"It would not be an overstatement that demonetisation announced by the Prime Minister of India on November 8th might have been one of the largest self-inflicted macroeconomic shocks on a country in the absence of a short term crisis.

Given the sheer size - the decision to withdraw 85% of the cash in circulation has thrown India into disarray. Such a large and unexpected policy change naturally carries with it a large collateral damage at least in the short run." 

Areendam Chanda, Notes And Anecdotes on Demonetisation

There is a major snowstorm moving on the northeastern United States that is centered now on Massachusetts and is moving up the coast as a classic nor'easter. I hear that they are expecting several feet of snow from this.

Luckily for us, the weather here is too warm for snow, but certainly cold and raw enough to discourage any thought of working outside, although feeding the birds, God's little ones, is a high priority before dusk.

There are more storms coming.  Many of them have been caused by the greed and arrogance of people who lie so often to other people and their closest friends that they begin to believe it themselves.  And so they may be shocked when the consequences of their actions come home to roost.

Gold and silver had a bit of a rally today, off a deeply oversold short term condition.  Bloomberg TV was quick to challenge that, and show a longer term chart of gold in an intact downtrend.

Funny they did not mention silver at all.  I would suggest that if we do rally from here that we have a confirmation of a massive cup and handle formation that is only visible on the weekly chart, that is also nested within an even bigger formation that can only be seen on the monthly.

But that is a big if, although the legends will be quick to pounce on anything positive to generate breathless excitement.

I will be more impressive and excited when gold and silver start moving limit up, with triple digit and triple dollar moves to the upside, as the precious metal manipulation pools begin to fall apart, which history suggests that they must and they will.

Of course one cannot rule out some sort of official reaction bordering on stupidity, as we have been seeing by Mr. Modi in India with his crackpot demonitisation actions. 

This is one solace that I take from the election, that Hillary will not be at the tiller when this storm hits.  That is not to say that I am optimistic about Mr. Trump, especially given his choices of cabinet so far. 

But he has never yet, at least as I am aware, shown the kind of mindless brutality that was evidenced in the heavy handed suppression of perceived civil disobedience as a result of provocations that we saw in Texas and Idaho during the Clinton presidency.  But if he does, then he may indeed round out the picture that I have drawn on the progress of the imperial presidency.

Violence begets violence.  And frightened people who are caught badly enough in a credibility trap will be tempted by it, after first depersonalizing those whose differences are a nuisance, and then an embarrassment, and finally a perceived challenge to power.

Let us remember that violence is rarely justifiable on another human being except in the most extreme acts of self-defense.  That is not to say that it doesn't happen, because it does every day.  We have a political group in Washington among other places that has decided that violence is the first resort to a failure to promptly obey. 

Hubris warps vision, and the policies that proceed from the heights of arrogance have often produced cold-bloodedly horrific results to which the parties are blinded, at least for a time.

And finally let us remember each other in our prayers, so that we will not allow our love to grow cold, if there should be an increase in wickedness.  Although we all do what we must do, this is the only transaction that in the very long run really matters.

If you love the Lord, truly as He loves you, then you cannot be afraid.

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