I am taking some R&R this weekend so will not be doing my regular weekly radio interview with Eric King over at King World News but please tune in regardless and listen in to Bill Haynes and my substitute for this week as I think you will enjoy the broadcast.
Friday, November 23, 2012
Gold Sharply Higher in Yen terms and Euro Terms
Remember that recent call by the Japanese for more yen printing by the Bank of Japan? Obviously this was not lost on the gold market. Can anyone say "Deliberate Currency Debauchment"?
If that is not enough, the Europeans, not wishing to be outdone by the Japanese in the sense of who can debase their currency the fastest, continue to drone out about coming to the aid of Greece. Their remedy - print more money.
I have a bit of counsel to the political and monetary authorities. Why not just cease and desist ALL TAXATION OF YOUR CITIZENS COMPLETELY. You obviously can conjure into existence, out of nothing, all the money that you need. Why bother taxing anyone? Just print what you need and end the illusion of possessing any sort of discipline or ethics altogether.
At least that way your middle class will have something of their's left over before you bastards destroy what is left of their purchasing power.
If that is not enough, the Europeans, not wishing to be outdone by the Japanese in the sense of who can debase their currency the fastest, continue to drone out about coming to the aid of Greece. Their remedy - print more money.
I have a bit of counsel to the political and monetary authorities. Why not just cease and desist ALL TAXATION OF YOUR CITIZENS COMPLETELY. You obviously can conjure into existence, out of nothing, all the money that you need. Why bother taxing anyone? Just print what you need and end the illusion of possessing any sort of discipline or ethics altogether.
At least that way your middle class will have something of their's left over before you bastards destroy what is left of their purchasing power.
Gold Clears Chart Resistance in Light Volume Holiday Trade
Gold has breached overhead chart resistance centered near the $1740 level in extremely light holiday trade. One thing to keep in mind about this is that pit locals are notorious for using these ultra thin trading conditions to go hunting for upside or downside stops. Since there is not the depth of liquidity that is normally present in the market, resistance to their hunting party efforts is minimal.
What this means for chart watchers is that one has to take the price movements with a bit of healthy skepticism. If the move is for real, it will hold on the resumption of trade during the next trading period. In our example - gold will need to remain above its breakout level of $1740 during both Sunday evening trade in Asia and during Monday trade here in the US.
The same goes for silver.
For today, the money flow is to the upside. All it takes is one or two hedge funds to start playing games and the locals, reading the direction of the money flow, enter the fray. The victims in this perfectly legal game of theft, are those who have foolishly placed stop loss orders and forgotten to cancel them during the holiday trade.
Lesson for traders - unless you plan on trading during these thin trading condition periods, get out of your positions before the holiday and wait for the return of the full week worth's of trading to re-enter. You might miss a move while you are enjoying some vacation but at least you will have the satisfaction of not enriching the pit locals.
It is the same for the S&P 500 which is witnessing a huge short squeeze. Thin trading conditions are allowing the locals to play.
This is where many of these guys make their annual incomes....
What this means for chart watchers is that one has to take the price movements with a bit of healthy skepticism. If the move is for real, it will hold on the resumption of trade during the next trading period. In our example - gold will need to remain above its breakout level of $1740 during both Sunday evening trade in Asia and during Monday trade here in the US.
The same goes for silver.
For today, the money flow is to the upside. All it takes is one or two hedge funds to start playing games and the locals, reading the direction of the money flow, enter the fray. The victims in this perfectly legal game of theft, are those who have foolishly placed stop loss orders and forgotten to cancel them during the holiday trade.
Lesson for traders - unless you plan on trading during these thin trading condition periods, get out of your positions before the holiday and wait for the return of the full week worth's of trading to re-enter. You might miss a move while you are enjoying some vacation but at least you will have the satisfaction of not enriching the pit locals.
It is the same for the S&P 500 which is witnessing a huge short squeeze. Thin trading conditions are allowing the locals to play.
This is where many of these guys make their annual incomes....
Wednesday, November 21, 2012
Revenge of the Turkeys
I guess the residents of these liberal leaning states never heard of a bow using a flu-flu arrow....
http://boston.cbslocal.com/2012/11/21/turkey-complaints-on-the-rise-in-brookline/
BROOKLINE (CBS) – Neighbors are on the offensive in Brookline after what some residents are describing as aggressive turkeys.
“They were attacking the vehicle,” Karen Halvorson said outside her home in the Aspinwall Hill neighborhood.
After getting in her truck, a neighbor came and ran the birds off but it didn’t stop there.
“Then, the turkeys came and started attacking my front door,” she said.
http://boston.cbslocal.com/2012/11/21/turkey-complaints-on-the-rise-in-brookline/
BROOKLINE (CBS) – Neighbors are on the offensive in Brookline after what some residents are describing as aggressive turkeys.
“They were attacking the vehicle,” Karen Halvorson said outside her home in the Aspinwall Hill neighborhood.
After getting in her truck, a neighbor came and ran the birds off but it didn’t stop there.
“Then, the turkeys came and started attacking my front door,” she said.
Happy Thanksgiving to all My American Readers
A moment from our history past....
Having undertaken, for the glory of God, and advancement of the Christian faith, and honor of our King and Country, a voyage to plant the first colony in the northern parts of Virginia, do by these presents solemnly and mutually, in the presence of God, and one of another, covenant and combine our selves together into a civil body politic, for our better ordering and preservation and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute, and frame such just and equal laws, ordinances, acts, constitutions and offices, from time to time, as shall be thought most meet and convenient for the general good of the Colony, unto which we promise all due submission and obedience. In witness whereof we have hereunder subscribed our names at Cape Cod, the eleventh of November [New Style, November 21], in the year of the reign of our sovereign lord, King James, of England, France, and Ireland, the eighteenth, and of Scotland the fifty-fourth. Anno Dom. 1620.
THE MAYFLOWER COMPACT
In the name of God, Amen. We whose names are under-written, the loyal subjects of our dread sovereign Lord, King James, by the grace of God, of Great Britain, France, and Ireland King, Defender of the Faith, etc.Having undertaken, for the glory of God, and advancement of the Christian faith, and honor of our King and Country, a voyage to plant the first colony in the northern parts of Virginia, do by these presents solemnly and mutually, in the presence of God, and one of another, covenant and combine our selves together into a civil body politic, for our better ordering and preservation and furtherance of the ends aforesaid; and by virtue hereof to enact, constitute, and frame such just and equal laws, ordinances, acts, constitutions and offices, from time to time, as shall be thought most meet and convenient for the general good of the Colony, unto which we promise all due submission and obedience. In witness whereof we have hereunder subscribed our names at Cape Cod, the eleventh of November [New Style, November 21], in the year of the reign of our sovereign lord, King James, of England, France, and Ireland, the eighteenth, and of Scotland the fifty-fourth. Anno Dom. 1620.
Monday, November 19, 2012
Gold Chart
Gold has rebounded sharply this AM and run right back into a strong level of selling resistance noted on the price chart. If the bulls can push through this region, they stand a very good chance of taking the market to the $1780 level.
What more can you say that "RISK ON" is in vogue today. WAX ON; WAX OFF; RISK ON; RISK OFF.
Wanna know why Silver is so strong today? Look at the following chart of the CCI. Yep, Risk on.
Home Sales Data uptick has copper bulls giddy with delight.
Today is "BUY EVERYTHING IN SIGHT" Day.
Tomorrow, who knows?
Keep the Pressure on those Red State Governors to say "NO"
The following article in the Wall Street Journal gives a strong voice to those of us who believe that the States should simply say "NO", to this intrusion on their sovereign rights when it comes to implementing Obamacare.
There is still a very good chance of muking this thing up and preventing a federal takeover of 1/6 of the US economy. If you want to know how health care would fare under such an event, take a good, long hard look at the US Postal Service.
There is still a very good chance of muking this thing up and preventing a federal takeover of 1/6 of the US economy. If you want to know how health care would fare under such an event, take a good, long hard look at the US Postal Service.
Capretta and Levin: Why ObamaCare Is Still No Sure Thing
The majority of state governors are Republicans, and they have the power to disarm the health-care law.
http://online.wsj.com/article/SB10001424127887324735104578122741540428344.html?mod=rss_opinion_mainSunday, November 18, 2012
Suggested Read of the Day
The following comments are from Thomas Jefferson's letter to a Mr. William B. Giles. I did not post the entirety of the letter which can be found at Constitution.org. I did however think it noteworthy that Jefferson seems almost prophetic in his analysis. Keep in mind that while this was written 187 years ago, it might as well have been written this past year.
Please note the part highlighted is from me. It is very evident from reading this what Jefferson's views were on this question of separation. It was a last resort but it was a resort.
I submitted this letter because it seems like even among some who read this site on a regular basis, there is a continued meek and unresisting submission to steady incursions of the federal power over our lives and over the rights of the individual sovereign states of this Union. Despite a steady torrent of abuses to property rights and civil liberties by such unaccountable federal agencies such as the EPA, BATF, TSA, HHS, we are assured by some readers of this site that all is well and there is no need for concern. Surely such who state these things have never found themselves on the wrong side of one of these runamok and unaccountable but to themselves, agencies.
It reminds me of the story (whether this is true or no, I am not sure but it does serve as a wonderful example) of the frog put into a pot of water under which the heat is ever so gradually raised until the foolish frog is boiled to death. The same frog instantaneously put into a pot of already boiling water would leap out immediately. While suffering damage, it would have at least survived. In the former example, the pitiful creature becomes inured to the serious harm it is incurring and no doubt consoles itself that all is well as it always has been and that there is no cause for alarm or concern whatsoever.
Momentary false comfort for permanent ruin.
TO WILLIAM B. GILES.
MONTICELLO, December 26, 1825.
DEAR SIR, -- I wrote you a letter yesterday, of which you will be free to make what use you please. This will contain matters not intended for the public eye. I see, as you do, and with the deepest affliction, the rapid strides with which the federal branch of our government is advancing towards the usurpation of all the rights reserved to the States, and the consolidation in itself of all powers, foreign and domestic; and that too, by constructions which, if legitimate, leave no limits to their power. Take together the decisions of the federal court, the doctrines of the President, and the misconstructions of the constitutional Compact acted on by the legislature of the federal branch, and it is but
{147}
too evident, that the three ruling branches of that department are in combination to strip their colleagues, the State authorities; of the powers reserved by them, and to exercise themselves all functions foreign and domestic. Under the power to regulate commerce, they assume indefinitely that also over agriculture and manufactures, and call' it regulation to take the earnings of one of these branches of industry, and that, too, the most depressed, and put them into the pockets of the other, the most flourishing of all. Under the authority to establish post roads, they claim that of cutting down mountains for the construction of roads, of digging canals, and aided by a little sophistry on the words "general welfare," a right to do, not only the acts to effect that, which are specifically enumerated and permitted, but whatsoever they shall think, or pretend will be for the general welfare. And what is our resource for the preservation of the Constitution? Reason and argument? You might as well reason and argue with the marble columns encircling them. The representatives chosen by ourselves? They are joined in the combination, some from incorrect views of government, some from corrupt ones, sufficient voting together to outnumber the sound parts; and with majorities only of one, two, or three, bold enough to go forward in defiance. Are we then to stand to our arms, with the hot-headed Georgian? No. That must be the last resource, not to be thought of
{148}
until much longer and greater sufferings. If every infraction of a compact of so many parties is to be resisted at once, as a dissolution of it, none can ever be formed which would last one year. We must have patience and longer endurance then with our brethren while under delusion; give them time for reflection and experience of consequences; keep ourselves in a situation to profit by the chapter of accidents; and separate from our companions only when the sole alternatives left, are the dissolution of our Union with them, or submission to a government without limitation of powers. Between these two evils, when we must make a choice, there can be no hesitation. But in the meanwhile, the States should be watchful to note every material usurpation on their rights; to denounce them as they occur in the most peremptory terms; to protest against them as wrongs to which our present submission shall be considered, not as acknowledgments or precedents of right, but as a temporary yielding to the lesser evil, until their accumulation shall overweigh that of separation.
Please note the part highlighted is from me. It is very evident from reading this what Jefferson's views were on this question of separation. It was a last resort but it was a resort.
I submitted this letter because it seems like even among some who read this site on a regular basis, there is a continued meek and unresisting submission to steady incursions of the federal power over our lives and over the rights of the individual sovereign states of this Union. Despite a steady torrent of abuses to property rights and civil liberties by such unaccountable federal agencies such as the EPA, BATF, TSA, HHS, we are assured by some readers of this site that all is well and there is no need for concern. Surely such who state these things have never found themselves on the wrong side of one of these runamok and unaccountable but to themselves, agencies.
It reminds me of the story (whether this is true or no, I am not sure but it does serve as a wonderful example) of the frog put into a pot of water under which the heat is ever so gradually raised until the foolish frog is boiled to death. The same frog instantaneously put into a pot of already boiling water would leap out immediately. While suffering damage, it would have at least survived. In the former example, the pitiful creature becomes inured to the serious harm it is incurring and no doubt consoles itself that all is well as it always has been and that there is no cause for alarm or concern whatsoever.
Momentary false comfort for permanent ruin.
TO WILLIAM B. GILES.
MONTICELLO, December 26, 1825.
DEAR SIR, -- I wrote you a letter yesterday, of which you will be free to make what use you please. This will contain matters not intended for the public eye. I see, as you do, and with the deepest affliction, the rapid strides with which the federal branch of our government is advancing towards the usurpation of all the rights reserved to the States, and the consolidation in itself of all powers, foreign and domestic; and that too, by constructions which, if legitimate, leave no limits to their power. Take together the decisions of the federal court, the doctrines of the President, and the misconstructions of the constitutional Compact acted on by the legislature of the federal branch, and it is but
{147}
too evident, that the three ruling branches of that department are in combination to strip their colleagues, the State authorities; of the powers reserved by them, and to exercise themselves all functions foreign and domestic. Under the power to regulate commerce, they assume indefinitely that also over agriculture and manufactures, and call' it regulation to take the earnings of one of these branches of industry, and that, too, the most depressed, and put them into the pockets of the other, the most flourishing of all. Under the authority to establish post roads, they claim that of cutting down mountains for the construction of roads, of digging canals, and aided by a little sophistry on the words "general welfare," a right to do, not only the acts to effect that, which are specifically enumerated and permitted, but whatsoever they shall think, or pretend will be for the general welfare. And what is our resource for the preservation of the Constitution? Reason and argument? You might as well reason and argue with the marble columns encircling them. The representatives chosen by ourselves? They are joined in the combination, some from incorrect views of government, some from corrupt ones, sufficient voting together to outnumber the sound parts; and with majorities only of one, two, or three, bold enough to go forward in defiance. Are we then to stand to our arms, with the hot-headed Georgian? No. That must be the last resource, not to be thought of
{148}
until much longer and greater sufferings. If every infraction of a compact of so many parties is to be resisted at once, as a dissolution of it, none can ever be formed which would last one year. We must have patience and longer endurance then with our brethren while under delusion; give them time for reflection and experience of consequences; keep ourselves in a situation to profit by the chapter of accidents; and separate from our companions only when the sole alternatives left, are the dissolution of our Union with them, or submission to a government without limitation of powers. Between these two evils, when we must make a choice, there can be no hesitation. But in the meanwhile, the States should be watchful to note every material usurpation on their rights; to denounce them as they occur in the most peremptory terms; to protest against them as wrongs to which our present submission shall be considered, not as acknowledgments or precedents of right, but as a temporary yielding to the lesser evil, until their accumulation shall overweigh that of separation.
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