcare and rent and the basics); survey-based measures of longer-term inflation expectations have remained stable.

Consistent with its statutory mandate, the Committee seeks to foster maximum employment and price stability. Although growth in output and employment slowed during the first quarter, the Committee continues to expect that, with appropriate policy accommodation, economic activity will expand at a moderate pace, (the Fed has not yet delivered the appropriate policy, sticking with a top down, bank-centric approach) with labor market indicators continuing to move toward levels the Committee judges consistent with its dual mandate.

The Committee continues to see the risks to the outlook for economic activity and the labor market as nearly balanced. Inflation is anticipated to remain near its recent low level in the near term, but the Committee expects inflation to rise gradually toward 2 percent over the medium term as the labor market improves further and the transitory effects of declines in energy and import prices dissipate.  (There goes the 'real income growth')  The Committee continues to monitor inflation developments closely.

To support continued progress toward maximum employment and price stability, the Committee today reaffirmed its view that the current 0 to 1/4 percent target range for the federal funds rate remains appropriate. In determining how long to maintain this target range, the Committee will assess progress--both realized and expected--toward its objectives of maximum employment and 2 percent inflation.

This assessment will take into account a wide range of information, including measures of labor market conditions, indicators of inflation pressures and inflation expectations, and readings on financial and international developments. The Committee anticipates that it will be appropriate to raise the target range for the federal funds rate when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term.

The Committee is maintaining its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities in agency mortgage-backed securities and of rolling over maturing Treasury securities at auction. This policy, by keeping the Committee's holdings of longer-term securities at sizable levels, should help maintain accommodative financial conditions.  (Keep doing what is helping to fuel inequality, and has not been working for about six years now)

When the Committee decides to begin to remove policy accommodation, it will take a balanced approach consistent with its longer-run goals of maximum employment and inflation of 2 percent. The Committee currently anticipates that, even after employment and inflation are near mandate-consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the Committee views as normal in the longer run. 

Voting for the FOMC monetary policy action were: Janet L. Yellen, Chair; William C. Dudley, Vice Chairman; Lael Brainard; Charles L. Evans; Stanley Fischer; Jeffrey M. Lacker; Dennis P. Lockhart; Jerome H. Powell; Daniel K. Tarullo; and John C. Williams.

Gold Daily and Silver Weekly Charts - 1Q GDP and FOMC Decision Tomorrow

Oil and the metals spiked this morning on a false report that Iran had seized a US vessel.

Tomorrow and the rest of the week may be the bigger test for the precious metals.

We will get the 1Q advance GDP number in the morning and the FOMC decision in the afternoon.

I do not think that the Fed will do anything in particular except move their jawbones a bit more.

So let's see what happens.

There were a few claimchecks for gold bullion exchanged at the Bucket Shop as noted below, but nothing really happened in the warehouses, which some day may just be left in place as museums, a monument to our exceptionalism and past freedoms.

On the lighter side, Twitter accidentally leaked its results before the close. They were seen by an analyst on their website and tweeted out. The stock was pounded down 18 percent before trading was halted.

Have a pleasant evening.

 

 

SP 500 and NDX Futures Daily Charts - Twittering Past the Graveyard

 

 

The new economy momentum darling, Twitter, accidentally leaked its numbers before the close.

The leak on their website was tweeted out by an analyst and the stock plunged for a time until trading was halted.

They missed on revenue and lowered forecast. When you are holding fat multiples and miss the results can be quite messy.

Buffalo Wild Wings announced that it missed and that stock was spanked after the bell.

Tomorrow will be a huge day for macro data with the GDP Q1 estimate and the FOMC decision.

Have a pleasant evening.