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Gold Daily And Silver Weekly Charts - Through The Darkness Love Is Among Us

Date: Monday, March 16, 2015 4:57 PM EST

"We are slow to master the great truth that even now Christ is, as it were, walking among us, and by His hand, or eye, or voice, bidding us to follow Him."

J. H. Newman

This morning the US economic news came in rather badly.

Empire manufacturing missed rather badly coming in at 6.9 versus 8.8 expected.

Industrial Production and Capacity Utilization missed consensus at .1% and 78.9% respectively.  Even more surprising, however, was the revision of last month's Production to -.3% versus the positive .2% that was previously reported.

And the NAHB housing index missed as well.

Stocks rallied and the dollar took a break from its parabolic rally as the markets looked at the real economic data and casts doubts on the Fed's raising rates anytime soon.

As you may recall, the Fed is having a two day meeting this week. It is widely expected that they will remove the word 'patient' from their verbage, but will do nothing else. Removing 'patient' is supposed to clear the way for a small interest rate increase in the next meeting in June.

The Fed would like to raise rates at least 100 bp to 1% largely to get off this extraordinary zero bound in rates, which is serving little except to help to stimulate an asset bubble in bonds and stocks. It is certainly not helping the real economy.

And having created another asset bubble, the Fed would like to have some room to cut rates when the next financial crisis comes, which is due in the next 24 months or so. This largely depends on the trigger, that being some exogenous event that will provide the spark that will light the bonfire of the vanities which the Fed has constructed.

Gold and silver moved lower and then sideways today after a brief overnight rally. This is the 'normal pattern' these days as Asia buys physical and the West, largely led by London and New York, sell paper.

We are an unfortunate people in our leaders, who have become obsessively preoccupied with lining their own pockets, and interfering with the lives and governments of others. They create weakness and disorder, in order to provide more opportunities for plunder, while calling them 'investments.'

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