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"Of all forms of tyranny the least attractive and the most vulgar is the tyranny of mere wealth, the tyranny of plutocracy."
J. Pierpont Morgan
As you may recall I warned several times over the past two months that this option expiration would get 'hit' because December is a big delivery month.
And so it has.
I am going to reset the upward curve on the gold daily chart to wherever this takedown ends up, after the shenanigans are over.
As you can see on the more detailed gold futures chart, the last low in October was reached a day or two before the option expiration. I am not so sure it will play out that way this time because of the delivery issues and the holiday shortened week. But let's see how the charade progresses.
It says a lot about a society where customers can be openly robbed, and markets can be blatantly rigged, and even more about the people who defend it and hold it up as an ideal for the rest of the world.
This is what the average American mind cannot yet grasp, but those outside the system see it clearly. And it is puzzling to them. How can a reasonably educated and well off people act as such willing fools for those who take such shameless advantage of them?
Well after all, it is a currency war.
“The boom, not the slump, is the right time for austerity at the Treasury.”
John Maynard Keynes, 1937
Light volumes and the markets were in the profit-taking mood on the back of JPM's slam on metals.
Anyone who was surprised in the least by the Super-Committee's inability to reach a deal should not be allowed to roam about without a chaperone, as they might hurt themselves.
The whole point of the Super-Committee was to fail. It's failure is a useful tool for the politicos in the Beltway. It allows them to put military spending cuts on the table and point fingers at each other until next November.
The San Francisco Fed has provided us an online game that is presumably meant to be instructional as well as 'fun.'
After a few tries to test out its assumptions, I have been able to 'win it' pretty regularly, winning being defined as appointed to another term. It is very one dimensional so it gets old rather quickly.
One is hit with various oil and currency and fiscal shocks and surprises, and must adjust to them as you go along in a particular episode.
I imagine the point of this is to educate people to the lags in policy effects, and the dangers of over-reacting to secular events and causing problems for yourself downstream.
At this point I am having some fun examining their assumptions, which are built into the game's algorithms, for what they can tell me about their own thoughts in designing the game. I like to play strategy games on my laptop while the children inflict the latest tweenie programs on me before packing them off to bed.
I was disappointed because there is no option to exercise your role as bank examiner, no metrics for the dollar and trade, and of course, you have no ability to fire Timmy.
Enjoy.
Play The Fed Chairman Game
