Gold World News Flash |
- News That Matters
- Rule - Silver Default Possible, Miners Cash Flows are Parabolic
- Caution is Warranted
- Don Coxe Update – Sept. 9th 2011
- The Case For Gold Miners – John Hathaway
- Peter Schiff - Expect More Inflation, Printing & Higher Gold
- Gold Seeker Closing Report: Gold and Silver Fall Over 2%
- Stephen Leeb - Gold, Minimal Downside, $12,000 Upside
- Love the buying opportunity in gold, Leeb tells King World News
- China Weakens Dollar By Buying MORE Gold
- Harvey Organ's: The Daily Gold & Silver Report
- Bloomberg: Gold-Backed Dollar Puts ‘Fair Value’ at $10,000 an Ounce: Chart of the Day
- Britain draws up survival plans for life after the euro to avoid plunging into another recession
- Gold-Backed Dollar Puts ‘Fair Value’ at $10,000 an Ounce: Chart of the Day
- Solyndra - A few new facts. A few new questions
- James Turk Says “Gold Has To Go Up”
- All Together Now!
- Relentless… F-ing Relentless.
- Peter Schiff: Expect More Inflation, Printing & Higher Gold
- Gold and Silver Raid Because of Massive Dollar Liquidity Aid to Europe
- Time For Europe’s Bond-Burning Party
- Treasury Inspector General Opens Probe Into Obama's Solargate
- Treasury Inspector General Opens Probe Into Obama's Solargate
- Grandich in Financial Post and more…
- Sell your Bonds and Gold and Buy Dividend Growth Stocks Before it's Too Late
- EU Banks Limiting Bullion Buying?.. Ron Paul Supports Global Psychopaths
- Toward a Global Currency
- Why Economic Growth is Not a Sure Thing
- The Biggest Threat to the Gold Mining Industry
- Awaiting the Inevitable Correction in the Silver Price
| Posted: 15 Sep 2011 07:17 PM PDT By thetrader.se Ft.com
Research in Motion has suffered a further setback in its attempts to lure customers away from rivals Apple and Google after again missing its earnings targets, the FT reports. Shares in the company plungedhttp://ftalphaville.ft.com/thecut/2011/09/16/678991/rim-shares-slump-20-...
The WSJ says a Chinese company, Beijing Jingdong Century Trading, is preparing for what could be the biggest internet IPO in the US. The company operates 360buy.com, a fast-growing site that sells a broad range of goods, http://ftalphaville.ft.com/thecut/2011/09/16/678981/chinese-companies-pl...
US authorities are scrutinising three of Israel's largest banks over suspicions their Swiss outposts helped American clients evade taxes, Reuters reports, citing people briefed on the matter. The banks said to be under scrutiny by the US Department of Justice's criminal tax division are Bank Hapoalim, http://ftalphaville.ft.com/thecut/2011/09/16/678966/us-looks-at-israeli-...
US Treasury secretary Timothy Geithner will discuss with European finance ministers the possibility of leveraging the eurozone's bailout fund, Reuters reports. Mr Geithner will hold talks with EU ministers in Poland on Friday and will propose that the European Financial Stability Fund, http://ftalphaville.ft.com/thecut/2011/09/16/678926/geithner-to-discuss-...
A 31-year-old trader, Kweku Adoboli, has been arrested in London on suspicion of blowing a $2bn hole in its books, the FT reports. UBS warned that the discovery could push the group into a loss for the third quarter. http://ftalphaville.ft.com/thecut/2011/09/16/678911/ubs-trader-held-over...
Goldman Sachs is closing a well-known quant hedge fund, Global Alpha, after ringing up a hefty loss this year, reports Reuters. Goldman told investors in the roughly $1.6bn Global Alpha fund the news on Thursday, http://ftalphaville.ft.com/thecut/2011/09/16/678886/goldman-closes-globa...
The world's main central banks took bold concerted action to pre-empt a looming dollar funding crisis in Europe, sparking a rally in eurozone bank shares and the euro, reports the FT. Five central banks including the European Central Bank, http://ftalphaville.ft.com/thecut/2011/09/15/678826/central-banks-act-to...
US banks have rushed to supply companies with leveraged loans for refinancing higher-yielding debt in recent weeks, the WSJ says. The leveraged loan market saw $36bn of activity in August. While that is half the monthly average, http://ftalphaville.ft.com/thecut/2011/09/15/678206/banks-return-to-leve...
European banks are rushing to use their gold to access much-needed dollar funding, the FT reports, in the latest sign of the growing liquidity crunch for the continent's financial institutions. Gold dealers and analysts said that there had been a strong move to lend gold in the market in exchange for dollars in the past week, http://ftalphaville.ft.com/thecut/2011/09/15/677821/banks-use-gold-to-ge...
The global economy is facing a crisis of confidence worsened by "policy indecision and political dysfunction," according to Christine Lagarde, managing director of the International Monetary Fund. Speaking in Washington, where the fund's annual meetings are due to be held next week, Ms Lagarde said that short-term pressures on the balance sheets of European banks and US households risked creating a "vicious circle" of declining confidence. http://www.ft.com/intl/cms/s/0/08424218-dfb7-11e0-b1db-00144feabdc0.html...
Belgium edged towards a resolution of its political stalemate late on Wednesday, resolving a long-running dispute that has prevented the formation of a government since elections in June 2010. Negotiators from the eight political parties in talks to form a governing coalition reached an agreement on the linguistic status of Brussels suburbs, a highly-charged political issue that epitomises the depth of divisions between the Dutch-speaking north and Francophone south of the country. http://www.ft.com/intl/cms/s/0/3cf3dca4-df69-11e0-a19c-00144feabdc0.html...
Wsj.com
Economists see a one in three chance the U.S. will slip into recession over the next twelve months and doubt any steps the Federal Reserve might take at its meeting next week can change that. Those are the highest odds for a new downturn that the economists in the The Wall Street Journal survey have given since the start of the recovery—and up four percentage points from last month's poll. Economic strains have escalated amid market turmoil, the stumbling job market and concern about European stability. http://online.wsj.com/article/SB1000142405311190449170457657278378313788...
A judge sided with Barclays PLC in a dispute over whether the British bank should have to pay Lehman Brothers Holdings Inc. hundreds of millions of dollars for employee bonuses the collapsed investment bank said it was owed. In a written decision late Wednesday, Judge James Peck of U.S. Bankruptcy Court in Manhattan reiterated a point he made at a hearing last week; that Lehman didn't prove how its estate is damaged by the $500 million in bonus payments not being made. http://online.wsj.com/article/SB1000142405311190406060457657256209325889...
Singapore's key non-oil exports rose unexpectedly in August on the back of sharp growth in select non-electronic product shipments, notably marine transport and disk media products, while export volumes in other sectors remained weak. The lackluster performance from exports outside of the non-electronic product sector suggests the Monetary Authority of Singapore could consider less restrictive policy at its October meeting if it doesn't see broader signs of strong demand before then. Exports of goods made in Singapore rose 5.1% in August compared with a year earlier, after falling 2.8% in July, trade promotion agency International Enterprise Singapore said Friday. The median estimate of 10 economists in a Dow Jones Newswires poll was for August exports to contract 7.1% from a year earlier.http://online.wsj.com/article/SB1000142405311190392720457657365104696085...
For the first time this week, European officials have formally begun to examine the possibility of joining to issue euro-zone bonds to address an ever-worsening financial crisis. Such bonds still appear a long way off: Germany and other euro-zone governments worry they would draw them deeper into the crisis. But there is a growing acceptance that joint-bond issues would cut borrowing costs for most members of the 17-nation monetary union, which collectively has lower public debt and lower deficits than the U.S. They could even resolve the euro-zone's debt crisis, or at least provide breathing space to do so.http://online.wsj.com/article/SB1000142405311190392720457657278429348997...
Marketwatch.com
Crude-oil futures extended gains in electronic trading Friday, with investors encouraged by action taken by central banks designed to ease tightening credit conditions in the euro zone. Crude oil for October delivery added 32 cents, or 0.4%, to $89.72 a barrel on the New York Mercantile Exchange during Asian trading hours. Oil rose 0.6% in the North American session, as relatively encouraging euro-zone debt developments buoyed investor sentiment about the economic outlook and demand for energy. http://www.marketwatch.com/story/oil-futures-extend-gains-in-asian-tradi...
Bloomberg.com
The most popular national political figure in America today is one who was rejected by her own party three years ago: Secretary of State Hillary Clinton. Nearly two-thirds of Americans hold a favorable view of her and one-third are suffering a form of buyer's remorse, saying the U.S. would be better off now if she had become president in 2008 instead of Barack Obama. The finding in the latest Bloomberg National Poll shows a higher level of wishful thinking about a Hillary Clinton presidency than when a similar question was asked in July 2010. Then, a quarter of Americans held such a view.http://www.bloomberg.com/news/2011-09-16/clinton-popularity-prompts-some... After six state election setbacks so far this year, German Chancellor Angela Merkel faces a final humiliation in Berlin as polls show the Pirate Party poised to ouster her coalition ally in the regional parliament. The rise of the Pirates to within reach of their first parliamentary seats in the city-state's Sept. 18 elections caps a year in which voters punished Merkel's coalition parties over their handling of the euro-area debt crisis. With her Christian Democrats and Free Democratic coalition partner now in open conflict over the euro's future and financial aid to Greece, the chancellor's 2013 bid for re-election with her current political ally may be in doubt. http://www.bloomberg.com/news/2011-09-15/merkel-faces-vote-as-pirates-pr...
Cnbc.com
France, Germany, and other euro zone countries want Greece to remain in the monetary union, "but there will be a price," Christine LaGarde, managing director of the International Monetary Fund (IMF), told CNBC Thursday. Greece is making progress on reforms but needs to do more if it wants to get additional financing from European Union members or the IMF , she said. "It's a question of keeping at it," she noted, adding that after last year's 5 percent deficit reduction, Greece has shown "reform fatigue" and the pace of making changes has slowed. She applauded Wednesday's statementhttp://www.cnbc.com/id/44535130
Foxbusiness.com
Cnn.com
Mortgage rates hit yet another record low this week amid ongoing economic concerns both at home and in Europe. The average rate for a 30-year, fixed-rate loan fell to 4.09% this week, its lowest level in 60 years, according to mortgage giant Freddie Mac. Last week, the 30-year fixed averaged 4.12%. The average rate for a 15-year fixed mortgage — a popular option among those who wish to refinance — sunk to 3.30%, down from 3.33% last week, Freddie reported. |
| Rule - Silver Default Possible, Miners Cash Flows are Parabolic Posted: 15 Sep 2011 06:02 PM PDT  With continued volatility in gold and silver, today King World News interviewed one of the most street smart pros in the resource sector, Rick Rule, Founder of Global Resource Investments, which is now part of the $10 billion strong Sprott Asset Management. When asked what he is watching and where gold and silver are headed Rule responded, "I think it's funny, the idea that the Greeks ran out of money without meeting any of the terms that would cause them to be compliant for the last bailout and got another subsequent bailout. The idea of that solving anything is sort of laughable to me."
This posting includes an audio/video/photo media file: Download Now |
| Posted: 15 Sep 2011 05:51 PM PDT Gold Scents
|
| Don Coxe Update – Sept. 9th 2011 Posted: 15 Sep 2011 05:17 PM PDT
Q+A 1. Do you see a damaging freeze on Agriculture stocks? 2. Will Agricultural stocks be a safe place to hide if things get worse than 2008? 3. Can you speculate how Europe might play out?
|
| The Case For Gold Miners – John Hathaway Posted: 15 Sep 2011 04:28 PM PDT
He goes on to build a case for getting some gold miners exposure by showing the leverage opportunities such as dividends, M+A activity, and organic growth with new discoveries. He fully acknowledges that there is more risk and the gold miners aren't for everyone but builds a great case just the same. See full article here.
|
| Peter Schiff - Expect More Inflation, Printing & Higher Gold Posted: 15 Sep 2011 04:02 PM PDT  With gold near the $1,800 level and silver close to $40, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about the action in gold Schiff stated, "It's a consolidation, I'm looking for the next move higher. Governments are going to keep printing, so gold is going to keep rising. It's had a significant move, so it has to finish consolidating before the next big move to the upside."
This posting includes an audio/video/photo media file: Download Now |
| Gold Seeker Closing Report: Gold and Silver Fall Over 2% Posted: 15 Sep 2011 04:00 PM PDT Gold fell to as low as $1772.79 by late morning in New York before it bounced higher in afternoon trade, but it still ended with a loss of 2.44%. Silver dropped to as low as $39.31 and ended with a loss of 2.38%.
|
| Stephen Leeb - Gold, Minimal Downside, $12,000 Upside Posted: 15 Sep 2011 03:18 PM PDT I call this a great buying opportunity. At most you are looking at 5% risk from here and the upside (for gold) could be as high as $10,000 or $12,000."
|
| Love the buying opportunity in gold, Leeb tells King World News Posted: 15 Sep 2011 03:06 PM PDT 11p ET Thursday, September 15, 2011 Dear Friend of GATA and Gold: Fund manager Stephen Leeb today tells King World News that he's unfazed by gold's decline. The paper money world is falling apart, he says, and the lower gold goes, the more it's a buying opportunity. All the same, a few more buying opportunities like this won't make gold investors quite as happy as Leeb seems to be. Maybe he wouldn't be quite as happy about gold's prospects if his thinking encompassed surreptitious intervention by central banks. But an excerpt from his interview has been posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/15_St... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust." To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf
|
| China Weakens Dollar By Buying MORE Gold Posted: 15 Sep 2011 02:37 PM PDT A recently released WikiLeaks cable shows that China is converting much of its foreign holdings in gold; far away from the U.S. dollar.
|
| Harvey Organ's: The Daily Gold & Silver Report Posted: 15 Sep 2011 02:32 PM PDT Gold and Silver Raid because of Massive Dollar Liquidity Aid to Europe
|
| Bloomberg: Gold-Backed Dollar Puts ‘Fair Value’ at $10,000 an Ounce: Chart of the Day Posted: 15 Sep 2011 02:11 PM PDT Gold has the potential to jump more than fivefold as the precious metal's price catches up with the surging amount of money in the U.S. economy...
|
| Britain draws up survival plans for life after the euro to avoid plunging into another recession Posted: 15 Sep 2011 01:58 PM PDT Britain is drawing up contingency plans for a catastrophic euro collapse that could plunge economy into a recession 'beyond comprehension'.
|
| Gold-Backed Dollar Puts ‘Fair Value’ at $10,000 an Ounce: Chart of the Day Posted: 15 Sep 2011 01:34 PM PDT from Bloomberg.com: Gold has the potential to jump more than fivefold as the precious metal's price catches up with the surging amount of money in the U.S. economy, according to Dylan Grice, a global strategist at Societe Generale SA. The CHART OF THE DAY shows the price at which each U.S. dollar in the monetary base, compiled by the Federal Reserve, would have been backed by an ounce of gold for the past half century. International Monetary Fund data on the country's gold reserves were used in the calculation.
|
| Solyndra - A few new facts. A few new questions Posted: 15 Sep 2011 01:13 PM PDT I have, on numerous occasions in the past, written an article that took the form of a question to readers. I present some demonstrable facts. Then I pose the question(s), "What do you think?" "What do you know?" I'm "smarter" as a result of the responses I have gotten. I think others are as well. I'm going to take this to a different level. The following questions are directed to my usual readers. They are also directed to the actors in the Solyndra story. The DOE, OMB, company execs (past and current), the equity owners, the lawyers and the MSM could chime in with an explanation. This blogger/taxpayer is seeking some clarity on the following. There are questions of who did what to whom and when. There is an aspect to this that has not yet (to my knowledge) been discussed in the media. (Note-I tried to make this easy to follow. It isn't. Sorry) On July 29, 2011 (just five-weeks before going bankrupt) Solyndra ("SOL") entered into a transaction whereby it sold both the Accounts Receivables (IOUs from panels sold) and the Inventory (panels) of the company ("the A/R Transaction"). Solyndra Financial ("SOLF") (a subsidiary of SOL) was the seller. The purchaser was a newly formed company called Solyndra Solar II LLC ("SSII"). The following is the only information that I could find about SSII. Note that the company was organized in the Sate of Delaware one-day before the sale of significant assets of SOL.  It is clear from the limited information from the bankruptcy court that the A/R transaction took place. From the SOL, INTERIM ORDER (I) court filing: (Emphasis mine)
I have found no explanation/details for this transaction. It is clear that a purchase/sale took place. The question of how much was sold and at what price is not clear. It is also not clear what Argonaut Solar is doing in this deal. Argonaut is a name that George Kaiser uses. His family investment vehicle channeled money to SOL through a company called Argonaut Ventures. Why would a company controlled by GK have a role as Agent between the buyer and seller of SOL's assets? A question to ask is whether GK has (directly or indirectly) an interest (equity or debt) in SSII.#333333; font-family: Georgia,serif; font-size: 13px; line-height: 20px; text-align: left;"> Again, both receivables and inventory were sold. A question is, "Was this a material transaction?" The court docs suggest there is real money involved.
I have no information from public documents regarding the scope of the sale of inventory. I have information from a former Solyndra employee (Yes, this person will remain anonymous). I believe that the following is factual. A third party confirmation of this is required. (Love to hear from you). With that said:
We were stacking up panels everywhere. Our old building was packed with them, but we had some huge orders in the works. Usually we shipped most of the material in the last week of the quarter, so this was not completely unusual. We had close to three months worth of panels and we were on track to sell about two hundred million this year. That works out to about fifty million in inventory.
Argonaut (GK) has separately offered to provide a post bankruptcy loan of $4mm ("DIP"). There are many terms required by Argonaut. One requirement relates to the A/R sales. From the docs:
Argonaut's (very good) lawyers make their position very clear as to who owns the assets in the A/R accounts.
In other words, Argonaut is willing to make a new $4mm loan, PROVIDED that the Judge releases (at least $3.86m) back to an entity that Argonaut is connected to (SSII). In addition, the Judge would be functionally sanctioning the A/R sale. The inventory (whatever it is worth) and the receivables (whatever they are worth) will be excluded from the Debtors Estate. That means that there is even less of a chance that Uncle Sam sees a penny of the money that he (we) are owed. One additional point from the unnamed ex-employee:
There are many possible explanations for the July 29 A/R sale. This could have been an arms-length transaction that was a last ditch effort to save SOL. This could also be something a bit more malodorous. I don't know. This is a unique bankruptcy. A significant amount of public money has been lost in a startup company. While the details of the A/R deal may be kept confidential, the question marks that this transaction raises will not go away. Don't read this and conclude that I'm suggesting wrongdoing on anyone's part. That's not the case. What I'm looking for is some clarity and opaqueness. I think the country deserves that. 
|
| James Turk Says “Gold Has To Go Up” Posted: 15 Sep 2011 12:50 PM PDT |
| Posted: 15 Sep 2011 12:26 PM PDT from WealthCycles: Even just 10 short years ago, the world wasn't one big market. Global interconnectedness was something we talked about, but it couldn't be seen everywhere. A market in Frankfurt acted differently from a market in Shanghai, which acted differently from a Brazilian bourse. Diversification made sense—spread your capital around in different parts of the world, and when the German DAX performed poorly, chances were the Dow was in a rip-roaring rally, and your capital was fairly safe. In this day and age, however, things are different—or actually things are the same—all over the world. One of the things Michael Maloney talks about in his Debt Collapse: The Case for $20,000 Gold is that stock markets around the world have begun moving together. This can easily be observed: when headlines tout that Europe is burning, we can expect markets in the U.S. to take a lashing as well. The Economist's Buttonwood blogger put together this chart, which shows the stunning rise in correlations among stock markets around the world:
|
| Relentless… F-ing Relentless. Posted: 15 Sep 2011 12:22 PM PDT by Turd Ferguson, TFMetalsReport.com: Man, this sht is getting old. Every night I go to bed with gold UP vs the Comex close. Then every night, as soon as the LBMA opens, the relentless attacks begin. And man, my bottom is sore. I picked it and picked it but to no avail. The only cure now seems to be Dr. Blythe taking her gigantic golden auger and reaming me out…which she is currently doing. Hopefully, once the sores have been removed and Turd's bottom has been thoroughly bore out, my plan is to return the favor. The fourth and final contest has just now closed. My man "bay of pigs" hung in there with the best guess until the very end when "printmemoney" snuck in under the wire with a closer guess. The actual 90-day pageview total was 6,769,304 and "printmemoney" guessed 6,895,349. Since this is not The Price Is Right and we were not playing "closest without going over", "printmemoney" is your winner. Mr. Money, please email me your shipping address at tfmetalsreport at gmail dot com. Read More @ TFMetalsReport.com
|
| Peter Schiff: Expect More Inflation, Printing & Higher Gold Posted: 15 Sep 2011 12:17 PM PDT from King World News:
Peter Schiff continues: Read More @ KingWorldNews.com
|
| Gold and Silver Raid Because of Massive Dollar Liquidity Aid to Europe Posted: 15 Sep 2011 12:13 PM PDT by Harvey Organ: Good evening Ladies and Gentlemen: Gold closed today down $45.00 to $1778.50 with silver also falling to the tune of $1.02 to $39.45. The bankers knew that the USA and all major central banks were orchestrating a massive dollar injection into Europe as the European banks were strapped for dollars. The dollars are scarce due to the unwinding of all of the yen carry trades and dollar carry trades as dollars are needed as the trades are unwound. I will provide details of this in the body of my commentary. Before commencing with my commentary, gold and silver should rise tomorrow as the gold shares rose today despite the smashing of the precious metals. This is a pretty good sign that tomorrow will be a good day and the whacking exercise by our criminal bankers is over. They must cover a huge number of additional shorts. Let us head over to the gold comex: Read More @ HarveyOrgan.Blogspot.com
|
| Time For Europe’s Bond-Burning Party Posted: 15 Sep 2011 12:08 PM PDT by Jeff Nielson, Bullion Bulls Canada:
In 2011 Europe is once again in financial ruins, however this time the cause is not a war, nor even some form of natural catastrophe. Rather, the architects of this destruction were multinational bankers and the shadowy bond-parasites lurking behind them, holders of $10's of trillions in sovereign debts. Their tools were fraud and deceit, and their original victims were the corrupt and/or weak-willed "leaders" of Europe who were ensnared by the banksters' "revolutionary" new ways for these governments to (supposedly) finance their growing debts. Read More @ BullionBullsCanada.com
|
| Treasury Inspector General Opens Probe Into Obama's Solargate Posted: 15 Sep 2011 11:02 AM PDT In the latest installment of what is rapidly becoming Obama's Keynesian Solargate, we learn that the Treasury Department's Inspector General has opened an investigation of the now defunct $528 million government loan to Solyndra which has no chance of getting repaid, following what will be a pennies on the dollar liquidation of the company, especially since it is primed by a $75 million term loan to George Kaiser, a documented Obama "bundler" as was documented previously. Per the AP, "A spokesman said Thursday that the inspector general is reviewing the role and actions of the Federal Financing Bank, a government corporation supervised by the Treasury Department. The bank provided the low-interest loan to the Fremont, Calif.-based company." The "concern" is that Obama has pushed levers to get the investment in a venture controlled by a "friend" on a fasttrack, with the White House Office Of Management Supervision urging the DOE to release the funds without proper diligence. "The House energy committee released documents Wednesday that appeared to show senior staff at the White House Office of Management and Budget chafing about having to conduct "rushed approvals" of a loan guarantee for Solyndra. Republican members of the committee said the emails raised questions about whether the loan was rushed to accommodate a Solyndra groundbreaking ceremony in September 2009 that featured Vice President Joe Biden and Energy Secretary Steven Chu." And while there is more, we will spare the Treasury IG some time (assuming he is at least a little less corrupt than everyone else in the administration and actually plan on conducting a legitimate investigation) and advise him to simply look at campaign and other contributions by Solyndra's equity backers which features the George Kaiser Family Foundation, U.S. Venture Partners, CMEA Ventures, Redpoint Ventures, Virgin Green Fund, Madrone Capital Partners, RockPort Capital Partners, Argonaut Private Equity, Masdar and Artis Capital Management. When in doubt, always follow the buck... especially when it is looking for a very fast turnaround courtesy of taxpayer capital IRR padding. And speaking of the "more"
Of course, and Europe may or may not do everything in its power to lever up on its sovereign bailout, as per Timmy G who is about to teach the ECB all about the benefits of unlimited private upside, and unlimited taxpayer downside, courtesy of Bernanke's own brilliant TALF construct, which worked at a time when QE 1 and 2 would still be able to add $2+ trillion to the balance sheet of the Fed, but will have some serious trouble now that every central bank's assets are full to the brim. Anyway, back to Solyndra:
And there it is: to find out why this deal was massively botched up, just find out what influence said PE firms injected on Obama. And also find out what other equity investors stand to lose if the DOE does not dispense with the balance of its "stimulus" loans in time:
The answer? A resounding yes. But we will give the president one thing: he sure is creating entry level bankruptcy attorney and financial advisor jobs, and a whole lot of billable hours, which will be funded by the bankrupt estate, which, incidentally means, the US taxpayer.
|
| Treasury Inspector General Opens Probe Into Obama's Solargate Posted: 15 Sep 2011 11:02 AM PDT
In the latest installment of what is rapidly becoming Obama's Keynesian Solargate, we learn that the Treasury Department's Inspector General has opened an investigation of the now defunct $528 million government loan to Solyndra which has no chance of getting repaid, following what will be a pennies on the dollar liquidation of the company, especially since it is primed by a $75 million term loan to George Kaiser, a documented Obama "bundler" as was documented previously. Per the AP, "A spokesman said Thursday that the inspector general is reviewing the role and actions of the Federal Financing Bank, a government corporation supervised by the Treasury Department. The bank provided the low-interest loan to the Fremont, Calif.-based company." The "concern" is that Obama has pushed levers to get the investment in a venture controlled by a "friend" on a fasttrack, with the White House Office Of Management Supervision urging the DOE to release the funds without proper diligence. "The House energy committee released documents Wednesday that appeared to show senior staff at the White House Office of Management and Budget chafing about having to conduct "rushed approvals" of a loan guarantee for Solyndra. Republican members of the committee said the emails raised questions about whether the loan was rushed to accommodate a Solyndra groundbreaking ceremony in September 2009 that featured Vice President Joe Biden and Energy Secretary Steven Chu." And while there is more, we will spare the Treasury IG some time (assuming he is at least a little less corrupt than everyone else in the administration and actually plan on conducting a legitimate investigation) and advise him to simply look at campaign and other contributions by Solyndra's equity backers which features the George Kaiser Family Foundation, U.S. Venture Partners, CMEA Ventures, Redpoint Ventures, Virgin Green Fund, Madrone Capital Partners, RockPort Capital Partners, Argonaut Private Equity, Masdar and Artis Capital Management. When in doubt, always follow the buck... especially when it is looking for a very fast turnaround courtesy of taxpayer capital IRR padding. And speaking of the "more"
Of course, and Europe may or may not do everything in its power to lever up on its sovereign bailout, as per Timmy G who is about to teach the ECB all about the benefits of unlimited private upside, and unlimited taxpayer downside, courtesy of Bernanke's own brilliant TALF construct, which worked at a time when QE 1 and 2 would still be able to add $2+ trillion to the balance sheet of the Fed, but will have some serious trouble now that every central bank's assets are full to the brim. Anyway, back to Solyndra:
And there it is: to find out why this deal was massively botched up, just find out what influence said PE firms injected on Obama. And also find out what other equity investors stand to lose if the DOE does not dispense with the balance of its "stimulus" loans in time:
The answer? A resounding yes. But we will give the president one thing: he sure is creating entry level bankruptcy attorney and financial advisor jobs, and a whole lot of billable hours, which will be funded by the bankrupt estate, which, incidentally means, the US taxpayer. 
|
| Grandich in Financial Post and more… Posted: 15 Sep 2011 11:00 AM PDT The following is automatically syndicated from Grandich's blog. You can view the original post here. Stay up to date on his model portfolio! September 15, 2011 02:58 PM FINANCIAL POST | Sept 15, 2011 Volatility dampens miners' optimism By Peter Koven * * Creamer’s Mining Weekly.com | 16 September 2011 Gold could hit $2 500/oz next year as debt crisis deepens, says Sprott By Matthew Hill [url]http://www.grandich.com/[/url] grandich.com...
|
| Sell your Bonds and Gold and Buy Dividend Growth Stocks Before it's Too Late Posted: 15 Sep 2011 10:11 AM PDT Early in their careers investment professionals are taught the importance and benefit of properly diversifying their client's portfolios. Modern Portfolio Theory (MPT), which was developed and promoted by academia ... Read More...
|
| EU Banks Limiting Bullion Buying?.. Ron Paul Supports Global Psychopaths Posted: 15 Sep 2011 10:08 AM PDT EU Banks Limiting Bullion Buying? Thursday, September 15, 2011 – by Staff Report Banks, Governments Move To Restrict Personal Gold Bullion Purchases ... The most alarming situation we identified is one relating to the purchase of gold coins and bullion – specifically in the country of Austria – but one that will likely make its way across the EU if it hasn't already. Unlike the United States, where gold and silver can be purchased through traditional methods like visiting a local dealer directly, or even placing an order on the internet, it is much more difficult to find a gold/silver dealer outside of Germany or Switzerland. As a result, those individuals interested in acquiring gold are left with purchasing directly from local bank branches. Had you visited an Austrian bank three months ago...
|
| Posted: 15 Sep 2011 09:57 AM PDT Addison Wiggin – September 15, 2011
But today, we have to beg your indulgence. The developments we're going to recount this morning signal an event we first forecast in The Demise of the Dollar in 2005: the serious proposal of a global currency by 2013…
The European Central Bank, the Federal Reserve, the Bank of Japan, Bank of England and Swiss National Bank — they're all in on the deal. Ordinarily, European banks can borrow dollars from the Fed via the other central banks for up to one week. Now they'll be able to take out three-month loans during three auctions — starting next month and continuing through December.
Too, there was a Wall Street Journal piece that said U.S. money market funds wanted nothing more to do with a third big French bank, BNP Paribas, which BNP perfunctorily denied. And if that's not enough, today's the third anniversary of Lehman Bros.' Chapter 11 filing. Good times.
Unfortunately, says Mr. Pento, the problem is not only one of liquidity. "Many European banks would be insolvent if they used mark-to-market accounting rules. That's because the assets they hold — sovereign debt of bankrupt counties — need to be written down and restructured in a big way. But that would engender a series of many Lehman moments in Europe and, indeed, throughout the world. "The EU will have to face the fact that Greece is insolvent, and a massive injection of bank capital will be needed from the ECB to support the 'too big to fail' policy adopted on both sides of the Atlantic. "But it's not just the Greeks that have a problem. Italian 10-year note yields remain stubbornly close to 6%, despite Trichet's efforts to bring them much lower. Therefore, the troubles in Europe have just begun, and the inflationary policies used to subvert the clearing mechanism of the market will ensure they are going to become much worse."
"Ultimately, in the wake of a Greek default, we could see the same group of central banks agree to inflate their balance sheets by an equivalent amount and buy government debt with the proceeds — a sort of 'global quantitative easing' that would satisfy the concerns of each country worried about too much currency appreciation."
"Once this occurs, eurozone officials would retreat from efforts to keep lending more money to Greece, and save dry powder to fight the risk of cascading eurozone bank failures and contagion to the other PIIGS countries."
The International Monetary Fund has long pushed for Special Drawing Rights (SDRs) to form the basis of a new global currency. SDRs are a basket of currencies the IMF uses to smooth over trade imbalances. "Over time, there may also be a role for the SDR to contribute to a more stable international monetary system," said Dominique Strauss-Kahn last February, when he still ran the IMF. Strauss-Kahn is gone, but the agenda remains. "In theory," we wrote in The Demise of the Dollar, SDRs could function as the beginning of an international currency." "But given the widespread use of the U.S. dollar as a peg for so many currencies worldwide, it is unlikely that such a shift to a new direction will occur before circumstances make that the only choice. Those circumstances are now fast approaching. The world's central banks made that clear today. "At the end of all of this," says Dan Amoss, "confidence in paper money, central banks and governments will hit a new low. Prepare accordingly by holding precious metals and avoiding (or selling short) stocks and bonds of companies that will get hurt in this environment." Dan has six specific recommendations to carry out that advice. Learn more about his protection plan at this link:
The sound you hear is mewling from Fed governors… who find themselves getting squeezed between the proverbial rock of rising inflation and the hard place of a weakening economy. We can hardly wait to see what the Fed's Open Market Committee dreams up next Wednesday.
"But lest bulls get too complacent, signs of solid resistance are showing up. So far, the rally looks less than robust, and, in my opinion, the market is likely to be headed back lower over the weeks ahead. "The upside may be limited from the current level, and, if support gives way, we could witness another strong leg lower in stocks."
 This chart, courtesy of analyst Dylan Grice at Societe Generale, measures the dollar amount of gold in Fort Knox as a percentage of total U.S. currency. For a closer look at what the chart means, and some investment implications from our friend Rick Rule, take a look at today's Daily Resource Hunter.
We were unaware that His Hairness cared a whit about gold. But now he's accepting three 32-ounce bars as a deposit on a 10-year lease on one of his marquee buildings. The precious metals dealer Apmex will take up residence on the 50th floor at 40 Wall Street in New York for a deposit in gold equal to $176,000. Apmex, according to The Wall Street Journal, "is promoting the use of gold as a replacement for cash in some situations." Trump appears to be on board with that sentiment, too. "The economy is bad, and Obama's not protecting the dollar at all… If I do this, other people are going to start doing it, and maybe we'll see some changes."  The world is clearly out of whack when Trump starts seeing things the way we do. Even scarier is this nugget from our archives: "I just bought 800 acres of land in Washington on the Potomac River," Trump said in February 2009. "It's a club, with golf courses and other tremendous things… the reason I did it is I see Washington as the only growing place in the United States." We're not keen on Trump's business model, which seems to be built around the serial stiffing of creditors in bankruptcy court. But clearly, the guy's onto something…
"Who has believed for the past 20 years that Social Security would be solvent now, 20 years later? "It was obvious to me, and most financial advice subscriptions I had for years, that I should not expect to collect a penny of the funds I 'contributed by force' to Social Security. "Sadly, the best advice I have come to know for a certainty is this: Whatever the government recommends or states as true, I think and do the exact opposite, and the healthier, wealthier and happier I have become." The 5: You didn't identify yourself by age, but we detect a generational divide. Boomers and the older Silent Generation are offended by the systematic theft of the Social Security trust fund… while Generation X long ago wrote off the prospect of collecting a penny from the system.
"What I'm not going to do is beat my head against the horrific wall of reality whose brick and mortar is the mismanaged, debt-laden legacy that generations of bureaucrats have bequeathed me. It is what it is. Instead, I'll keep out of debt, live as simply as possible, try to assimilate all I can about investing and wealth creation and work on that self-employment business that I've had on the back burner while stocking up on food, gold, silver and ammunition. "I appreciate the dismay and anger expressed by fellow readers. However, as a long-time reader of many Agora newsletters, I think I can accurately say that the various writers take no joy in pointing out the painful but obvious truths of our Social Security mess. Sometimes I think you satirize, ridicule and jest over the financial chaos, as your only other alternative would be to weep in frustration or collapse into a catatonic state of vacancy."
"Based on that 'fix,' if I retire under the currently existing plan on my 65th birthday, I should expect to receive less than two weeks of meaningful benefits. Of course, changes since then have reduced the assets of the alleged trust fund. "Those who support Social Security support the systematic robbery of all Social Security 'contributions' from everyone born after 1965. Additionally, those born before 1965 should subtract their birth year from 1965 to get an estimate of how long they can expect to draw meaningful payments from Social Security. "I don't think Social Security payments will stop. What will probably happen is that everyone will get a Social Security payment, but the payment (in depreciated dollars) will be insufficient to buy a loaf of bread. "So our choices are to halt this Ponzi scheme before it destroys all the purchasing power remaining in the dollar, or keep it going, and destroy the finances of every entity depending on the dollar as a store of value. This will lead to politics descending to what happened in 1920s and 1930s Germany. "Many of the newly broke will need to start a business without any capital. The 'oldest profession' comes to mind. How are you going to look your younger female relatives in the eye when you know that your, and your generation's insistence on receiving 'Social Security,' made them make that choice? "I say go back to work." The 5: Damn, we have intergenerational warfare breaking out in our virtual pages.
"But that's for true disabilities — not those who are 'disabled' because they won't get off the couch and exercise to lose weight, etc. Social Security was set up to assist physical laborers who truly could not labor in the last few years of their lives. It wasn't intended to help desk jockeys, who can work as long as their minds work, even if they are wheelchair-bound. "Never in human history has there been the concept of 'retirement.' So why now should healthy people not produce for the last decades of their lives? I see few elderly who are incapable of working at something. That's the solution to Social Security: Forget retirement age, and transfer everyone over to a disability concept. Construction workers and dementia sufferers would still get to quit working relatively young, while everyone else would work until their final illness, unless they can support themselves without working. "That's the future Generation X and Generation Y are facing, so the current retirees aren't going to get much sympathy from their youngsters!"
"If it's the truth, it's the truth. We are better off taking care of ourselves, if we can, and that's where you come in: Help us make sense out of this goofy world and profit from the situation!" The 5: We're doing our best. We've developed a comprehensive solution set for people seeking retirement income. It's not for everybody… but it deserves your attention.Decide for yourself here: Regards, Addison Wiggin P.S. "All great inflations end with the acceptance of real money—gold—and the rejection of political money—paper," according to Rep. Ron Paul. "The stage is now set; monetary order is of the utmost importance. Conditions are deteriorating, and the solutions proposed to date have only made things worse." "Although the solution is readily available to us, powerful forces whose interests are served by continuation of the present system cling tenaciously to a monetary system that no longer has any foundation." "The time at which there will be no other choice but to reject the current system entirely is fast approaching. Although that moment is unknown to us, the course that we continue to pursue will undoubtedly hurtle us into a monetary abyss that will mandate a major reform." Dr. Paul could have written this last week. He actually wrote it in 1982, in the original foreword to The Case for Gold, the "dissenter's manifesto" he issued after the U.S. Gold Commission on which he served decided not to return to a gold-backed currency. Dr. Paul graciously took time out of his Congressional and campaigning schedule to speak at length with us yesterday, accompanied by a film crew. He reflected on the cascade of events that began with Nixon closing the gold window in 1971, leading up to his decision to run for Congress in 1974. More to come… Watch this space.       
|
| Why Economic Growth is Not a Sure Thing Posted: 15 Sep 2011 09:30 AM PDT What if everything you thought you knew about investing wasn't so? Or, to put it another way…what if everything you learned about investing was learned in an unusual period in investment history? A period that won't be repeated in our lifetimes? You're used to stocks going up, right? But they don't always go up. They only go up — in general — when the economy grows. But economies always grow, right? Well, maybe not. How much did the economy grow in 2011 BC? Nobody knows, right? But we'll take a guess. It didn't grow at all. And guess how the real economy in the US is growing this year? Probably about as much as it did 4,000 years ago. No, we're not kidding. The numbers are all over the place. But they're all near zero. Even the feds say the economy is "barely" growing…or that the 'recovery is very fragile.' Guess how many jobs the economy added in 2011BC? We don't know that either, but we'll take another guess: zero. Okay… You see where we're going with this. This economy sucks, right? But here's the thing. You think the suckiness of this economy is a temporary thing. You think the economy USUALLY does okay. You think that there is something inherent in technology…that it is always finding new and better ways to do things…and that as a result we all get richer all the time, right? Well, what if you're wrong? What's the measure of wealth? Here's one way to look at it. It's how much output you can get from a unit of time. You take your bare hands…you try to dig a ditch. Your output is very limited. So, in a remarkable breakthrough, someone invents a spade! The first ones are made of wood. But they get better and better. Now, with a steel spade in his hands a man can dig much more hole in the same amount of time. He is richer. He can produce more. He can improve his standard of living just by using the tools he has available to him. But then what? Then…maybe 5,000 years after the invention of the first hoe, a man invents a machine to do the digging…a backhoe. Now he's really smoking. With a backhoe he can dig 10…20…times faster than a man with a regular hoe. The first mechanical diggers are clumsy. Steam-powered. But gradually they get better. Now, they're so smooth and responsive a good backhoe operator can use them to light a man's cigarette for him. No kidding, it's included in backhoe rodeo contests. Mechanical diggers have been around for 100 years. They've gotten bigger and better. Presumably, each new generation of machines pays off. But not like they used to. The first backhoes produced huge new gains in productivity. The last produced only marginal gains. Meanwhile, the energy needed to run the machines becomes more expensive. At 15 cents a gallon, the investment in fuel and machinery was almost sure to be worth it. Now, at $4 a gallon, a man has to think twice. If he has a small hole to dig, he might be better off digging it with a spade! The energy revolution may have peaked. Growth may be a thing of the past. Regards, Bill Bonner Why Economic Growth is Not a Sure Thing originally appeared in the Daily Reckoning. The Daily Reckoning provides 400,000+ readers economic news, market analysis, and contrarian investment ideas. The 5 Best Ways to Invest in Gold was previously featured in the Daily Reckoning.       
|
| The Biggest Threat to the Gold Mining Industry Posted: 15 Sep 2011 09:28 AM PDT By Matt Badiali, editor, S&A Resource Report Thursday, September 15, 2011 My friend Brent Cook is buying gold right now… But not for the reasons you'd expect. Brent is no "doom and gloom" gold bug. He doesn't think the dollar is going to collapse any time soon. Brent simply knows the world is running low on gold… which could drive the price of his favorite stocks much, much higher. He has unique insight into the gold business. He's one of the best mining geologists in the world… and he spends an extraordinary amount of time visiting mines and analyzing mining data. He shares his thoughts in his Exploration Insights newsletter. Last week, Brent told readers about the latest on a huge story happening in the gold business: Gold companies are spending enormous amounts of money to explore for gold… with little to show for it. According to numbers from the world's largest gold miner, Barrick Gold, the entire industry is having more and more dif...
|
| Awaiting the Inevitable Correction in the Silver Price Posted: 15 Sep 2011 08:58 AM PDT The International Can-Kicking Team is busy again today, as the European Central Bank, US Federal Reserve and three other central banks linked arms to kick the European debt crisis down the road until the end of the year. Specifically, the Can-Kickers announced that they would provide three-month US dollar loans to European banks to insure that the banks have enough liquidity to make it to the end of the year. If past scams of this nature are any guide, the "short-term" assistance will somehow morph into long-term or permanent assistance, funded by taxpayers. The markets are rallying because this scam "sends a powerful message," according to one financial news source. Message received: When all else fails, launch a massive bailout. The markets will probably continue rallying a while longer, and the gold price will probably continue to retreat (just as Bill Bonner has been predicating). But the longer these counter-trend moves proceed — i.e. stocks up, gold down — the better the opportunities for forward-looking investors to re-weight their portfolios. The recent selloff in gold, for example, is providing a glittering opportunity to add a little more weight to the precious metal sector. And as we mentioned in yesterday's edition of The Daily Reckoning, gold stocks, rather than gold itself, seem particularly compelling at the moment. Following up on this theme, we present the nearby chart for your consideration. First, the conclusion: Gold stocks are as cheap as they have been in a decade. Now the details: The chart below shows the price-to-EBITDA ratio of the XAU Index of stocks, both in absolute terms and in comparison to the price-to-EBITDA ratio of the S&P 500 Index. This ratio is a measure of price-to-cash-flow and tends to illustrate valuation more accurately than the more familiar price-to-earnings (PE) ratio. In absolute terms the price-to-EBITDA of the XAU Index is currently around 7.5 times, which is only about 10% higher than the price-to-EBITDA of the S&P 500 Index. Both of these metrics are as low as they have been in a decade. Obviously, however, "cheap" does not mean "buy." Cheap stocks have a tendency to get cheaper, on the way to becoming way-too-cheap. Gold stocks are cheap, but they could still fall to way-too-cheap. Silver stocks, on the other hand, may already be way-too-cheap. A Daily Reckoning reader named Kyle Sorgel makes the argument: Within the precious metals sector, silver mining stocks may be the very best bet… A consensus estimate of the total amount of silver mined from 3000 BC to now is about 44.4 billion ounces and for gold is about 4.25 billion ounces. This yields a gold-to-silver ratio of about 10.44, a far cry from the current gold-to-silver ratio of 45. In modern times, mines are pulling less silver out of the ground, relative to gold, than they did in ancient times. Total annual mine production of silver is only 8.6 times greater than total gold production. Furthermore, and most importantly, 53% of the total silver demand is used in industrial processes versus gold's 11%. This means that every year 53% of the total supply of silver is USED UP, meaning it's gone, vanished, disappeared. Silver is an extremely versatile metal and as time has progressed science has found multiple uses in which silver provides a benefit that no other metal can provide (even gold). And since the silver is used in such trace amounts, most of it can't be recovered. Based on these facts, it seems inevitable that the large price disparity between gold and silver should narrow over time. Mr. Sorgel's argument is compelling. But please remember, dear reader, inevitable is not the same thing as imminent. Eric Fry Awaiting the Inevitable Correction in the Silver Price originally appeared in the Daily Reckoning. The Daily Reckoning provides 400,000+ readers economic news, market analysis, and contrarian investment ideas. The 5 Best Ways to Invest in Gold was previously featured in the Daily Reckoning.     
|
With gold near the $1,800 level and silver close to $40, today King World News interviewed Peter Schiff, CEO of Europacific Capital. When asked about the action in gold Schiff stated, "It's a consolidation, I'm looking for the next move higher. Governments are going to keep printing, so gold is going to keep rising. It's had a significant move, so it has to finish consolidating before the next big move to the upside."
Yeah, we know. "Wake me up when Greece defaults," you say. On occasion, we're inclined to feel the same way.
The world's biggest central banks will unleash a fire hose of dollars onto the big European banks today.
The timing of this is, well, interesting. Recall from yesterday's issue that Moody's downgraded two of the big French banks, in part because of dollar liquidity worries.
The announcement has had the following effect on markets:
"The U.S. and Europe have clearly stated that market forces will not be allowed to prevail," says Michael Pento, the newest member of our team. "Central banks controlled by Ben Bernanke and Jean-Claude Trichet have now fully committed to supplying liquidity in the market at any and all costs."
"This morning's announcement is merely the first volley in a barrage of the coordinated easing policies," adds our short strategist Dan Amoss. "I've been expecting coordinated central bank efforts to ease liquidity shortages at European banks for over a month.
"The most important question," Mr. Amoss goes on, "facing investors today is: What happens when (not if) Greece defaults? As the Greek government loses popular support amidst a rapidly contracting economy, Greece looks certain to default.
Where does this "barrage of coordinated easing policies" finally lead?
U.S. stocks are rallying on the back of the ECB announcement — the Dow nearing 11,400 — despite a raft of miserable economic numbers out this morning:
"In the first half of the week," 
All that liquidity sloshing around Europe has washed out the precious metals. At last check, spot gold was down to $1,778 an ounce. The bid on silver's been knocked back to $39.49.
By one measure, gold ought to be $10,000 an ounce:
"It's a sad day when a large property owner starts accepting gold instead of the dollar," says Donald Trump.
"My question is simple," writes a reader diving headfirst into the deep end of our Social Security debate. "Do people have a responsibility to think for themselves, be responsible for their own future and ask if what they are being told by government or anyone else is credible?
"As a 49-year-old, I expect I'll get nothing from the Social Security trust fund," writes a reader confirming our suspicion. "I expect I may soon face the reality of my elderly in-laws moving in with me. I expect that my 19- and 21-year-old, terrific-work-ethic daughters may live with my wife and me for a few more years as they try to develop careers in the midst of a depression. I expect I'll have to live without some toys I've been wanting. I expect I'll be reining in some dreams and will not retire at 65.
"I was born less than two weeks before 1965," writes another. "In 1983, Congress passed a bill to 'fix' Social Security. The only problem with the fix is that it is only fixed it until 2030.
"To those complaining about Social Security cuts, get a job!" adds another, firing a new volley. "I'm in favor of keeping the disability aspect of Social Security, given our current economic situation.
"Those other readers," says our final contributor today, "seem to think that you are a congressman and can do something about Social Security.
| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
| Google Inc., 20 West Kinzie, Chicago IL USA 60610 | |
No comments:
Post a Comment