Too Many Events
We in the blogosphere tend to like our news fresh and unfiltered. We thirst for honesty, condemning editorialized, whitewashed opinion pieces passing as journalism.
In this spirit, it is astoundingly obvious that events of significance are occurring with alarming frequency.
Within the past week are these stories, in no particular order:
Blythe Masters leaving JPM;
60 Minutes story on HFT, rigging and corruption;
Several lawsuits vs. TBTF banks, foreign and domestic, for rigging LBMA;
More banker deaths, JPM this time,
US economic sanctions against Russia, Russia retaliation, more US retaliation, tit for tat escalation, with the latest being today's announcement of Russia's seeming end to the dollar hegemon;
Prez. Obummer's embarrassing Euro tour, ending on a sour note getting kicked out of Saudi;
Libya Benghazi congressional hearing politicizing the political cover-up circus that surrounded the CIA operation to run guns to Syria;
The disappearance of the MH370 disappearance story; and
Ft. Hood Shooting.
There are more and more, but you get the picture.
News stories abound. Events are escalating in frequency and significance. Financial punditry is appearing less and less artificial, and more and more frayed around the margins such that actual, useful opinions are emerging.
What does it all mean?
System stability is in jeopardy. The western economic fiat scheme is a dynamic system. Constant control inputs must be made to manage the artificiality of it all. In this dynamic system, things are out of balance, and control system input levers have reached their extreme end of their ranges of motion. No more control inputs can be made that will have any effect to counteract the dynamic forces acting upon the system. We have reached system imbalance such that we have to, in essence, "eject to save the pilot but lose the plane."
In light of the FRN price of gold and silver, I am overwhelmingly convinced that we are on the cusp of a dramatic financial event. Gold is priced in FRN's at less than the costs to extract it; yet, not a single local coin store in my neck of the woods has any one ounce US coins on offer. The gold price has broken. The paper price is so far below the proper value that a true black market pricking scheme is the norm.
Looking forward, the Russian /US sanction game is poisonous and will infect the economic system fatally very shortly. It cannot end any other way.
It is time to watch intently and be nimble. The currency war is upon us in real time. It will end badly. Folks who have not read Rickards "Currency Wars" should do so and soon.