Thoughts on Markets

Monday, November 10, 2008

Remember Veterans Day!

Silver is currently up to 10.39, but the graph, above, looks rather ominously similar to graphs we have been seeing each day. That is, upward until the NY markets get going. Then the cap is put on and the precious metals are pushed back down.
On the, above, graph of gold, we can see the beginning of a down turn similar to those of the past. However, gold did streak above 765 earlier this morning just before the opening in NY. This is typical of intervention. It is testimony to the magnitude of the manipulation of these particular markets. This is very strange in view of the severe shortage in physical precious metals. We should pray for an end to this covert action. Gold is currently 753, and remarkably, it is above the perceived 750 cap. Are they now allowing it to go to a higher cap? I doubt it, but that would be nice for us.

With very few exceptions the mining stocks and bullion trusts are up today. My trading stock of DROOY is currently 4.00, GLD 74.30, CEF 9.49, HMY (lagging a bit) 7.01, IAG 3.67, KGC 13.40, PAAS 13.73, SSRI 10.41, VGZ 1.24. All are up today for a welcome change. Long term, we could see them down, but in the long run, the flood of paper currencies created out of thin air will drive them strongly upward.

From The Daily Pfennig this morning:

"Well... We might as well get right into this... I'm sure you heard that the Jobs Jamboree was awful on Friday. UGH! Jobs are dropping like the temperatures outside, and there doesn't seem to be anything to stop them from dropping either! For the record... October's jobs losses were worse than expected (-200K) and came in at -240K... OUCH! But the real kicker, something the mass media might not have covered, was found in the September revision... Recall that September's Jobs data showed a negative -159K... Well, that number was revised to -284K! Double OUCH!

I would have to think, given the size of the Sept. revision, that October's -240K will be revised to near 300K... The job losses are beginning to accelerate folks, and that's a spiral that's difficult to come out of. And as far as these revisions are concerned... That's a fact of life in a slowing economy... You see, it's all based on Past Performance, and there's no way the models they use can adjust to this, and therefore they have to wait for the "hard evidence" to show up... Maybe they could use different models? Yeah, right... They might do that right after they get rid of their "inflation expectations" ..."

Here is some weird news from the same source:

"We used to have a local newspaper that would carry a weekly article called, "news of the weird", and as you can imagine the articles would be quite entertaining... Well... The reason I bring this up, is, I was reading an article on Friday, and it reminded me of "news of the weird"...

Here goes... Michael Alix, chief risk officer at Bear Stearns from 2006 until its demise in March, was named senior vice president in the Bank Supervision Group of the New York Fed on Oct. 31.

OK... I could just leave that one alone... Or... I could rip the Fed for hiring the guy who was the watchdog over risk at Bear Stearns... To do just that for the Fed! I mean come on! Shouldn't this guy have just slipped off quietly? But, to his credit, the Fed thought enough of his abilities to hire him... I just have to question, what the heck is going on at the Fed! We all know that the Fed's balance sheet is growing bigger all the time with "risky assets", and they need someone to manage that risk... And they picked the guy from Bear Stearns, the now defunct Bear Stearns...Now, was that "news of the weird" or what?"

There was big news from across the Western Pond over the weekend. It seems that China is spending some 4 Trillion Renmimbi to offset the contraction world wide and give their people some stimulus for spending in the economy. The real news is that China can afford it without any borrowing. What a difference a trade surplus makes in the coffers of the nation with this benefit. We must borrow every cent we use for stimulus or to bail out failing and failed businesses, but they simply take the funds from that which is firmly on hand.

Tomorrow is Veterans Day! It is a time to remember all veterans, but in particular those of WWII. That group of young men gave up a great deal for us. It was a great generation of caring and sacrifice. God was often honored with worship services at home and on the battle field. One was free to proclaim the Sovereign Ruler of all and to pray even in government schools and buildings. Both Easter and Christmas were celebrated throughout the nation and certainly on the battle fields as service men had opportunity. Many service men and even women, who worked as nurses and in administrative areas behind the battle lines, sacrificed their lives for our freedom.

I was late and only served in the last few months of the occupation of Germany after the war. It was a privilege to serve with many who had been in the heat of the battles for years. I met many sound Christian men and was encouraged and challenged by them. Several of them were particularly significant to my growth and subsequent service.

It is amazing that God gave us such a generation of young people who were vitally needed. The folks at home were real participants in the war as workers in the war supply plants and the brave women who kept the home fires burning while their husbands were in the heat of battles worldwide. We must not forget their sacrifices, as well.

To our shame, it is more amazing that we, as a nation, have attempted to shut this God out of homes, schools, businesses, and communities. Individuals and nations which turn their backs on the one true God will reap His wrath in judgment. He has a great deal of patience, but will not withhold His wrath forever. We must look back and see how in 70 AD He completely destroyed His created nation of Israel forever and passed the banner of Scripture from them to His Church of today. However, even many churches are falling short of the mission which God has entrusted to them. This is the greatest shame of all.

Blessed is the nation whose God is the Lord! Let us again return to the Sovereign God of all, seek His forgiveness, follow His way, and earnestly seek His blessings. Until, we Christians do this, He will withhold blessings from America.

Best to each, Doug

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