Harvey Organ, Thursday, June 9, 2011
Silver regaining its strength/ Economy continues to sink/
Trillion Dollar Gold The Story Of The Berserk Nat Gas Algo Just Got Really StrangeSubmitted by Tyler Durden on 06/09/2011 19:21 -0400 This is where things get downright bizarre... George Washington 06/09/2011 - 18:04 |
US Treasury Burns $90 Billion in 8 Days
Submitted by Tyler Durden on 06/09/2011 16:44 -0400More scary stuff from the US Treasury which has resumed living auction to auction, even as it has plundered over $80 billion in G and CSRD retirement fund money to provide cap under the debt ceiling, a number which will eventually rise to $270 billion by August 2nd at which time all bets are off unless the politicos in DC finally relent with their soap opera and allow the inevitable $2 trillion debt ceiling hike (which probably won't happen. Instead Congress will start voting on incremental $200 billion debt ceiling hikes month to month in order to keep the public glued to their TV in a demonstration of just how fiscally prudent Congress is). In the meantime, here's the math: in the first 8 days of the month of June, the Treasury has seen its cash balance decline from $112.6 billion to $23.5 billion: a solid burn rate of $90 billion in just over a week. But lest readers think that this is due to paying down debt, it isn't: total US debt was flat (at the ceiling), while intragovernmental holdings declined by $20 billion to accomodate another $20 billion in marketable debt (see the plunder of retirement accounts discussed above). So how does one reconcile this data? Simple - in June the Treasury has collected $44 billion in withheld individual income taxes (and a whopping $400 million in corporate tax), while spending double that, or $89 billion. Fiscal prudence? Rhetorical.
African Barrick Gold plc
Update on 2011/12 Tanzanian Budget
The Tanzanian Minister for Finance presented the 2011/12 Budget to Parliament yesterday in Dodoma. Amongst the range of initiatives and measures put forward, there were several of relevance to our business in Tanzania. Chief amongst these were:
- The proposal of a special escrow account to deal with indirect tax payments from the mining industry in order to facilitate the timely repayment of fuel excise duties. We have been working with the government and the Tanzania Revenue Authority to find a solution to this administrative issue and the new process should improve our working capital management going forward.
- Further measures to address the power shortage in Tanzania through supporting investment in an additional 160MW of generating capacity, as well as a commitment to help secure financing for the state utility TANESCO for the longer term development of the national network.
- Contrary to media reports earlier in the day, no other measures were announced addressing the tax status of mining companies in Tanzania. As previously communicated, the tax treatment of our existing operations is, and will continue to be, that set out in the respective Mineral Development Agreements.
Commenting on these developments, ABG CEO Greg Hawkins commented, "Today’s Budget speech is illustrative of the Tanzanian government’s ongoing commitment to promoting a balanced investment environment for mining businesses operating here in Tanzania. We have put considerable effort into achieving a workable framework for dealing with the issue of fuel excise duty recovery and it is encouraging to see this articulated in the solution proposed today. This builds on the increased level of governmental engagement we have seen following the recent unfortunate events at North Mara as well as in dealing with the replacement of the SAG mill motor at Buzwagi, which is now installed and fully functional. Although the replacement took slightly longer than first expected with a short-term production loss of around 15,000 ounces we remain confident this will largely be recovered over the balance of the year. ABG continues to focus on optimizing our current operations and further expanding the business in Tanzania. We will be doing this in partnership with the government for the benefit of all our stakeholders."
More…
Jim Sinclair’s Commentary
From the Chinese People’s Daily.
U. S. holds confidence in Tanzania’s developmental plans
08:50, June 08, 2011
The United States on Tuesday expressed confidence in the Tanzanian leadership and its developmental plans towards poverty eradication.
U. S. Trade Representative Ronald Kirk made the remarks at a press conference in Dar es Salaam, noting that U. S. President Barack Obama wants Tanzania to continue improving its investment climate to attract more investors from the United States, the online Tanzanian newspaper Daily News reported.
Tanzania is to become the largest single recipient of tourists from the United States, which in itself demonstrates the confidence American people have in Tanzania, according to Kirk.
He said Obama was impressed by both political and economic modes, while calling on the Tanzanian government to continue enhancing democracy, good governance and regional cooperation for an effective international business.
As many third world countries, Tanzania trade less with the developed nations thus benefitting little despite what were offered in the market, suggesting that Tanzania and other least developing nations should build a global society by offering better education with global perspective.
Obama has picked Tanzania as one of the four countries in the world to collaborate in key development areas, apart from Ghana, El Salvador and the Philippines, said the report.
For his part, Tanzanian Minister for Industry and Trade Cyril Chami said the country was in need of both local and foreign investors to achieve sustained national development, noting that numerous U. S. investors have expressed interests to invest on Kilimo Kwanza (Agriculture First) and small and medium entrepreneurs development.
The Tanzanian government was committed to remove all red tapes and create conducive environments for both local and foreign investors, Chami added.
More…
Jim Sinclair’s Commentary
Here is the latest from John Williams’ ShadowStats.com.
- Earthquake-Diminished Imports of Auto Parts Narrowed April Deficit
- Trade Revisions Showed Somewhat Deeper Historical Shortfalls
- Mr. Bernanke Begins to Unfurl His Warning Flag
"No. 372: April Trade Deficit, Bernanke Shift"
http://www.shadowstats.com
Jim,
Dr. Philip Verleger’s knowledge of the oil industry is, in our opinion, second to none. We had seen the announcement and e-mailed Philip on Sunday and we both agreed that the Saudis “were up to something.”
This decision, we thought, coming only a few days before the OPEC meeting… which by then we knew would be rancorous and would end in an “ugly” fashion, meant that the Saudis were moving in rather unusual ways and were about to do something that would be detrimental to the world’s oil consumers without doing damage to their own global stature. Thus, when the meeting ended amidst confusion, Dr. Verleger sent us the following note, reprinted here in full with his permission. He said:
"Saudi Arabia has just pulled off one of the most remarkable public relations operations in many years. Last Sunday Saudi Aramco announced it was reducing the discount offered for its medium and heavy grades of crudes. The reductions in the discounts will make Saudi crude oil less profitable to refine and should, other things being equal, lead to a reduction in purchases of Saudi crude. The cuts will, however, likely boost Saudi revenue – the goal of every profit maximizing entrepreneur.
However, the country’s leaders cannot be seen to be trying to raise prices, even if it is the optimal decision for an oil producer. Thus, the country’s oil minister went to Vienna and called for an increase in quotas. When the proposal was rebuffed by six other members of the organization, the oil minister held a press conference and said Saudi Arabia would offer more oil. It was a brilliant coup. Saudi Arabia comes out looking like a friend to the west, promising to produce more oil. In response, energy policy officials in consuming countries will back off from their threats to release strategic stocks.
In the mean time, the firms that buy and refine crude oil are left holding the bag. Their losses will mount if they buy more crude. On the other hand they will be attacked by politicians across the globe if they do not buy oil and build inventories for the later part of 2011.
The really stunning development was the failure of any of the reporters to understand the game. I can understand the failure of market analysts in New York to understand the Saudi strategy. These individuals have been taught and now teach that the Middle East and OPEC quotas are everything. Truly amazing!"
Philip is right; the Saudis have out-smarted everyone. This ploy was sheer brilliance on their part and we stand back and applaud them for what they’ve been able to pull off. Oil prices sky-rocketed and will head higher still and the Saudis look not only blameless, they look like the good guys in the story. You have to stand back in awe and admire the sheer brilliance of the chess move. Check and check mate! Oh, and prices are heading materially higher even from here.
CIGA Lenny
30% Of People With A 401(k) Have Taken Out A Loan Against It: New All Time Record
Submitted by Tyler Durden on 06/09/2011 18:47 -0400About a year ago Zero Hedge posted an article titled: "Record Number Of Americans Using Retirement Funds As Source Of Immediate Cash" after a report by Fidelity uncovered that "plan participants with loans outstanding against their 401(k) accounts had reached 22 percent versus 20 percent a year earlier." It is now time to revisit this very important topic because if recent press reports are true, last year's record number has just increased by another 50%. "On "The Early Show" Thursday, financial journalist and Newsweek columnist Joanne Lipman said, "Right now we have 30 percent of people who have 401(k)s have loans against their 401(k)s, which is a historic high. And the problem is, it's growing like crazy: By 2014, we're expecting to see 30 million people take loans against their 401(k)s." The raiding of the last ditch piggybank is on, and who can blame them? With banks setting the example of always reverting to the Discount Window (or the Excess Reserve stash as is now trendy) when in trouble, ordinary working Americans are merely following in the footsteps of their financially more "literate" betters. Unfortunately, unlike the "depositor" institutions, nobody will replenish these funds should they not be repaid and the retirement money is gone for good.
Might as well just Nuke the whole world if hillary gets the job...
Might as well just Nuke the whole world if hillary gets the job...
Hillary Clinton Seeks To Run World Bank
Submitted by Tyler Durden on 06/09/2011 17:28 -0400Update 2: State Department official says Clinton would not even take World Bank job if it was offered - CBS News
Update: NBC WIRE: From Philippe Reines, a Clinton spokeman: "It's 100% untrue, Reuters is wrong. That's on the record."
Phew, that was scary...
We are surprised that the "recidivist rapist" post-DSK PR backlash took so long. Yet it is now here. From Reuters:
Update: NBC WIRE: From Philippe Reines, a Clinton spokeman: "It's 100% untrue, Reuters is wrong. That's on the record."
Phew, that was scary...
We are surprised that the "recidivist rapist" post-DSK PR backlash took so long. Yet it is now here. From Reuters:
- Secretary of State Hillary Clinton has been in discussions with the White House about leaving her job next year to become head of the World Bank, sources familiar with the discussions said Thursday.
African Barrick Gold plc
Update on 2011/12 Tanzanian Budget
The Tanzanian Minister for Finance presented the 2011/12 Budget to Parliament yesterday in Dodoma. Amongst the range of initiatives and measures put forward, there were several of relevance to our business in Tanzania. Chief amongst these were:
- The proposal of a special escrow account to deal with indirect tax payments from the mining industry in order to facilitate the timely repayment of fuel excise duties. We have been working with the government and the Tanzania Revenue Authority to find a solution to this administrative issue and the new process should improve our working capital management going forward.
- Further measures to address the power shortage in Tanzania through supporting investment in an additional 160MW of generating capacity, as well as a commitment to help secure financing for the state utility TANESCO for the longer term development of the national network.
- Contrary to media reports earlier in the day, no other measures were announced addressing the tax status of mining companies in Tanzania. As previously communicated, the tax treatment of our existing operations is, and will continue to be, that set out in the respective Mineral Development Agreements.
Commenting on these developments, ABG CEO Greg Hawkins commented, "Today’s Budget speech is illustrative of the Tanzanian government’s ongoing commitment to promoting a balanced investment environment for mining businesses operating here in Tanzania. We have put considerable effort into achieving a workable framework for dealing with the issue of fuel excise duty recovery and it is encouraging to see this articulated in the solution proposed today. This builds on the increased level of governmental engagement we have seen following the recent unfortunate events at North Mara as well as in dealing with the replacement of the SAG mill motor at Buzwagi, which is now installed and fully functional. Although the replacement took slightly longer than first expected with a short-term production loss of around 15,000 ounces we remain confident this will largely be recovered over the balance of the year. ABG continues to focus on optimizing our current operations and further expanding the business in Tanzania. We will be doing this in partnership with the government for the benefit of all our stakeholders."
More…
Jim Sinclair’s Commentary
From the Chinese People’s Daily.
U. S. holds confidence in Tanzania’s developmental plans
08:50, June 08, 2011
The United States on Tuesday expressed confidence in the Tanzanian leadership and its developmental plans towards poverty eradication.
U. S. Trade Representative Ronald Kirk made the remarks at a press conference in Dar es Salaam, noting that U. S. President Barack Obama wants Tanzania to continue improving its investment climate to attract more investors from the United States, the online Tanzanian newspaper Daily News reported.
Tanzania is to become the largest single recipient of tourists from the United States, which in itself demonstrates the confidence American people have in Tanzania, according to Kirk.
He said Obama was impressed by both political and economic modes, while calling on the Tanzanian government to continue enhancing democracy, good governance and regional cooperation for an effective international business.
As many third world countries, Tanzania trade less with the developed nations thus benefitting little despite what were offered in the market, suggesting that Tanzania and other least developing nations should build a global society by offering better education with global perspective.
Obama has picked Tanzania as one of the four countries in the world to collaborate in key development areas, apart from Ghana, El Salvador and the Philippines, said the report.
For his part, Tanzanian Minister for Industry and Trade Cyril Chami said the country was in need of both local and foreign investors to achieve sustained national development, noting that numerous U. S. investors have expressed interests to invest on Kilimo Kwanza (Agriculture First) and small and medium entrepreneurs development.
The Tanzanian government was committed to remove all red tapes and create conducive environments for both local and foreign investors, Chami added.
More…
Jim Sinclair’s Commentary
Here is the latest from John Williams’ ShadowStats.com.
- Earthquake-Diminished Imports of Auto Parts Narrowed April Deficit
- Trade Revisions Showed Somewhat Deeper Historical Shortfalls
- Mr. Bernanke Begins to Unfurl His Warning Flag
"No. 372: April Trade Deficit, Bernanke Shift"
http://www.shadowstats.com
Jim,
Dr. Philip Verleger’s knowledge of the oil industry is, in our opinion, second to none. We had seen the announcement and e-mailed Philip on Sunday and we both agreed that the Saudis “were up to something.”
This decision, we thought, coming only a few days before the OPEC meeting… which by then we knew would be rancorous and would end in an “ugly” fashion, meant that the Saudis were moving in rather unusual ways and were about to do something that would be detrimental to the world’s oil consumers without doing damage to their own global stature. Thus, when the meeting ended amidst confusion, Dr. Verleger sent us the following note, reprinted here in full with his permission. He said:
"Saudi Arabia has just pulled off one of the most remarkable public relations operations in many years. Last Sunday Saudi Aramco announced it was reducing the discount offered for its medium and heavy grades of crudes. The reductions in the discounts will make Saudi crude oil less profitable to refine and should, other things being equal, lead to a reduction in purchases of Saudi crude. The cuts will, however, likely boost Saudi revenue – the goal of every profit maximizing entrepreneur.
However, the country’s leaders cannot be seen to be trying to raise prices, even if it is the optimal decision for an oil producer. Thus, the country’s oil minister went to Vienna and called for an increase in quotas. When the proposal was rebuffed by six other members of the organization, the oil minister held a press conference and said Saudi Arabia would offer more oil. It was a brilliant coup. Saudi Arabia comes out looking like a friend to the west, promising to produce more oil. In response, energy policy officials in consuming countries will back off from their threats to release strategic stocks.
In the mean time, the firms that buy and refine crude oil are left holding the bag. Their losses will mount if they buy more crude. On the other hand they will be attacked by politicians across the globe if they do not buy oil and build inventories for the later part of 2011.
The really stunning development was the failure of any of the reporters to understand the game. I can understand the failure of market analysts in New York to understand the Saudi strategy. These individuals have been taught and now teach that the Middle East and OPEC quotas are everything. Truly amazing!"
Philip is right; the Saudis have out-smarted everyone. This ploy was sheer brilliance on their part and we stand back and applaud them for what they’ve been able to pull off. Oil prices sky-rocketed and will head higher still and the Saudis look not only blameless, they look like the good guys in the story. You have to stand back in awe and admire the sheer brilliance of the chess move. Check and check mate! Oh, and prices are heading materially higher even from here.
CIGA Lenny
The Times' Andrew Ross Sorkin Gives Goldman a Rubdown
Here's Rolling Stone magazine's Matt Taibbi at his best.
This is well worth your time...and the link to the rollingstone.com article, is here.
Feds defend Department of Education raid on a home
The Education Department is confirming that its inspector general authorized a raid on a Stockton, California home on Tuesday, but says the officers were conducting a criminal probe — not pursuing a woman because she could not pay her student loans, as has been reported.
The woman who police were looking for, meanwhile, wasn’t in the home at the time. Her estranged husband lives there.
One wonders what the Education Department is doing conducting a criminal probe...but, in the meantime, the 'estranged' husband is looking for someone to pay for his smashed-in front door.
politico.com story is here.
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