Stocks And Precious Metals Charts - Sitting On Top Of The World

‘The banks are circling the wagons.Somebody’s got a problem.’

Charles R. Geisst,as quoted in There’s Nothing Normal About the Fed Pumping Hundreds of Billions Weekly to Unnamed Banks on Wall Street

Today's Non-Farm Payrolls Report missed to the downside, and the growth of wages was nil.

And so it was time for a rally!

Stocks were propelled higher. Gold and silver were off a bit, and the Dollar was also lower.

The Street was piling into risk, on the assumption that if they are bold enough in denying what is expected of them, that the Fed will be compelled to bail them out once again.

On one hand, the recent reliance on daily Fed repos to balance the banking systems cash on hand could be argued to be a return to what was more commonplace in the 1980s. Of course, those were times of tremendous economic strain, now long forgotten, in the aftermath of the Volcker interest rate gambit, and the oil shocks to the economy.

But we are in some golden recovery now, right? But of course, there are the deficits, which seem to be a hallmark of Republican governance. All that debt issuance by the Treasury to finance the tax cuts for the wealthiest and corporations must surely require something extraordinary to support it.

Like the recent weather, that flashes from hot humid summer to the crisp coolness of autumn overnight, we seem to be finding our balance in the extremes.

But there is that nagging feeling that something behind the scenes is going extraordinarily wrong.

There is a feeling that despite all the talk of our exceptionalism and glorious excellence, that something very wicked this way comes. That one cannot make their deal with the devil without paying, at long last, some terrible price.

Quid pro quo, Clarice?

Have a pleasant weekend.

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