What does it say to y'all that after comments from a German former ECB official & a Bavarian politician recommending that Greece leave the EU, the German Chancellor Angela Merkel pleads in ublic for everyone to "weigh their words carefully"? Does that sound like someone who has a solution, or someone who sees the wheels falling off & wants everybody to keep his mouth shut?

What is proposed for the ECB is to buy the debt of Spainn, Italy, Greece, etc., effectively monetizing that debt. Since German in the Weimar inflation (1920 - 1923) saw the Reichsmark fall from 4.23 gold marks to the dollar to 4.23 Trillion marks to the dollar by precisely this process, the central bank buying up govenrment debt. In the process German society was undermined, the middle class impoverished, and the way paved for Adolf Hitler.

By the way, when Ben the Bandit & his Friendly Feds buy all the leftovers at US Treasury debt auctions, they are following exactly the same process.

Markets are moving little, anticipating Ben's Bloviations at the Jackson Hole Meeting of the Mighty on Friday. Super-Mario Draghi was supposed to speak, but he begged off. Seems he had to cancel because he needed to straighten his sock drawer. Yeah, sure, he has a plan to save the Euro, he's just too busy to talk about it.

US dollar dropped 29.8 basis points today (0.38%). It's plunge has traversed more than half the width of its main trading channel, and draweth nigh the last important low, 81.16, & the 200 day moving average (80.53). RS& & MACD offer no hope for reliev. Time to start wondering whether the dollar will recover from this or not.

Five day chart shows a corrective rise, with a high yesterday about 8185, & an impulsive fall off the cliff today. Any break of 81.25 will send the dollar to that 200 DMA quicker than a cat can steal your hot dog right out of the bun.

The scabby euro pulled its rags about it's ears, turned up its nose, & rose 0.54% to $1.2565, like a wino waking up in the gutter & scrabbling to regain his dignity. 'Taint nothin' happening till the Euro busts that $1.2600 resistance.

It the global fiat currency race to the bottom, the smart money is riding on the yen, most overindebted government & eocnomy. Yet defying economics, logic, & gravity the yen rose today 0.31% to 127.38c (Y78.51). Remains below the descending treneline. Needs to clsoe above 128 to turn positive.

Stocks really looked ratty today. Nasdaq (pronounced NAS-DA-KWUH) rose, along with the Nasdqaq 100, but other indices fell. Dow misplaced 5.93 (0.05%) & finished at 13,118.74. S&P gained a microscopic 0.38 (0.03%) to 1,410.82. Stocks are stalled, wanting to fall but kept afloat by hopes that Bandit Ben will bloviate them skyward.

Gold's pocket was picked for $5.90 today. Closed Comex at $1,666.50. Silver lost 17.3 cents to close 3087.5c.

Five day gold chart shows a correcrtion. Overnight gold fell to $1,658.70, but came back strongly today with another rush at $1,672. Didn't work.

Gold is blowing hot and cold out of both sides of its mouth. It is running at $1,675 as if it wanted to break down that door, but can't make it. On the other hand, should it fall below $1,645, it could revisit $1,600: tug of war, & I don't know who is stronger.

Silver at 3098c made a slightly lower high than yesterday's, but at 3058c a low only a penny lower. Silver's upper boundary is 3124, lower is 3045c. A break through either one takes it a long way in the same direction.

28 August is the feast day of St. Augustine of Hippo b. 354 l- d. 430). Hard to exaggerate how his thinking influenced the Christian west. All branches of the Church East & West honor him as one of the greatest Christian thinkers. His "Confessions" and "The City of God" read as fresh today as when they were written.

On 28 August 1749 was born Johann Wolfgang von Goethe, Germany's greatest writer. The name is not, as many Americans believe, pronounced "Guth" but something that sounds more like "Ger-tuh." His early novel, The Sorrows of Young Werther" set off a craze for yellow breeches and suicide. His masterwork was the play, Faust, which, like Shakespeare's work, repays a lifetime of study.

Argentum et aurum comparanda sunt —
Silver and gold must be bought.

— Franklin Sanders, The Moneychanger

Copyright Notice

© 2015 Little Mountain Corporation, d.b.a. The Moneychanger. All rights reserved. May not be republished in any form, including electronically, without our express permission.

Warnings and Disclaimers

To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary trend is up, targeting 16:1 gold/silver ratio or $195.66; stock's primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold or 16 ounces of silver. US$ and US$-denominated assets, primary trend down; real estate bubble has burst, primary trend down.

Be advised and warned:

• Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that short-term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures.
• NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps.
• NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced.
• NOR do I recommend buying gold and silver on margin or with debt.
• What DO I recommend? Physical gold and silver coins and bars in your own hands. For additional information, please see our Ten Commandments for Buying Gold and Silver.
• One final warning: NEVER insert a 747 Jumbo Jet up your nose.

Explanation of Terms

The US DOLLAR INDEX is the average exchange rate for the US dollar against the Euro, Yen, Pound sterling, Canadian Dollar, Swiss Franc, and Swedish Krona, weighted for each country's trade with the US. It gives a general measure of the US dollar's performance against all other currencies.

The DOW IN GOLD DOLLARS measures the Dow Jones Industrial Average in gold dollars (0.048375 troy oz. by law). The DiG$ depicts the Primary (20 year) Trend of stocks against gold. When the DiG$ is dropping, gold is gaining value against stocks in a trend that should last 15-20 years. The DiG$'s chart is identical to the Dow in ounces of gold, but gives us one unvarying measure all the way back to 1896. Because it shows the primary trend ("tide") of gold against stocks, for investors it is the single most important financial chart in the world today. Since its August 1999 high at G$925.42 (44.8 ounces), the DiG$ has trended down, targeting a G$80-G$20 (4-1 oz. of gold will buy the whole Dow).

The DOW IN SILVER OUNCES shows how many ounces of silver are needed to buy the entire Dow. The DiSoz is trending down with a target of under 36 ounces.

The GOLD/SILVER RATIO is the gold price divided by the silver price, and shows how many ounces of silver it takes to buy one ounce of gold. The Ratio shows us the Primary (20 year) Trend of gold's value against silver. When the Ratio's trend is dropping, silver is gaining value against gold. This trend targets a gold/silver ratio of 16 ounces of silver to one of gold within the next 5-10 years. That implies that silver will massively, vastly outperform gold before this bull market ends. When both metals are rallying, the ratio often (but not always) drops, confirming the rally.

Other Important Information

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