We The Sheeplez- The Coming Economic Collapse.."A Nation Of Sheep Ruled By Wolves" Thomas Jefferson

Wednesday, September 7, 2011

German Court Rules EFSF/Bailouts Legal But Hurdles Remain

As widely expected, the Bundesverfassungsgericht (Germany's Federal Constitutional Court) ruled in favor the German government and did not overturn the EFSF bailouts. Of course, this does not greenlight the safety of each and every profligate spending peripheral and core country at the expense of the German taxpayer. The court continued on its path of demanding more from the Bundestag with regard to the strict adherence of conditions, as the budget committee must approve any new guarantees, and this ruling is not a blank check.

Physical Gold and Silver is on SALE today...BTFD (buy the F-ing dips)...

If it goes down a little...buy a little...

If it goes down alot...(like today) buy alot...

Gold Falls 2% in Minutes In Asian Trade – Global Currency Wars Resume and Markets Digest German Decision

Gold closed in New York at $1,870.70/oz yesterday and then traded sideways prior to sharp selling in Asian trading saw gold fall 2.3% or nearly $50 in minutes ($1,871/oz at 0514 GMT to a low of $1,827/oz at 0523 GMT). The price fall was odd as there was no breaking news or ostensible reasons for the sell off and other markets were unchanged at the time. Speculation was that the falls were technical in nature after stop losses were triggered. However, Asian traders spoke of some 4,000 lots of gold being ‘dumped’ on the COMEX and of a “large sell order”. This would suggest that the sellers may not have been profit motivated and official selling may have been involved. After the Swiss franc intervention and currency debasement yesterday, market participants are wary of further official government and central bank intervention. With further gains for the Swiss franc artificially capped (at least in the short term), it would be naïve to exclude the possibility of intervention in the gold market and a continuing strategic capping of the price. “The start of full-on currency wars has started in earnest,” said Maurice Pomery, chief executive at Strategic Alpha, quoted in the front page of the Financial Times today. “After currency wars come trade wars and as we see the exporting world pressured as the developed world contracts, tensions will rise.” Central banks, from the SNB to the Bank of Japan, are openly intervening in the currency markets and devaluing their currencies and therefore may be surreptitiously intervening in the gold market.

Frontrunning: September 7

German Court Upholds Bailouts (WSJ)
Obama Said to Seek $300 Billion Jobs Package (Bloomberg)
Euro Woes Stir Currency Fears (WSJ)
Hilsenrath: Bernanke Takes On a Balancing Act (Hilsenrath)
‘Helicopter Ben’ risks destroying credit creation (Bill Gross)
China Likely to Ease Money Policy, Journal Says (Bloomberg)
Krugman explains why the price of gold going down is due to deflation, and why it going up is due to... deflation (NYT)
Bernanke: US Banks' Exposure to Europe Is 'Manageable' (CNBC)
Greece Pledges to Accelerate Austerity (Bloomberg)

The Growing Discount of Paper Gold

Eric De Groot at Eric De Groot - 22 minutes ago

GATA certainly has some sharp thinkers on staff. The gold ETF (paper gold) includes some interesting language about custodian arrangements and settlement of redemptions. Interesting language or usual complexity describing simple arrangements tends to provide CYA protection against real-world, crisis-style risks. Since few investors have spent the time to read the prospectus, it’s doubtful many... [[ This is a content summary only. Visit my website for full links, other content, and more! ]]

The U.S. Is Much Worse Off Than Before 9/11

Admin at Marc Faber Blog - 47 minutes ago

There’s no question that today, 10 years after 9/11, the entire financial structure of the U.S. is much worse than it was in 2000 and 2001. Household credit mortgage debt, government debt, unfunded liabilities, less people employed and the population is up. The U.S. is much worse off than before 9/11. For that we have to thank expansionary monetary policies. The Fed cut interest rates in January 2001, but because of 9/11, they cut it further to 1% and left it at 1% until June 2004. The recovery in the U.S. began in November 2001. Interest rates were far too low, far too long. And ev... more »

This Is A Huge Mistake For Switzerland

Admin at Jim Rogers Blog - 1 hour ago

The move will work for a while, but the market will have more money in the end than the SNB. The Swiss central bank risks losing a lot of money buying up lots of foreign currencies which they will eventually sell at a loss. Another risk is that the central bank will totally debase the Swiss franc trying to keep Switzerland 'competitive' which will then destroy the traditional Swiss financial industry. Rogers said. So this is a huge mistake for Switzerland since they are going to suffer more either way. - *in CNBC* *Jim Rogers is an author, financial commentator and successful intern... more »

CENTRAL BANKS WAGING WAR ON GOLD AT THIS HOUR

Trader Dan at Trader Dan's Market Views - 6 hours ago

If it is not obvious by now, it should be -an attempt by the Central Banks of the West to derail the rise in the gold price is currently underway. I mentioned in my midday comments that an effort would take place to prevent gold from moving beyond $1900 in an attempt to paint a double top on the daily price chart and induce a round of technically related selling from speculators on the long side. This effort can clearly be seen in the following ONE MINUTE BAR CHART which reveals an enormous spike of 4,000+ contracts in the middle of the evening during a time period in the gold trad... more »

Today's Economic Data Docket - JOLTS, Beige Book, Fed Speeches

Relatively quiet, rainy day punctuated by the JOLTS report, the Fed's Beige Book and speeches from Fed officials. Headline news will again dominate market momentum.

Daily US Opening News And Market Re-Cap: September 7

The German Constitutional Court rejected lawsuits aimed at blocking Germany's participation in the Eurozone bailouts; however said that the ruling is not a blank cheque for further bailouts
A Eurozone source said that the IMF has agreed to substantially lower the initial estimate for the European banking sector's capital needs
According to an article in the Irish Times, private sector participation in the Greek debt swap has so far reached the 75% mark
Higher than expected German industrial production data rendered support to EUR, however GBP came under pressure following worse than expected industrial production data from the UK