GOP Senate Leader McConnell Says Senate Vote Will Be Tomorrow (Click to read the full story)

 

 

Boehner Delays Press Conference Until 3:30PM: Trouble Getting A Majority?

Friday deja vu with not enough votes once again. Keep an eye on the The Hill's Whip Count (link) which summarizes what the mood of republicans and democrats is as we go into the vote. Unless Boehner can convince enough republicans to share his opinion, and we do get a failed vote, it would make the Tarp vote failure pale in comparison with what happens to the market...

Jim’s Mailbox

August 1, 2011, at 12:00 pm
by Jim Sinclair 

Obvious Passed As Headline News 

CIGA Eric

Any trader shocked by this news probably shouldn’t be trading. The gold and silver will resume its rally after the short-term emotional releases dissipates into the reality that nothing has changed. How many times has “nothing has changed” been written here? A few, I think.
Silver’s linear up trends have been broken. A monthly average close above $38.26 will reaccelerate the trend. Headline hype, largely fear-inducing, will attempt to convince as many people as possible that this technical setup does not exist.
Silver, London P.M. Fixed (Silver) and Z Scores of Secular Trend
Headline: Gold Declines as President Says U.S. Lawmakers Reach Deal on Debt Ceiling
Gold declined from a record as President Barack Obama said that U.S. lawmakers reached a deal to increase the nation’s debt limit and cut the federal deficit, averting a default tomorrow and eroding demand for haven assets.
Gold for immediate delivery lost as much as 1.3 percent to $1,607.45 an ounce, and traded at $1,613.65 at 2:36 p.m. in Singapore. Spot gold, which reached an all-time high of $1,632.80 on July 29, advanced 8.5 percent last month on concern that sovereign-debt crises in the U.S. and Europe may derail the global economic recovery.
“Gold reached a record because U.S. politicians didn’t seem to be getting anywhere with their negotiations and now that they have an agreement, gold will be knocked back a little,” said Steven Zhu, operations manager at Yinjian Futures Co.
Republicans and Democrats may vote today on the measure, which would raise the debt ceiling by at least $2.1 trillion, and slash government spending by $2.4 trillion or more. Lawmakers should “do the right thing,” Obama said from the White House late yesterday.
Source: finance.yahoo.com
More…






Manufacturing growth hits lowest level in 2 years 

CIGA Eric

The sound of the beating heart beneath the floorboards of QE3 grows louder with each economic release. Figurative cries of "save me" will descend on the central planners much faster than expected. The path of least political resistance means those cries will be difficult to ignore.
ISM Prices Paid Index (PP) to National Purchasing Manager’s Index (PMI) Ratio:
Headline: Manufacturing growth hits lowest level in 2 years
private trade group says manufacturing activity barely grew in July, falling to the weakest level since just after the recession ended.
The Institute for Supply Management, a trade group of purchasing executives, says its index of manufacturing activity fell to 50.9 percent in July from 55.3 percent in June. That’s the lowest reading since July 2009, one month after the recession officially ended. Any level above 50 indicates growth.
Stocks fell after the report was released. They had been trading higher ahead of the report, based on expectations that Congress will approve a deal Monday to raise the nation’s borrowing limit.
Source: finance.yahoo.com
More…

'By every metric' gold is cheap, Rickards tells King World News

 

 

Treasury To Issue $331 Billion In Debt In Fiscal Q4, $660 Billion Gross, Expects Debt Ceiling To Be Raised

Tim Geithner has released his projection of expected borrowing needs for the final fiscal quarter of 2011 (ending on September 30). But before that, we learn that while back on May 1 the Treasury had expected to raise $142 billion in marketable debt in Q3, instead if raised $190 billion, with the difference going primarily to build up the EOQ cash balance which instead of being $95 billion, was $137 billion, obviously due to the threat of the debt ceiling breach. That threat however has not prevented the Treasury from assuming that the debt ceiling will be raised without a hitch, and it now predicts issuing $331 billion in net marketable debt issued in Q4, $74 billion less than the projection from May 1 (and further sees another $285 billion in borrowing needs in Q1 2012). In other words, if there is no debt ceiling deal, the Treasury will be $616 billion short in revenues over the next 6 months. Of course, the numbers net out the massive issuance that has to hit the market to fund the "disinvested" government retirement funds and various other mechanism that were used to prevent the Treasury from running out of cash, which amount to about $300 billion primarily in the form of short-term bills that matured and were not rolled over to make space for marketable debt issuance. In other words, gross issuance in the next quarter will be about over $660 billion. This is just a little under the total debt issued in the last 3 quarters (due to the May 16th debt ceiling breach)! And people think the Treasury can raise this money without the Fed monetizing at will? Fascinating.

Boehner Tells Diane Sawyer He "Has The Votes"

Just a tweet from ABC's @rickklein for now. We expect Boehner to confirm this during his conference to begin shortly.

Watch Boehner Statement Live

Submitted by Tyler Durden on 08/01/2011 - 15:40 MSNBC Here it is...

Follow The House Debate On The Compromise Bill Live Here

Submitted by Tyler Durden on 08/01/2011 - 15:11 Debt Ceiling Yes, the melodrama is back. Follow the latest developments straight out of Congress, which is now expected to be far closer to passing the bill as more republicans have voiced the support of the Compromise bill. This could be your last chance as today could well be the final day of the debt ceiling episode. At least for the current season.

 

Brush Fire Bailout – The Straw that Breaks the EU?

Posted by: Bruce Krasting

Post date: 08/01/2011 - 15:05

In the end, everything is connected. 

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