15 February 2017

Stocks and Precious Metals Charts - Defiantly Exuberant in D Major


"Still another danger is represented by those who, paying lip service to democracy and the common welfare, in their insatiable greed for money and the power which money gives, do not hesitate surreptitiously to evade the laws designed to safeguard the public from monopolistic extortion. American fascists of this stamp were clandestinely aligned with their German counterparts before the war, and are even now preparing to resume where they left off, after 'the present unpleasantness' ceases.

They claim to be super-patriots, but they would destroy every liberty guaranteed by the Constitution. They demand free enterprise, but are the spokesmen for monopoly and vested interest. Their final objective toward which all their deceit is directed is to capture political power so that, using the power of the state and the power of the market simultaneously, they may keep the common man in eternal subjection."

Henry Wallace, 9 April 1944


"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 Age of Uncertainty


“It appeared as if the whole world was one elaborate system, opposed to justice and kindness, and set to making cruelty and pain.”

Upton Sinclair, Oil!

There was intraday commentary on the EU and rising populism here.

After a brief bobble while the lady Yellen reslung her jawbone, stocks and precious metals went on a tear higher as the dollar slumped.

Smells like dovishness and a short squeeze all rolled into one happy package.

Stocks are so overextended that even the VIX had to reflect the increased sense of risk.

When is that SNAP IPO going to be squeezed out to the market? Maybe not soon enough to be a correction.

My laptop screen failed on Sunday evening. Since it is only seven months old the new screen and connector will be free, but the inconvenience of not having it this week is particularly annoying because I am keeping an eye on the queen and helping her out quite a bit. I cannot do that from my study downstairs. It should be back by the end of this week.

We have a three day weekend coming up with President's Day on the 20th.

There still has been no sustainable recovery.

Have a pleasant evening.




The Failure of the European Monetary Union In One Graph


This is why a wave of populism is sweeping the EU bureaucrats aside.

A similar wave of populism is underway in the US.

The reasons for it are obvious: the abuse of the law and of power in the service of a 'fortunate' few in a self-selected class of meritsocrats and their anointed.

As the pigs proclaimed in Animal Farm, 'all animals are equal, but some are more equal than others.'

The credibility trap prevents the establishment and their enablers from discussing the core issues, and often even acknowledging that there is any problem.

Today's Yellen testimony and questioning before Congress was a nice example.

The Congress critters are craven except in a spirited defense of their own big money backers and sinecures, the general public and middle class be damned.




14 February 2017

Stocks and Precious Metals Charts - Yellen and the Jawbone - Valentine's Day


"She is more precious than jewels— and nothing you could desire can even compare with her."

Proverbs 3:15

Fed chair Yellen made some hawkish noises concerning the possibility of a rate hike in March around 10 am EST.

That took the dollar up, and the precious metals down.

The PPI (wholesale price inflation) came in a little hot this morning.

There is no real sustainable recovery. The credibility trap has caused a great number of our ruling elite to become ineffective hypocrites.

But this is nothing new. People of privilege will go to great lengths when that privilege, long held, is threatened.

I do think that things are 'going to get real' as they used to say, probably later this year. Look for the next shoes to drop in Europe.  The EU is the paradigm of official folly.

Today is Valentine's Day. I spent quite a bit of it with mine.

Have a pleasant evening.



13 February 2017

Stocks and Precious Metals Charts - Risk On


Stocks were drifting higher today on lighter volumes.

The precious metals were off a bit on a stronger dollar.

Janet Yellen will be testifying tomorrow.

Have a pleasant evening.



12 February 2017

Weekend Reading: A Defense Against the Rising Evil


"It seems that under the overwhelming impact of rising power, humans are deprived of their inner independence and, more or less consciously, give up establishing an autonomous position toward the emerging circumstances. The fact that the stupid person is often stubborn must not blind us to the fact that he is not independent. In conversation with him, one virtually feels that one is dealing not at all with him as a person, but with slogans, catchwords, and the like that have taken possession of him. He is under a spell, blinded, misused, and abused in his very being. Having thus become a mindless tool, the stupid person will also be capable of any evil and at the same time incapable of seeing that it is evil. This is where the danger of diabolical misuse lurks, for it is this that can once and for all destroy human beings...

Only the humble believe in Him and rejoice that God is so free and so marvelous that He does wonders where people despair, that He takes what is little and lowly and makes it marvelous. And that is the wonder of all wonders, that God loves the lowly. God is not ashamed of the lowliness of human beings. God marches right in. He chooses people as his instruments and performs his wonders where one would least expect them. God is near to lowliness; He loves the lost, the neglected, the unseemly, the excluded, the weak and broken...

In the Incarnation the whole human race recovers the dignity of the image of God. Thereafter, any attack even on the least of men is an attack on Christ, who took on the form of man, and in his own Person restored the image of God in all. Through our relationship with the Incarnation, we recover our true humanity, and at the same time are delivered from that perverse individualism which is the consequence of sin, and recover our solidarity with all mankind.

Dietrich Bonhoeffer


"Yet such in one shape or other is the way with the multitude of men everywhere and at all times; they do not see the image of Almighty God before them, and ask themselves what He wishes: if once they did this they would begin to see how much He requires, and they would earnestly come to Him, both to be pardoned for what they do wrong, and for the power to do better. And, for the same reason that they do not please Him, they succeed in pleasing themselves. For that contracted, defective range of duties, which falls so short of God’s law, is just what they can fulfill; or rather they choose it, and keep to it, because they can fulfill it.

Hence, they become both self-satisfied and self-sufficient; – they think they know just what they ought to do, and that they do it all; and in consequence they are very well content with themselves, and rate their merit very high, and have no fear at all of any future scrutiny into their conduct, which may befall them...

And such, I say, is the religion of the natural man in every age and place; – often very beautiful on the surface, but worthless in God’s sight; good, as far as it goes, but worthless and hopeless, because it does not go further, because it is based on self-sufficiency, and results in self-satisfaction.

I grant, it may be beautiful to look at, as in the instance of the young ruler whom our Lord looked at and loved, yet sent away sad; it may have all the delicacy, the amiableness, the tenderness, the religious sentiment, the kindness, which is actually seen in many a father of a family, many a mother, many a daughter, in the length and breadth of these kingdoms, in a refined and polished age like this; but still it is rejected by the heart-searching God, because all such persons walk by their own light, not by he True Light of men, because self is their supreme teacher, and because they pace round and round in the small circle of their own thoughts and of their own judgments, careless to know what God says to them, and fearless of being condemned by Him, if only they stand approved in their own sight...

Yes, it is the ignorance of our understanding, it is our spiritual blindness, it is our banishment from the presence of Him, who is the source and the standard of all Truth, which is the cause of this meagre, heartless religion of which men are commonly so proud...

Far be it from any of us to be of those simple ones, who are taken in that snare which is circling around us! Far be it from us to be seduced with the fair promises in which Satan is sure to hide his poison!

Do you think he is so unskillful in his craft, as to ask you openly and plainly to join him in his warfare against the truth? No; he offers you baits to tempt you. He promises you civil liberty; he promises you equality; he promises you trade and wealth; he promises you a remission of taxes; he promises you reform.

This is the way in which he conceals from you the kind of work to which he is putting you; he tempts you to rail against your rulers and superiors; he does so himself, and induces you to imitate him; or he promises you illumination, he offers you knowledge, science, philosophy, enlargement of mind. He scoffs at times gone by; he scoffs at every institution which reveres them.

He prompts you what to say, and then listens to you, and praises you, and encourages you. He bids you mount aloft. He shows you how to become as gods. Then he laughs and jokes with you, and gets intimate with you; he takes your hand, and gets his fingers between yours, and grasps them, and then you are his."

John Henry Newman


"And because of the increase in wickedness, the love of many will grow cold. But those who endure to the end will be saved."

Matthew 24:12-13


"Love does not make you weak, because it is the source of all strength—  but it makes you see the nothingness of the illusory strength on which you depended before you knew it...

The only real tragedy, In the end, is not to be a saint."

Léon Bloy


A saint— a saint that is always failing, but always rising.

The touchstone of all goodness is love.

Love is not a weakness or a softness of the heart. Love is only for the strong, because only the strong can overcome the fear and smallness that keeps them from loving.

Evil is the weakness of hate and fear, the darker side of the human condition.  Unselfish love is not natural to us, unless we exercise a will to choose it, and take the abiding comfort and strength with it from something greater than ourselves.

Where you see something that confuses you, whether it is good or ill, ask yourself, 'whom does it serve? and where is the love?'

Love is the one thing that the hypocrisy of evil cannot reliably imitate, but at most wear briefly as a mask.

People can rationalize their way to a hell on earth with the same practical, step by step reasoning with which they buy a pair of shoes or a new overcoat. And once their fingers are firmly entwined with those of evil, then the madness fully falls upon them, and they are done.

We are substantially no different, no better, and certainly no more exceptional than others now and those who have come before us.  To imagine ourselves to be so superior, so exceptional, so above all the temptations of power is a part, not of any virtue, but of the excessive pride which led to the fall of the first and most favoured among the angels.

If you do not wish to hear this, if it makes you uncomfortable, then good.  That discomfort is the first step, the first recognition and the beginning of your own path to personal reform and the fullness, and dare I say salvation, of your own humanity.