Monday, November 12, 2012

Happy Veterans Day

  As we stop to remember the sacrifice of so many, we thought perhaps some reflection from over 50 years ago would provide a little context for that 'shared' sacrifice...



 Dear Daily Readers...

I'm Back...Had Computer Problems...

The UK's Most Disturbing Number: Total Unfunded Pension Obligations = 321% Of GDP

For all our UK readers, who hope some day to collect pension benefits, we have two messages: i) our condolences, and ii) you won't.   Why? The answer comes straight from the ONS:
The new supplementary table published by ONS in Levy (2012)10 includes the following headline figures for Government pension obligations as at end December 2010:
  • Social security pension schemes (i.e. unfunded state pension scheme obligations): £3.843 trillion, being 263 per cent of gross domestic product (GDP) (£3.497 trillion at end of December 2009)
  • Centrally – administered unfunded pension schemes for public sector employees (i.e. unfunded public service pension scheme obligations): £852 billion, being 58 per cent of GDP (£915 billion at end of December 2009)
  • Funded DB pension schemes for which government is responsible: £313 billion, being 21 per cent of GDP (£332 billion at end of December 2009).
In summary, the estimates in the new supplementary table indicate a total Government pension obligation, at the end of December 2010, of £5.01 trillion, or 342 per cent of GDP, of which around £4.7 trillion relates to unfunded obligations.

Is Democracy Possible In A Corrupt Society?

If the citizenry cannot dislodge a parasitic, predatory financial Aristocracy via elections, then "democracy" is merely a public-relations facade, a simulacra designed to create the illusion that the citizenry "have a voice" when in fact they are debt-serfs in a neofeudal State. When the Status Quo remains the same no matter who gets elected, democracy is a shamThe U.S. Status Quo is also like an iceberg: the visible 10% is what we're reassured "we" control, but the 90% that is completely out of our control is what matters. There is another dynamic in a facsimile democracy: the Tyranny of the Majority. When the Central State issues enough promises to enough people, the majority concludes that supporting the Status Quo, no matter how corrupt, venal, parasitic, unsustainable and dysfunctional it might be, is in their personal interests. In this facsimile democracy, citizenship has devolved to advocacy for a larger share of Federal government swag. Is Democracy Possible in a Corrupt Society? No, it is not. Our democracy is a PR sham.

Efficient Op-Ed Hypothesis: "Fiscal Cliff" Soars After Obama Win

Whocouldanode? Since August 2011, we have know this painful combination of tax-cut cessations and spending cuts (sequestrations) was due to hit as yet another painful decision 'can' was kicked down the road by the 'super committee'. In February 2012, Bernanke coined the term 'fiscal cliff' for this chaos and since then we have been active in discussing the impact (329 ZeroHedge articles). From pointing out the market's total lack of 'pricing-in' to comprehending the contagion and impact of the 'fiscal cliff' or slope or hill, it would appear the world has been numbed into denial by the monetary policy medicine needed to get an incumbent re-elected. The 'efficient' market is now catching on - as are the 'efficient' headlines as we see searches and news stories surge about this critical event horizon. Between Bloomberg's news story count and Google's search volumes, it would appear the American public is waking up to the reality about to beset them now that re-hope is back.

Chinese Gold Imports Surge In September, YTD Total Surpasses Official Indian Holdings

Anyone who may have been concerned by the slowdown in Chinese gold imports in August, when the country imported "only" 53.5 tons of gold from Hong Kong (down from 75.8 in July), can breathe a sigh of relief. According to the Hong Kong Census Bureau, in September Chinese gross imports soared by 30% reverting to the long-term trendline of 65 tons in gross imports per month, and rising to a total of 69.7 tons. Net imports were 40% less, although that excludes organic Chinese gold mining and recirculation, which is why for all intents and purposes the gross number is the apples to apples one. And using that, Year-To-Date China has now imported a whopping 582 tons of gold, more than the official holdings of India at 558 tons, and which through November has certainly surpassed the holdings of the Netherlands, and make China's gross imports in just 2012 nominally the equivalent of Top 10 largest sovereign holder of gold.

LBMA Chairman Says Chinese Gold Allocation To Rise

Chairman of the LBMA David Gornall told the conference, “When comparing China to the U.S., it would seem that in China, gold asset allocation can only go in one direction.  The country has only 2% of its reserves in the form of gold compared with the U.S. at 75%.” The People’s Bank of China hasn’t disclosed any changes to its gold holdings since 2009, when it said they had risen a whopping 76% to 1,054 metric tons. While the U.S., Germany, Italy and France keep more than 70% of reserves in gold, China’s share is less than 2%. “Prices have recently been supported by official sector buying,” Gornall said today, without listing any central bank. “Will the gap between the amount of gold held in reserve by the developing markets and that of the developed world close?” Brazil, South Korea and Russia have all added gold reserves this year data from the International Monetary Fund show. Nations bought 254.2 tons in the first six months and may increase to 500 tons this year, the World Gold Council said in August, exceeding the 456 tons added in 2011. China has the world’s largest foreign-exchange reserves, totaling $3.29 trillion in September, according to data by Bloomberg.

Mogambo Time!

Richard Daughty, a.k.a., 'The Mogambo Guru' at Mogambo Guru Report! - 24 minutes ago
November 12, 2012 Mogambo Guru Getting it good and hard The elections being over, I shall not unduly comment on the reelection of the horrid Obama, or the un-professional, traitorous hacks of the leftist media that kept his many scandals, incompetences and disgraceful lies out of the news, or about the trusting, gullible, ignorant, greedy and stupid people who elected him, except to quote the immortal Thomas Jefferson, who said "The government you elect is the government you deserve." But it was H.L. Mencken who ... more » 

Gold Stymied Once Again at $1740

Trader Dan at Trader Dan's Market Views - 1 hour ago
Gold continues to attract more sellers than buyers near the $1740 level once again reinforcing that zone as the next important chart resistance level that needs to be taken out if the market is to have a legitimate chance of making yet another run to $1800. At the present time, it continues to retreat with dip buyers planning their next point of entry. Keep in mind that a lot of guys were leery about chasing this market higher after it first collapsed in price about 10 days ago and then came roaring back after the US election. That sort of extreme volatility is enough to chase away ... more » 

Entitlement Nation

Dave in Denver at The Golden Truth - 4 hours ago
*The American Republic will endure until the day Congress discovers that it can bribe the public with the public’s money*. – Alexis de Tocqueville The monthly Government report for August on food stamp usage was conveniently released, on a delayed basis supposedly because of the storm, after the election. The food stamp usage numbers are beginning to go beyond shocking. August saw close to half a million more people added to the food stamp usage list, the largest increase in a year. 47.1 million people and 22.6 million households in this country are now using food stamps. Zer... more »

Talk of an Amicable Divorce Picking up Supporters

Trader Dan at Trader Dan's Market Views - 5 hours ago
Last week I penned a commentary noting what I believe to be an irreconciliable division growing within these DisUnited States of America. That division, in my opinion, cannot be bridged because it includes TWO MUTUALLY EXCLUSIVE political ideologies. One consists of a vision of limited, Constitutional government, as bequeathed to us by our Founding Fathers, and which gave rise to the most free, most prosperous and most generous nation that this planet has ever seen or will likely ever see again. This philosophy has at its core the ideas espoused by John Locke, namely, natural law ... more » 

US Treasury Bond Market Showing Concentrated Accumulation

Eric De Groot at Eric De Groot - 7 hours ago
Bullish money flows (chart 1) precede yet another technical breakout in the bond market (chart 2). Patience counts the setups and waits for entry points rather than chasing. Chart 1: US Treasury Bond 20YR+ (TLT) And US Treasury Bond Diffusion Index (DI) Chart 2: US Long Bonds ETF (TLT) ------------------------------------- Insights is intended to... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

Italy's Monti says he would prefer not to stay on as PM

Eric De Groot at Eric De Groot - 8 hours ago
Monti as a non-elected technocrat knows what's coming in a couple of years. Headline: Italy's Monti says he would prefer not to stay on as PM MILAN (Reuters) - Italy's Mario Monti said on Monday he would prefer not to stay on as prime minister after elections in April, despite widespread calls for him to do so. Monti was named as leader of a technocrat government last November... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

Video: GoldSeek Video Interview

Admin at Jim Rogers Blog - 8 hours ago
*Jim Rogers is an author, financial commentator and successful international investor. He has been frequently featured in Time, The New York Times, Barron’s, Forbes, Fortune, The Wall Street Journal, The Financial Times and is a regular guest on Bloomberg and CNBC.* 

Dependance On Government Largess

Admin at Marc Faber Blog - 8 hours ago
In order to exercise control over the population, governments throughout history have made people dependent on government largess. A government can make an increasing number of people dependent on its generosity by providing more and more benefits to a larger and larger share of the population. Because of these “freebies,” people will go along with the government’s enlargement as a percent of the economy. The masses believe in their free lunch and because the business elite knows it can profit from the growth in government. However, there comes a point at which the “nanny state” bec... more » 

It Will Be Liquidity (Bailout) over Austerity

Eric De Groot at Eric De Groot - 9 hours ago
American leadership speaks of balanced budgets, but the markets know that strategy of higher taxation and lower spending can only be described as pushing on a string. Total revenues as a percentage of GDP (national income) has fluctuated within a tight range of three and five percent since 1946 (chart). This fluctuation occurred under a wide range of individual and corporate tax... [[ This is a content summary only. Visit my website for full links, other content, and more! ]] 

Israel Continues Shelling Of Syrian Targets For Second Consecutive Day

When we reported yesterday that following "recurring" "provocations" by the Syrian military, which is so very confused who it wants to declare war on first - NATO member Turkey, or best US friend Israel, it is pressing on both fronts, even as it continues to be torn by CIA funded, and Al Qaeda stoked civil war, which saw Israel launch a missile into Syrian territory for the first time since 1973,we said, "It goes without saying that this is merely the first proverbial shot across the  bow, or in this case the DMZ. Much more to follow, until finally the UN rules, and the fair and objective media backs it, that the time to invade liberate Syria has come." Sure enough, less than 24 hours later...

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