18 June 2018

We Come In Peace


It's the real illegal alien threat!

You know your boys are on the shit when they make General James 'Mad Dog' Mattis look like a bleeding heart dove.

Trump directs DOD to establish a Space Force
We are going to have the Air Force and we’re going to have the Space Force, separate but equal’

President Donald Trump directed the Department of Defense and the Pentagon to establish a Space Force as the sixth branch of the Armed Forces in a meeting with the National Space Council today.



15 June 2018

Stocks and Precious Metals Charts - Winds and Whirlwinds - Quad Witch Option Expiration


“It appeared that the whole world was one elaborate system, opposed to justice and kindness, and set to making cruelty and pain.  And he and his father were part of that system, and must help to maintain it in spite of themselves.

Their frail human nature was subjected to a strain greater than it was made for; the fires of greed had been lighted in their hearts, and fanned to a white heat that melted every principle and every law.”

Upton Sinclair, Oil


“A laissez-faire economic theory is maintained in an industrial era through the ignorant belief that the general welfare is best served by placing the least possible political restraints upon economic activity. 

The history of the past hundred years is a refutation of the theory; but it is still maintained, or is dying a too lingering death."

Reinhold Niebuhr, Moral Man and Immoral Society, 1932

It never really gets old, does it?  Evil that is.  It just keeps coming back, with different names and faces.   But the basic proposition remains surprisingly simple and the same.  You cheat, you win, you cash in, and there are no consequences.

Today was a quadruple stock option expiration in US markets.

Stocks were initially smacked lower, but gradually regained most of their losses into the close.

Gold and silver were utterly hammered by the dumping of large numbers of contracts in their futures markets, with a fairly clear intent to drive the prices lower, breaking out of their recent trading range.

The US dollar did not do much. The Chinese Yuan did gain some in value against the Dollar.

Why did these things happen?

Today was a quadruple stock option expiration in US markets.

Those who were playing leverage on leverage, that is, playing positions using stock options on mining companies or even paper gold pools were most likely feeling a bit put off.

Perhaps a stance supporting little to no regulation in the markets and in life in general might be reconsidered when one sees the abuses to which powerful insiders, aka 'market forces,' may engage. Some might say that history shows that this is the very reason why men and women combine to create a least some semblance of the rule of law, and not the rule of money and power.

Apparently a small group of civic minded citizens named Kushner, Giuliani, and Mnuchin are urging Trumpolini to grant a presidential pardon to the disgraced junk bond king, Michael Milken.

How come?  Is he not completely free now, and living very well, an influential public figure with his own well-attended annual conference?  Excepting that he is prohibited from re-involving himself in public financial markets as a part of his plea deal.  He was rather guilty, as noted in this 1990 NYT article.

What is the purpose of such a pardon now?  I am sincerely curious as to the point.  I thought presidential pardons were intended to be clemency for a worthy cause?   Or a hefty campaign contributions to the cause.   Yeah, that Marc Rich.

Perhaps this blot on the record of one of the well-connected is a reminder of a barbaric past when the law meant something for the professional class.   Bad example and all that.  Especially when they seem to be back at it all over again.    They have a distinct advantage this time—  we've lost our moral moorings in general, and a number of us have pretty much gone nuts.  Barking.
"Most of us are still too sane to piss in our own cistern, but we allow others to do so and we reward them for it. We reward them so well, in fact, that those who piss in our cistern are wealthier than the rest of us. How do we submit?  By not being radical enough.  Or by not being thorough enough, which is the same thing."

Wendell Berry
Maybe we are just too forgetful, so easily bored and distracted.  So tired of thinking that we are begging to be duped and misled.

Today was a quad witch option expiration in US markets.

Are you not entertained?

Need little, want less, love more. For those who abide in love abide in God, and God in them.

Have a pleasant weekend.




14 June 2018

Stocks and Precious Metals Charts - Let Justice Be Done, Though Heavens Fall - Stock Options Expiration Tomorrow


“You levy a straw tax on the poor
and impose a further tax on their grain.
Therefore, though you have built stone mansions,
you will not live in them;
though you have planted lush vineyards,
you will not drink their wine.
For I know how many are your offenses
and how great your sins.

There are those who oppress the innocent and take bribes
and deprive the poor of justice in the courts.

Seek good, not evil,
that you may live.
Then the Lord God Almighty will be with you,
just as you say he is...

But let justice roll on like a river, righteousness like an ever-flowing stream.”

Amos 5:11-15, 24


"The state of slavery is of such a nature that it is incapable of being introduced on any reasons, moral or political, but only by positive law, which preserves its force long after the reasons, occasions, and time itself from whence it was created, is erased from memory.  It is so odious, that nothing can be suffered to support it, but positive law. Whatever inconveniences, therefore, may follow from the decision, I cannot say this case is allowed or approved by the law of England..."   Fiat justitia ruat caelum.

Somerset v. Stewart, Court of King's Bench, 1772

Some markets caught a bid today, compliments of a cleverly dovish Monsieur Draghi of the ECB.

The ECB head has announced the beginning of the end for their quantitative easing program.   But then he very dovishly added that he does not see interest rates increasing until some time after the middle of next year.

Equities were led higher by big cap tech.  Apparently the Street is cheered by the valuations which, although they are high in the mid 20's range, are not as high as they were at the peak of the tech bubble at the latest turn of the century.

Gold and silver were up despite a sharply higher Dollar.   Merci, Monsieur.

The available for delivery supply of physical gold seems to be getting a bit thin again.

There will be a stock options expiration tomorrow.

If only the markets were the real economy.  Then they could make everything just fine.

As it is, despite all the good news and our fearless leaders birthday, I have a really bad feeling about how this is all going to end.

Need little, want less, love more.   For they who abide in love abide in God, and God in them.

Have a pleasant evening.




13 June 2018

Thomas Frank on the Democratic Party, Their Credibility Trap, and the Beleaguered Middle Class


“In its quest for prosperity, the Party of the People declared itself wholeheartedly in favor of a social theory that forthrightly exalted the rich—the all-powerful creative class.

To the liberal class, every big economic problem is really an education problem, a failure by the losers to learn the right skills and get the credentials everyone knows you’ll need in the society of the future.

Professional-class liberals aren't really alarmed by oversized rewards for society's winners; on the contrary, this seems natural to them -- because they are society's winners. The liberalism of professionals just does not extend to matters of inequality; this is the area where soft hearts abruptly turn hard.

Of course Republicans do it too. The culture wars unfold in precisely the same way as the liberal virtue-quest: they are an exciting ersatz politics that seem to be really important but at the conclusion of which voters discover they've got little to show for it all besides more free-trade agreements, more bank deregulation, and a different prison spree.”

Thomas Frank


"What is most important for democracy is not that great fortunes should not exist, but that great fortunes should not remain in the same hands. In that way there are rich men, but they do not form a class."

Alexis de Tocqueville


"People of privilege will always risk their complete destruction rather than surrender any material part of their advantage.  Intellectual myopia, often called stupidity, is no doubt a reason.  But the privileged also feel that their privileges, however egregious they may seem to others, are a solemn, basic, God-given right.  The sensitivity of the poor to injustice is a trivial thing compared with that of the rich."

John Kenneth Galbraith

The examples of the credibility trap are apparent, especially in the Democratic Party because their own contradictions are so glaring.  It is harder to see in the Republicans because their hypocrisy in serving the wealthy faithfully in economic matters while duping the public with inflammatory cultural issues is almost a trademark.

But as Frank relates, the middle class is being badly abused and neglected by both professional political parties.  And this is unfortunate, because it is a strong and stable middle class that provides a large social organization its coherence and durability.

I do not see meaningful reform coming until the status quo in American party politics is repudiated and renewed again with a more democratic focus on people.

The powerful, those who built and have been fabulously rewarded by the current system, will oppose any threat to their exorbitant privilege, which they see as perfectly equitable and justified and fully well-deserved, with all the wiles and power moves that they can deploy, even against their own.

When one has all that a normal person could possibly need and even want, those who continue on playing for blood, who are generally 'afflicted'  in some manner— for those personalities it becomes all about the game, and winning for its own sake, and power.  And there will never be enough people and things to fill their emptiness.

This growing dichotomy, this gulf between appearance and reality, between policy and outcomes, will not only strain the social fabric, but historically is the kind of human dynamic that can light a fire in hearts and minds, despite increasingly desperate attempts to discredit, suppress, and then extinguish it.

And there are too often consequences that no rational person would wish happen.  And yet they do, and with some striking, almost cyclical, regularity.  Such is the weakness of human nature, and the wonderful power of self-delusion.