by Martin Armstrong
Armstrong Economics
Many market players were expecting further measures from the BOJ overnight but was not to be! It was widely expected that further details of asset purchases would support both the Nikkei and JGB markets whilst leaving the JPY to weaken. However, a lack of action by the BOJ resulted in a 3.5% decline in stocks and a 3% rally in the currency. Things did not finish there as they continued to sell throughout the western day and by late New York trading Nikkei futures had fallen a further 3.1%. Shanghai and Hang Seng were little changed. NZ$ rallied 1.3% as a result of no action by the RBNZ.
The Inflation Illusion
By the time you read this the Fed will most likely have stayed put on raising rates, but will begin to take a tougher stance on the possibility of a June hike.
Today one of the top money managers in the world told King World News that gold and silver are destined for a historic mania!
April was a dull month for the silver bulls, with gold dominating the contract month.
There is one thing and one thing only politicians eventually respond to: losing votes to another political party over single issues.
Shares in most Asian stock markets edged lower Friday, with gains capped by disappointment over the Bank of Japan holding back on additional stimulus and worries about global economic growth.
[…] From last night’s access market through to the opening of Japan, the bankers were doing everything possible to knock gold off its perch. Then suddenly, Kuroda of the Central Bank of Japan shocked all of the traders by doing absolutely nothing. Everyone was expecting some sort of new QE. That sent the Japan skyrocketing by over 340 basis points, the Nikkei plummeted by over 1000 points and then bourses around the world were hit pretty hard. The big winner was gold and silver as they immediately rebounded and that put a huge dent in the plans of the bankers with respect to the London’s options which expire tomorrow morning. If they fail tomorrow that would be the first time in many years that the bankers have failed during the entirety of options expiry week.
Like all things new and socialist, eventually they lose their luster and wind up being discarded. When Comrade William “Bill” Wilhelm deBlasio was elected mayor of the collectivist utopia known as New York City, we took bets on how long it would take to make the once great metropolis bankrupt. It’s hard to believe that just 3 years later the Comrade has exceeded our wildest expectations. A man of limited intellect, extremely poor judgment and an exaggerated sense of self-importance, the Comrade is now grasping to hold on to his political life. Seems that City Hall under his regime became an organized crime outpost where pay to play wasn’t just a philosophy, it was a religion. Now the US Attorney is circling his rotting carcass as well as the DA. A recent report about electoral corruption in the City, describes a web in which deBlasio was at the center. And it just shows the difference between a rat and a politician, there are somethings a rat just won’t do! Obama is attempting to bridge the diaper gap with generous subsidies to low income parents. Seems that being poor also means you kids will go without Pampers, isn’t it wonderful the things that government will do for people in need. Finally the lie has been put to social promotion, the practice of public schools promoting illiterates to higher grades to get rid of unwanted problems. The deal is that if your kid can’t read by the end of 3rd grade, he’s screwed. Florida of all places recognized this fact and outlawed the practice in most cases. Michigan is next on board. Can you imagine a world where all students learn to read and write at school?
It occurred to me this morning that there’s at least a 99% chance that you and I have never met.
A Monday Morning Musing from Mickey the Mercenary Geologist
Shares of Apple Inc. AAPL, +0.32% fell more than 3% Thursday after activist investor Carl Icahn said he sold his entire stake in the company.
The future of fast food service will involve much less human interaction.
Five years ago paper silver contracts on the COMEX hit a multi-decade high over $48 on April 29, 2011.
QUESTION: At the WEC you said that as long as the metals and the stock market are still fighting with each other, then the breakout is not quite ready. I assume we are looking at this probably by the first quarter next year which is why you are holding the WEC after the elections. Is my assumption correct?
This week, clients have been net buying gold, silver, and palladium.