Wednesday morning in London saw gold recover half of yesterday's $50 plunge per ounce, rising back above $1300 as world stock markets slipped and the US government shutdown spread to new departments.
Forget about a government shutdown. The quibbling over concessions to keep the government funded distracts from what might be the most predictable economic crisis. We have problems that may affect everything from the value of the U.S. dollar to investors’ savings, but also to national security.
While the S&P 500’s long-term trend and momentum are clearly in bullish territory, negative divergence in the market's weekly and long-term MACD signals suggest a consolidation period lies before us.
The Federal Reserve Is a Power-Seeking Institution, not an Organization of Scientists
As I have stated repeatedly, Fed bubble-blowing tactics benefits those with first access to money (the banks and the already wealthy). From the mid-60s until the year 2000, at least most boats were rising.
In 2009, within a top-secret weapons laboratory outside of Washington D.C., the Pentagon conducted its first ever “financial war game” pitting the U.S. against its major economic competitors.
From Bloomberg: "David Stockman, former director of the Office of Management and Budget under President Ronald Reagan, explains to Betty Liu why Janet Yellen is not a wise choice to succeed Ben Bernanke as Chairman of the Federal Reserve. He speaks on Bloomberg Television's 'In The Loop.'"
Even though many expected the Fed would taper its stimulus program at the recent FOMC meeting, John Butler explains that such talk by the Fed is merely an attempt to deflect critics while, in reality, the core FOMC group still remains very much in support of ongoing accommodation.