Gold Daily and Silver Weekly Charts - Somebody to Love

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"He who makes a beast of himself gets rid of the pain of being a man."

Samuel Johnson

 

The metals were held in place today, consolidating their recent gains at the top of the support and resistance channel.

 

I am sure that some day this protracted market manipulation and price rigging will collapse. 

 

And I am also sure that some day we will be offered an elaborate story of how the Western central bankers used our gold to hold the line on its price for the sake of the system.

 

After all, this is their mandate, to insure the integrity of the currency by hiding the effects of their malfeasance, while shamelessly printing bushel loads of hot money and handing it to their Banking friends so they can use it to game the system.

 

If this goes badly, I would have no doubt that some unwitting 'public servants' are going to get thrown to the wolves and under the bus.  Michael Hayden is getting slathered up with barbeque sauce, and no doubt will be offered as red meat, the torturer-in-chief, if it comes to it.  Finger lickin' good. 

 

The higher ups don't know anything about anything about nothing.  They barely know what day it is, or what their favorite magazines and newspapers might be.  Well, in a few cases we could believe it.

 

Like CEOs, and thoroughly modern managers,  they are paid astronomical sums of money, and hold tremendous power.  But when something goes wrong, they audaciously claim to have been walking around in an uninvolved, Alzheimer's like fog, oblivious to the workings of their own organizations, and unaware of their own decisions and directives. 

 

And if they know the right people, and the locations of enough of the bodies, they can make that story stick.

 

Being a card carrying member of the privileged class means never having to say I'm sorry, much less 'not guilty.'  Power is doing what you want when you want, and consequences are for everyone else.

 

Or perhaps these titans of modern industry and the halls of moneyed power are at heart just good natured bumblers.  In a misguided but since belief destroy lives and crash economies, while pursuing insane ideological theories put forward by the vested interests, all the while stuffing their pockets,  and crushing dissent with the political skills of a Machiavelli and the ruthlessness of Al Capone.

 

The banality of banking.

 

They are just hapless and good natured bumblers.  And they love dogs and children.  Remember when Uncle Al accidentally dropped the Thanksgiving turkey?  Ho ho was that funny.  Bad on him. 

 

Let's see if gold can break out here without too many other gyrations or retests.

 

FOMC meeting next week.  Russian Central Bank meets on Thursday.

 

Have a pleasant evening.

 

 

 

SP 500 and NDX Futures Daily Charts - A Cold Shot Baby

There was quite a bit of talk today about the Sony hack attack, and gossipy emails about from a  director calling Angelina Jolie a 'spoiled brat.'   This was a major preoccupation today on Bloomberg TV. 

You couldn't trade baseball cards off the information that they provide.   Carla Hall on The Chew offers more balanced economic commentary.

Maybe if the same Hollywood artiste had written snarky emails about the homeless and the hungry, the ongoing collapse of the middle class, or the pervasive culture of fraud in high places, we might have heard about that.  Probably not.

Hey did you hear the one about the Wall Street Banker calling Malala a spoiled brat?   Malala.  Is she on Survivor?  Who does her clothes?

Well, at least they did not have to spend any time talking about serial perjury and gratuitous torture for its own sake.  Or the general chaos into which the Anglo-American empire is falling.  Or the serial policy failures of a Federal Reserve fully captured by the moneyed interests.

Cultural vacuity, bad paper, and financial fraud are our major exports.

 

To paraphrase that other black hole of banality Richard Nixon, We are all Kardashians now.

Stocks took a cold shot today, with a half hearted attempt to rally giving way to end of day selling.

If one looks at the retracement levels, this is just a minor correction back to support so far.

Let's see if we get a bounce that sticks here. I took the profits on my index shorts, and will have to think hard about getting back in on that.  Downsides are dodgy in the land of easy money and insatiable elitists.

Have a pleasant evening.

 

 

 

Rigging Justice: More Tales of the New Oligarchy and the Supreme Court

"The sad truth is that most evil is done by people who never make up their minds to be good or evil."

Hannah Arendt

"Those who have crossed

With direct eyes, to death's other Kingdom

Remember us - if at all - not as lost

Violent souls, but only

As the hollow men
The stuffed men."

T. S. Eliot

The power of Big Money is often ostentatious, heavy with sanctimonious ceremony and media envy, but sometimes it is even more powerfully subtle.

The Supreme Court has a limited docket, and apparently a penchant for choosing certain lawyers of repute to bring cases before them.

 So Big Money hires those lawyers.

The people tend to vote for the less repugnant of the choices that the two political parties in their elections.

So Big Money gets ahead of the curve and pre-selects the candidates from the two major parties.

How can you fail to win the debate when you frame the questions, pick the debaters, and control how it is reported and scored?

 

Where are the great minds, the outstanding leaders, the moral beacons?   Has greed overwhelmed all virtue, leaving only shallow passions and self-deceptions?  Have we become an audience of cynical voyeurs in a digital Colosseum?

 

We are becoming a nation of waiters, bankers, and corporate-sponsored intellectual bordellos.  We can commit despicable, even heinous acts, and think we can rationalize and lie our way out of almost anything.  Winning!

Death by cynicism and expediency in the latter days of Empire.

 

And justice, for some.

"The Reuters examination of the Supreme Court's docket, the most comprehensive ever, suggests that the justices essentially have added a new criterion to whether the court takes an appeal - one that goes beyond the merits of a case and extends to the merits of the lawyer who is bringing it. The results: a decided advantage for corporate America, and a growing insularity at the court.

Some legal experts contend that the reliance on a small cluster of specialists, most working on behalf of businesses, has turned the Supreme Court into an echo chamber - a place where an elite group of jurists embraces an elite group of lawyers who reinforce narrow views of how the law should be construed...

The court generally has a conservative, pro-business majority, but even one of its most liberal justices, Ruth Bader Ginsburg, accepts the corporate tilt of the specialist bar that dominates the docket."Business can pay for the best counsel money can buy. The average citizen cannot," Ginsburg said. "That's just a reality."

Read the entire story at Esquire here.

Weaponizing Social Science: Pentagon Plans To Shape and Control Mass Civil Breakdowns

 

To protect and promote our vital corporate interests with advanced social techniques, a compliant press, and boatloads of dark money, at home and abroad.

 

Managing perceptions. 

O brave new world, that has such creatures in it.

We had a dream.  And now its becoming a nightmare.

We come in peace.

 

"A US Department of Defense (DoD) research programme is funding universities to model the dynamics, risks and tipping points for large-scale civil unrest across the world, under the supervision of various US military agencies...

Social science is being militarised to develop 'operational tools' to target peaceful activists and protest movements....

Minerva-funded social scientists tied to Pentagon counterinsurgency operations are involved in the "study of emotions in stoking or quelling ideologically driven movements," he said, including how "to counteract grassroots movements."



Prof David Price, a cultural anthropologist at St Martin's University in Washington DC and author of Weaponizing Anthropology: Social Science in Service of the Militarized State, "when you looked at the individual bits of many of these projects they sort of looked like normal social science, textual analysis, historical research, and so on, but when you added these bits up they all shared themes of legibility with all the distortions of over-simplification. Minerva is farming out the piece-work of empire in ways that can allow individuals to disassociate their individual contributions from the larger project."

Minerva is a prime example of the deeply narrow-minded and self-defeating nature of military ideology. Worse still, the unwillingness of DoD officials to answer the most basic questions is symptomatic of a simple fact – in their unswerving mission to defend an increasingly unpopular global system serving the interests of a tiny minority, security agencies have no qualms about painting the rest of us as potential terrorists."

Read the entire story in The Guardian here.

Gold Daily and Silver Weekly Charts - On the Cusp - With All Respect To Willem Buiter

"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake.  Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K."

Sir Eddie George, Governor Bank of England to Nicholas J. Morrell, chief executive of Lonmin Plc.

George Osborne, Staring at the Abyss Once Again

Gold ran up to almost the exact resistance of the bear flag. No coincidence there.

Silver also took back the 17 handle.

Follow through is everything.

Looking at the Comex delivery reports, there are a large number of gold contracts being stopped, not so much silver.

But in the warehouses, gold is relatively quiet, while silver bullion continues to see movements in size.

 

US Silver coin sales are setting a record this year.  Imagine that. 

 

With all due respect to Willem Buiter, the Citibank economist who spotted the 6,000 year bubble in precious metals, gold and silver will more likely be considered de facto money when today's paper dollars, and the lords of the central banks who created them, are nothing more than dirt under a toddler's fingernails.

I think the gold market in the US is a paper fake.  There is almost no doubt in my mind now.  It is no more tied to fundamentals than Liar's poker is tied to the US currency levels.

During the day I mentioned to Bill Murphy that the physical markets will some day deliver a size twelve shoe, with likely some impressive velocity, into the posterior of the US financialized markets.

And at that point, the smarmy hands of Wall Street will once again come slithering towards our pockets, perhaps wearing the cuff links of the Federal Reserve, and be expecting a bailout to 'save the system.'

God have mercy, if we allow that to happen again.

Have a pleasant evening.

 

 

 h

 

 

 

SP 500 and NDX Futures Daily Charts - Santa Claus Is Coming To Town

"This is the contempt in which they hold the majority of American people and the political process: the common people are easily led fools, and everyone else who is smart enough to know better has their price.

And they would beggar every middle class voter in the US before they will voluntarily give up one dime of their ill gotten gains."

Simon Johnson, The Quiet Coup, May 2009

World markets were selling off overnight, and so were US markets early this morning.  The Greek stock market lost almost 13 percent in one day.

 

Encouraging words about printing euros from the ECB helped to turn the markets around, with a buying campaign in the SP futures and some opportunistic dip buying in techs saving the day.

 

The pigmen are rubbing their hands and licking their chops, looking for a 'Santa Claus rally' to fill their bellies into the quiet trading of year end.   That is a stock market rally that occurs in the very quiet holiday trading at year end and the first week in the new year.

 

Have a pleasant evening.

 

 

Reprise: The Quiet Coup d'Etat in the Anglo-American Financial System

 

“The fine thing about pacts with the devil is that when you sign them you are well aware of their conditions.   Otherwise, why would you be recompensed with hell?”

Umberto Eco, The Name of the Rose

 

This is a reprise of an interview with MIT economist Simon Johnson which I first wrote about in February, 2009.

 

I think I ought to republish this as a reminder every few years, until reform has been achieved, or until the Internet as we know it goes dark.

 

Have we heeded Simon Johnson's warning? Has he proven to be prescient? Is crony capitalism and the kleptocracy becoming bolder, more aggressive, ever more demanding?

"I think I'm signaling something a little bit shocking to Americans, and to myself, actually. Which is the situation we find ourselves in at this moment, this week, is very strongly reminiscent of the situations we've seen many times in other places.

But they're places we don't like to think of ourselves as being similar to. They're emerging markets. It's Russia or Indonesia or a Thailand type situation, or Korea. That's not comfortable. America is different. America is special. America is rich. And, yet, we've somehow find ourselves in the grip of the same sort of crisis and the same sort of oligarchs...

But, exactly what you said, it's a small group with a lot of power. A lot of wealth. They don't necessarily - they're not necessarily always the names, the household names that spring to mind, in this kind of context. But they are the people who could pull the strings. Who have the influence. Who call the shots...

...the signs that I see this week, the body language, the words, the op-eds, the testimony, the way they're treated by certain Congressional committees, it makes me feel very worried.

I have this feeling in my stomach that I felt in other countries, much poorer countries, countries that were headed into really difficult economic situation. When there's a small group of people who got you into a disaster, and who were still powerful. Disaster even made them more powerful. And you know you need to come in and break that power. And you can't. You're stuck....

The powerful people are the insiders. They're the CEOs of these banks. They're the people who run these banks. They're the people who pay themselves the massive bonuses at the end of the last year. Now, those bonuses are not the essence of the problem, but they are a symptom of an arrogance, and a feeling of invincibility, that tells you a lot about the culture of those organizations, and the attitudes of the people who lead them...

But it really shows you the arrogance, and I think these people think that they've won. They think it's over. They think it's won. They think that we're going to pay out ten or 20 percent of GDP to basically make them whole. It's astonishing....

...these people are throughout the system of government. They are very much at the forefront of the Treasury. The Treasury is apparently calling the shots on their economic policies.

This is a decisive moment. Either you break the power or we're stuck for a long time with this arrangement."

Bill Moyer's Journal - Interview with Simon Johnson, February, 2009.

Johnson also wrote a piece in the Atlantic Magazine titled The Quiet Coup. It may be worth re-reading.

"I am not so optimistic that this reform is possible, because there has in fact been a soft coup d'etat in the US, which now exists in a state of crony corporatism that wields enormous influence over the media and within the government.

Let's be clear about this, the oligarchs are flush with victory, and feel that they are firmly in control, able to subvert and direct any popular movement to the support of their own fascist ends and unslakable will to power.

This is the contempt in which they hold the majority of American people and the political process: the common people are easily led fools, and everyone else who is smart enough to know better has their price. And they would beggar every middle class voter in the US before they will voluntarily give up one dime of their ill gotten gains.

But my model says that the oligarchs will continue to press their advantages, being flushed with victory, until they provoke a strong reaction that frightens everyone, like a wake up call, and the tide then turns to genuine reform."

As far as I can tell, we are right on track for a very bad time of it. And you might be surprised at how far a belief in exceptionalism and arrogant superiority can go before it finally ends, or more likely, fails.

“Hubris calls for nemesis, and in one form or another it's going to get it, not as a punishment from outside but as the completion of a pattern already started.”

Mary Midgley