In Honor of the 70th Anniversary of the Munich Students Movement - 'The White Rose'

"Many people think of our times as being the last before the end of the world. The evidence of horror all around us makes this seem possible.

But isn't that an idea of only minor importance? Doesn't every human being, no matter which era he lives in, always have to reckon with being accountable to God at any moment? Can I know whether I'll be alive tomorrow morning?

A bomb could destroy all

Gold Daily and Silver Weekly Charts - Sweet Home Chicago

Intra-day bear raid was more effective in silver rather than gold which showed greater resilience.

SP 500 and NDX Futures Daily Charts - Hard Time Killin' Floor Blues

Weak reports on the economy continue.

Amazon earnings after the close.

Whither the Facebook IPO?

Is the Next Phase To Be Commodity Wars?

As the global trade system that had existed under the Bretton Woods II money regime evolves and changes, we may see more struggles for key commodities.

These will be characterized by local and regional military tensions as well as financial assaults on the relevant sovereign credit and currencies.

Reuters
12 Companies Join German Commodity Alliance
By Michael Hogan
Jan 30, 2012 3:23pm GMT

Gold Daily and Silver Weekly Charts

The precious metals took a well-deserved rest to consolidate their gains from the recent protracted rally.

SP 500 and NDX Futures Daily Charts

There is more talk of the Facebook IPO coming out this week, perhaps on Wednesday.

If this is the case the Street will prop this market up to get that IPO priced and out the door, barring any unforeseen events from Europe.

MF Global: A Despicable State of Affairs

Much of the financial press picked up this story from the Wall Street Journal, Money From MF Global Feared Gone. Much of the mainstream media in the US and the UK these days is just a conduit for sound bites from the monied interests.

"Nearly three months after MF Global Holdings Ltd. collapsed, officials hunting for an estimated $1.2 billion in missing customer money increasingly believe that

Moyers Journal: How Did the Big Banks Get So Powerful? Easy Is the Descent Into Hell

Bill Moyers talks with former Citigroup Chairman John Reed to explore a momentous instance: how the mid-90's merger of Citicorp and Travelers Group, and a friendly Presidential pen, brought down the Glass-Steagall Act, a crucial firewall between banks and investment firms which had protected consumers from financial calamity since the aftermath of the Great Depression. In effect, says Moyers,

Love Remains

"At that time many will falter, and betray and despise each other, and false prophets will appear and deceive many people. Because of the increase of wickedness, the love of many will grow cold, but those who stand firm to the end will be saved. And the gospel of the kingdom will be preached in the whole world as a testimony to all nations, and then the end will come." Matt 24:10-14

"If I speak

Registered Silver Ounces At the Comex

There are 49,436 contracts currently open for the next delivery month which is March 2012. Each contract represents 5,000 ounces. That is 247.18 million ounces of silver being traded for March delivery against a registered 36.56 million ounces. This is a subset of all the contracts going out over the year.

The is leverage of about 6.8 to 1. It 'works' because most contracts are

Year-To-Date Performance: Silver, Gold, SP 500, and the Dollar - Fitch Downgrades Europe

There are still two trading days left in the month so it is obviously too early to book the results.

And it may not be quiet next week, or the rest of the year, as Fitch issued a new downgrade on five European nations.

Fitch downgraded the sovereign credit ratings of Belgium, Cyprus, Italy, Slovenia and Spain on Friday, indicating there was a 1-in-2 chance of further cuts in the next two

Gold Daily and Silver Weekly Charts

There was a really nice push up into resistance today.

Next week could be dicey unless there is some settlement in the European debt situation.

SP 500 and NDX Futures Daily Charts

There were additional rumours of the Facebook IPO coming out next week. If that happens the Street will probably prop the major markets in order to get it priced and out the door.

The market was wobbly today, with a late push in the financials failing to turn the markets green.

Gold Daily and Silver Weekly Charts - Consolidation (With a Slight Return)

We had the expected consolidation in the metals today after a spectacular rally run off the artificial hammering they took in December.

Flat now in the trading books at least, and waiting to see what happens next. I would like to see another day or two of gains consolidation with a little retrace, and then a gap and a leg higher.

But let's see what happens first. The market will always be

SP 500 and NDX Futures Daily Charts - Said the Joker to the Thief

4Q 2011 Advance GDP is out tomorrow morning.

The selling today had little volume behind it, and it looked more like a consolidation than a top, at least so far.

I'm flat the market now, and waiting to see what happens next.

A Closer Look At the Gold Chart For a Break and Run Possibility

Keep an eye on gold for the next few days to see how it handles any consolidation here.

The formation, at least so far, is remniscent of the breakout that led gold to the all time high last year.

It could fail and retest some lower support level. We need to be aware of that possibility. But a consolidation with a subsequent gap higher and breakout run could be a wild ride.

Gold Daily and Silver Weekly Charts - Sharp Metals Rally Off the FOMC Policy Statement

The big news today was the FOMC's decision to set an explicit inflation target of 2% using the PCE indicator. Bernanke expressed some of the reasons for choosing PCE rather than the more popularly watched CPI.

Intraday commentary on the Fed's statement is here.

The metals, which had been depressed ahead of the announcement, took off like a rocket, reaching up to overhead resistance as the

SP 500 and NDX Futures Daily Charts - Benny Pledges to Inflate

Stocks rallied hard off the FOMC statement and subsequent press conference. The intraday commentary on this is here.

So what next? Somewhat discounted in the paper party is the dull fact that Ben and the Fed are driven by the dire state of the economy, despite their cheerful words to try and calm the markets.

And monetary policy is a blunt instrument, ill-suited to stimulating an economy

The MF Global Bankruptcy Filing: Did the Regulators Sell Out the Public for JP Morgan?

What seems fairly obvious is that the law calls for MF Global to file a Chapter 7 bankruptcy in which customers are given seniority to creditors, rather than a Chapter 11 non-broker bankruptcy in which the customer interests are not upheld.  The rationale for Chapter 11 has always seems to be contrived to favor a particular creditor bank.

Prior CFTC rulings and 'Rule 190' seems to have dealt

For immediate release

Information received since the Federal Open Market Committee met in December suggests that the economy has been expanding moderately, notwithstanding some slowing in global growth. While indicators point to some further improvement in overall labor market conditions, the unemployment rate remains elevated. Household spending has continued to advance, but growth in business

FOMC Statement - Targets 2% Inflation - Highly Accommodative Monetary Policy Until 'Late 2014'

The Fed extended its window of highly accommodative monetary policy to 'late 2014.' In a separate statement the Fed said it is targeting "2% inflation" as a target. This is the first time they have named an explicit inflation objective. The limiting factor of this decision is the value of the US dollar relative to hard goods, and not other fiat currencies which are subject to similar

Net Asset Value of Certain Precious Metal Trusts and Funds

Gold Daily and Silver Weekly Charts

Gold and silver took a pause in their rally today.

The FOMC announcement is tomorrow and gold option expiration is on Thursday.

SP 500 and NDX Futures Daily Charts - APPL After the Close

YHOO hit EPS but missed revenues, but APPL is the big tickle and will be announcing their results shortly.

The SP left a big hanging man doji candlestick formation. This could mark a top.

Benny and his merry money mavens will be making their announcements tomorrow afternoon. Gold and silver took a corrective hit today in honor of their pronouncement. Bear in mind they have come rather far

Net Asset Value of Certain Precious Metal Trusts and Funds

The Sprott Silver Trust premium remains depressed compared to historical norms. I believe that this is due to the 'underwriter effect' as they clear their over allotments obtained at 13.20.

The other premiums remain healthy, showing a reluctance to sell off hard in this metals correction, at least so far.

Gold Daily and Silver Weekly Charts

Nice up day in the metals.

The Fed will announce the results of their meeting on Wednesday.

This Thursday will be an option expiration in gold. The likely range is 1650 to 1700 based on the put/call ratios.

From the charts, it looks like gold will be hitting some fairly stiff resistance between 1680 to 1700.

The Republican presidential freak show kicks into high gear with tonight's

SP 500 and NDX Futures Daily Charts - Wobbly Day - VIX Recumbent

Joe Granville made a major bear call today, saying he expects the Dow to be down 4000 points by the end of the year, with the decline starting about now.

I can sympathize with a bearish outlook for stocks based on the economic fundamentals and the earnings reports so far.

The Fed will announce the results of their January meeting on Wednesday.

Tomorrow is the State of the Union message. I

Corzine, MF Execs and JPM Named in RICO Lawsuit

Privately sponsored RICO lawsuits have a difficult time obtaining the types of information that are required to make a conspiracy case unless they get lucky in the discovery process or find a willing whistleblower. The defendants generally lawyer up and stonewall, using the types of court maneuvers that prove so effective in mortgage fraud cases, theft of customer funds, and mass foreclosures

Gold Daily and Silver Weekly Charts

The metals were higher today led by silver.

Next Thursday January 26 is an option expiration for gold.

Here is the current list of option expirations in the metals.

As you can see in the stock commentary below I think the market is looking tired and a bit toppy. It may have another move up left, but now is a good time to get defensive again on equities.

I am still running the long bullion

SP 500 and NDX Futures Daily Charts - Turning Bearish, Keep an Eye on the VIX

Flat to down day with a little late pop into the close. All eyes are on the Greek situation.

Earnings were a disappointment especially with GOOG but IBM carried the Dow Jones Industrials higher.

I think we are nearing a short to intermediate term top in stocks. \

The SP could have as much as 20 points left, but we'll look at the VIX to signal a top and reversal if there is one.

This is a

Metals Options and Futures Calendar for the First Half of 2012

Source: CME Group 2012

Jan. 26 Comex February gold options expiry
Jan. 26 Comex February copper options expiry
Jan. 27 Comex February miNY gold futures last trading day
Jan. 27 Comex January silver futures last trading day
Jan. 27 Comex January copper futures last trading day
Jan. 27 Comex February E-mini copper futures last trading day
Jan. 27 Nymex January platinum

Gold Daily and Silver Weekly Charts

Gold was capped while silver continued to rally off physical buying that might be attributed to the Sprott Physical Trust expansion.

SP 500 and NDX Futures Daily Charts

Google missed after the bell taking some of the air out of big tech. Intel and IBM beat. Microsoft beat earnings and missed revenue.

Frothy market.

New Revelations On MF Global and Bank Complicity in 'Missing' Customer Funds

Financial violence and repression with impunity.

CFTC Rips Trustee, Says Customers Must Be Paid First

FSA Pressures NY Banks To Release Customer Funds

JP Morgan At the Center of the MF Global Failure

Futures Industry Regulator: No Way To Stop Brokers From Stealing
Especially in a culture of corruption and privilege where crimes are rarely prosecuted,
fraud is widely tolerated, and there is

JP Morgan Chase Accused of 'Brazen Bankruptcy Fraud'

Maybe this was their warm up for the shenanigans in the MF Global bankruptcy case. Or their long term manipulation of the silver market. 

If these allegations are true, why doesn't the California Attorney General or the Justice Department investigate this criminal conspiracy to abuse the legal system? (rhetorical question).

The only presidential candidate that the bankers fear and respect is

Gold Daily and Silver Weekly Charts

I hate the correlation of the metals and stocks here, as the equity markets look fluffy and puffed up on light volumes.

These are trader's markets.

PSLV came out at the low end of the range. I heard but have not confirmed that the offering was placed at least in terms of the secondary distribution channels. I do not know about the underwriters and their allotments.

SP 500 and NDX Futures Daily Charts

Markets are overbought but volumes are light.

Only 47% of firms are beating their numbers this earnings season so far according to Bloomberg.

Notice the tight uptrending channels on the charts. This looks like a 'market operation.' Try not to get in front of it, but choose your positions wisely and plan for the worst.

The low VIX gives traders a freer hand to play their games. But make

Larry Summers Considered As US Choice to Head the World Bank

The Rubin Legacy continues on. Change we can believe in.

Hans Nichols does an exceptional job of covering the Washington beat for Bloomberg.

Bloomberg
Obama Considering Summers for World Bank
By Hans Nichols
Jan 18, 2012 11:47 AM ET

President Barack Obama is considering nominating Lawrence Summers, his former National Economic Council director, to lead the World Bank when Robert Zoellick

World Bank Warns: Hope for the Best, Prepare for the Worst

In case your domestic financial press fails to deliver this important message to you so clearly, as the World Bank has done for the rest of the world's leadership.  

Hope for the best, and prepare for the worst.

Equities are pricing in a rosy scenario, but the bonds and precious metals are saying 'beware.'

The western central banks will contine to print money in response to this financial

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

Sprott Prices the Physical Silver Trust Offering at US$13.20

Sprott is bringing their deal out at the low end of the range. Quite a haircut for those who held the trust before the offering announcement, as I had warned. That thirty percent premium to NAV was completely undeserved and was most likely the result of a short squeeze.

It is a bullish deal for the silver market in general since it will take more than ten million ounces of silver out of the

Sprott Physical Silver Trust PSLV Brings Out Its Follow On Offering

As predicted.  The cash reserves of the Trust had fallen to less than $350,000 by my estimates.

Let's see how this affects the price of silver.

According to a message to the Sprott Private Wealth clients:
PRICING: will be between $13.10 to $13.75 USD, which is a 5.6% to 10.0% discount from last trade, but a 12.3% to 17.9% premium to the latest Net asset value per unit.PSLV closed regular

Gold Daily and Silver Weekly Charts

Gold and silver are back in sync with equities.

The miners are struggling here.

SP 500 and NDX Futures Daily Charts - Manhattan Melodrama

There is quite a bit of 'tension on the tape' despite its calm outward appearance and rangebound trade.

They will either break this out into a new phase of the bubble, or the market will take a dive. I do not think we are more than a week or two away from a resolution to this, but it could drag on until the end of March and the final reckoning over Greece.

Whatever happens, go with the flow,

SP Futures Intraday

Cynical trade on light volume.

Within a range and a longer term trend, the markets and the supporting commentary from the financial news demimonde are pure manipulation.

And it appears that the Fed was aware of this artificiality as early as 2004 when it allowed the global banks inflate a fraudulent housing bubble in the US and in Europe, and failed in its responsibilities as regulator in

People's Bank of China Opens Direct Currency Swaps with Dubai and the UAE

This is not a particularly large deal, but it is another sign of the continuing erosion of the ad hoc Bretton Woods II currency regime and a growing disorder in global banking. Change is not just coming, it's here.

The usual US public reponse is dismissive: 'where else will they put their money?'

But behind the scenes the US is working very hard on this, often in conjunction with the Banks

Martin Luther King Day 2012

Martin Luther King's Last Speech



Speech from 3 April 1968, Church of God in Christ, Memphis, Tennessee

On 4 April 1968, Dr. Martin Luther King, Jr. was assassinated.

Gold Daily and Silver Weekly Charts

A pause and consolidation accentuated with an intraday bear raid that did not quite stick.

US markets will be closed on Monday for Martin Luther King Day.

SP 500 and NDX Futures Daily Charts

Another big downward plunge in the morning, and a steady drift up from there for much of the afternoon on light volumes.

The US markets will be closed on Monday for the Martin Luther King holiday.

Sachs: The Price of Civilization

What I am currently reading is The Price of Civilization by Jeffrey Sachs.

This financial crisis and the failure to address it effectively is the natural outcome for a society that embraced the golden calf of selfishness and greed,  the will to power, and anything goes in the pursuit of wealth, with its roots in the 1980's at least.   As we have seen throughout history and in our own experience

SP 500 Futures Daily Chart Intraday

So far just another day in the 'hood with the hoods.

Cute bear raid in the metals.

Gold Daily and Silver Weekly Charts - Breakout Attempt Smacked Back For Now

I see where Alf Field called an end to the gold correction today. I am not quite willing to do that yet. I would like to see a sustained breakout on volume.

These markets are like carnie games anymore.

SP 500 and NDX Futures Daily Charts - Trading 2012 - "Money Owns This Town"

Yet another late day turnaround on light volumes and vapors.

Banks kick off their earnings season with JPM tomorrow.

I wonder if there will be a footnote category in the income statement for 'missing customer funds.'





"Money Owns This Town" by Alabama3



JPM = Dave Hester 'The Mogul'
Morgan Stanley = Jarrod 'The Young Gun'
Bank of America = Darrell 'The Gambler'
Citi = Barry 'The

Net Asset Value of Certain Precious Metal Trusts and Funds

Gold Daily and Silver Weekly Charts

There are nine requisites for contented living: health enough to make work a pleasure; wealth enough to support your needs; strength to battle with difficulties and overcome them; grace enough to confess your sins and forsake them; patience enough to toil until some good is accomplished; charity enough to see some good in your neighbor; love enough to move you to be useful and helpful to others;

SP 500 and NDX Futures Daily Charts - Zzzzzzz

Light volume, subdued volatility relative to the range where it has been, and a late day push higher.

January 8: Andrew Jackson Day Remembered

"It is to be regretted that the rich and powerful too often bend the acts of government to their selfish purposes. Distinctions in society will always exist under every just government. Equality of talents, of education, or of wealth can not be produced by human institutions.

In the full enjoyment of the gifts of Heaven and the fruits of superior industry, economy, and virtue, every man is

Gold Daily and Silver Weekly Charts - The End Of Year Paint Job Is Peeling

Gold and Silver have had a nice rally since the first of the year, but this seems like a correction back from a very artificial price smackdown performed by the two or three big metals shorts who wanted to minimize their losses at mark-to-market.

So bullion is now back to square one. Let's see where it goes from here.

SP 500 and NDX Futures Daily Charts - Tell Me About the Rabbits Again, George...

"The reason 2012 feels so empty now is that voters on both sides of the aisle are not just tired of this state of affairs, they are disgusted by it. They want a chance to choose their own leaders and they want full control over policy, not just a partial say. There are a few challenges to this state of affairs within the electoral process – as much as I disagree with Paul about many things, I do

Gold Daily and Silver Weekly Charts - Calm Before the Storm

An eerie quiet is over the US markets. The SP 500 has slid sideways in an exceptionally narrow range for the past five sessions despite some intraday intramurals.

Gold was hit with a half-hearted bear raid today, while silver remained stalwart.

SP 500 and NDX Futures Daily Charts

A dull day with light volume and little conviction.

Forbes: Regulators and Trustees Suppressing Details on MF Global

I seem to recall predicting this coverup when the MF Global scandal broke at the end of October.

Eventually the regulators and financiers will spin a story and it might stick together. But there is also a possibility that it may come unhinged, and the coverup, not the theft of funds itself, will bring down careers and institutions.

And the scandal is much wider than MF Global and their

NAV Premiums of Select Precious Metals Trusts and Funds

The premium on PSLV looks like a short squeeze or some other anomaly.

It does not appear to be otherwise rational given the relatively modest premiums on silver in quantity available at publicly quoted sites like Tulving.com which are offering silver in quantity at between 1.99 to 2.69 over spot for Maples and Eagles.

I think the higher premium on American Eagles is due to the restrictions

Gold Daily and Silver Weekly Charts - Rounding Errors In the Big Scheme of Things

The markets did a 'pop and flop' on the 'better than expected' payroll numbers. While the number did beat expectations, it was largely due to temporary hiring for Christmas delivery and sales that was not properly deseasonalized.

I did not write something about this, but I do wish to point out something new. The BLS has always rounded the headline number of course, but now they are starting

SP 500 and NDX Futures Daily Charts

Sleepy day, typical of this first week with wide range in prices finishing largely unchanged on light volumes.

On Monday Alcoa kicks off earnings season.

Also on Monday there is another meeting on the Europe situation. That may drive some of the action.

The markets pretty much ignored the 'better than expected' employment report today and for good reasons. The beat was largely based on

Warren Pollock and Ann Barnhardt Discuss MF Global and a Possible Bank Holiday

Ann Barnhardt and Warren Pollock have an interesting discussion about the financial crisis, the setting of legal precedent, netting, settlement, and future trends including a possible bank holiday.

They talk about MF Global as it applies to savings and commercial banking, brokerage, insurance, and commodities.

They also discuss the numeric impossibility of solving the debt problem, the

Gold Daily and Silver Weekly Charts - QE à l'infini Selon les Besoins

In other words, QE to infinity as required.

That will be the solution the Fed will accept when the Treasury prints bonds that have no buyers except for the Fed and its cartel of banks.

Of course they will stop before infinity is reached. The only question is, "What will stop them?" Especially if they engage in off balance sheet shenanigans like certain types of swaps and mutual devaluation

SP 500 and NDX Futures Daily Charts - Fear and Trembling

Another wide ranging day that closed relatively unchanged from the open, as traders tossed the hot potatoes back and forth.

Non Farm payrolls for December is tomorrow. ADP had a big beat on their employment number, but this means little as the correlations are broken, probably on seasonal adjustments.

The bigger issue will be the European meeting on Monday the 9th.

A Closer Look at the Daily Gold Futures Chart

Here is the daily Gold Futures Chart for the February 2012 contract.

I transacribe this action to the 'big picture' chart which I publish nightly.

This is the one I watch intraday.

Gold *could* be in the process of making a huge double bottom. The measuring objective of such a breakout would be well in excess of 2,000 BUT it needs to breakout of the obvious downtrending channel in red

Playing the 'Free Markets' Canard and the Myth of Self Regulation

ca·nard/kəˈnär(d)/

Noun:

a. An unfounded or false, deliberately misleading story : a fabricated report
b. a groundless rumor or belief.
Anyone who has seriously studied applied macroeconomics knows that crony capitalists hate free markets, with all the fairness and transparency that they imply. Competition is a serious drag on enormous profits and introduces significant uncertainty and risk.

Gold Daily and Silver Weekly Charts - Up Against Resistance

"The secret of great fortunes without apparent cause is a crime forgotten, forgotten because it was properly done."

Honoré de Balzac
Keep an eye on the silver market, and on any expansion of the Sprott Silver Trust that may suck up more scarce deliverable silver of bullion quality.

The risks in all markets remain unusually large.

SP 500 and NDX Futures Daily Charts - Crouching Tiger, Hidden Dragon

“Our problems stem from our acceptance of this filthy, rotten system...People say, 'what is the sense of our small effort?' They cannot see that we must lay one brick at a time, take one step at a time. A pebble cast into a pond causes ripples that spread in all directions. Each one of our thoughts, words and deeds is like that. No one has a right to sit down and feel hopeless. There is too

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

The number of shares outstanding in the Sprott Silver Trust have been reduced slightly. The cash levels in that fund are very low. A new tranche of units from their shelf is indicated.

I would be quite surprised if plans are not underway, with the sticking point being the negotiation for large quantities of silver available for delivery at these prices in some reasonable timeframe.

MF Global Sold Assets to Goldman While It Was Looting Their Customer Accounts

It turns out that MF Global sold hundred of millions in assets to Goldman in the last two business days before its bankruptcy. It is not clear that MF Global actually received the payment for the sale, or if the funds were held by their clearing agent and banker, JP Morgan, who knew that they were going to be bankrupt.

That revolving line of credit at JPM of $1.2 Billion is about the size of

Gold Daily and Silver Weekly Charts - Big Rally From Year End Mark-To-Market Boogie Woogie

It appears that the theory that the big shorts were slamming down gold and silver into the year end *might* be valid, given the huge rally today.

But it is too soon to say for sure. I have drawn a short term downtrend line on the gold chart that is a 'must take' for the bulls.

If they can take it out, that's a nice bull flag there on the chart that gets activated.

Non-Farm Payrolls report

SP 500 and NDX Futures Daily Charts - Pop Go the Weasels

Market popped with a big gap open and then chopped around finishing slightly lower than the open on the day, but still significantly higher on light volume. If you were long coming in to today you could make money.

The Non-Farm Payrolls for December is on Friday and there is another Europe meeting on the 9th so these events may cap a new rally until they unfold.

The Fed announced a new '

Net Asset Value Premiums of Certain Precious Metal Trusts and Funds

Corrections In The Gold Bull Market

Here is an excellent review of the corrections in this gold bull market by my friend Brian at ContraryInvestor.com.