"What we see at present is a battle between the central banks and the collapse of the financial system fought on two fronts. On one front, the central banks preside over the creation of additional liquidity for the financial system in order to hold back the tide of debt defaults that would otherwise occur. On the other, they incite investment banks and other willing parties to bet against a rise in the prices of gold, oil, base metals, soft commodities, or anything else that might be deemed an indicator of inherent value.
Their objective is to deprive the independent observer of any reliable benchmark against which to measure the eroding value, not only of the U.S. dollar, but of all fiat currencies. Equally, their actions seek to deny the investor the opportunity to hedge against the fragility of the financial system by switching into a freely traded market for non-financial assets."
Peter Warburton, The Debasement of World Currency, April 9, 2001 [with gold at $259 per oz.]
"And then, Wall Street blew up the global economy. Empowered by bank deregulation and regulatory capture, Wall Street enlisted those tough-minded men of the media again to sell the world on the idea that financial innovations were making the global economy more stable by the minute. Central banks puffed an asset bubble like the world had never seen before, even if every journalist worth his byline was obliged to deny its existence until it was too late...
If economists— and journalists, and bankers, and bond analysts, and accountants— don’t pay some price for egregious and repeated misrepresentations of reality, then markets aren’t efficient after all."
Thomas Frank, Too Smart to Fail, March 2012
"The business model of Wall Street is fraud. Wall Street won’t change until we make it clear that no bank is too big to fail and no CEO is too big to jail. Billionaires and Wall Street should not be buying elections. The reason that Congress isn’t doing what the overwhelming majority of Americans wants has everything to do with the power of the monied interests. Let us bring our people together to take on and defeat a ruling class whose greed is destroying our nation.”
Bernie Sanders, September 22, 2016
"After a sustained advance in an asset class's price, the prior four factors lead to new-era thinking that cycles have been eradicated/eliminated and that a long boom in value lies ahead.
Bad valuation methodologies drive out good valuation methodologies.
Rapid growth of a new financial product that is not understood.
When everyone thinks central bankers, money managers, corporate managers, politicians or any other group are the smartest guys in the room, you are in a bubble."
Doug Kass, Ten Laws of Stock Market Bubbles, November 11, 2013
“The worst crimes were dared by a few, willed by more, and tolerated by all.”
Tacitus
Today is the 58th anniversary of the public execution of John F. Kennedy in Dallas Texas.
Whip-saw!
Biden took the path of least resistance, and nominated Jay Powell again as Fed Chairman.
He threw his party a bone by nominating Lael Brainard as Vice-chair.
Stocks took off and almost achieved escape velocity, based on some fantasy that Powell is pledging to be more hawkish.
But alas, as the initial front running euphoria waned, stocks crashed back down to earth again and left a crater as well.
The Dollar jumped to the middle of the 96 handle as well, based on the same assumption of rate increases to come.
Gold and silver were just brutally hammered lower.
How fitting since tomorrow is the most significant gold and silver futures contract option expiration on the Comex.
Never waste an opportunity.
Today the German health minister Jens Spahn said that 'probably by the end of this winter pretty much everyone in Germany — as has sometimes been cynically put — will be vaccinated, cured or dead.'
The US today has issued an advisory against travel to Germany.
Déjà vu all over again.
Who could have seen it coming?
"O Jerusalem, Jerusalem, you who murder your prophets, and persecute
those whom God has sent as messengers to you. As you have willed, your
house is now yours— but is made desolate."
And the band played on.
Have a pleasant evening.
