02 April 2013

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds


"Oh what a tangled web we weave,
When first we practise to deceive."

Sir Walter Scott, Marmion

Thin premiums on another 'record day' for stocks.

I bought volatility when the SP 500 June Futures tagged 1568 intraday.  As you know volatility is just another name for uncertainty.

That is close enough to my intermediate target of 1570 to have a go at it. We may get back up there for a couple more tests.

I think the hit on the metals today was rather heavy-handed and obvious. The Gold/Silver ratio is approaching an extreme.

Remember that Non-Farm Payrolls is on Friday.  I was therefore expecting a hit on the metals, and here it is.  It may not be over. 

The COT seems to indicate that this is in the hands of the hedge funds and momentum funds in addition to the usual suspects.  They tend to move quickly when there is a turn.

As you may recall I tend to take a long view of the precious metals bull market as the progress of the ongoing currency war which will result in the establishment of a new global currency regime to replace what we have called 'Bretton Woods II' based on the fiat US dollar.

I believe gold will play a role in this, and probably silver as well, if not in a formal way, then as a modifier or a 'hedge.'

Respect your timeframes and your ability to endure risk, because there will be risk aplenty no matter what you may do.
It is probably better to leave leverage to the professionals.



Administrative Note: Matières à Réflexion Is Back


The Matières à Réflexion list of news links is back on the left hand side of the blog.

Thank you for bearing with this while Google was repairing things.

As a reminder, I don't necessarily put up things with which I agree, but things rather which I think are interesting. If two people in an organization always agree on everything, one of them is probably unnecessary.

I have a very low tolerance for racial and religious prejudice, and blatant propaganda, so please be advised if you write in.  

And I always appreciate your opinions, thoughts, and correction for my occasional errors.  I am certainly far from perfect;  my wife is an authority on this.  I think she keeps a list.

Links for Tuesday, 2 April


"I intend to do what little one man can do to awaken the public conscience, and in the meantime I am not frightened by your menaces. I am not a giant physically; I shrink from pain and filth and vermin and foul air, like any other man of refinement; also, I freely admit, when I see a line of a hundred policeman with drawn revolvers flung across a street to keep anyone from coming onto private property to hear my feeble voice, I am somewhat disturbed in my nerves.

But I have a conscience and a religious faith, and I know that our liberties were not won without suffering, and may be lost again through our cowardice. I intend to do my duty to my country."

Upton Sinclair, Letter to the Los Angeles Chief of Police, 17 May 1923

You may check back on occasion as I sometimes add things during the day. I will put those additions at the top of the list.

I am pleased to report that the "Links List" function in Google's Blogger is now repaired.  I will return to using that format tomorrow.

Links for Today
Danger In Bank Accounts - Macleod

Walmart Customers Complain of Empty Shelves

Unemployment In Eurozone Reaches Record High

The Great Disconnect Between Paper and Physical Silver

Cyprus May Be Model For Future Bailouts - Der Spiegel

Cypriot Banks Write Off Loans to Politicians

Minimum Wage Should Be Substantially Raised, Not Cut in UK

Cypriots Feel Betrayed By European Union

Top Court In India Denies Novartis Patent

Global Drug Companies Will Try to Punish India - Baker

Why Was Paul Krugman So Wrong? - Nation

Shut Up Savers! - Surowiecki (disgraceful arrogance)

Bank of England Given Power to Regulate the City

01 April 2013

Chris Hedges On the Power of the Modern Media and Fox News


“He who dictates and formulates the words and phrases we use, he who is master of the press and radio, is master of the mind. Repeat mechanically your assumptions and suggestions, diminish the opportunity for communicating dissent and opposition. This is the formula for political conditioning of the masses.

The big lie and monotonously repeated nonsense have more emotional appeal in a cold war than logic and reason.

The continual intrusion into our minds of the hammering noises of arguments and propaganda can lead to two kinds of reactions. It may lead to apathy and indifference, the I-dont-care reaction, or to a more intensified desire to study and to understand. Unfortunately, the first reaction is the more popular one...Confusing a targeted audience is one of the necessary ingredients for effective mind control.

The eternal demagogue will arise anew. He will accuse others of conspiracy in order to prove his own importance. He will try to intimidate those who are neither so iron-fisted nor so hotheaded as he, and temporarily he will drag some people into the web of his delusions. Perhaps he will even wear a mantle of martyrdom to arouse the tears of the weak-hearted. With his emotionalism and suspicion, he will shatter the trust of citizens in one another."

Joost Meerloo M.D., The Rape of the Mind

Hedges specifically discusses Fox News, and deservedly so,  because it has set the tone for the modern news programs. There were never more ironic words than their slogan, 'fair and balanced.'  But he could have included a few other corporate copycat channels as well, including the financial channels which have become little more than infomercials for Wall Street and the one percent.

Most 'news shows' in the states have become extended op-ed's where paid professional hucksters and 'strategists' spout slogans and sound bytes at one another, with a fairly cavalier attitude towards an intelligent exposition of the facts. 

Emotions are more powerful than facts in the modern mass media. Frighten the people, anger them, give them an object for their fear and anger, and in their rage you can move them in whatever direction you wish.

And you can look to the repeal of the Fairness Doctrine, the weakening of the FCC, the proliferation of cable channels with hours of programming to fill, and the concentration of the media in the hands of a few corporations, or perhaps more correctly global conglomerates, for the cause of this terrible decline in what is lightly these days called journalism. And in the destruction of a literate news media, thereby lies the deterioration in public and political discourse.

This is not about right versus left.  It is about politicians, financiers, and intellectuals of a predator class who think they can strike a Faustian bargain, and unleash the will to power, and control it for their own ends.

But the madness serves none but itself.