Markets Drifting in Cruise Control Until Tonight
Folks,
The markets are apt to be calm until after President Obama speaks before Congress tonight. He has lost most of those who voted for him in the last election as his ratings show. In the speech tonight, he will do his very best to recover some of his ex-supporters by promising any and everything that he believes will be to his best interest. It will be the campaign all over again.
His proposed freeze on spending will be a hot topic, but is more than likely another farce. From our perspective any freeze would be welcomed, but don't expect too much from this "new" promise.
He will brag that the bailouts, subsidies, and take over of businesses has been responsible for the "end" to the recession/depression and beginning of the recovery. As he brags, think of the unemployment which has accelerated. How can there be a recovery without a substantial increase in employment? In fact, it is likely that the extensions of unemployment benefits has caused increases in unemployment. Why work, when you can get paid not to work?
Any new jobs created have been in government and in lower paying jobs, since most of the higher paying jobs have been lost to America along with the mining and manufacturing. Many of our industries, including the auto manufacturing, have gone overseas. China is capturing a great deal of the auto industry as this is written. Outsources of telephone service of many businesses has gone to Asia as we can all testify as we seek help with computers, etc.
There is a great deal of talk and actual movement toward increasing taxes on businesses and higher income families. When you hear this, realize that this will increase unemployment even more. The non-government owned businesses are suffering from regulation and taxation now. Adding to the burden of operating businesses will make it more difficult to earn profit. Profit is what enables businesses to improve their products through research and development and expansion which means more employees.
Our America is facing the prospect of losing the great advantage of controlling the reserve currency of the world. This is a great advantage, but there is a growing opposition to this by many in the international markets. I believe that international pressure will lead to a basket of currencies as the reserve currency. Were that to happen, the dollar would have greatly less purchasing power.
Meanwhile, the Federal Government and Federal Reserve continue to do whatever is necessary to keep the U.S. artificially afloat. That means inflating the currency and continuing the stimuli which have done nothing except to prop up failed insurance, banks, and businesses without helping the unemployment situation in the least.
Meanwhile, back in the markets, they will be drifting along until after Obama speaks tonight.
Both gold and silver have taken it in the neck this week. Yesterday there was significant intervention. Look at gold, below.
From Ed Steer's Daily Gold and Silver Report: "As per usual, JPMorgan absolutely bushwhacked silver. Silver followed gold down, but at an accelerated rate. From it's approximate high of $17.24 spot early in Hong Kong trading Tuesday morning, it was down exactly 40 cents by the time that trading began on the Comex. JPMorgan et al pulled their bids at that instant... and the technical funds found themselves dumping their long contracts into a black hole... and the price cratered. By the time the bloodbath was over at 9:15 a.m... silver had shed another 50 cents to its low of the day... which was $16.32 spot.
A more blatant example of price management is just not possible. Yesterday's silver graph should go down in the history books. But the CFTC pretends that everything's fine. Well, everything's not fine. Everyone at the CFTC should be in jail for dereliction of duty. What are U.S. taxpayers funds doing paying for an organization that will allow a robbery like this to occur in broad daylight... and right under their noses to boot?
Anyway, silver gained all it's New York losses back within the next couple of hours... and the chart headed sideways for the rest of the day.. but the technical damage to the downside had already been done."
Once again, we have seen what the deep pockets with the government help and backing by the Federal Reserve can do to punish the individual investor. They have the might to accomplish this intervention at will. Since it is optional for them and with the advantage they have, they can do what they want to the markets. It is up to us to learn to play the game in concert with their activities.
From Investors' Digest of Canada: John Embrey's Article "Expect Gold to Gain More Than 30% This Year" can be found HERE. This is a good read.
From ResourceInvestor.com:
Financial elite's behavior opens floodgates for gold
In spite of philosophical differences in many areas of politics and economics, Ron Paul and Simon Johnson agree that the cosiness that exists between the U. S. Congress and the financial elite has not worked, and is not working, in the best interest of the average American. They both suggest that major changes must be made in that relationship to strengthen the American economy. Is it too late, however, to avoid the repercussions of an even weaker greenback, rising inflation and the opening of the floodgates in the price of all investments related to gold and silver? Read it HERE.
From Yahoo.com an interview with the President of HK Turnaround on ABC News: View the video of predictions and analysis of the fixes by central banks HERE. This is a very valuable read and informative for your financial health.
From UncommonWisdom.com:
The markets are apt to be calm until after President Obama speaks before Congress tonight. He has lost most of those who voted for him in the last election as his ratings show. In the speech tonight, he will do his very best to recover some of his ex-supporters by promising any and everything that he believes will be to his best interest. It will be the campaign all over again.
His proposed freeze on spending will be a hot topic, but is more than likely another farce. From our perspective any freeze would be welcomed, but don't expect too much from this "new" promise.
He will brag that the bailouts, subsidies, and take over of businesses has been responsible for the "end" to the recession/depression and beginning of the recovery. As he brags, think of the unemployment which has accelerated. How can there be a recovery without a substantial increase in employment? In fact, it is likely that the extensions of unemployment benefits has caused increases in unemployment. Why work, when you can get paid not to work?
Any new jobs created have been in government and in lower paying jobs, since most of the higher paying jobs have been lost to America along with the mining and manufacturing. Many of our industries, including the auto manufacturing, have gone overseas. China is capturing a great deal of the auto industry as this is written. Outsources of telephone service of many businesses has gone to Asia as we can all testify as we seek help with computers, etc.
There is a great deal of talk and actual movement toward increasing taxes on businesses and higher income families. When you hear this, realize that this will increase unemployment even more. The non-government owned businesses are suffering from regulation and taxation now. Adding to the burden of operating businesses will make it more difficult to earn profit. Profit is what enables businesses to improve their products through research and development and expansion which means more employees.
Our America is facing the prospect of losing the great advantage of controlling the reserve currency of the world. This is a great advantage, but there is a growing opposition to this by many in the international markets. I believe that international pressure will lead to a basket of currencies as the reserve currency. Were that to happen, the dollar would have greatly less purchasing power.
Meanwhile, the Federal Government and Federal Reserve continue to do whatever is necessary to keep the U.S. artificially afloat. That means inflating the currency and continuing the stimuli which have done nothing except to prop up failed insurance, banks, and businesses without helping the unemployment situation in the least.
Meanwhile, back in the markets, they will be drifting along until after Obama speaks tonight.
Both gold and silver have taken it in the neck this week. Yesterday there was significant intervention. Look at gold, below.
From Ed Steer's Daily Gold and Silver Report: "As per usual, JPMorgan absolutely bushwhacked silver. Silver followed gold down, but at an accelerated rate. From it's approximate high of $17.24 spot early in Hong Kong trading Tuesday morning, it was down exactly 40 cents by the time that trading began on the Comex. JPMorgan et al pulled their bids at that instant... and the technical funds found themselves dumping their long contracts into a black hole... and the price cratered. By the time the bloodbath was over at 9:15 a.m... silver had shed another 50 cents to its low of the day... which was $16.32 spot.
A more blatant example of price management is just not possible. Yesterday's silver graph should go down in the history books. But the CFTC pretends that everything's fine. Well, everything's not fine. Everyone at the CFTC should be in jail for dereliction of duty. What are U.S. taxpayers funds doing paying for an organization that will allow a robbery like this to occur in broad daylight... and right under their noses to boot?
Anyway, silver gained all it's New York losses back within the next couple of hours... and the chart headed sideways for the rest of the day.. but the technical damage to the downside had already been done."
Once again, we have seen what the deep pockets with the government help and backing by the Federal Reserve can do to punish the individual investor. They have the might to accomplish this intervention at will. Since it is optional for them and with the advantage they have, they can do what they want to the markets. It is up to us to learn to play the game in concert with their activities.From Investors' Digest of Canada: John Embrey's Article "Expect Gold to Gain More Than 30% This Year" can be found HERE. This is a good read.
From ResourceInvestor.com:
Financial elite's behavior opens floodgates for gold
In spite of philosophical differences in many areas of politics and economics, Ron Paul and Simon Johnson agree that the cosiness that exists between the U. S. Congress and the financial elite has not worked, and is not working, in the best interest of the average American. They both suggest that major changes must be made in that relationship to strengthen the American economy. Is it too late, however, to avoid the repercussions of an even weaker greenback, rising inflation and the opening of the floodgates in the price of all investments related to gold and silver? Read it HERE.
From Yahoo.com an interview with the President of HK Turnaround on ABC News: View the video of predictions and analysis of the fixes by central banks HERE. This is a very valuable read and informative for your financial health.
From UncommonWisdom.com:
Asian Automakers Are in the Driver’s Seat
The funeral list of industries that have dared to compete against low-cost Asian competitors is long and getting longer. Just ask anybody in the textile, furniture, footwear, electronics, steel, clothing, or TV industry.You'll be able to add the automobile business to that list in the near future.
According to automaker watchdog Autodata Corp., Asian automakers now own 47.4% of the global auto market while the General Motors, Ford, and Chrysler have seen their market share shrink to 44.9%.
To put that in historical perspective, the Asian automakers only had 18% of the car market and the Big Three American car makers hogged more than 75% of the market in 1980. Read it HERE.
From Walter E Williams in TownHall.com:
We Need Diversity
Walter Williams is always a good read. In this article he talks about the deceit of diversity in colleges and universities and points out the problems of diversity when taken to the extreme. Read it HERE.
Here are the miners from Scottrade:
Here are the currencies from Kitco.com:
Some prices: FVITF 2.17; BYDDF 6.85; HL 5.00 (All three of these stocks are in a decent buying range, particularly if you are not aboard already. I added to HL around 5 yesterday.); Silver 16.55; Gold 1092.40; DOW off 36 to 10157.
Best to each, Doug
posted by Doug @ 8:37 AM
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