Rabbi David J. Wolpe: Why Faith Matters

David Wolpe is among my favorite commentators on religious matters, particularly in some of the better documentaries one occasionally finds on the history of civilization. He is erudite and articulate, insightful and kind.

Gold Daily and Silver Weekly Charts

Two day FOMC meeting next week with the announcement on Wednesday at 12:30 PM.

Have a pleasant weekend.

SP 500 and NDX Futures Daily Charts - Divergence

There was a significant divergence between the Nasdaq and the SP today. It was driven by the financials and AAPL.

As you know, the Jobs Report was 'better than expected.' The drop in unemployment was due in large part to the shrinkage of those considered to be seeking employment, as reflected in the drop of the Labor Participation Rate.

The BLS has been playing it a little loose with the seasonality factor. The year over year of factor spreads are a bit wide.

Fiscal cliff is scheduled to arrive by Dec. 21 which is the last day for submitting legislation for 2012, unless they decide to make a special arrangement.

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

The Financial Crisis (With Subtitles)

This comes from a group of students at the University of Missouri at Kansas City.

There is something very wrong about hearing R. Lee Ermey speaking French. Even if the words do not match the subtitles. And would he have ever used the word 'rhetorical' in real life?

I wonder if having Darth Vader explain Modern Monetary Theory, and then arrogantly choke off any serious discussion, was intentionally satirical?   

MMT is little more than a de facto debt default through monetary inflation backed by official coercion, pure and simple. It doesn't have to be, of course, but it always turns out that way. Hyperinflation and the Pernicious Myth of Modern Monetary Theory.

There is a third alternative between modern monetary inflation and destructive austerity. Reform the financial system and make the bond holders and investors take the downsides of the risks which they have incurred, in the manner of Iceland. But there is little knowledge of this, because the monied interests are controlling the discussion.

For a related topic see The Debt Prisoner's Dilemma.

Enjoy.

Gold Daily and Silver Weekly Charts

Non-Farm Payrolls report for November is coming out tomorrow. I would not be surprised to see a very light, sub 100k number compliments of Hurricane Sandy.

The FOMC has a two day meeting next week, and will announce its decision on Wednesday 12 December at 12:30 PM. I expect they will do something for the economy now that the elections are past.

Stopping the sterilization of Operation Twist seems likely at the least. That would increase the size of their balance sheet, and is gold positive. This could explain in part the chickenshit bear raids on the metals all week.

Have a pleasant evening.

SP 500 and NDX Futures Daily Charts

AAPL caught at least a dead cat bounce today. We will have to see if it continues and proves to be something else.

Traders are starting to talk optimistically about a Santa Claus rally. They see Senator Jim DeMint leaving the Senate as a sign that the impasse over the budget is thawing. I was surprised to see a standing Senator step down like this to take a private sector position with what is essentially a lobbying organization.

"Gov. Nikki Haley of South Carolina, a Republican, will now be compelled to appoint a successor who would then run to maintain the seat in a special election in 2014, when Republican Senator Lindsey Graham, the senior senator from the state, will also be up for re-election. Aides said that Ms. Haley was surprised by Mr. DeMint’s sudden announcement."

Non-Farm Payrolls Report tomorrow. We may see another light number compliments of Hurricane Sandy.

FOMC meeting next week.