#Forbes Gold and Silver Still Headed South? & More

How Low Can Gold And Silver Go?

On Sunday afternoon, I published a viral piece called “Did A Major Gold And Silver Breakdown Just Begin?” in which I explained that gold and silver may be on the verge of an imminent sell-off if key technical levels were broken. I showed that wedge patterns had formed in gold and silver for the past two years, and these patterns may indicate the resumption of the 2011 to 2013 bear market when broken. Amazingly, when gold and silver opened for trading on Sunday night, they experienced stunning flash crashes that caused them to slice clearly below the $1,130 and $15 technical levels I showed in the piece.

A $2.7 billion notional sell-order in gold futures caused the yellow metal to plunge 4.2 percent or $50 to nearly $1,086 per ounce in just a few minutes, dragging down other precious metals with it. The sell-off originated in the New York and Shanghai markets and was exacerbated by the lower-liquidity conditions due to Japan’s market holiday. 

The weekly gold chart below shows the wedge pattern that formed in the past two years. The key $1,130 level formed the bottom of the wedge, and is now a resistance level since gold fell beneath it on Sunday. The technical breakdown is valid as long as gold is under this level.

How artificial intelligence is changing economic theory 

Machina economicus might better fit the typical economic theories of rational behavior, but we don't believe that the AI will be fully rational or have unbounded abilities to solve problems. At some point you hit the intractability limit—things we know cannot be solved optimally—and at that point, there will be questions about the right way to model deviations from truly rational behavior.

Robots pass 'wise-men puzzle' to show

 a degree of self-awareness 

With the robots, instead of hats, the roboticists programmed the three humanoid robots to "believe" that two of them have been given a "dumbing pill" causing them to become mute, but they did not "know" which of them it was. In actuality, two of them were made mute by pressing a button on their head. The three robots were then asked which of them had not received the dumbing pill. All three robots attempted to respond with an answer of "I don't know" but only one was able to do so, which meant it was the one that had not been muted. Upon hearing itself audibilize a reply, it changed its answer, declaring that it was the one that had not received the dumbing pill.

Pension Shocker: Plans Face $2 Trillion Shortfall, Moody's Says 

In short: America is facing a fiscal crisis at the state and local government level and it appears as though at least one ratings agency is no longer willing to suspend disbelief by allowing officials to utilize profoundly unrealistic return assumptions in the calculation of liabilities.

China Ends Mystery of Gold Hoard to Top Russia’s Holdings 

Gold remains a large part of many central banks’ reserves, decades after they stopped using it to back paper money. Stockpiles of the metal help China to diversify its foreign-exchange holdings as the world’s second-largest economy seeks to raise the international profile of its own currency. The disclosure on gold reserves also assists in that goal.

“China is still pushing for a greater role for its currency globally by having full transparency,” Fu said.

Crushing pension obligations are pushing stressed governments 

What Money?

And the Quakertown Community School District said in June that it would go on a payment strike, of sorts, delaying its next $1.25 million quarterly contribution to the state school retirement system. The goal is to force the state to stop what the board president called an "unjust" rise in districts' pension payments. Pennsylvania school pension payments quadrupled from 2010 to 2014, and are scheduled to double again by 2019, under a law designed to make up for years of underpayment.

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Top Weekly Ideas and Insights

An Inconvenient Truth:

What Happens When The Fossil Energy Age Ends?

 EXISTENTIAL REALITY 

End Of Fossil Energy or Archaic Fabrications?

TRUMPISM = "The Crazy Cat Lady Syndrome"

WEEKEND SPECIAL PAUL KRUGMAN, NEW YORK TIMES, Op-Ed  COMMENTS

Here are our supporting comments posted to Paul Krugman superb and insightful blog post yesterday -

TRUMPISM  = "The Crazy Cat Lady Syndrome"

Toxoplasmosis Endangers US Politics

You run the risk of upsetting and offending your cat-loving audience with these pictures for obvious reasons, as well as your loyal cat readers around the world. This could stir social unrest amoung both groups. We will keep an eye open for future demonstrations.

Nonetheless, the one on the left demonstrates feral attributes of the species, and a preliminary diagnosis of fourth-staged advanced toxoplasmosis is evident, a disease that inflicts 60 per cent of the global population, most of whom apparently are either GOP or conservative human species, as applicable. The condition is more commonly known as ”Crazy- Cat- Lady-Syndrome”; explaining why those inflicted with this brain-eating parasite act, look and think the way they do - in both the dormant and acute stages. 

Seriously. it is a widespread international, quiet and somewhat invisible health concern, that is virtually a global epidemic among humans with unknown long-term implications, albeit the rise in the conservative movements is a noteworthy symptom, recently associated with this chronic condition. 

Of note, Australia plans to spend one billion over ten years eradicating feral cats from the continent because of the serious health, wildlife. political and environmental concerns. 

http://time.com/3962212/australia-feral-cats-cull/ 

A major global health initiative is therefore imperative to avoiding massive untoward events and immature political thinking.

Investors Insights

http://pwa2100.blogspot.ca/

http://krugman.blogs.nytimes.com/2015/07/17/trumpism/

 

Trumpism

 JULY 17, 2015 5:13 PM July 17, 2015 5:13 pm

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Not surprisingly, Rick Perlstein, our foremost expert on the rise of movement conservatism, has the best take so far on the Trump phenomenon. As he says, nobody should be surprised to find that there are a lot of Republicans who are mad as hell and won’t take it any more:

This is important: conservatism is like bigotry whack-a-mole. The quantity of hatred, best I can tell from 17 years of close study of 60 years of right-wing history, remains the same. Removing the flag of the Confederacy, raising the flag of immigrant hating: the former doesn’t spell some new Jerusalem of tolerance; the latter doesn’t mean that conservatism’s racism has finally been revealed for all to see.

And crucially, it’s a key part of conservative mythology that the silent majority shares this hatred, that it’s only the liberal elite with its political correctness keeping Americans from saying what they know to be true. (It’s like the constant trope from the likes of Bill O’Relly that anyone who disagrees with him is a “far-left” type, no matter how mainstream their ideas.)

So why shouldn’t they rally around The Donald? The elite considers him ridiculous, but the base has been told again and again that the elite is corrupt and anti-American. The base has also been told again and again that it represents the true views of everyone except Those People. So why shouldn’t they go with someone who is their