26 July 2017

Thinking Like An Economist

Most economists have to significantly reduce the complexity and finer details of the economy through a set of reality crushing assumptions in order to make their models work coherently. See the artist's depiction of how an economist thinks below.

Then again, the really harmful economists are relatively unconstrained by reality in the first place, and can freely draw their conclusions and make policy recommendations basic on gnostic wisdom received from the ascended masters of malarkey.

This has given rise to priori based models, spawned by well-funded think tanks and other hired servants of Big Money, about the way markets work.   They are notably evidenced only in an incorporeal universe of the economist's fevered imagination, and have been rarely seen in the real world despite herculean attempts to erect an homage to that particular madness out of well-tortured statistical bones, eg. the efficient markets hypothesis, free trade, and supply side economics.

As a rule of thumb, the more arrogant the economist states their revelations, and the more reliant they are on jargon and assumptions that crush reality like intellectual black holes, the less room there is likely to be between their hat and their ass.

Housing Bubble 2.0: Making America More Unstable, Again

With low inflation and continuing stagnation in median wages another housing bubble is just what the doctor ordered as a cure for the last financial crisis, caused in part by the rampant financial fraud associated with Housing Bubble 1.0.

And it looks like we have yet another tech stock bubble well underway.

Meanwhile the public is distracted by the corporate media's endless coverage of clown car antics and foreign plots to pollute our precious bodily fluids.

Well done, elites, well done.

And no one could have seen it coming, again.

25 July 2017

FOMC Decision and Comex Option Expiration For Precious Metals Tomorrow - Beware the Leaven of the Pharisees

"Beware the leaven of the Pharisees, which is pious, hollow hypocrisy. There is nothing covered that shall not be revealed, and hidden, that shall not be made known. Whatever has been said in the darkness shall be heard in the light: and what has been whispered behind closed doors shall be shouted from the roof tops."

Luke 12:1-3

“Those among the fortunate rich who are not, in the rigorous sense, damned, can understand the neediness of poverty, because they are needy themselves, after a fashion;  but they cannot understand true impoverishment.

Capable of giving alms, perhaps, but incapable of stripping themselves bare, they will be moved to the sound of beautiful music, at Jesus’s sufferings—  but His Cross, the reality of the self-denial of His Cross, will horrify them.  For they want it all out of gold, bathed in light, costly and of little weight; pleasant to see, and hanging from a beautiful woman's throat.”

Léon Bloy

The charts are still pretty much lined up in areas where one might expect to see some movement when volatility returns to the markets.

The option expiry tomorrow is more significant for gold than silver.

Have a pleasant evening.

23 July 2017

Stocks and Precious Metals Charts For the Week Ending 21 July - No Fear

"He who sows good seed is the Son of Man,
the field is the world, the good seed the children of the kingdom.
The weeds are the children of the evil one,
and the enemy who sows them is the devil.

The harvest is the end of the age, and the harvesters are angels.
Just as weeds are collected and burned up with fire,
so will it be at the end of the age.
The Son of Man will send his angels,
and they will collect out of his kingdom
all who cause others to sin and all evildoers."

Matthew 13:30-41

"No place so sacred from such fops is barred,
Nor is Paul's church more safe than Paul's churchyard:
Nay, fly to altars; there they'll talk you dead:
For fools rush in where angels fear to tread."

Alexander Pope, Essay on Criticism

In a way I am glad that I am so caught up in my long vigil of duty and love.  It lightens my exposure to the barking tangerine, and the ever more brazen offenses of the despicables, while putting all things into a much better perspective.

This too shall pass, and perhaps more quickly than we, and the wealthy and powerful of the world, can imagine.

See you next week.