"We looked into the abyss if the gold price rose further. A further rise would have taken down one or several trading houses, which might have taken down all the rest in their wake. 

Therefore at any price, at any cost, the central banks had to quell the gold price, manage it. It was very difficult to get the gold price under control but we have now succeeded. The US Fed was very active in getting the gold price down. So was the U.K."

Eddie George, Governor Bank of England, in a conversation with the CEO of Lonmin, September 1999

The dollar plunged and gold sharply rebounded this afternoon, thanks to an offhand remark by Trumpolini in a CNBC interview that he is 'not thrilled' with the Fed raising interest rates.

I think this highlights, how divorced gold and silver, but especially gold, are from supply and demand, with gold being treated as just another currency cross and paper trading vehicle.

But Asia keeps taking more and more physical gold off the table, into their own deep storage, not to be seen again for many years.

This is going to blow up in the faces of the Banks and the regulators and will shake many an institution and exchange to their foundations.

It was a quiet trading day with stocks off a bit, 'digesting' their recent gains if you will.

Weakness in the earnings reports, despite the huge gift of corporate tax cuts, has the Street feeling a bit uneasy.

Those companies that have mastered their accounting, and reside primarily in the world of financial paper shuffling like the Banks, are doing well.

But for corporations with ties to that pesky real-world economy, not so much.

Wages are stagnant for workers, but the banksters and their congressmen are buying yachts.

What could go wrong with that?

There is a stock option expiration tomorrow.

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