Without Restraint or Remorse: The Severely Emotionally Detached

This is why nice, neat theories of perfectly rational economic behavior fall apart quickly in reality.

This is why regulation is necessary. Because there is a tendency in some people to break the rules, and to bend them over time to serve their disordered minds and appetites.

This is why there must be checks and balances on power. Especially when that power appeals to noble symbols as a cover for their excessive misdeeds and complex secrecy.

We have seen entire sections of corporate organizations bent to the will of persuasive psychopathy. And even when they fail, they will rise up to find a new place to obtain what they need, without shame or remorse, or even a genuine understanding of why they have failed, although they may get better at the execution of their schemes. They will blame everyone else for being unworthy of them.

 

And sometimes an entire culture can take on the character of the psychopath, especially under periods of intense or protracted stress, when they surrender their wills to the powerful wills of a few. And they will project their increasing deformity on to others, even as they descend steadily into the abyss. 

 

They maintain an emotional detachment, a kind of moral high ground in their own minds, by rationalizing the consequences of their increasingly monstrous behavior and excess by pointing out the failings of others.  'I did not make them believe my lies. They believed because they are inferior. They did not stop me, so they deserved it. '

 

If they ever speak frankly about their view of things amongst their confidants, the normal person would be stunned by their distorted world view, often writing off large segments of the population as unworthy and disposable, for the most part because they impede their desires, although they will often ascribe it to some irreparable defect in these others, making them unworthy of life.

 

The high performing psychopath gravitates towards positions of power, saying or doing whatever it takes to get the ability to satisfy their own desires which are insatiable, because they are caught in the hell of being unable to love and feel genuine love in return.   They are a black hole of desires and needs.

 

And psychopaths breed sociopaths, imitators who are able to extinguish their own empathy and remorse through ideology and excess including violence, sex, and drugs.

 

What would you do to protect your children from people like this?   Throughout history people have banded together in order to establish and maintain the rule of law.

 

This is why romantic notions about markets without law and transparent regulation are so harmful.  They turn the power of the markets over to the least scrupulous and self-controlled in a society.  This is why any social system without checks and balances, without transparency and restraints, will eventually deteriorate into a dysfunctional system of self-interest and looting.

 

People are not perfectly rational angels.  It is hard to believe that one must say that to an adult audience, but ideology and conditioning can make people blind.

The Recovery™ - Stagnant Wages, Lowest Labor Participation Rate in 37 Years

"While it has taken a long time, and extraordinary monetary policy actions, the U.S. economy is now close to full employment..."

Stanley Fischer, Vice Chairman Federal Reserve, Monetary Policy In the US and Developing Countries, 30 June 2015

 

While officialdom celebrates the unemployment rate falling to 5.3%, even a cursory look at the numbers today tells the real story for those who would look at them.

Wage growth in the latest month was 0.0%. That is consistent with a long trend of wage stagnation.

Non-Farm payrolls came in light, and the prior month was revised sharply lower from 280,000 to 254,000.  But it made for a good cheery headline last month.

For a more contemporary number, new unemployment claims rose to 281,000 and continuing unemployment claims rose to 2,264,000.

The reason that the unemployment percentage is falling is that as more unemployed workers fall off the roles of unemployment compensation the government stops counting them as ready to work. 

People become discouraged by the bleak prospects of finding gainful employment, and they even fall further into the 'off the books' economy that is a portion of the decay caused by policy errors of fiscal blockheadedness and monetary largesse for the one percent.

And the sign of economic vigor and the breadth of economic recovery, the labor participation rate has fallen to a 37 year low.

And the spokesperson comes down from the big house and assures us that the President is thinking about what to do about this terrible situation every day.  He has certainly been mulling this over for a long time.  And in fairness, most of the Congress could care less about what happens to anyone who does not have a lackey sitting in their waiting room without a sack full of 'campaign donations' and honorariums.  Oh they may talk a good game, but at the end of the day, they are getting paid.

 

We are now in the seventh year of  The Recovery™.

 

I know, let's shove a corporatist trade agreement, trading jobs for corporate profits, down the nation's throat over the people's strong objections, and call it a jobs creator in true Orwellian fashion, while transforming the US into a nation of insecure, underpaid servants.

 

Oh, well done.

Gold Daily and Silver Weekly Charts - Non-Farm Payrolls Tomorrow - Pride, Privilege, Will to Power

 

"He promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind. He scoffs at times gone by; he scoffs at every institution which reveres them. He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods. Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his."

J. H. Newman

Gold and silver were under some heavy handed action today, ahead of the US Non-Farm Payrolls report tomorrow.    It is coming a day early because of the upcoming July 4th weekend.

 

Greece tends to dominate the news with lots of uninformed speculation and interpretation, often driven more by a person's particular bias and ego than the facts.  So it is sometimes difficult to determine what is exactly happening.

 

There will be a referendum on the austerity plan by the public.  Yes the Troika, like a spoiled child, claims that the deal is 'off the table now,' too late, and two for flinching.

 

It could not be more obvious that the reason that the Eurocrats are driving such a hard bargain is that they find the relatively independent government of Greece to be highly unpalatable for their neoliberal tastes. 

 

Let's see what happens.

 

Remember the people of Greece, and of the other troubled nations in your prayers. 

 

And especially remember those who have none to pray for them, and those who think that they need no one and no forgiveness.  They are near a spiritual death, which is worse than the death of the body.

 

I am deeply concerned about the well-being of Pope Francis as he comes to visit the US.  He is loved by many, but deeply hated by some of the darker hearts of the world.  His misfortune, or some other tragic incident would provide a convenient diversion for wickedness in high places. 

 

What would these devotees of riches and worldly power not do to get their way?   They are of those who scatter, accuse, destroy, and lie.   And if you serve them, know whom you serve.

 

Have a pleasant evening.  

 

 

 

 

SP 500 and NDX Futures Daily Charts - Corruptio Optimi Pessima

"If ever you find yourself environed with difficulties and perplexing circumstances, out of which you are at a loss how to extricate yourself, do what is right, and be assured that that will extricate you the best out of the worst situations. Though you cannot see, when you take one step, what will be the next, yet follow truth, justice, and plain dealing, and never fear their leading you out of the labyrinth, in the easiest manner possible.

The knot which you thought a Gordian one, will untie itself before you. Nothing is so mistaken as the supposition, that a person is to extricate himself from a difficulty, by intrigue, by chicanery, by dissimulation, by trimming, by an untruth, by an injustice. This increases the difficulties ten fold; and those who pursue these methods, get themselves so involved at length, that they can turn no way but their infamy becomes more exposed. It is of great importance to set a resolution, not to be shaken, never to tell an untruth.

There is no vice so mean, so pitiful, so contemptible; and he who permits himself to tell a lie once, finds it much easier to do it a second and third time, till at length it becomes habitual; he tells lies without attending to it, and truths without the world's believing him. This falsehood of the tongue leads to that of the heart, and in time depraves all its good dispositions."

Thomas Jefferson, Letter from Paris, August 19, 1785

 

Stocks enjoyed a 'dead cat bounce today' ahead of the Non-Farm Payrolls report tomorrow. 

 

Greek concerns tend to dominate the market action, with the other crises in the Ukraine and Puerto Rico falling into the background.

 

The Fed is investigating the markets to try and understand why there is an absence of liquidity, and what the consequences might be.  That seems like a drunk looking for their car keys.

 

The commentary on the financial networks is getting very heavy handed in some cases, and almost surreal overall.

 

Have a pleasant evening.

 

 

 

 

 

Gold Daily and Silver Weekly Charts - End of Quarter, Hearts of Darkness, Web of Lies

"The Brussels Eurocrats are in the image of Plato’s Philosopher King, only there are too many Kings all believing themselves to be the most capable ruler. For two years I have written that the European leaders feared referenda more than anything, for direct democracy was an affront to the wisdom of the self-anointed elite. The European project was too important to be left to the capricious voters...

The ruling elites, the Davos Gang, are not really financially astute for the Greeks could have kicked the proverbial can down the road for a mere 7.5 billion euros. Today’s market response to the new uncertainty probably wiped 500 billion in value off global equity markets and raised borrowing costs for the less credit-worthy countries of peripheral Europe. Egomania, like a membership in a quality credit card company, has a price to be paid...

It is not economic contagion but political contagion that strikes fear in the heart of Angela Merkel."

Yra Harris, Looking Back on the European Dystopia

"Our main challenge, since the global financial crisis, has been to make rapid (or at least as rapid as possible) progress toward achieving these objectives. While it has taken a long time, and extraordinary monetary policy actions, the U.S. economy is now close to full employment..."

Stanley Fischer, Vice Chairman Federal Reserve, Monetary Policy In the US and Developing Countries, 30 June 2015

And in fairness to the hubris of the Eurocrats, the same thing can be said today about the ruling elite in the US, especially the Federal Reserve.   At some point in the credibility trap, power begins to serve itself without the veil of reason or the pretense of progress towards a 'cure.'  

And as for The Recovery, maybe the ruling elite don't even know anyone who is unemployed, or struggling as one of the working poor.  Why would they fraternize?  Or maybe Stanley Fischer was just pulling our leg, winding us up, in light of the 37% of the people not in the labor force.

 

Now that the political class has put on the feed bag of corruption, they need only pay attention to the rabble during the occasional election contest.  It is not a genuine two way conversation between representatives and the people, but performance art which is carefully stage managed using a mountain of dark money. Otherwise, the people can be generally ignored while in pursuit of personal power and privilege.

 

Gold and silver were held down to the lower bound of their trading ranges for the end of the 2nd quarter. 

 

Almost 4 million ounces of silver were 'claimed' on the Comex.  As can be seen from the warehouse reports however, the physical bullion in the warehouses is mostly pushed around the plate, like unwanted vegetables.  It is becoming an embarrassment, and barely sustainable.

 

Accounts will be balanced. Even the biggest lies, intended to last for a thousand years, unwind. There is a reckoning coming, and a downfall. 

 

Have a pleasant evening.

 

 

 

 

 

 

 

 

 

SP 500 and NDX Futures Daily Charts - The Human Costs of a Corrupt System

According to investigative reports that appeared in Der Spiegel, the New York Times, BBC, and Bloomberg News from 2010 through 2012, Blankfein, now Goldman Sachs CEO, Cohn, now President and COO, and Loudiadis, a Managing Director, all played a role in structuring complex derivative deals with Greece which accomplished two things: they allowed Greece to hide the true extent of its debt and they ended up almost doubling the amount of debt Greece owed under the dubious derivative deals.

Wall Street On Parade, Goldman Sachs Doesn't Have Clean Hands In the Greece Crisis

“Antidemocracy, executive predominance, and elite rule are basic elements of inverted totalitarianism. Antidemocracy does not take the form of overt attacks upon the idea of government by the people. Instead, politically it means encouraging what I have earlier dubbed “civic demobilization,” conditioning an electorate to being aroused for a brief spell, controlling its attention span, and then encouraging distraction or apathy. The intense pace of work and the extended working day, combined with job insecurity, is a formula for political demobilization, for privatizing the citizenry. It works indirectly.

Citizens are encouraged to distrust their government and politicians; to concentrate upon their own interests; to begrudge their taxes; and to exchange active involvement for symbolic gratifications of patriotism, collective self-righteousness, and military prowess. Above all, depoliticization is promoted through society’s being enveloped in an atmosphere of collective fear and of individual powerlessness: fear of terrorists, loss of jobs, the uncertainties of pension plans, soaring health costs, and rising educational expenses.”

Sheldon Wolin

The ECB and the Fed stand ready to bail out any financial institutions affected by a Greek default.

Anyone, that is, except for the general public, commonly known as the 99%.

 

They no longer have a voice, or a choice.

Today was the end of the 2nd quarter. 

 

Fed Vice-Chairman Stanley Fischer celebrated The Recovery™ today at a conference in England for African Central Bankers, saying that the US is 'almost at full employment.'

 

Morals matter.  People matter.  Justice matters.  Truth matters.

Time has a way of balancing accounts.

Have a pleasant evening.