WEEKEND WRAP: Celebrating Labor or Servitude?

“If ye love wealth better than liberty, the tranquility of servitude better than the animating contest of freedom, go home from us in peace. We ask not your counsels or arms. Crouch down and lick the hands which feed you. May your chains set lightly upon you, and may posterity forget that ye were our countrymen.” -- Samuel Adams

Samuel Adams thus phrased his passionate appeal to the American people to reject British rule and to defend their freedoms, in a speech to the Second Continental Congress on August 1, 1776, from the steps of the State House in Philadelphia. Pennsylvania, in the midst of the American Revolution, as Congress debated independence.

How far have we come?

On Monday, September 7, Labor Day will be celebrated across the United States. There will be parades and picnics, beer and hot dogs, and a day off for most Americans who toil for a living.

Before it was a federal holiday, Labor Day was recognized by labor activists and individual states. After municipal ordinances were passed in 1885 and 1886, a movement developed to secure state legislation. New York was the first state to introduce a bill, but Oregon was the first to pass a law recognizing Labor Day, on February 21, 1887. During 1887, four more states – Colorado, Massachusetts, New Jersey and New York – passed laws creating a Labor Day holiday. By the end of the decade Connecticut, Nebraska and Pennsylvania had followed suit. By 1894, 23 more states had adopted the holiday, and on June 28, 1894, Congress passed an act making the first Monday in September of each year a legal holiday.

-- History of Labor Day, U.S. Department of Labor

Some lucky people will get paid for the day off. A paid holiday, how nice. And the government will tax their wages and tax the wages of everybody on Tuesday, Wednesday, every day. You work. The government takes a cut. Is it prostitution or slavery? No matter how it's defined taxing labor is probably unconstitutional, illegal, and the 16th amendment, which codified the income tax into law, possibly was never properly ratified by a 3/4ths majority of states and the United States congress.

Do a little research. There are plenty of sources out there. Here's a good place to start:

The Law That Never Was - Bill Benson's 1985 book about income tax and the 16th amendment.

The problem is that the Supreme Court has ruled against all arguments that the income tax is void, unconstitutional or otherwise illegal on numerous occasions. Basically, like it or lump it, Americans are stuck with it. The income tax and payroll taxes are a constant and not-so-subtle reminder of who's in charge in the United States of America.

You work, the government taxes you, spends even more than they collect on things you never voted for, and sends you the bill.

The chains of which Samuel Adams spoke some 250 years ago have not set so lightly.

Stocks

For the week, stocks ended up essentially a draw. The Dow was down, the S&P, NASDAQ, and NYSE Composite up, but only marginally. The big mover was the Dow Jones Transportation Average, which slid 1.72%.

It was fitting that summer trading ended with a dull week and a down Friday. Since June 18, the NASDAQ broke even, the Dow and S&P up three to four percent. It's been a slog. With the big traders getting back to their desks on Tuesday, along with the House and Senate, there is likely to be a considerable amount of volatility as there are many plates still spinning.

The situation in the Middle East is far from being resolved, the midterms are less than two months hence, oil has spiked to hihger levels and gas prices are near the highest they've been since the beginning of June. Inflation, especially at the retail level, remains a problem, and the decision to raise or lower or stand pat on interest rates will be decided at the next FOMC meeting on September 15-16. Readings on August PPI and CPI will be in focus Thursday and Friday, respectively.

It's a shortened trading week. The biggest moves will be made late unless there are deviants front-running the data.

Relevant data releases can be found at Trading View.

Treasury Yield Curve Rates

Date	1 Mo	1.5 mo	2 Mo	3 Mo	4 Mo	6 Mo	1 Yr
07/31/2026	3.78	3.80	3.85	3.83	3.92	3.98	4.08
08/07/2026	3.79	3.79	3.83	3.87	3.89	3.96	4.01
08/14/2026	3.79	3.80	3.81	3.86	3.88	3.95	3.98
08/21/2026	3.80	3.77	3.80	3.88	3.90	3.95	4.03
08/28/2026	3.84	3.83	3.86	3.90	3.94	4.02	4.15
09/04/2026	3.79	3.83	3.90	3.91	4.00	3.98	4.13

Date	2 Yr	3 Yr	5 Yr	7 Yr	10 Yr	20 Yr	30 Yr
07/31/2026	4.28	4.34	4.45	4.59	4.75	5.28	5.27
08/07/2026	4.19	4.25	4.35	4.49	4.65	5.20	5.19
08/14/2026	4.17	4.24	4.36	4.51	4.68	5.25	5.25
08/21/2026	4.24	4.31	4.43	4.57	4.74	5.25	5.27
08/28/2026	4.34	4.41	4.48	4.59	4.73	5.21	5.22
09/04/2026	4.37	4.45	4.54	4.65	4.78	5.25	5.24

Spreads remain elevated, with 2s-10s at +41 and full spectrum +145, but slightly down from the prior three weeks. Bessent's version of "operation twist" seems to be having at least limited success, for now. It appears to be something along the lines of a Broadway show that gets fair reviews upon opening, but fails to last, closing down after only a couple of months of performances. The actors go back to window washing and bartending jobs.

Bessent will be taking a back seat to Fed Chair Warsh as the September 15-16 FOMC meeting approaches. It's still more than a week off, but time will pass quickly with this week only four days. Plenty of which to look forward.

Credit risk is elevated and becoming troublesome around the world, especially in European and UK government issues. Doug Noland explains.

There seems to be a lot of background noise being generated out of the bond markets, but the signal is as yet unclear. Credit markets look a lot like ammo dumps waiting for a fuse to be lit. Things could get dicey soon, or else, Bessent and the slavish bond traders will see clear until the midterms. There's no general consensus other than "nobody knows for sure."

Spreads:

2s-10s
2026
1/2: +72
1/9: +64
1/16: +65
1/23: +64
1/30: +74
2/6: +72
2/13: +64
2/20: +60
2/27: +59
3/6: +59
3/13: +55
3/20: +51
3/27: +56
4/3: +51
4/10: +50
4/17: +55
4/24: +53
5/1: +51
5/8: +48
5/15: +50
5/22: +43
5/29: +47
6/5: +38
6/12: +37
6/18: +27
6/26: +31
7/2: +35
7/10: +35
7/17: +37
7/24: +36
7/31: +47
8/7: +46
8/14: +51
8/21: +50
8/28: +39
9/4: +41

Full Spectrum (30-days - 30-years)
2026
1/2: +114
1/9: +112
1/16: +108
1/23: +104
1/30: +115
2/6: +113
2/13: +97
2/20: +100
2/27: +90
3/6: +102
3/13: +115
3/20: +123
3/27: +124
4/3: +120
4/10: +124
4/17: +119
4/24: +122
5/1: +126
5/8: +124
5/15: +141
5/22: +135
5/29: +127
6/5: +130
6/12: +128
6/18: +121
6/26: +117
7/2: +128
7/10: +135
7/17: +133
7/24: +136
7/31: +149
8/7: +140
8/14: +146
8/21: +147
8/28: +138
9/4: +145

Oil/Gas

With the situation in the Middle East reheating, oil moved to a higher level over the past couple of weeks. WTI crude futures closed out the week at $91.22, the price of crude rising steadily since August 26. Other than a spike in mid-July, oil prices are at their highest levels in three months.

Average price for a gallon of unleaded regular gasoline in the U.S. was $4.03 last week and $4.11 this week, rising to the highest Sunday price in three months. Peace prospects in the Middle East continue to be pursued, oil flows improving, but not sufficiently enough to lower global pricing.

Gas prices in key states:

California (leader): $5.84 (+0.19)
Washington: $5.48 (+0.24)
Indiana: $3.43 (lowest) (+0.05)
Oklahoma: $3.64 (0.00)
Louisiana: $3.74 (+0.09)
Mississippi: $3.70 (+0.11)
Florida: $3.89 (+0.04)
Illinois: $4.24 (-0.13)
Pennsylvania: $4.27 (+0.06)
New York: $4.28 (+0.11)
Maryland: $4.00 (+0.09)
Michigan: $4.00 (-0.15)
Texas: $3.65 (+0.08)
Georgia: $3.86 (+0.13)

On Sunday, September 6, there are twenty-four (24) states with average prices at or above $4.00, with twenty-four (24) below the $4 threshold, not including Hawaii ($5.35) and Alaska ($5.02), with two above $5 (California and Washington). The Southeast has maintained as the lowest region overall over the past 12 weeks as a gallon of unleaded regular is averaging below $4.00 ($3.64-3.86) in places like Tennessee, Alabama, Arkansas, Georgia, Texas, and Mississippi, with the Midwest region second, prices ranging from $3.74 to $3.97. Exceptions include Florida in the Southeast and Michigan, Wisconsin, and Illinois in the Midwest. Prices in the Northeast rose steadily this week, with all states, from Delaware and Maryland all the way to Maine, averaging above $4.00. Gas prices overall were higher in nearly every state on the mainland.

Bitcoin

This week: $79,607.76
Last week: $78,862.44
2 weeks ago: $77,297.70
6 months ago: $68,099.83
One year ago: $110,083.63
Five years ago: $45,164.73

Despite the dramatic rise in crypto over the past few weeks, Bitcoin, and the rest of the nebulous "currencies", are still crap, only useful to criminals and governments (same thing) and for speculation.

Precious Metals

Gold:Silver Ratio: 66.91; last week: 67.14

Futures, per COMEX continuous contracts:

Gold price 8/7: $4,401.30
Gold price 8/14: $4,432.00
Gold price 8/21: $4,661.60
Gold price 8/28: $4,504.10
Gold price 9/4: $4,477.20

Silver price 8/7: $63.80
Silver price 8/14: $64.82
Silver price 8/21: $69.01
Silver price 8/28: $67.09
Silver price 9/4: $66.82

SPOT: (stockcharts.com)
Gold 8/7: $4,340.72
Gold 8/14: $4,375.15
Gold 8/21: $4,609.49
Gold 8/28: $4,454.08
Gold 9/4: $4,429.45

Silver 8/7: $63.56
Silver 8/14: $64.68
Silver 8/21: $68.96
Silver 8/28: $66.34
Silver: 9/4: $66.20

Precious metals have taken a breather the past few weeks, but so have stocks and fixed income, so no harm, no foul. As events heat up, there's likely to be some movement in gold and silver, though directionally, there's no real signal. Could be up or down. The good news is that even if gold and silver suffer some setbacks, the rebounds will be solid through the end of the year and beyond.

Keep stacking, holding, and hoping for the best. China, India, Russia, Turkey, and Dubai are the new price setters. American buyers have shown a reluctance to accept COMEX pricing as reliable. Premia remains high on both gold and silver. The GSR and SOSMPB (below) suggest buying silver at this point.

Here are the most recent prices for common one ounce gold and silver items sold on eBay (free shipping included, numismatics excluded):

Item/Price	Low	High	Average	Median
1 oz silver coin:	67.56	83.95	75.91	76.56
1 oz silver bar:	72.00	87.35	77.56	76.86
1 oz gold coin:	4579.32	4780.20	4660.00	4646.18
1 oz gold bar:	4606.91	4749.89	4648.48	4643.71

Ending five weeks of advances, the Single Ounce Silver Market Price Benchmark (SOSMPB) lost ground, closing out at $76.72, a decline of $2.01 per troy ounce from the August 30 price of $78.73.

WEEKEND WRAP

Hope you're enjoying your Labor Day weekend. Back to work Tuesday. people.

At the Close, Friday, September 4, 2026:
Dow: 53,414.25, -271.85 (-0.51%)
NASDAQ: 26,506.99, -77.11 (-0.29%)
S&P 500: 7,718.60, -29.11 (-0.38%)
NYSE Composite: 24,639.25, -80.95 (-0.33%)

For the Week:
Dow: -145.74 (-0.27%)
NASDAQ: +105.47 (+0.40%)
S&P 500: +6.84 (+0.09%)
NYSE Composite: +54.07 (+0.22%)
Dow Transports: -367.02 (-1.72%)

Disclaimer: Information disseminated on this site should not be construed as investment advice. Downtown Magazine Inc., Money Daily and it's owners, affiliates and/or employees are not investment advisors and do not offer specific investment advice. All investments have risk. You should consult a professional investment advisor or stock broker or use your individual judgement when making investment decisions. By viewing this site, you hold harmless Downtown Magazine Inc., Money Daily, its owners, affiliates and employees against any and all liability. Copyright 2026, Downtown Magazine Inc., all rights reserved.

BLS Says 162,000 Jobs Were Created in August, Mostly Teachers, Waiters, and Bartenders; Gas Prices Higher; Government Economics a Sham

Just because Fed Chairman Kevin Warsh is adamant about the central bank not giving forward guidance on its policies, his tight-lipped approach doesn't necessarily apply to the people surrounding him.

On Thursday, Fed governor Christopher Waller spilled the beans, remarking that he would be inclined to keep interest rates on hold at the September FOMC meeting if the data showed inflation was cooling.

That got Wall Street's hopes up and sent stocks soaring.

Friday morning's Non-farm Payrolls for August might have thrown some shade on those prospects, as the BLS reported strong job gains in August.

Total nonfarm payroll employment increased by 162,000 in August, and the unemployment rate was unchanged at 4.1 percent, the U.S. Bureau of Labor Statistics reported today. Employment increased in food services and drinking places and in local government education. The information industry lost jobs.

Teachers are back on the job and restaurants and juke joints are hiring. Makes perfect sense, except that teachers jobs almost always increase in august and September and there's conflicting data showing that more and more people can't afford dining out or binging at their local clubs.

The news from the BLS sent stock futures screaming lower along with precious metals. Spot silver dropped to as low as $64.79. Gold dropped by more than $100, before rebounding slightly to around $4,380.

This, of course, is all nonsense. All markets are rigged by entities behind the scenes, mostly tentacles of the U.S. government, which continues to try desperately to keep the dollar the world's reserve currency, when everybody knows it is nothing more than paper backed by empty promises.

Inflation isn't going away. Gas at the pump stands at a national average of $4.12 per gallon. Employment has been stagnant since 2021. The BLS will revise it's monthly figures, as it did with June and July:

The change in total nonfarm payroll employment for June was revised up by 11,000, from +20,000 to +31,000, and the change for July was revised up by 44,000, from -23,000 to +21,000. With these revisions, employment in June and July combined is 55,000 higher than previously reported.

The government just lies about everything in order to keep you working, paying taxes, contributing your labor to Social Security and Medicare black holes, all along running budget deficits of $2 trillion a year.

Not to be too blunt about it, but the U.S. economy is a sham, the stock market entirely broken and the American people are wage and tax slaves living in an open air plantation, given just enough food and pleasure (bread and circuses, as in ancient Rome) to keep them happy.

The government is bankrupt. So is the Federal Reserve.

Have a nice weekend. Monday is Labor Day.

At the Close, Thursday, September 3, 2026:
Dow: 53,686.11, +624.16 (+1.18%)
NASDAQ: 26,584.06, +366.23 (+1.40%)
S&P 500: 7,747.71, +81.11 (+1.06%)
NYSE Composite: 24,720.15, +224.60 (+0.92%)

Markets Jumpy as Mideast Escalation Drive Oil Prices Higher; Yen Suddenly Spikes; Gold, Silver Higher; Payrolls on Tap Friday

Snapping a three-day losing streak, U.S. equities put on marginal gains Wednesday while the rest of the world's major indices recorded losses. It's a ritual that's played out many times in the past. When conditions become dicey or icy, it's often America's stock markets that come in to save the day.

It seems to be working, partially, though with WTI crude oil futures climbing above $92/barrel due to heightened military actions in and around the Persian Gulf, it's doubtful any meaningful rally can be maintained.

One oddity in the forex markets that began on Wednesday was the sudden interest in the yen, with the USD/JPY pair spiking from above 160 to below 156. Could there have been another "yen-tervention" by the Bessent Treasury, though this time done surreptitiously? As mentioned in yesterday's Money Daily, there are emerging signs that something more sinister than normal operations in the world of finance are afoot. Whatever the case may be, neither the U.S. Treasury Department nor the Bank of Japan have offered any explanation.

Maybe we're not allowed to know, which appears to be the case with more than a few items these days.

Thursday's trading looks to be a mixed bag ahead of Friday's Non-farm Payroll data for August, but, after EDP's poor showing of 38,000 jobs, expectations are low, which, for the crowd seeking a Fed easing policy, translates into a bonanza for stocks.

Gold seems to have a clue, up more than $100 overnight. Silver has erased some of the losses from the past few days.

Anybody who is confused at this juncture has a right to be. Markets appear to be jumping in all kinds of directions.

At the Close, Wednesday, September 2, 2026:
Dow: 53,061.95, +295.07 (+0.56%)
NASDAQ: 26,217.83, +118.05 (+0.45%)
S&P 500: 7,666.60, +35.13 (+0.46%)
NYSE Composite: 24,495.55, +146.28 (+0.60%)

Iran Escalation, Bessent's Twist and Flop, High Oil Prices Lead to Damage in Stocks; Gold, Silver Suffer Needlessly

Not such an auspicious start to the month of September, but maybe that was to be expected.

The last two trading sessions of August (Friday, Monday) were losers, and over the weekend the imperialist forces of the United States launched military strikes against Iran, to which the vicious savages responded with missile strikes against U.S. installations in Jordan, Kuwait, and maybe elsewhere. Most Americans will never know just how widespread the devastation has been to American bases in the region. The military industrial complex and the current administration wouldn't like that, so we have to just guess.

In any case, oil soared back over $90/barrel in WTI futures, stocks got whacked, and Treasury Secretary Scott Bessent's recent forays into yield curve control have come to naught. Yield on the 10-year note is now higher than before he started his interventions, at 4.78%, and the 30-year bond is generously offering returns of 5.25%.

The question one must ask is just who in their right mind would lend many for 10 years or even 30 to an entity that is $40 trillion in debt, routinely spends more than it receives, therefore making its need to borrow mandatory, relentless, and seemingly without end?

Amazingly, there are people out there doing just that. Lots of them, but just not as many as in years past. It's a problem. On the grand chess board that is international geopolitics and finance, the United States seems to be playing checkers. Militarily, the U.S. has spent most of its arsenal fighting a war in the Middle East it should never have started. Economically, the Treasury Secretary has run out of accounting tricks. Interest on existing U.S. government debt is expected to exceed $1.2 trillion for fiscal 2026.

So, is there any wonder that stocks are down?

Besides the fact that U.S. stocks are wildly overvalued, there's ample evidence that the deeply-involved government is desperately trying to manage expectations and results, driving stocks even higher than their already-inflated values. Something more sinister than the midterm elections is driving current conditions.

At the same time, gold and silver prices have been falling over the past few days, the opposite of what usually is the case when international tensions rise. Sinister? You betcha!

Stock futures ramped higher beginning around 6:00 am ET, but, with the opening bell in about a half hour, they've eased back.

It wouldn’t be a surprise if stocks started out strong Wednesday, only to sell off later in the day. The employment picture has been clouded by a poor JOLTS release Tuesday and Wednesday morning's ADP employment report for August, showing a mere 38,000 private sector jobs created during the month.

Both of those reports demonstrate just how shaky employment is in the U.S.

If you need a job and have a job, best be nice to the boss.

At the Close, Tuesday, September 1, 2026:
Dow: 52,766.88, -419.02 (-0.79%)
NASDAQ: 26,099.77, -271.12 (-1.03%)
S&P 500: 7,631.47, -54.67 (-0.71%)
NYSE Composite: 24,349.28, -112.67 (-0.46%)

Stocks End August on Sour Note; Start September with Lingering Doubts Over Interest Rates, AI, and Iran

The last day of trading for August ended with kind of a thud on Monday.

Stocks surrendered most of their gains for the month and the major indices were down from their torrid start, which culminated on August 4th. So, for the majority of the dismal month, stocks were simply churned. The majors remain close to all-time highs, a condition that seems to be tugging at portfolio managers, itching to take profits and wait for another opportunity.

That might not be a bad idea, given recent developments in the Iran war, which appears to be another of the never-ending variety. Over the weekend, US forces struck Iranian missile launchers on Larak Island and Iran responded with missile assaults on U.S. bases in Jordan. Naturally, the price of crude oil bumped higher. WTI futures are inching towards $88/barrel.

Asian and European stocks are down across the board Tuesday morning, prompting a sell-off in U.S. stock futures. At 8:30 am ET, Dow futures were down 360, NASDAQ futures had fallen 378 points, and S&P futures were showing a decline of 52 points.

Sentiment appears to be favoring a continuation of Monday's slack trading. Without any kind of economic data or earnings reports as catalysts, stocks seem to have lost momentum in a big way.

FOMO is being replaced by the fear trade of losing a significant portion of recent gains. That, if anything, was the message from Monday and it seems to have spilled over into September.

Along with the situation in West Asia, rising yields are also a big concern, along with the nagging consensus that the Fed is going to raise the federal funds rate a quarter point at the September 15-16 FOMC meeting. Should the Fed do that, one might as well stick a fork in the latest rally. It will be done. Treasury yields continue to cause concern. The 10-year note is yielding close to recent highs, at 4.73%, with the 30-year also elevated, at 5.27%. Treasury Secretary Scott Bessent's recent forays into the financial order haven't produced much in the way of results, only short-term happy faces. The Japanese Yen has surged back above 160 to the U.S. dollar, once again in the danger zone.

On the opposite side of the argument, Republicans are positioning themselves to retain control of both houses of congress in the midterms, clamping down on cheating, fraud and the over use of mail-in ballots in key battleground states. Democrats are screaming "foul", but nobody seems to be listening, especially the justices at the Supreme Court, which recently sided with the president.

Republicans need a stock market surge heading into the midterms, so maybe the best way to manufacture one is to allow stocks to slide a bit in September, setting up a relief rally that would fit well with their narrative. It would surprise nobody if institutions and large shareholders decided to do some selling during the month of September.

Closer to the situation, the week ahead ends with August Non-farm Payroll data from the BLS, expected to be somewhat subdued. The labor market has yet to feel any ill effects from AI replacing jobs in various industries and it very well may not. Whether AI is the real deal or not, it is still an emerging technology that will require learning and adaptation by humans, not robots, initially, and that appears to be the case presently.

The robots are coming, but it's a slow roll.

At the Close, Monday, August 31, 2026:
Dow: 53,185.90, -374.09 (-0.70%)
NASDAQ: 26,370.89, -31.54 (-0.12%)
S&P 500: 7,686.14, -25.62 (-0.33%)
NYSE Composite: 24,461.95, -123.23 (-0.50%)