It is at this point that sly Wall Street insiders are parking their money in bitcoin, awaiting either the next greater fool to buy their crypto at a higher price or until the latest market swoon occurs, ready to swoop in and snatch up stocks on the cheap.
The people who claim the stock market is nothing but a giant, rigged casino are on the right track.
You also know that when markets are troubled, gold and silver get sold off, as they are this morning. Gold is down 0.66%, at $3,393.10, and silver is off 2.20%, at $32.91. Six hours ago, an ounce of silver was worth a dollar more - $33.91. Why the sudden change? Could there be fraud afoot? It's laughable to believe anything about the precious metals markets on the COMEX are even remotely legitimate. The volume on contracts traded in a week represent more than is mined in a year.
Everybody plays along until they don't. When the tide goes out, the riggers at the CME, LBMA, COMEX, the Exchange Stabilization Fund (The ESF is an emergency reserve fund of the United States Treasury Department, normally used for foreign exchange intervention.), and the Federal Reserve will be found to be lacking in moral principle, and, worse, marketable collateral. The Fed is a counterfeiting operation and the ESF helps to ensure that nobody gets a fair shake against the nighty U.S. dollar.
Wednesday's steep slide midday was the result of rising interest rates due to a very poor auction of 20-year bonds. Market participants outside of the Fed itself and its primary dealers - Bank of America, Goldman Sachs, JP Morgan and the rest of the usual suspects - aren't apparently in the mood to finance the U.S. federal government for the next 20 years at anything less than a five percent return. It's actually somewhat amazing that figure isn't much higher, like eight or 10 percent, given that the moondogs on Capitol Hill haven't the least bit of sense about cutting back on spending, reducing the deficit, or downsizing the government.
Moody's, about a decade too late, downgraded the U.S. government's rating from AAA to AA1, again, somewhat laughable. The government can't even pay its own bonds back. It rolls them over and adds the balance to the "national" debt. There's nothing national about the so-called national debt. It's the government's debt. American citizens actually owe nothing of that $37 trillion bag of notes, yet they'll be the ones paying the price for the government's waste, fraud and abuse. Americans pay every time they buy a loaf of bread, put gas in their car or take out a mortgage. Americans have been put through the wringer of inflation for so long even the slightest relief from their self-imposed debt slavery seems like a holiday.
Nothing practically any western government says or does matters these days. They're full of empty promises and horse manure. They have nothing more to offer than propaganda - "Russians are coming to rape your wives and eat your children" - and the economics of the welfare/warfare state. "We pay you to consume, so shut up while we blow up the rest of the world."
In less than two months, the 17th BRICS Summit will be held in Rio de Janiero, Brazil (July 6-7), which is, incidentally, less than a week after gold becomes a Tier-1 asset for not just central banks, but commercial banks as well. The BRICS are moving on without the Western nations. They don't need them. They don't need many more 10, 20, or 30-year treasury bonds, not anything close to the estimated $1.3-$1.7 trillion Treasury will be issuing over the next three quarters.
President Trump is walking a very fine line with his "big, beautiful budget." His core supporters backed him because they thought he would work toward downsizing the federal bureaucracy and balancing the budget. The omnibus bill currently moving through the halls of congress does neither. Instead the bill approves as much, if not more, spending than the last Biden budget, complete with a deficit of close to $2 trillion. At least the bill - which made it through the House by a single vote Wednesday night - extends the 2017 Trump tax cuts rather than eliminating them. How kind of our superiors!
The American people still don't like it much, and, so it seems, neither do bond investors.
Suitably, an hour before the equity markets open, stock futures are down and sinking deeper into the red.
Tough luck. This is as good as it's going to get.
At the Close, Wednesday, May 21, 2025:
Dow: 41,860.44, -816.80 (-1.91%)
NASDAQ: 18,872.64, -270.07 (-1.41%)
S&P 500: 5,844.61, -95.85 (-1.61%)
NYSE Composite: 19,607.80, -334.40 (-1.68%)
Posts
No comments:
Post a Comment