"The problem with movies and books is they make evil look glamorous, exciting, when it's no such thing. It's boring and it's depressing and it's stupid. Criminals are all after cheap thrills and easy money, and when they get them, all they want is more of the same, over and over. They're shallow, empty, boring people who couldn't give you five minutes of interesting conversation. Maybe some can be monkey-clever, some of the time, but they aren't hardly ever smart."
Dean Koontz
“He did not care for the lying at first. He hated it. Then later he had come to like it. It was part of being an insider, but it was a very corrupting business.”
Ernest Hemingway, For Whom the Bell Tolls
"And the shark has pretty teeth,
there they are for all to see;
and Macheath has a sharp knife,
but no one knows where it may be."
Berthold Brecht, Die Moritat von Mackie Messer
Were you surprised at what happened today, the big drop on the seemingly inconsequential 'news' that the ECB may not continue to expand stimulus, and that the Fed may be inclined to raise rates, even the slightest bit?
Even as Wall Street was dipping its flags in the blood of the victims of 9/11.
You ought not to have been, if you have been following the commentary here.
The Banks must be restrained, and the financial system reformed, with balance restored to the economy, before there can be any sustainable recovery.
“They shall never get the upper hand!” said Alfred.
“That’s right,” said St. Clare; “put on the steam, fasten down the escape-valve, and sit on it, and see where you’ll land.”
“Well,” said Alfred, “we will see. I’m not afraid to sit on the escape-valve, as long as the boilers are strong, and the machinery works well.”
Harriet Beecher Stowe, Uncle Tom's Cabin
The dollar took back a little from its drop yesterday, and gold and silver commensurately gave up a little of their gains.
What is most striking is the manner in which gold and silver are trading as currency crosses. While this makes sense within a certain market context of short term valuations, it tends to overlook, if not completely ignore, the commodity feature of the metals.
This is what makes them unique among currencies. They are self-sufficient. They have no counterparty risks or true masters, as they are not created, only discovered and exchanged.
It is a modern monetary phenomenon to believe that when it comes to monetary valuations, anything goes.
And for it time it does. Until it does not.
And then the dislocation caused by the reckoning of the balance sheets of theoretical values with hard realities may be quite impressive.
Stocks were struggling to make a silk purse out of the sow's ear of an economy today.
The pivotal point was the ability to turn APPL around, despite their so-so announcement of the iPhone today which was largely technical improvements, some of which matter, but which may not compel anyone to upgrade.
And so we saw the Nasdaq pushing to another new high, as the broader market in the SP 500 does not really confirm the move.
Tomorrow we will see what the ECB has up their sleeves rates-wise.
Gold and silver came roaring out of the long weekend as the US ISM Services number came in far under expectations, taking some of the wind out of the sails of the economic elite.
The pundits have been pushing the meme that US manufacturing, which is horribly weak, is an 'old economy' thing, and that the US ISM Services number would shine like the bright new era of economic growth that it is (not apparently).
So the markets thought it over, and decided that this additional bad news puts the Fed off of a September rate increase, and that they will continue to dilly dally around, jawboning all the passing strangers with tales of their hawishness.
As you might expect, the US dollar took a serious dive, which is somewhat justified by the ridiculous rally it had just the week before. The wash and rinse cycle is a forex wiseguy's favorite.
So let's see if the Fed can come in, without a shred of remaining credibility, and convince the world that indeed they are raising rates to cool off the overheating US economy that has surely reached and surpassed full employment.
In the meanwhile, silver seems to be quite lively this month, as noted in the box scores below. Gold not so much for now, at least since the bullish call options have been thoroughly taken out and shot for their expiration.
Don't count the Fed out of this. The notion that they are implacably kindly philosopher kings who make serene judgements based only on the data is sheer nonsense, a nice cover story for the rule of the financial class.
If that independent and data driven objectivity were the real case, then the solons of the Fed must be having Jimson weed salads for lunch, because to all appearances they have been like a wrecking ball on the real economy for the past ten years at least, while they keep raising their hands for more latitude and more regulatory power. And of course the political cravens in DC keep giving it to them.
They are well represented by the two presumptive presidential frontrunners, who seem to have little or no shame, and an ethical grounding as firmly rooted in morality as a reality show contestant.
But they have succeeded in clearing the way for a royal pillaging of the republic by their masters, the Banks, who keep growing fat on malinvestments, subsidies, and bailouts.
US stocks managed to close higher today, led by the tech-heavy NDX which is rallying in anticipation of a new product introduction from Apple tomorrow.
I think the Nas even managed to close at a new all time high today. Well done, Fed.
So here is the stock market, all dressed up, but with no place to go. The real economy cannot afford a date.
The Jobs Report came in light in key areas of wages and hours worked, in addition to the net number of jobs added.
And so the market rallied, on expectations that the Fed will stay its hand in September.
There is a bit of mixed sentiment, with the defenders of the statist quo like Goldman Sachs, the NY Times, and the Washington Post suggesting that this was a goldilocks report that opens the door to a Fed interest rate increase.
However, the rest of the market which is saying that there is no sustainable recovery, and therefore the data does not warrant it.
And so gold and silver rallied a bit on the back of a weaker dollar. The US needs a stronger dollar like they need another Clinton in the White House. Although Trump is certainly no better, just differently bad.
The States will be on holiday on Monday, celebrating those who labor. Ironic, because the policy of the ruling class pretty much hold those sorts in contempt.
Try to carry on without the imperial guidance.
A hurricane will be blowing its way up the East Coast this weekend. It is that time of year again.
Let us pray for those whose hearts are hardened against His grace and loving kindness by greed, fear, and pride, and the seductive illusion and crushing isolation of evil.
We pray that we all may experience the three great gifts of our Lord's suffering and triumph: repentance, forgiveness, and thankfulness. And in so doing, may we obtain abundant life, and with it the peace that surpasses all understanding.
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