"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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Gold has now managed two consecutive closes above chart resistance near $1650 and is looking firm at this hour. It has a very good shot at testing resistance at $1675- $1680 where it should experience some fairly heavy selling. If the bulls can break through that line, we should see a handle of "17" in front of the metal.
Weakness in the Dollar is aiding the progress of the metal higher.
Downside support comes in near $1640 - $1635 initially followed by $1620.
Silver is benefitting from risk trades being put back on as it and copper are both seeing decent inflows of investment money from hedgies. This is the first close ABOVE $30 for silver in over a month. Follow through in tomorrow's session should see it make a run towards the $32.50 level, which is what stands between it and a push to $35.
We've all seen the tricks being played by food manufacturers in shrinking the size of their products but charging the same price as the former size. The old 5 pound bags of sugar some to my mind. Whether it is cereal or bar-b-sauce, or whatever, the consumer ends up paying the same amount as they once did but they come home with a smaller quantity for their money spent.
All of this is to hide or disguise the impact of inflation. One goes to the store, buys a bag of sugar for the price they paid for it a few years ago and thinks little if anything about it until they realize that they ended up with one pound less sugar than they might have assumed.
Now, I give you the ULTIMATE INFLATION CASUALTY - yes indeed - the lowly but glorious roll of toilet paper.
Look at the following picture and weep for our old familiar friend... the roll of toilet paper on the right is the old sized roll. The new, inflation adjusted roll is on the left - I actually took out a ruler and measured the thing - it is 5/16" of an inch narrower. Think about how much wood pulp that saves the paper manufacturer. The result - VOILA! the package of the new paper costs as much as the old sized rolls cost but you get that much less.
Alas, let us pause for a moment of respect at the passing of the dear friend of our derriere.
