Harvey Organ, Monday April 4, 2011

Harvey Organ, Monday April 4, 2011

silver blasts to $38.48. Gold also rebounds to 1432.20

 

Silver demand huge, supply small, Sprott tells King World News

 

Feds move to keep Liberty Dollar's $7 million metal inventory

 

Ron Paul: The Fed's largesse undermines foreign policy

 

The Curious Case Of Bloomberg's Persistent Treasury "Demand" Disinformation Campaign

Submitted by Tyler Durden on 04/04/2011 19:10 -0400

Less than a month ago, Zero Hedge thoroughly debunked an article written by Bloomberg's Susanne Walker and Wes Goodman, titled "China Adding to $1 Trillion of U.S. Debt Caps Rise in Rates" which had one purpose only: to eliminate public panic arising from the imminent removal of the Fed as a buyer of first and last resort, and attempt to convince naive readers that China is in fact adding to its holdings. To wit: "China, the largest investor in U.S. government debt after the Fed, increased longer-term notes and bonds by 39 percent to $1.145 trillion in December from a year earlier." As we showed previously this statement was based on a completely unfactual apples to oranges comparison of pre and post-revision TIC data, further showing that if the authors had conducted their analysis properly it would have actually shown a decline in China's Treasury holdings in a 12 month period. Then in a development so ironic it would even make Alanis Morisette blush, we disclosed the very next day that Bill Gross dumped all of his Treasury holdings, pending an answer to the question of "who will buy US Treasurys once the Fed stops monetizing", immediately refuting Bloomberg's "all is rosy on the foreign front" argument, reinforcing our thesis that with the Fed gone, foreigners will promptly cease to co-bid alongside the bidder of biggest resort, and in essence ending any artificial attempts to make the US paper demand picture any better. Yet today, less than a month later, Bloomberg's Daniel Kruger, in an article titled "Fed Exit Means No Pain for Obama as Foreigners Buy 60% of Notes at Auction" repeats precisely the same mistakes as his colleagues which we have since corrected, cheery picks some other data, and goes on to present a goalseeked argument to a conclusion that once again appears to have come from "above." Frankly, we are stunned by this persistence to refute Bill Gross' (not to mention Zero Hedge's) factually based view that foreign demand is declining materially for US bonds, and without QE3, it is very possible that it may disappear entirely. So allow us to debunk Bloomberg's second attempt (which we again hope is merely a function of misunderstanding of the subject material) at outright factless spin.



The Curious Case of the Fed Analyst Fired After Asking Too Many Questions

Radiation Experts: Radiation Standards Are Up to 1,000 Higher Than Is Safe for the Human Body 

Posted by: George Washington

Post date: 04/04/2011 - 18:24

And the EPA is planning on raising them ...

Tim Geithner Releases Latest Mutual Assured Destruction Threat: Says "Debt Ceiling To Be Breached No Later Than May 16"

Submitted by Tyler Durden on 04/04/2011 15:16 -0400

Anyone remember the scaremongering tactics used by the kleptocracy when TARP was passed and when the Fed tried to hide its discount window borrowings (oh yes, the market really plunged on Thursday)? If not, here is a reminder, courtesy of a letter just released by the boy who not only cried wolf on so many different occasions, but continues to do so today: "The longer Congress fails to act, the more we risk that investors here and around the world will lose confidence in our ability to meet our commitments and our obligations. If Congress does not act by May 16, I will take all measures available to me to give Congress additional time to act and to protect the creditworthiness of the country....Defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover....defaulting on legal obligations of the United States would lead to sharply higher interest rates and borrowing costs, declining home values and reduced retirement savings for Americans. Default would cause a financial crisis potentially more severe than the crisis from which we are only now starting to recover. Nor is it possible to avoid raising the debt limit by cutting spending or raising taxes. Because of the magnitude of past commitments by Congress, immediate cuts in spending or tax increases cannot make the necessary cash available. In order to avoid an increase in the debt limit, Congress would need to eliminate annual deficits immediately. " We are now, thusly, screwed.

Toyota Says It Will Have To Shut Down North American Factories, 25,000 Workers To Be "Affected"

Submitted by Tyler Durden on 04/04/2011 14:04 -0400

Remember the massive surge to world GDP courtesy of the Japanese disaster spouted by every idiot on CNBC? Well, here we go:

• TOYOTA SAYS WILL HAVE TO SHUT DOWN N. AMERICAN FACTORIES
• TOYOTA SAYS SHUTDOWNS MAY AFFECT 25,000 WORKERS

This is massively bullish for horse buggies and Flintstonemobiles.

OPEC Intervention Time: Brent Hits $121.64

Submitted by Tyler Durden on 04/04/2011 13:08 -0400

Remember how OPEC promised it would immediately expand its "millions" in barrels in "excess capacity" when Brent passes $120? We are expecting a PR from Saudi Arabia it promises to releases it gobs of strategic reserves any...... minute.....now.......now.........NOW damn it. And to all our European readers, we offer our condolences for $10/gallon gas. Take it up with the Chairsatan... oh wait, the San Fran Fed just issued a paper saying the Fed is not, repeat not, responsible for $121 Brent. And the San Fran Fed is always, repeat always, correct. Oh well, it's all that perfectly inelastic demand for gas at surging prices then. Sorry.