Euroland & the Gold Rebound
By: Jim Willie CB
European Crash Dummies and Greece's Brick Wall
By: Gary North
Gold During Times of Turmoil
By: Frank Holmes
My Dear Extended Family,
Please accept my sincere apologies for not posting extensively this evening. I have been out of the office at meetings all day and returned late this evening.
Jim Sinclair’s Commentary
Notes From Underground: FOMC Minutes (Upon Further Review) By Yra
Tonight will be all quick hitters as the big news is sparse, to say the least. The Fed released the minutes of the September FOMC meeting. Besides discussing the idea of QE3, the most interesting read was that Fisher was not as hawkish as his NO VOTE seemed. This makes sense as his speeches this week have been pretty DOVISH and I had thought that he was contradicting himself.
In the minutes, it summarizes Fisher’s vote in the following: “ANY REDUCTION IN LONG-TERM TREASURY RATES RESULTING FROM THIS POLICY ACTION WOULD LIKELY LEAD TO FURTHER HOARDING BY SAVERS, WITH COUNTERPRODUCTIVE RESULTS ON BUSINESS AND CONSUMER CONFIDENCE AND SPENDING BEHAVIORS.” President Fisher believed that policymakers should focus “ON IMPROVING THE MONETARY POLICY TRANSMISSION MECHANISM, PARTICULARLY WITH REGARD TO THE ACTIVITY OF COMMUNITY BANKS, WHICH ARE VITAL TO SMALL BUSINESS LENDING AND JOB CREATION.” Therefore, Richard Fisher is not the hawk he has been labeled.
He is not opposed to the FED being aggressive. He just differs on the mechanism for he believes QE and the TWIST to be inefficient promoters of credit creation. In the FOMC MINUTES we learn that the interest on excess reserves (IOER) rate was not lowered because some voters thought … “that a recent change in deposit insurance effectively reduced the return that banks were receiving on balance.” The FED is merely subsidizing the banks through the IOER interest payments to reduce the burden from increased fees from the FDIC. Why doesn’t the FED just give its earnings directly to the FDIC and remove all the middlemen? At the end of the day it seems that the hawks on the FOMC are a figment of one’s imagination.
This is no big surprise but it is a milestone in the descent of municipalities.
CIGA Rusty Bayonet
Harrisburg bankruptcy sets up fight with state By Dave Warner and Edith Honan | Reuters – 6 hrs ago
HARRISBURG, Pennsylvania (Reuters) – Pennsylvania’s capital, Harrisburg, filed for bankruptcy on Wednesday in a desperate bid to resolve its debt crisis, setting up a showdown with the state over control of the city.
Harrisburg becomes one of the most-high profile cities to opt for the little used Chapter 9 of the U.S. bankruptcy code, most notably tapped nearly 20 years ago by Orange County, California.
The Pennsylvania capital’s crisis has been a year in the making as the city of about 50,000 struggles to pay for critical services as well as roughly $300 million in debt incurred from an expensive revamp of its incinerator.
While city services should continue uninterrupted, the move has caused confusion about how bills will be paid.
"We’re getting calls from vendors, wondering if they are going to get paid," said Brenda Alton, the director of city’s department of parks, recreation and enrichment. "I feel it is a bad decision."
Municipal bankruptcies are rare. But if Harrisburg is successful in winning concessions with bondholders, pensioners and other stakeholders, it could lead other financially troubled cities to seek bankruptcy.