Stock Futures Plunge, Gold Tops $1600

Iran has launched ballistic missile strikes at US troop bases in Iraq.

Stocks dropped sharply, while gold briefly shot up to $1612.

The 'rescue mission' for equities is already underway.

Let's see how things go tomorrow.

Stocks and Precious Metals Charts - Our Poisoned Chalice

“In a sense, blowback is simply another way of saying that a nation reaps what it sows. Although people usually know what they have sown, our national experience of blowback is seldom imagined in such terms because so much of what the managers of the American empire have sown has been kept secret.

Even an empire cannot control the long-term effects of its policies. That is the essence of blowback.”

Chalmers Johnson, Blowback


"...we but teach
Bloody instructions, which, being taught, return
To plague the inventor: this even-handed justice
Commends the ingredients of our poisoned chalice
To our own lips."

Shakespeare, Macbeth


"And one day, too late, your principles, if you were ever sensible of them, all rush in upon you.  The burden of self-deception has grown too heavy...

Now you live in a world of hate and fear, and the people who hate and fear do not even know it themselves; when everyone is transformed, no one is transformed.   Now you live in a system which rules without responsibility even to God.  The system itself could not have intended this in the beginning, but in order to sustain itself it was compelled to go all the way.”

Milton Mayer, They Thought They Were Free

Stocks were a bit wobbly today, and the expectation of another push higher dissipated fairly early on.

Gold and the Dollar and silver all moved higher today in what appeared to be a 'risk off' move to safer waters.

The spokesmodels on financial TV had their pom poms out and were leading the cheers, but the crowd seemed as listless as the cheerleaders seemed to be desperate.

We may have reached that phase in the market rally where the insider money is looking to complete the hand off of the inflated assets to the public.

Don't worry though. There is an Internet of carnies and con-men who will gladly tell you whatever you wish to hear, and especially whatever message that their handlers and self-interests wish them to deliver.  Until their true believers get knee-capped by reality.

If you have profits lingering from the stock market rally from last year, now might be the time to trim your sails, and put profits aside in some safer places.

The Fed was enormously generous, even to a fault, in opening the floodgates and smothering the Wall Street Banks in piles of newly 'printed' money, sparking a late stage blowoff top in financial assets late last year.

But for all the obvious reasons this cannot last. And the consequences of this may be inbound, along with those from other follies of our elite.

I continue to believe that many things will be revealed and made clear by July of this year. The cards seem to be falling that way.

But for now, let's just be watchful and waitful.

Get right and sit tight.  And keep your eyes and ears open.

Have a pleasant evening.

Stocks and Precious Metals Charts - No Fear for Equities - Gold Hits New All-time High in Euros

A Question of Balance

“Many politicians are tantalizing storytellers, as they mix facts with fiction, grab our emotion and tell things they want us to believe.  Their factoids are unremittingly reiterated, take a life on their own, and in the end become the very truth— until the bubble bursts."

Erik Pevernagie


“The narcissist devours people, consumes their output, and casts the empty, writhing shells aside.”

Sam Vaknin


"Fragility is the quality of things that are vulnerable to volatility."

Nassim Taleb

Stock futures slumped and the safe havens rocketed higher on Sunday evening, as the implications of the assassination of a high ranking Iranian figure weighed on risk perceptions.

But never fear, the markets managed to shake off all these concerns, and reverse their losses and retake much of the losses from Friday.

Huzzah, we win again.

And so stocks boldly stated that there is no fear.  But your friendly financial spokemodel may have neglected to mention that gold just hit a new all time high in euros.

Gold and silver managed to hold on to a chunk of their gains as the dollar moved lower.

I would keep an eye on the former resistance for gold at $1550 to see how things may go into the Non-Farm Payrolls report on Friday.

Trumpolini and his merry band of Banksters keep pointing to the stock markets as vindication and validation of their greatness.   So we might expect some serious attention to be given to keeping up the 'confidence' in the integrity of our US financial markets.   Appearances must be maintained when the reality is rotten.

The Fed owns a printing press, and the Banks own the Fed.  Here endeth the lesson.  QED

Have a pleasant evening.

Stocks and Precious Metals Charts - Risk Off - Non-Farm Payrolls Next Week

Rome and the whole pagan world had gone mad, and Caesar was swimming in blood...

“Four sorrows are certain to be visited on the United States.

• First, there will be a state of perpetual war.
• Second is a loss of democracy and Constitutional rights as the presidency eclipses Congress and is itself transformed from a co-equal ‘executive branch’ of government into a military junta.
• Third is the replacement of truth by propaganda, disinformation, and the glorification of war, power, and the military legions.
• Lastly, there is bankruptcy, as the United States pours its economic resources into ever more grandiose military projects and shortchanges the education, health, and safety of its citizens.”

Chalmers Johnson, The Sorrows of Empire, 2005


“Seneca had made the bargain that many good men have made when agreeing to aid bad regimes.  On the one hand, their presence strengthens the regime and helps it endure.  But their moral influence may also improve the regime's behavior or save the lives of its enemies.  For many, this has been a bargain worth making, even if it has cost them—as it may have cost Seneca—their immortal soul.”

James Romm, Dying Every Day: Seneca at the Court of Nero


"If you are wise and understand God’s ways, prove it by living an honorable life, doing good works with the humility that comes from wisdom.  But if you are bitterly jealous and there is selfish ambition in your heart, don't hide the truth with boasting and lying. For jealousy and selfishness are not God’s kind of wisdom.  Such things are worldly, carnal, and demonic. For wherever there is jealousy and selfish ambition, there you will find disorder and evil of every kind."

James 3:13-15

Stocks took a major hit last night, and gold soared, in a flight to safety reaction after it was announced that the US had assassinated one of Iran's military and political leaders.

The Exchange Stabilization Fund managed to walk the futures back up a bit, and Wall Street closed ranks to help stocks regain some of this lost ground.

Gold however did not give up much ground, and is bumping its head against the key overhead resistance of 1550 on the chart.   If 1550 is taken out, we may see some significant moves sooner rather than later.  The ranges are marked on the chart.

Silver did not really participate because it is not a 'safe haven' play in the same manner as gold.  It is a companion to gold for the most part, but not the same, and not motivated by all the same things.  That is just how it goes.

The mental gyrations of the spokesmodels on financial television today, in dismissing the drop in stocks as the over-reaction of junior traders while the adults were still on holiday, was almost funny. It seemed like desperation.

We don't bother with facts or evidence much anymore—  just personal attacks and louder and more flamboyant rhetoric.

So let's see where this goes. 

It may turn out all right, and perhaps result in something positive.  But I am not hopeful at all.  And it is a major mistake to just dismiss this widening of exogenous risks as a 'blip on the screen.'  

The hucksters and carnival barkers of the financiers may say this, but they do not believe it one bit.  And neither should you.

Stocks are richly valued here, and the financial system is much more fragile than the powers that be will admit.

Other than continuing to pour more liquidity to the Banks, and allowing them to execute their virtually unregulated schemes behind the scenes, I don't think that there is a viable 'plan B' should things get nasty.

And my comfort level with the current administration in handling complex strategic issues with forethought and seriousness is almost nil.

In other words, do not count on your idols to protect you.  They may protect and help their associates and friends, but you, their blind worshippers and dispensable tools, are not among them.

The easy falling away of the faithful leaves one shocked, as well as deeply saddened.  For what does it profit a man, to give their soul for the whole world-- but for such an insignificant vanity?

Have a pleasant weekend.