Friday, June 24, 2011

Another Tough Week for Stocks, Gold, Silver

Even though the prior week was the first winner in seven weeks for the Dow, persistent problems with the basic functioning of the global economic system pushed stocks to another down week as Thursday and Friday wiped out gains from the previous three days.

For the record, the Dow has closed lower in seven of the last eight weeks, this week ending 70 points lower than where it ended last Friday.

To the untrained eye, this is nothing more than a pull-back from some lofty highs set in early May that have been taken out by sell-side speculators. To anyone even remotely astute on economic matters, these past eight weeks have reeked of desperation from political bodies, central banks and equity pushers who know, deep in their heart of hearts, that the reign of fiat money - based on nothing but debt, promises and more debt - is nearing an end and a return to some kind of rational standard (like gold or silver or both) is the only alternative.

The overt proponents of the fiat system such as the IMF, World Bank and central banks in countries around the world simply continue doling out bailouts, first to banks, now to sovereign nations, such as Greece and Ireland in recent months.

As amusing as it may sound, these bailouts do nothing but more harm on the populations of the nations in question, but the most egregious abuses of money come from the global leader, the United States of America, which has broken all rules in attempting to paper over the abject defaults of the nations' largest banks, which collapsed in the fall of 2008.

After spending tens of trillions of dollars bailing out not only US financial institutions, but also those of other countries, the Federal Reserve has become the worst-managed, most indolent bank on the planet. They've directed funds from all manner of mysterious sources to overseas banks and nations, and have done so without the benefit of any oversight or audit. Eventually, they will come to ruin, and with it, the entire planet will suffer though one of the worst and longest depressions in history, possibly the worst ever.

It's gotten well past the point of thinking that politicians or Fed officials actually have any kind of solution; they just keep trying the same tired polices in hope that some confidence will be put back into the system, at a time when confidence has all but run out.

The only question that remains is how long before the entire fiasco is blown up via either war, outright default or some unknown source of paper money destruction. The situation is surely not helped one bit by the Republicans in the House walking out on budget negotiations - which they did yesterday - directly before a scheduled US default looms in the first week of August.

It was previously thought that raising the debt ceiling would be a slam dunk, though now even that looks dicey, and there are some who are hoping the US does default on its debt, though the consequences will be severe for most people, including those very politicians who refuse to take seriously the jobs they were elected to do.

As such, we, as a nation, slog along though the summer, hoping against hope that we will be saved, though the situation becomes more grim, more unsettled, more agitated with every passing day. The government is already "borrowing" from retirement funds of federal employees. In the case of a default (which may be all part of the master plan), those funds would be irretrievable, lost forever, crushing the hopes and dreams of millions. The cascading effect would be even more severe.

We are doomed thanks to the elite bankers and politicians in Washington.

Dow 11,934.58, -115.42 (0.96%)
NASDAQ 2,652.89, -33.86 (1.26%)
S&P 500 1,268.45, -15.05 (1.17%)
NYSE Composite 7,974.72, -79.36 (0.99%)

Declining issues toppled advancers once again, 4033-2507. There were 61 new highs and 52 new lows on the NASDAQ, while the NYSE recorded 49 new highs and 38 new lows. The combined figure was again in favor of the new highs, 110-90, a narrow win, but somewhat befuddling, considering the depth of the losses on the various indices. Volume was literally off the charts, more than double the norm on the NASDAQ and the highest of the year on the NYSE. There was obvious manipulation being done behind the curtains. That is the only explanation for such high volume, yet more new highs than new lows. The level of deceit by Wall Street and their friends in Washington is spectacular and actually quite frightening. We have entered an era of outright lies when it comes to all matters financial, and probably everything else, as well.

NASDAQ Volume 4,036,700,250
NYSE Volume 5,339,107,000

Oil was relatively stable, gaining only 14 cents, to close out the week at $91.16, the lowest close in three months. The usual raids were done on the precious metals, however, with gold being abused, down another $18.40, to $1502.30 and silver down 99 cents, to $34.32. As usual, in the minds of the political and banking elite, high oil and gas prices are just fine, but gold and silver must be destroyed at all costs.

It's simply insanity. Have a great weekend.

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