Days after IRS officials said in a sworn statement that former top agency employee Lois G. Lerner’s computer memory had been wiped clean, the agency put out word to contractors Monday that it needs help to destroy at least another 3,200 hard drives.
The Internal Revenue Service solicitation for “media destruction” reflects an otherwise routine job to protect sensitive taxpayer information, but it was made while the agency’s record destruction practices remain under a sharp congressional spotlight.
Congressional investigators of the IRS targeting of conservative groups have been hampered by the unexplained destruction of emails and other records of Ms. Lerner, the former head of the IRS tax-exempt division and a central figure in the scandal.
The loss of Ms. Lerner’s hard drive also raised broader questions about why the tax agency never reported the missing records to the National Archives and Records Administration, as required by the Federal Records Act.Today's first story is from The Washington Times. It was posted there on Monday sometime---and I thank reader M.A. for sending it.
Wall Street doesn’t lead to Jackson Hole this year.
As the Federal Reserve Bank of Kansas City prepares to host next month’s annual gathering of central bankers in Wyoming, seasoned Fed watchers from the financial markets, including the chief U.S. economists of the biggest American banks, aren’t being invited, according to past participants.
Among those who didn’t make the guest list: Vincent Reinhart of Morgan Stanley, Jan Hatzius of Goldman Sachs Group Inc., and Bank of America Corp.’s Ethan Harris. Onetime conference regulars, including Mickey Levy of Blenheim Capital Management LLC and Meredith Whitney of Kenbelle Capital LP, also lose out.
They’ll miss a conference that has foreshadowed some of the Fed’s biggest monetary-policy shifts since the financial crisis, and a keynote speech by Chair Janet Yellen. Perhaps as importantly, they also will be deprived of the opportunity to mingle with policy chiefs over meals and on mountain trails.This longish Bloomberg piece, filed from London, was posted on their Internet site at 4:27 a.m. Denver time on Tuesday morning---and it's the first offering of the day from West Virginia reader Elliot Simon.
The best way to destroy the capitalist system, the Russian revolutionary leader Vladimir Lenin is reputed to have said, is to debauch the currency. The world’s major central banks have certainly been having a fair old go at it. In the six years since the financial crisis first broke, they’ve been printing money like there is no tomorrow.
Fortunately, they have not yet managed to bring down the free market system. On the other hand, they have succeeded in putting a rocket under asset prices and, in so doing, they have greatly exaggerated the wealth divide.
In a number of cases, including the U.S. and the U.K., they have also significantly assisted governments in financing burgeoning fiscal deficits. To the extent that quantitative easing (QE) has had any effect at all, it is asset prices and governments that have been the prime beneficiaries.
Where has Jeremy been all these years? This is what central banking is all about. This commentary was posted on the telegraph.co.uk Web site at 5:55 p.m. BST on their Monday afternoon---and I found the story embedded in a GATA release. The link is here.
Mario Draghi’s ambitions to weaken the euro are at the mercy of Federal Reserve Chair Janet Yellen.
The U.S. central bank chief sent the euro sliding below $1.35 last week for the first time since February when she said U.S. interest rates may rise sooner than investors expect. Her European Central Bank peer is having less impact: Draghi’s unprecedented decision to drop a key interest rate to below zero last month pushed the shared currency up 0.2% before Yellen’s speech. The euro is also losing its link with the continent’s bond market, as its correlation to the yield spreads of Italy, Spain and Portugal approaches zero.
Dealers in euro-dollar, the world’s most-traded currency pair, say they’re increasingly influenced by the U.S. because they’ve assimilated the interest-rate cuts Draghi unveiled and concluded he has no further surprises in store. The prospect of a Fed rate boost is also deemed more important than the conflict in the Gaza Strip and international anger over the downing of a Malaysian airliner last week in Ukraine.This is another Bloomberg story---and this one was filed from New York. It was posted on their Internet site at 4:15 a.m. MDT yesterday---and it's the second offering of the day from Elliot Simon.
Global stock markets are at risk from a spike in oil prices which could derail the fragile economic recovery and lead to a major correction in share prices, warns Steen Jakobsen, chief economist at Saxo Bank.
Geopolitical risk has increased sharply following the events of last week, a point that has been largely ignored by the ever Panglossian global equity markets that march on upward---and it's at this point I'll hand over to the analysis by Mr Jakobsen:
"The simplest way to 'measure' geopolitical risk is to look at the price of energy. Energy is everything for a macro economist as it is a tax on the economy when high, and a discount when low.
"The way I measure this geopolitical risk is through measuring the spread between the fifthth contract of the WTI Crude and the first contract. Of course, there are other factor workings, but lacking a better alternative, it is what I use."This article showed up on The Telegraph's website at 11:30 a.m. BST on Tuesday---and it's the first contribution of the day from Roy Stephens.
Bank of England officials led by Mark Carney, the Bank of England governor, are attempting to bridge sharp differences among leading G20 countries as they prepare a landmark set of proposals aimed at tackling the problem of “too big to fail” banks according to the Financial Times today.
Talks under the auspices of the global Financial Stability Board (FSB) over the summer are approaching a key stage as officials aim to clinch an agreement on bail-ins and the bailing in of creditors including depositors of banks.
Finance officials are hoping to pave the way for proposals to be tabled at the G20 leaders meeting at the Brisbane summit in November.
The issue is of major consequence to globally systemic lenders such as Citigroup, Barclays and BNP Paribas, as some will have to issue billions of dollars of fresh bonds earmarked to carry losses.
The issue is of major consequence also to depositors who could see their savings confiscated as happened in Cyprus.
This Zero Hedge piece was posted on their Web site at 4:38 a.m. EDT yesterday morning---and it's courtesy of South African reader B.V.
France says it will go ahead with the sale of a warship to Russia despite calls for an arms embargo against the country, highlighting how Europe's strong business ties are hindering its ability to punish Moscow over the crisis in Ukraine.
Western powers say Russia is supporting the insurgents in eastern Ukraine who allegedly shot down a Malaysian Airliner last week, killing all 298 people on board.
European Union foreign ministers met Tuesday to consider more sanctions against Russia but agreed only to impose more asset freezes on individuals, leaving economic relations untouched.
Some countries, like Britain, argue the plane crash has raised the stakes and Europe should not go soft on Russia.This CP/AP story from yesterday was picked up by the ca.news.yahoo.com Internet site. I posted a story on this subject about 10 days ago, but there are new details added to this one---and I thank reader Doug Milne for sharing it with us.
First it was French BNP that was punished with a $9 billion legal fee after France refused to cancel the Mistral warship shipment to Russia (which promptly led to French National Bank head Christian Noyer to warn that the days of the USD as a reserve currency are numbered), and now moments ago, none other than the 150x-levered NY Fed tapped Angela Merkel on the shoulder with a polite reminder to vote "Yes" on the next, "Level-3" round of Russia sanctions when it revealed, via the WSJ, that "Deutsche Bank's giant U.S. operations suffer from a litany of serious problems, including shoddy financial reporting, inadequate auditing and oversight and weak technology systems."
What could possibly go wrong? Well... this. Recall that as we have shown for two years in a row, Deutsche has a total derivative exposure that amounts to €55 trillion or just about US$75 trillion. That's a trillion with a T, and is about 100 times greater than the €522 billion in deposits the bank has. It is also five times greater than the GDP of Europe and more or less the same as the GDP of...the world.Well, dear reader, one wonders if the New York Fed has had a gander at JPMorgan's derivatives book recently? This Zero Hedge piece was posted on their website yesterday sometime---and a lot earlier than the 8:41 p.m. dateline shown on the article, as Washington state reader S.A. sent it our way about five hours before that. It's definitely worth reading.
1. Russia Says Has Photos Of Ukraine Deploying BUK Missiles In East, Radar Proof Of Warplanes In MH17 Vicinity: Zero Hedge 2. Putin: West should demand Kiev obey ceasefire during plane crash probe: Russia Today 3. U.S. coy on Malaysian plane evidence, points to social media and 'common sense': Russia Today 4. Expert access to MH17 crash site 'fairly good' - OSCE mission: Russia Today 5. Warhead That Downed Flight MH17 Will Have Left Widespread Traces: Bloomberg 6. U.S. intelligence: No direct link to Russia in Malaysia plane downing: Russia Today
The second-last story [Bloomberg] sports a new headline. It now reads "Wreckage From MH17 Shows Telltale Signs of Missile Strike."[The above stories are courtesy of Bill Busser and Roy Stephens.]
Russian President Vladimir Putin said Tuesday that scenarios in the developing crisis in Ukraine are unacceptable, counterproductive and destabilizing the situation in the world.
“If we return to similar scenarios, as a whole, as I have already said, then this is absolutely unacceptable and counterproductive. This is destroying the modern world and order. Undoubtedly, such methods in regard to Russia won’t work,” Putin said during a Security Council meeting.
“Our people, our citizens of Russia won’t let that happen and they will never accept [this],” he said.This short article appeared on the RIA Novosti Web site at 4:30 p.m. Moscow time yesterday afternoon---and it's another story from Roy Stephens.
Moscow will respond adequately and equitably if NATO continues its military presence expansion closer to the Russian borders, President Vladimir Putin said on Tuesday.
Russia will respond adequately and equitably to the expansion of NATO military infrastructure closer to the Russian borders and the ongoing buildup of NATO forces," Putin said at a meeting of the Russian Security Council.
He also said that Moscow clearly sees that NATO is demonstratively strengthening its presence in Eastern Europe.
Following Crimea’s reunification with Russia in March, the alliance has been systematically stepping up its presence near the Russian border, citing the need to protect its members from potential Russian aggression. Moscow has repeatedly expressed concerns over Western pressure on Russia.This is another story from the RIA Novosti Web site. This one put in an appearance at 6:03 p.m. Moscow time on Tuesday evening---and once again my thanks go out to Roy Stephens.
The economic showdown unfolding between Russia and the West is almost entirely one-sided.
The U.S. has the power to bring Russia to its knees through hegemonic control over the world’s banking system, using an array of lethal financial weapons developed by a cell at the U.S. Treasury, and already deployed against Iran and North Korea.
Richard Christopher Granville, from Trusted Sources, said the U.S. “crossed the Rubicon” last week even before the apparent missile strike against Malaysia Airlines flight 17, imposing sanctions that effectively shut the energy trio of Rosneft, Novatek, and Gazprombank out of international finance.
“The Americans have the power to throttle Russia unilaterally because no European or Western bank of any importance is going to defy the U.S. after the fines imposed on BNP Paribas,” he said.
Guilty until proved innocent. This is typical of the anti-Russia swill that fills the main stream media in Britain and the U.S. these days---and I, for one, wouldn't want to predict the outcome of this because, as Ambrose Evans-Pritchard so correctly points out, the hammer will fall on Europe the hardest. This commentary appeared on the telegraph.co.uk Internet site at 8:39 p.m. BST on Monday evening---and it's another offering from Roy Stephens. And the anti-Russia sentiment aside, it's definitely worth reading---especially in conjunction with that Zero Hedge piece on Deutsche Bank posted further up.
Eurozone public debt rose to 93.9% of economic output in the first quarter of this year, approaching the peak it is expected to reach later in 2014, official data showed on Tuesday.
Government debt of the 18 countries sharing the euro stood at 9.055 trillion euros ($12.21 trillion) in the first three months of this year, compared to 8.905 trillion euros in the last quarter of 2013, the EU's statistics office Eurostat said.
The EU's executive arm - the European Commission - expects the debt to peak at 96.0% of gross domestic product this year and then ease to 95.4% of GDP in 2015.
Nearly 80% of the bloc's debt is in bonds and treasury bills. Loans account for 17.9% of the debt.
Twice bailed-out Greece was the eurozone's most indebted country with sovereign debt of 174.1% of GDP, followed by the bloc's third-biggest economy Italy, with debt equivalent to 135.6% of GDP in the first quarter.This short Reuters piece, filed from Brussels, showed up on the ekathimerini.com Internet site earlier this morning Athens time---and I thank reader Harry Grant for sliding it into my in-box just before 4 a.m. EDT this morning. It's worth reading.
Turkish Prime Minister Recep Tayyip Erdogan said he ceased direct phone contact with US President Barack Obama once the U.S. backed away from use of military force against Syria last fall.
Erdogan, a supporter of rebel fighters opposed to Syrian President Bashar Assad’s government, was upset, he said, that the United States did not follow through with military action against Damascus amid the fierce civil war there.
"In the past, I was calling him (Obama) directly. Because I can't get the expected results on Syria, our foreign ministers are now talking to each other," Erdogan said Monday in an interview with the pro-government ATV channel.
"And I have talked to (US Vice President Joe) Biden. He calls me and I call him.”This news item was posted on the Russia Today Web site at 3:18 p.m. yesterday afternoon Moscow time, which was 7:18 a.m. in New York. It's also courtesy of Roy Stephens.
“Pending the outcome of the investigation, the parties should not speculate or prejudge, and most importantly we should not artificially politicize [the situation],” Wang Yi said in a statement published on the ministry’s website.
China’s Foreign Minister also welcomed the U.N. Security Council’s resolution adopted late Monday, which condemns the downing of the passenger plane, and called to implement it.
“The primary focus at the moment is to implement the resolution, in particular, to provide international investigators access to the site of the catastrophe for a full fledged investigation,” Wang Yi added.Excellent advice! Now there are two adults in the room. This story, filed from Moscow, was posted on the RIA Novosti Web site at 4:46 p.m. Tuesday afternoon Moscow time---and it's the final offering of the day from Roy Stephens.
Argentine President Cristina Fernandez's unflinching poker face in the battle against "holdout" investors suing the country is increasing the odds that her government will default for a second time in 12 years at the end of this month.
She has refused to budge from her stance that Argentina cannot pay out in full to the holdout hedge funds, which snapped up bonds on the cheap after its $100 billion default in 2002. That is despite indirect talks aimed at cutting a deal.
Fernandez last week told leaders of the BRICS emerging economies that it was "impossible" to pay holdouts the full face value of the debt they hold. The funds, she said, could enter a bond swap matching the terms of restructuring deals in 2005 and 2010, which saw creditors accept large write-downs.
It is an old offer the holdouts have previously scoffed at and they have no reason to take it now given that U.S. courts have ruled in their favor and put Argentina, Latin America's No. 3 economy, on the verge of default.This Reuters story, filed from Buenos Aires, put in an appearance on their Web site yesterday---and I thank reader D.W. Mong for sending it our way.
Venezuela confirmed Monday that its relations with China have become a fundamental pillar for making progress in almost all sectors of its economy. With a new portfolio of accords and almost 5.7 billion in loans, Beijing will provide support in many key areas.
Facing China's Xi Jinping at the closing ceremony of the 13th bilateral Mixed Commission, President Nicolas Maduro told his Chinese counterpart that his visit of little more than 24 hours had “surpassed all expectations.”
Maduro and Xi closed the meeting having added a number of new pacts to the more than 500 already accumulated in their bilateral relations.This article was posted on the mercopress.com Internet site early yesterday morning---and I thank Casey Research's own Louis James for passing it around.
[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]
Zinc hit a three-year high and aluminium touched a 16-month peak on Tuesday as investors sought more exposure to commodities with tightening supply-demand balances and were encouraged by falling inventories and firm equity markets.
London Metal Exchange stocks of zinc fell by 400 tonnes to 656,275 tonnes, their lowest in 3-1/2 years, while aluminium stocks fell by 9,075 tonnes to 4.938 million tonnes, their lowest in nearly two years.
Investors are slowly being drawn back into commodities, attracted by stronger global economic growth and more volatility within some sectors, typified by current investment flows out of grains into industrial metals.
"There's a certain amount of relative value going on where investors prefer one metal over another," Macquarie analyst Vivian Lloyd said.One wonders how much money would plow into silver if the big investors understood the real supply/demand fundamentals in silver. But JPMorgan et al are doing a fine job of making sure that fundamentals are never reflected in the silver price---and the prices of the other three precious metals as well. This Reuters story, filed from London, appeared on their Web site at 9:02 a.m. EDT yesterday---and my thanks go out to Elliot Simon for sending it our way.
Credit Suisse Group AG said it will abandon commodities trading as a $2.6 billion fine to settle a U.S. tax investigation pushed the Swiss bank to its biggest quarterly loss since 2008.
The bank’s net loss in the second quarter was 700 million Swiss francs ($779 million), compared with a profit of 1.05 billion francs a year earlier and a 691 million-franc estimate from analysts. Zurich-based Credit Suisse posted higher-than-forecast earnings at the investment bank and lower profit in wealth management even as it attracted more net new money from rich clients than analysts had estimated.
Chief Executive Officer Brady Dougan is reporting a second quarterly loss in less than a year as Credit Suisse grapples with regulatory probes. Analysts and investors have said Credit Suisse should step up efforts to shrink its investment bank and focus on wealth management to boost returns and shore up capital eroded by the U.S. fine. The bank reaffirmed plans to cut at least 4.5 billion francs in annual costs by the end of next year compared with 2011.Of course they're not going to "abandon" precious metals trading. How can banks rig these markets if they can't trade them? I would guess that Credit Suisse has a decent short position in the Comex precious metal market, but they're not a really big player. This Bloomberg story, filed from Zurich, showed up on their Internet site at 5:29 a.m. Mountain Daylight Time on Tuesday---and I thank Elliot Simon for his final contribution to today's column.
"When I read the reports on what people had been doing to it, I was horrified," Hambro said in an interview today. "It is something that is really important to people in the industry. It's something that we use in a big way as we deliver our gold. That's how we price."
"To have something that we can rely on is vitally important," said Hambro, who previously traded bullion at Marc Rich Group and Mocatta & Goldsmid Ltd. "I look forward to its continuing existence."Hambro is more than aware of the price management scheme in gold and the other precious metals, so his comments are certainly disingenuous---and that's being kind. This short gold-related "news" item, filed from London, showed up on the Bloomberg Web site in the wee hours of Tuesday morning Denver time---and I found it embedded in a GATA release.
It is thus perhaps a wonder that gold, as the safe haven of choice, is not flying far and away higher than it is at the moment---and the logic here is that it is indeed being held down by a bullion banking sector which could find itself in serious default if the gold price ran sky-high. And if some of the analysts on the bullish side of the gold equation are correct in their assumptions that many Western central banks (with the approval of their governments whether they are deemed independent or not) have leased out much of their gold reserves, and that the banks to which they have leased them are in no position to return the bullion, then the proverbial could well be set to hit the fan as banks default in their commitments – should government allow that to happen!
This observer is thus more and more being drawn to the possibility of a big gold price escalation looming sooner rather than later, as opposed to the $1,050 year-end call being reiterated by the perhaps exposed banks like Goldman Sachs. But this viewpoint is very much one’s own interpretation of what is going on in global geopolitics which itself is reliant on attempts to interpret the various media spin coming from both sides and, as can be seen from the above commentary, this is no easy thing to do. Who can one really believe in this day and age of political spin?This very well-balanced commentary by Lawrie was posted on the mineweb.com Internet site yesterday---and it's definitely a must read.
In early July 1944, delegates from 44 countries gathered at the Mount Washington Hotel in Bretton Woods, New Hampshire. A three-week summit took place, at which a new system was agreed to regulate the international monetary and financial order after the Second World War.
The U.S. was already the world’s commercial powerhouse, having eclipsed the British Empire several decades earlier. America was also on course to be among the victors of “Europe’s conflict”, even though its economy was largely unscathed by war. As such, Bretton Woods was U.S.-dominated and produced a settlement largely on US terms.
Seventy years ago this week, that fateful summit ended. Its close marked the moment the dollar’s unquestionable supremacy was secured. Since then, global commerce has been conducted largely in dollars and leading economies have held the greenback as their primary reserve currency.
The same system remains intact today, with the lion’s share of commercial settlements worldwide still clearing the U.S. banking system – even if the parties involved have nothing to do with the States.This commentary, which is definitely worth reading, was posted on the telegraph.co.uk Internet site at 5:30 p.m. BST on Saturday afternoon London time---and the first person through the door with it was Elliot Simon, with his second contribution in a row to today's column.
Nearly all of the highest-profile domestic terrorism plots in the United States since 9/11 featured the "direct involvement" of government agents or informants, a new report says.
Some of the controversial "sting" operations "were proposed or led by informants", bordering on entrapment by law enforcement. Yet the courtroom obstacles to proving entrapment are significant, one of the reasons the stings persist.
The lengthy report, released on Monday by Human Rights Watch, raises questions about the US criminal justice system's ability to respect civil rights and due process in post-9/11 terrorism cases. It portrays a system that features not just the sting operations but secret evidence, anonymous juries, extensive pretrial detentions and convictions significantly removed from actual plots.
"In some cases the FBI may have created terrorists out of law-abiding individuals by suggesting the idea of taking terrorist action or encouraging the target to act," the report alleges.This very interesting [and not very surprising] story appeared on theguardian.com Internet site at 2:30 p.m. BST yesterday afternoon---and I thank South African reader B.V. for sharing it with us.
The Serious Fraud Office is poised to launch the first criminal investigation into alleged rigging of the £3 trillion-a-day foreign exchange markets at leading City banks.
The financial watchdog is expected to announce the move as early as this week, according to reports, raising the spectre of further multimillion-pound fines for Britain’s biggest banks over their behaviour during and after the financial crisis.
Investigators are expected to examine whether individual traders personally benefited by manipulating benchmark forex prices. It is claimed that traders colluded via online chatrooms in groups with names such as the Bandits’ Club, the Dream Team and the Cartel.
The SFO’s criminal inquiry into alleged currency markets rigging in London, home to more than 40% of the world’s foreign exchange trading, will join global investigations into forex market abuse by watchdogs across Europe, Asia, and the U.S.This very interesting article put in an appearance on The Telegraph's website at 12:22 p.m. on Sunday afternoon London time---and it's something I found in a GATA release.
Criminal prosecution is likely to be expanded on Americans involved in recruiting and supervising activities of German officials spying for the U.S. intelligence, Germany’s Justice Minister Heiko Maas told Welt am Sonntag.
If investigators find a body of evidence that alleged double agents in Germany’s federal intelligence service and Defense Ministry have been spying to the benefit of American intelligence, “the investigation would extend on their feasible patrons,” Maas declared.
According to Welt am Sonntag, the alleged spymaster is the U.S. citizen Andrew M., a 52-year-old international political consultant, who allegedly received confidential military documents from the Germans.
“The law applies to everyone without discrimination,” Maas said, stressing that intelligence security laws apply on friendly states either. “Those who do not abide by the law in this country may have to face criminal prosecution,” he said.This news item was posted on the Russia Today Web site at 1:30 p.m. on Sunday afternoon Moscow time---and it's the first offering of the day from Roy Stephens.
Germany’s current account surplus is the largest ever recorded in proportional terms and far above the threshold for EU sanctions, posing a major political test for the incoming commission of Jean-Claude Juncker.
The International Monetary Fund said the country’s surplus has reached 8.25pc of GDP when adjusted for the economic cycle and has become economically destructive, making it ever harder for eurozone crisis states to claw their way out of trouble.
The surplus is between three and six percentage points higher than is either “desirable” or justified by fundamentals, the IMF said in its annual health check on Germany.
This is unlikely to change much unless Berlin takes active steps to reduce the imbalance. The Fund called on Germany to do more to help weaker EMU states in “liquidity traps” by boosting its own internal demand.What??? You couldn't make this stuff up. Take two blue pills---and hope they work! This Ambrose Evans-Pritchard offering put in an appearance on the telegraph.co.uk Internet site at 3:52 pm. BST yesterday---and it's the second contribution in a row from Roy Stephens. It's worth reading.
It wasn't that long ago that Kremlin officials could hardly avoid laughing when asked about the economic sanctions imposed on Russia by the West. As long as every NATO member state jealously sought to protect its own business interests, things "weren't all that bad," they gloated.
But since last week, their moods have darkened. For months, the European Union in particular had been reluctant to enact effective penalties against Moscow. Last Wednesday, though, the 28 EU heads of state and government cleared a psychological hurdle: For the first time, they opted go beyond sanctions targeting individual political leaders in Moscow, adding prohibitions against doing business with specific Russian companies that contribute to the destabilization of the situation in Ukraine. A concrete list is to be presented by the end of the month. European development banks have also been banned from providing loans to Russian companies.
The US, for its part, penalized a dozen leading Russian conglomerates, including oil giant Rosneft, natural gas producer Novatek, Gazprombank and the weapons manufacturer Kalashnikov. From now on, they are forbidden from borrowing money from American monetary institutions and from issuing medium- and long-term debt to investors with ties to the US.
For the companies involved, the penalties are a significant blow. It has become difficult to acquire capital in Russia itself, with both domestic and foreign investors withdrawing their money from the country in recent months. It is hardly surprising, then, that Russian Prime Minister Dmitry Medvedev spoke of a return to the Cold War and President Vladimir Putin warned that sanctions "usually have a boomerang effect."This article appeared on the German Web site spiegel.de at 5:11 p.m. Europe time on Monday---and it's the third story in a row from Roy Stephens.
President Barack Obama’s response to the downing of Malaysian Airlines Flight 17 over Ukraine reflects the consensus of U.S. officials that time, evidence, and world opinion are increasingly on his side as he takes on Russian President Vladimir Putin.
Secretary of State John Kerry cited the tragedy yesterday in an effort to prod Europeans into expanding sanctions against Russia, even at some peril to their own economies, in an effort to break Putin’s support for pro-Russian Ukrainian separatists.
“We are trying to encourage our European friends to realize this is a wake-up call,” Kerry said on “Fox News Sunday,” invoking a phrase used last week by Obama.This is what passes as serious journalism in the U.S., U.K.---and Canada these days. This is warmongering by insinuation, as there's not a shred of proof that Russia was either directly or indirectly involved. This Bloomberg offering appeared on their Web site at 11:25 Denver time yesterday---and once again my thanks go out to Roy Stephens for sending it.
The U.S. and the U.K. are putting pressure on the E.U. to impose tougher sanctions on Russia in the wake of the Malaysia Airlines disaster.
The calls come ahead of an E.U. foreign ministers’ meeting in Brussels on Tuesday (22 July) - the first opportunity for the bloc to discuss the incident, in which hundreds of Europeans, mostly Dutch people, lost their lives.
The U.S. and the U.K. have said pro-Russia rebels shot down the plane using a Russian-supplied missile.
U.S. secretary of state John Kerry added on Sunday on Fox News: “We are trying to encourage our European friends to realise this is a wake-up call, and hopefully they will also join us in these tougher sanctions”.This article, filed from Brussels, was posted on the euobserver.com Internet site at 10:25 a.m. Europe time yesterday [5:25 a.m. EDT]---and it's another story courtesy of Roy Stephens.
[The above stories are courtesy of Brad Robertson, Harry Grant---and Roy Stephens]
Note: I had no luck getting on the Russia Today Web site early yesterday evening---and I had the same problem at times on the weekend. I'm not sure what to make of it, but the Web site hasn't complained of a DoS attack, so I'm not sure what the reason might be. Maybe it's just my ISP.
Why hasn’t Washington joined Russian President Putin in calling for an objective, non-politicized international investigation by experts of the case of the Malaysian jetliner?
The Russian government continues to release facts, including satellite photos showing the presence of Ukrainian Buk anti-aircraft missiles in locations from which the airliner could have been brought down by the missile system and documentation that a Ukrainian SU-25 fighter jet rapidly approached the Malaysian airliner prior to its downing. The head of the Operations Directorate of Russian military headquarters said at a Moscow press conference today (July 21) that the presence of the Ukrainian military jet is confirmed by the Rostov monitoring center.
The Russian Defense Ministry pointed out that at the moment of destruction of MH-17 an American satellite was flying over the area. The Russian government urges Washington to make available the photos and data captured by the satellite.
President Putin has repeatedly stressed that the investigation of MH-17 requires “a fully representative group of experts to be working at the site under the guidance of the International Civil Aviation Organization (ICAO).” Putin’s call for an independent expert examination by ICAO does not sound like a person with anything to hide.Always controversial, but never too far off the mark in my opinion, this commentary by Paul was posted on his website on Monday sometime---and I thank Brad Robertson for being the first reader through the door with it yesterday. It's definitely worth reading.
Russia’s Foreign Ministry on Monday demanded that Sweden, Finland, the Baltic states and France conduct a thorough investigation into alleged involvement of mercenaries from these countries in hostilities in eastern Ukraine.
“We demand the authorities of the above-mentioned countries to conduct a thorough investigation into these facts and condemn the participation of mercenaries in the hostilities in eastern Ukraine,” the ministry said in a statement.
The ministry said this while commenting on an article in Italy’s Il Giornale newspaper which was published over the weekend. The publication reported that mercenaries from ex-Soviet Baltic states, as well as Sweden, Finland and France fought in the Azov Battalion, a paramilitary group supporting the Kiev government troops and financed by Ukrainian oligarch and governor Ihor Kolomoiskyi.This short RIA Novosti article, filed from Moscow, appeared on their Internet site at 8:57 p.m. on Monday evening Moscow time---and once again I thank Roy Stephens for finding it for us.
The mayhem began in the early hours of Sunday morning in Shejaiya, an eastern neighborhood of Gaza City, where Israeli forces battled with Hamas militants. Terrified civilians fled, sometimes past the bodies of those struck down in earlier artillery barrages. By dusk it was clear that Sunday was the deadliest single day for the Palestinians in the latest conflict and the deadliest for the Israeli military in years.
At least 60 Palestinians and 13 Israeli soldiers and officers were killed in Shejaiya alone, and the shattered neighborhood was quickly becoming a new symbol of the long-running Israeli-Palestinian conflict, underlining the rising cost of this newest Gaza war.
The death tolls and the withering assault on Shejaiya appeared to shake the international community, with world leaders continuing to carefully call for both sides to step back but with criticism of Israel rising. Within hours, President Obama had called the Israeli prime minister for the second time in three days, the United Nations Security Council had called an emergency session at the urging of the Palestinians, and Secretary General Ban Ki-moon had issued a statement calling the attack on Shejaiya “an atrocious action.”This New York Times story, filed from Gaza City, was posted on their Web site on Sunday sometime---and it's the final offering of the day from Roy Stephens.
The three-year deal, signed in Beijing on Monday, sets the conditions for the central banks of the two countries to purchase and re-purchase Chinese renminbi or Swiss francs up to CHF21 billion ($23.4 billion).
“The swap agreement is a key requisite for the development of a renminbi market in Switzerland,” the SNB said.
The SNB can also buy up to CHF2 billion worth of Chinese bonds, helping it diversify its foreign-exchange reserves which have swelled to almost CHF450 billion.This article appeared on the swissinfor.ch website at 3:39 p.m. on Monday Europe time---and it's the second offering of the day from reader B.V.
[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]
Marc Faber, publisher of the Gloom, Boom & Doom Report, talks about his view that stocks are in a "bubble" and not a good value. Faber speaks with Alix Steel on Bloomberg Television's "Surveillance"---and she goes out of her way to bait Marc at every opportunity, to the point of being obtuse.This 5:25-minute video clip was posted on the Bloomberg Web site yesterday---and I thank Washington state reader S.A. for bringing it to our attention.
Millions of dollars worth of gold has been recovered from a famous 19th-century shipwreck off South Carolina being fought over in court, the first inventories of the salvaged cargo show.
A federal judge in Virginia overseeing the recovery effort from the S.S. Central America released the mid-April-to-mid-June tallies late Wednesday, the Associated Press and The Columbus Dispatch reported Thursday. An updated list is likely soon.
AP based the estimated value of the gold coins and bars on treasure that was sold for $50 million to $60 million after the shipwreck was found in 1988 by Tommy Thompson of Columbus, Ohio, now a fugitive and the target of lawsuits from jilted investors who bankrolled his expedition.This interesting article was posted on the usatoday.com Web site at 10:40 p.m. EDT last Thursday---and it's another offering from Elliot Simon.
Farmers in Andhra Pradesh appear to have taken more loans by pledging gold bars and ornaments, than loans from banks for purely agricultural purposes. Some have even diverted the agri loan and bought gold.
According to official records, up to March 31, 2014, farmers have taken loans worth $5.7 billion (Rs 348 billion) by putting up gold as collateral, while $4.2 billion (Rs 257 billion) was taken as crop loans.
In their review meetings, bank officials have noted that a majority of the loans, particularly by pledging gold, were taken by farmers after January 2014. Officials said the reason for this could be attributed to the fact that the interest rate on loans meant for agriculture is far less, than other loans like personal loans, education loans, or home building loans, etc.
Another reason for the rising number of loans was Chief Minister N Chandrababu Naidu’s election promise of waiving off all farm loans after coming to power. This spurred farmers to go all out and take more loans, with some diverting loans, ostensibly taken for agriculture, to actually buy bullion.This very interesting read, filed from Mumbai, was posted on the mineweb.com Internet site yesterday sometime---and it's the final contribution of the day from Elliot Simon.
India's silver imports have slid by 53.4% to $212.8 million in June from $457 million in June last year, according to the data released by the Union ministry of commerce.
In volume terms, imports fell from 579 tonnes last June to 323 tonnes this year.
In May last year, the Reserve Bank of India had directed banks not to import gold on a consignment basis, denting inflows in June. This year, with some easing in the number of entities allowed to import, gold imports have surged to $3.1 billion in June, from $1.9 billion a year earlier.This is another story filed from Mumbai and posted on the mineweb.com Internet site yesterday.
Chinese wholesale gold demand for the year through July 11 has reached 998 tonnes, gold researcher and GATA consultant Koos Jansen reported yesterday. While off-take from the Shanghai Gold Exchange for the week ending July 11 was somewhat diminished, Jansen writes, copper has been trading in backwardation in Shanghai for two weeks.Jansen's commentary is posted at bullionstar.com Internet site---and I found this gold-related news item embedded in a GATA release yesterday. It's worth reading.
It looks like you can now buy a gold-mining stock exchange-traded fund without putting the biggest part of your money in Barrick Gold, the biggest gold hedger and enabler of gold price suppression, the company that 11 years ago, by virtue of its enormous hedging, claimed to be the agent of central banks in the gold market.
The new ETF is the Sprott Gold Miners ETF, which began trading last week. According to its announcement, the ETF is based on the Sprott Zacks Gold Miners Index and "uses a transparent, rules-based methodology designed to identify 25 gold stocks that historically have the highest beta to the spot price of gold, with each stock's weighting in the index adjusted based on its quarterly revenue growth and long-term debt to equity."
The ETF received favorable notice from the Wall Street Cheat Sheet, which noted that "each quarter the fund is re-weighted. This means that the fund is going to take profits on its out-performers and reallocate this capital to the under-performers. The Market Vectors Gold Miner ETF does no such thing. In fact, when the fund sees capital inflows, it pumps more money into the top performers because these are the companies that become the highest-weighted stocks in the fund."
Of course GATA is no investment adviser, but nobody who wants a free and transparent market in the monetary metals can be enthusiastic about any investment that abets gold price suppression.This commentary by Chris was posted on the gata.org Internet site just before midnight EDT last night.
Worried they may be given the cold shoulder by an imperious leadership, shareholders of Barrick Gold Corp, the world's biggest gold miner, are taking a "show me" approach to the company's latest management shakeup.
Barrick said last week that Chief Executive Jamie Sokalsky will leave the company in September. He will be replaced by two co-presidents, a move that concentrates power in the hands of Executive Chairman John Thornton, a man handpicked for the job by Peter Munk, who founded the company and headed it his way for decades.
"The concern in this situation is that the person setting the strategy does not listen to the shareholders, who are the real owners of the company," said Chris Mancini, an analyst at Gabelli Gold Fund, which owns more than 2.4 million shares in Barrick according to Thomson Reuters data.
"There was a concern within the market that Mr. Munk was not listening to shareholders...And so if Mr. Thornton also doesn't listen to shareholders that could be a problem again."The problem, dear reader, as you already know, is the fact that none of the precious metal mining companies gives a flying %$&@ about their shareholders. They're quite happy to sell their products at, or below, the cost of production---and will never lift a finger to do what has to be done. John Embry was quite right. The mining companies are either ignorant, naïve---or complicit. Barrick fits into the last category. I found this story, filed from London this morning, on the mineweb.com Internet site just before I hit the send button on today's missive.
A trio of inflation hawks at the Federal Reserve — Richard Fisher, Esther George and Charles Plosser — believe it's about time to take the punch bowl away.
The three regional Fed bank presidents are on a mission to urge their colleagues to take a tougher monetary policy stance, CNNMoney reported.
"Not only do they want the Fed to stop buying bonds (there's already a plan in place to eliminate those as early as October)—they also want the central bank to raise its short-term interest rate sooner than investors are expecting," CNNMoney stated.
This story appeared on the moneynews.com Internet site at 7:21 a.m. EDT Friday morning---and I thank West Virginia reader Elliot Simon for today's first story.
Grant’s Interest Rate Observer founder Jim Grant believes the Fed Reserve is "constitutionally behind the curve" and that a thunderclap of unexpected problems could strike the economy as a result.
Grant told Fox Business Network that the uncharted territory the Fed has been in with its vast monetary stimulus means no one can predict the eventual outcome.
“The Fed is in the business of reacting to things instead of acting on things,” he said.
This is another story from the moneynews.com Internet site yesterday morning---and it's also courtesy of Elliot Simon.
The U.S. Securities and Exchange Commission has been seeking information on 10 registered broker dealers as part of an ongoing investigation into high-frequency trading strategies, according to an internal SEC document reviewed by Reuters.
The regulator told its staff in late March that it was interested in seeing any tips, complaints, or referrals that they receive concerning the brokers and high frequency trading.
The firms listed are Allston Trading LLC; Hudson River Trading LLC; Jump Trading LLC; Latour Trading LLC, which is an affiliate of Tower Trading; Merrill Lynch, Pierce, Fenner & Smith, owned by Bank of America Group; Octeg LLC, which has been merged into a unit of KCG Holdings Inc; Tradebot Systems Inc; Two Sigma Investments LLC; Two Sigma Securities LLC; and Virtu Financial.
Let's see if anything positive comes out of this. If it accidentally does, it will certainly take a while. This Reuters story, filed from New York, showed up on their Internet site at 5:19 p.m. EDT on Friday afternoon---and it's the third contribution of the day from Elliot Simon.
Just take a look at BNP Paribas, that case. When you read the indictment it reads like treason. And certainly, management knew what they were doing was a criminal act, yet there's no prosecution of those responsible, and that's what justice is supposed to do---it's supposed to root out criminal activity, protect the public and also bring to justice those responsible. Where are the perp walks---and why has nobody gone to jail?
This very interesting 2:36 minute video interview was posted on the CNBC website at 2:50 p.m. EDT on Wednesday---and it's worth watching. I thank reader Joe Kahan for sending it our way.
A detailed exposé on how the market is rigged from a data-centric approach
We received trade execution reports from an active trader who wanted to know why his large orders almost never completely filled, even when the amount of stock advertised exceeded the number of shares wanted. For example, if 25,000 shares were at the best offer, and he sent in a limit order at the best offer price for 20,000 shares, the trade would, more likely than not, come back partially filled. In some cases, more than half of the amount of stock advertised (quoted) would disappear immediately before his order arrived at the exchange. This was the case, even in deeply liquid stocks such as Ford Motor Co (symbol F, market cap: $70 Billion, NYSE DMM is Barclays). The trader sent us his trade execution reports, and we matched up his trades with our detailed consolidated quote and trade data to discover that the mechanism described in Michael Lewis's "Flash Boys" was alive and well on Wall Street.
"This is just beautifully done. clean, simple, irrefutable. I hope it gets read far and wide." -- Michael Lewis after reading this article.
This no-punches-pulled essay will be way over most reader's heads---and most of it was way over mine---but it's not the parts that you don't understand that will bother you. This is definitely worth struggling through---as it's certainly no puff piece. It was posted on the nanex.net website on Tuesday---and my thanks go out to reader "Fazl" for bringing it to our attention.
History has taught printing too much money usually fires up inflation, and once ignited, inflation is darn painful to douse. That has already occurred in prices for assets like some social media stocks, commercial real estate and farm land, and now it is spreading more broadly. Since March, consumer price inflation has accelerated and is now about 4 percent.
Fed Chairwoman Yellen in her recent testimony expressed little appreciation for the nagging structural problems causing unemployment and denied inflation is much of a problem at all.
Americans should expect the Fed to flail about, recklessly printing money and brace for a bout with stagflation -- high unemployment, stagnant wages and rising prices.
This opinion piece by Peter Morici showed up on the upi.com Internet site at 9:26 a.m. EDT on Thursday---and I thank Roy Stephens for his first contribution of the day.
More Americans than ever live in multi-generational households, and the number of millennials who live with their parents is rising sharply, according to a study released Thursday.
A record 57 million Americans, or 18.1% of the population, lived in multi-generational arrangements in 2012, according to the Pew Research Center. That's more than double the 28 million people who lived in such households in 1980, the center said.
A multi-generational family is defined as one with two or more generations of adults living together.
The sluggish job market and other factors have propelled the rise in millennials living in their childhood bedrooms.
This short article appeared on the latimes.com Internet site on Thursday morning PDT---and it's something that I found in yesterday's edition of the King Report.
While most have been conveniently blaming the tepid first quarter -2.9% GDP growth figure on the weather, we believe that it is just another symptom of a much deeper malaise. As we have argued many times before (see, for example, the March 2014 Markets at a Glance), the U.S. economy has been on life support, graciously provided by Central Planners. However hard they try, they will soon realize that no amount of money printing can cleanse the rot of the U.S. economy.
Most tellingly, in a recent interview with Reuters, Bill Simon, Wal-Mart’s Chief Executive Officer for the U.S., said that “We’ve reached a point where it’s not getting any better but it’s not getting any worse – at least for the middle (class) and down.”
Indeed, if one looks past headline figures, things are not really getting better. As shown in Figure 1, real disposable income per capita in the U.S. has increased only modestly since the Great Recession. However, all of this increase is due to Government Transfers, not from an improvement in the real economy. If we exclude those transfers from the numbers, disposable income per capita is actually lower than it was at the end of 2005 and has been painfully flat since 2011. Also, those numbers assume that the headline Consumer Price Index (CPI) accurately represents people’s purchasing power.
In this Markets at a Glance, we investigate the U.S. consumer and show that for a large portion of the population, things are not anywhere close to being better, in fact they are worse than before the recession.
This Markets at a Glance by Eric certainly falls into the must read category. It was posted on the sprott.com Internet site late yesterday morning EDT.
And while on the subject of a “natural rate,” I think it’s worth pondering this concept in terms of today’s extraordinarily low Treasury and corporate yields. I believe central bank policies – especially “open-ended” QE3 – have comprehensively distorted asset markets. First, the unprecedented purchases of Treasuries and MBS created liquidity/purchasing power that inflated securities prices generally. Secondly, this liquidity onslaught incited dangerous self-reinforcing excess throughout corporate debt and equities markets. And a runaway corporate securities Bubble has of late boosted the safe haven appeal of Treasuries, with sinking yields further stoking the historic Bubble throughout virtually all asset markets.
Importantly, the willingness to adopt an open-ended approach to the third round of QE has been viewed throughout the marketplace as the Fed (in concert with the global central bank community) having adopted a regime of boundless securities market support. This has profoundly affected market perceptions, hence securities pricing, with the greatest impact upon the traditionally higher-risk segments of the corporate and “structured finance” securities markets.
Stated somewhat differently, the collapse in risk premiums – risk asset price inflation – is this inflationary cycle’s greatest market distortion. Indeed, I would strongly argue that unprecedented liquidity injections coupled with implied (ok, explicit) central bank market backstops has inflated the biggest Bubble yet. Any semblance of a “neutral rate” – or a stable securities market price “equilibrium” – would require that central banks extricate themselves from the securities market liquidity and backstopping business. Good luck with that.
I found Doug's weekly Credit Bubble Bulletin posted on the prudentbear.com Internet site yesterday evening.
Listening to mainstream market commentary on television and reading the financial press leaves one with the impression that the economic recovery is gaining strength and that stock market indices, at or near all-time highs, will go higher still.
The litany of market happy talk is impressive. The unemployment rate has dropped to 6.1%, down about 4 percentage points from its peak, and is expected to go lower in the months ahead. The economy created about 230,000 jobs per month in the first half of 2014, which brings the increase in jobs to nine million since the economic recovery began in mid-2009. Interest rates remain low, which supports high asset valuations in stocks and housing. Inflation is tame and expectations about future inflation are well anchored. To hear the stock market bulls tell the story, all is right with the world.
But all is not right. In fact, the fundamentals of the U.S. economy are in awful condition and are getting worse. Almost everything about the happy talk story is superficial, and falls apart under scrutiny. There is an alternative narrative of bad news that is seldom discussed on mainstream business channels but is well known to analysts. When these adverse trends are taken into account one conclusion in inescapable. The stock market and economic fundamentals are on a collision course. One or the other will have to swerve. Either the economy will have to improve rapidly and unexpectedly and reverse its fundamental weakness, or inflated stock values are heading for a precipitous fall. The evidence suggests that the latter is more likely.
This commentary by Jim Rickards appeared on the Darien Times website yesterday sometime and, as usual, it's courtesy of Harold Jacobsen. It's definitely worth reading.
The apparent shooting down of a Malaysian Airlines jet over eastern Ukraine with 295 people on board is a dramatic turn in the region’s simmering crisis.
Any proof that the passenger aircraft was blown out of the sky at 32,000 feet by a Russian fighter jet by mistake or by Russian missiles supplied to separatist rebels in the Donbass region may have huge political consequences, risking Cold War sanctions of such severity that Russia would be shut out of the global financial system.
Both Russia and Ukraine deny responsibility.
The incident comes a day after sweeping U.S. sanctions against Russia’s top oil producer and key energy companies had already shattered the illusory summer calm on Moscow’s markets, raising fears of an investment freeze and a protracted crisis that could last for years.
Here's Ambrose Evans-Pritchard's assessment of the situation as it stood on Thursday evening BST. It's not exactly friendly to Russia, which should come as no surprise to anyone. It was posted on The Telegraphs' website---and I thank Roy Stephens for his second contribution to today's column.
The downing of a commercial Boeing 777 in the Ukrainian war zone on Thursday inflamed an already volatile international crisis and may bolster President Obama’s efforts to isolate Russia if evidence points to complicity by Moscow’s separatist allies.
Mr. Obama was careful not to offer any judgments in his only public comments on the crash. But Vice President Joseph R. Biden Jr. said bluntly that the aircraft with 298 people on board was “blown out of the sky,” and the White House late Thursday issued a statement linking the crash to a crisis “fueled by Russian support for the separatists.”
If investigators are able to confirm suspicions that the Malaysia Airlines jet was brought down by a surface-to-air missile fired by pro-Russian rebels who mistook it for a military aircraft, American officials expressed hope that the tragedy will underscore their case that Moscow has been violating Ukrainian sovereignty. While Mr. Obama imposed new sanctions on Russia just a day before, Europeans refused to adopt measures as stringent out of fear of jeopardizing their own economic ties.
This article on the same issue appeared on The New York Times website on Thursday sometime---and it's also courtesy of Roy Stephens.
As the world tries to cope with the tragic loss of almost 300 people in the apparent downing of a Malaysian Airlines plane over Ukraine, questions have arisen over why the civil aircraft was directed over a war zone.
MH17, carrying passengers from Amsterdam to Kuala Lumpur, crashed on Thursday in Ukraine’s Donetsk Region, the scene of intensive battles between Ukrainian troops and local militias defying Kiev’s rule. In the last several days the militias scored a number of successes, including the reported downing of three Ukrainian military aircraft.
Despite the violence on the ground and apparent danger to aircraft, the Malaysian airliner was directed to pass right over the war zone and was apparently shot down by a sophisticated anti-aircraft missile fired by a Buk-type launcher. No one has claimed responsibility for the act, which resulted in the largest loss of life in the Ukrainian armed conflict so far.
“There are still question to answer like why this plane was flying over that area, whether it was on the correct flight path. It was flying over a war zone where missiles have been fired. It’s a war zone, so why was it flying over there?” blogger and writer Neil Clark asked in an interview with RT.
This news item appeared on the Russia Today website at 10:48 a.m. Moscow time Friday morning, which was 2:48 a.m. in New York. Once again I thank Roy Stephens for sharing it with us.
On Thursday, when a Malaysian Airlines plane was apparently shot down over Ukraine, a Ukrainian Buk anti-aircraft missile battery was operational in the region, the Russian Defense Ministry said, contradicting Kiev’s statements.
The battery was deployed at a site from which it could have fired a missile at the airliner, the ministry said in a statement. It said radiation from the battery’s radar was detected by the Russian military.
“The Russian equipment detected throughout July 17 the activity of a Kupol radar, deployed as part of a Buk-M1 battery near Styla [a village some 30km south of Donetsk],” the ministry said in a statement.
The ministry said the radar could be providing tracking information to another battery deployed in the region, which was at a firing distance from the plane’s flight path.
This news story is, once again, from the Russia Today Internet site. It was posted there at 9:31 a.m. Moscow time yesterday morning---and I thank Roy Stephens for sending it.
Moscow has no plans to seize the flight recorders from the Malaysia Airlines flight MH17, which crashed in eastern Ukraine on Thursday, Sergey Lavrov, Russia’s foreign minister, told Rossiya 24 channel.
The seizure of flight records would violate international law as it’s up to relevant international agencies to investigate of the incident, he explained.
The analysis of the flight recorders “is the responsibility of ICAO [International Civil Aviation Organization]; it’s the responsibility of those states which have the most direct connection to this tragedy – the Netherlands, Malaysia and the states whose citizens were on board, and of course Ukraine,” Lavrov said.
The minister also called on the U.N. Security Council to urgently launch an open and impartial investigation into the plane crash in Ukraine.
This article is also from the Russia Today website. This one was posted there at 11:46 a.m. Moscow time on Friday---and it's also courtesy of Roy Stephens.
Russia urges an impartial and open investigation into the Malaysian Boeing 777 crash in Ukraine and an international commission to be set up. Addressing the U.N., Russia’s envoy Churkin said a probe into Ukraine's aviation authorities is also necessary.
“As we see it, it is necessary to investigate not only the crash itself but also how Ukraine's aviation authorities performed their professional duties,” Russia's Ambassador to the UN Vitaly Churkin said as he questioned why a passenger flight was allowed over an area of armed conflict.
Malaysia Airline said in a statement on Friday that Ukraine’s traffic controllers ordered the Boeing-777 to lower by 500 meters when the aircraft entered Ukrainian airspace. It added that pilots were supposed to fly at 35,000 ft (10,660 meters) throughout Ukrainian airspace, but air traffic control on the ground instructed MH17 to fly at 33,000 ft (10,058 meters).
Russia’s envoy said ensuring the security of civilian aviation in a state's airspace is the responsibility of the state.
This is another Russia Today news item. It appeared on their Internet site at 8:19 p.m. Moscow time on Friday evening---shortly after noon in New York. The RT stories from Roy just keep on coming.
Some Western states and Kiev rushed to find Russian involvement in the MH17 crash having no evidence to back their claims, Russia’s Deputy Defense Minister told RT. He invited Ukraine to answer 10 questions to prove their commitment to an impartial probe.
Speaking to RT, Russia’s Deputy Defense Minister Anatoly Antonov has criticized Western countries for jumping to conclusions just “24 hours after the crash” while there is no evidence.
“They try to show to the whole world that we are responsible for the crash. It is very strange that without any evidence my colleagues from western media would like to find somebody who is responsible for the crash,” Antonov said. “It seems to me that this is part of information warfare which has been started against the Russian Federation and armed forces.”
“As for me, I don’t want to use this opportunity to blame anybody. I would just like to raise few questions for my colleagues from the armed forces of Ukraine,” Antonov said. “I hope they try to answer the questions, it will be a good opportunity for us to realize where we are, whether there is a possibility for us to restart cooperation and to find who is really responsible for the tragedy.”
This article was posted on the Russia Today website at 8:59 p.m. on Friday evening Moscow time---and it's also courtesy of Roy Stephens.
NOTE: Photos are now available of the wreckage from the Malaysian airliner crash. Notice the extensive debris and the large section of fuselage. You are observing remains of an airliner that was hit with a missile at 33,000 feet and fell to impact land. Remember, no such debris was present at the site where the airliner is alleged to have hit the Pentagon and at the alleged crash site in Pennsylvania of the 4th 9/11 hijacked airliner. Give that some thought. No doubt but that the 9/11 Commission will conclude that only Malaysian airliners leave debris.
The unilateral U.S. sanctions announced by Obama on July 16 blocking Russian weapons and energy companies access to U.S. bank loans demonstrate Washington’s impotence. The rest of the world, including America’s two largest business organizations, turned their backs on Obama. The U.S. Chamber of Commerce and the National Association of Manufacturers placed ads in the New York Times, Wall Street Journal, and Washington Post protesting US sanctions. NAM said that the manufacturer’s association is “disappointed that the U.S. is extending sanctions in increasingly unilateral ways that will undermine U.S. commercial engagement.” Bloomberg reported that “meeting in Brussels, leaders of the European Union refused to match the U.S. measures.”
In attempting to isolate Russia, the White House Fool has isolated Washington.
The sanctions will have no effect on the Russian companies. The Russian companies can get more bank loans than they need from China, or from France and Germany.
The commentary by Paul was posted on this Internet site on Thursday---and falls into the must read category, especially for all serious students of the New Great Game. It's also courtesy of Roy Stephens.
At least 15 have been killed and 53 wounded as the city of Lugansk has come under shelling attack. The city’s center and civilian areas have been targeted leaving areas in ruins.
"Today intense bombardment of Lugansk has continued. Shells are falling in almost all districts of the city,” the administration said in a statement.
The Lisichansk Oil Refinery, property of the Russian oil company Rosneft - recently sanctioned by the U.S. - has also been attacked and set on fire.
This is another story from the Russia Today Internet site. It was filed there at 11:10 a.m. Moscow time on their Friday morning---and my thanks go out to Roy Stephens again.
The flagging career of Italy's former prime minister, Silvio Berlusconi, was given a dramatic boost on Friday after a court in Milan cleared him of both charges in a lurid trial that cemented his international reputation as an ageing playboy politician and made "bunga bunga" a household term.
More than 12 months after he was sentenced to seven years in prison and slapped with a lifetime ban on holding public office, Berlusconi was acquitted on appeal of paying for sex with an underage prostitute and abusing his office to cover it up.
Prosecutors will be able to launch another appeal against that ruling, but the judgment nonetheless marks a boost for the 77-year-old, who denied the charges and insists he is the victim of a personal vendetta by left wing Italian judges.
This story appeared on theguardian.com Internet site at 5:59 p.m. BST on Friday---and it's the final offering of the day from Roy Stephens.
The World Cup may be over for Germany and Argentina, but players on both teams are putting their cash winnings to good use by donating them to worthy causes.
According to the U.K.-based Express, 25-year-old German football star Mesut Ozil has donated his World Cup prize money – totaling more than $400,000 for winning the tournament – to various charity projects in Brazil. The hefty sum is reportedly going to fund surgeries for 23 Brazilian children.
Ozil made the announcement official on his Facebook page, where he wrote the following:
“Dear fans, prior to the #WorldCup I supported the surgery of eleven sick children. Since the victory of the #WorldCup is not only due to eleven players but to our whole team, I will now raise the number to 23. This is my personal thank-you for the hospitality of the people of Brazil.”
This heart-warming article appeared on the Russia Today website at 2:34 a.m. Moscow time on their Friday morning---and I thank Harry Grant for sending it our way.
How far is Saudi Arabia complicit in the Isis takeover of much of northern Iraq, and is it stoking an escalating Sunni-Shia conflict across the Islamic world? Some time before 9/11, Prince Bandar bin Sultan, once the powerful Saudi ambassador in Washington and head of Saudi intelligence until a few months ago, had a revealing and ominous conversation with the head of the British Secret Intelligence Service, MI6, Sir Richard Dearlove. Prince Bandar told him: "The time is not far off in the Middle East, Richard, when it will be literally 'God help the Shia'. More than a billion Sunnis have simply had enough of them."
The fatal moment predicted by Prince Bandar may now have come for many Shia, with Saudi Arabia playing an important role in bringing it about by supporting the anti-Shia jihad in Iraq and Syria. Since the capture of Mosul by the Islamic State of Iraq and the Levant (Isis) on 10 June, Shia women and children have been killed in villages south of Kirkuk, and Shia air force cadets machine-gunned and buried in mass graves near Tikrit.
In Mosul, Shia shrines and mosques have been blown up, and in the nearby Shia Turkoman city of Tal Afar 4,000 houses have been taken over by Isis fighters as "spoils of war". Simply to be identified as Shia or a related sect, such as the Alawites, in Sunni rebel-held parts of Iraq and Syria today, has become as dangerous as being a Jew was in Nazi-controlled parts of Europe in 1940.
This longish commentary by Patrick Cockburn showed up on the independent.co.uk Internet site last Sunday BST---and for length and content reasons, had to wait for today's column. I thank South African reader B.V. for sending it our way.
William Binney is one of the highest-level whistleblowers to ever emerge from the NSA. He was a leading code-breaker against the Soviet Union during the Cold War but resigned soon after September 11, disgusted by Washington’s move towards mass surveillance.
On 5 July he spoke at a conference in London organised by the Centre for Investigative Journalism and revealed the extent of the surveillance programs unleashed by the Bush and Obama administrations.
“At least 80% of fibre-optic cables globally go via the US”, Binney said. “This is no accident and allows the US to view all communication coming in. At least 80% of all audio calls, not just metadata, are recorded and stored in the US. The NSA lies about what it stores.”
The NSA will soon be able to collect 966 exabytes a year, the total of internet traffic annually. Former Google head Eric Schmidt once argued that the entire amount of knowledge from the beginning of humankind until 2003 amount to only five exabytes.
This chilling article put in an appearance on theguardian.com Internet site on Friday, July 11---and I thank reader B.V. for sending it to me last Saturday. For content reasons as well, it had to wait until this Saturday's column.
1. Nigel Farage: "Terrifying Banking Crisis is About to Accelerate" 2. Gerald Celente: "The World is Now Headed into a Major War" 3. John Ing: "Legend Says China Will Buy 100 Tons of Gold Each Month"
[Please direct any questions or comments about what is said in these interviews by either Eric King or his guests to them, and not to me. Thank you. - Ed]
A recent interview with the general manager of the Bank for International Settlements, Jaime Caruana, suggests that the bank is edging away from Keynesianism, monetarism, and the U.S. dollar and becoming more partial to gold as the base of the international monetary order, GoldMoney research director Alasdair Macleod writes today.
"Even though central bankers in the political firing line only know expansionary monetary policies," Macleod writes, "it is clear that influential opinion in many quarters is building against them. It is too early to talk of a new monetary regime, but not too early to talk of the current one's demise."
Macleod's commentary is titled "Monetary Discord" and it was posted at the goldmoney.com Internet site yesterday---and I found 'all of the above' over at the gata.org Internet site yesterday.
Sprott Asset Management CEO Eric Sprott, interviewed by Sprott Money News for their weekly market roundup, says he doesn't expect international turmoil to do much for gold, but economies are not recovering and he expects gold to do well after the price suppression connected to this month's futures options expiration.
The interview runs for 8:40 minutes---and can be heard at the sprottmoney.com Internet site. I thank Chris Powell for wordsmithing the above paragraph of introduction.
SNL Metals & Mining is nowadays one of the sector’s leading suppliers of statistical information having, in recent years, absorbed the highly respected Metals Economics Group, based in Halifax, Nova Scotia, and Australian headquartered Intierra, which itself had absorbed Sweden’s Raw Materials Group. Its latest major report is titled Strategies for Gold Reserves Replacement and points to some hugely significant data which will affect global newly mined gold production way into the future.
The report points out that over the past 24 years mining companies have discovered some 1.66 billion ounces of gold in 217 major discoveries, BUT – and it’s a big BUT – while this may sound a huge amount, over the same period the industry has actually produced 1.84 billion ounces of gold, so discoveries have not been keeping pace with production. But the report goes much further in showing that the number of significant discoveries (defined as deposits with a minimum of 2 million ounces of contained gold) is diminishing and this diminishing trend seems to be accelerating. In the 1990s some 124 deposits containing 1.1 billion ounces of gold were discovered while since the year 2000 this has fallen to only 605 million ounces in 93 such discovered deposits. And most recently significant new discoveries appear to have slowed to a trickle.
No surprises here for me. This must read commentary by Lawrence Williams was posted on the mineweb.com Internet site yesterday.
Microsoft Chief Executive Officer Satya Nadella kicked off one of the largest layoffs in tech history on Thursday, hoping to reshape the aging PC industry titan into a nimbler rival to Apple and Google, and jolt a culture at the company that is used to protecting its existing Windows and Office franchises.
Microsoft Corp said on Thursday it will slash up to 18,000 jobs, or 14 percent of its workforce, over the next 12 months as it almost halves the size of its newly acquired Nokia phone business and tries to become a cloud-computing and mobile-friendly software company.
The larger-than-expected cuts are the deepest in the software giant's 39-year history and come five months into Nadella's tenure.
Beyond the Nokia reductions, Nadella gave few clues about where the ax will fall or what areas will receive more funding.
This Reuters article, filed from Seattle, showed up on their website at 2:58 p.m. EDT on Thursday---and today's first offering is from reader M.A.
Congress, The New York Sun editorializes, is beginning to notice the growing arbitrariness of the Federal Reserve's power, its involvement in presidential politics, and its failure to improve economic conditions, and critical questions are arising.
I found this editorial in a GATA release from yesterday. It was posted on the nysun.com Internet site---and I thank Chris Powell for wordsmithing the above paragraph of introduction.
The U.S. Federal Reserve has begun to pivot. Monetary tightening is coming sooner than the world expected, with sober implications for overheated bourses, and for those in Asia, eastern Europe and Latin America that drank deepest from the draught of dollar liquidity.
We can expect a blistering dollar rally, perhaps akin to the early 1980s or the mid-1990s. It is fortuitous that the BRICS quintet of Brazil, Russia, India, China and South Africa have just launched their $100bn monetary fund to defend each other's currencies. Some of them may need it.
America's unemployment rate has fallen from 7.5pc to 6.1pc in 12 months. The country has been adding 230,000 jobs a month in the first half of this year.
Since Fed chief Janet Yellen targets jobs above all else, this was bound to force capitulation by the Fed before long. It happened this week in her testimony to Congress. "If the labour market continues to improve more quickly than anticipated, then increases in the federal funds rate likely would occur sooner and be more rapid than currently envisioned," she said.
This Ambrose Evans-Pritchard commentary appeared on the telegraph.co.uk Internet site at 9 p.m. BST on their Wednesday evening---and it's worth reading. However, I'd take it with a grain of salt, as he's the only media-type that has spun Janet Yellen's Congressional testimony with this particular slant. Make up your own mind on this one, is another way of putting it. I found this article in yesterday's edition of the King Report.
Barclays Plc and Deutsche Bank AG face scrutiny over their sale of products to a hedge-fund firm that allowed it to skirt borrowing limits and avoid taxes, according to people with knowledge of the matter.
The U.S. Senate Permanent Subcommittee on Investigations plans a hearing next week on what it calls abusive transactions by financial institutions, according to a notice from the panel. The companies, which aren’t named in the notice, are Barclays, Deutsche Bank and hedge-fund manager Renaissance Technologies LLC, the people said. Representatives for each of the firms plan to testify at the July 22 hearing, the people said.
The investigation is another blow for Antony Jenkins, chief executive officer of London-based Barclays, as he seeks to restore the firm’s reputation after it became the first lender to be fined for rigging Libor. For Deutsche Bank, the hearing comes less than four years after the Frankfurt-based lender paid $554 million to avoid unrelated U.S. criminal charges involving the sale of tax shelters.
This Bloomberg article, filed from New York, was posted on their website at 10:00 p.m. Denver time on Wednesday evening---and I thank West Virginia reader Elliot Simon for sending it our way.
A Malaysia Airlines Boeing 777 with 298 people aboard exploded, crashed and burned on a flowered wheat field Thursday in a part of eastern Ukraine controlled by pro-Russia separatists, blown out of the sky at 33,000 feet by what Ukrainian and American officials described as a Russian-made antiaircraft missile.
Ukraine accused the separatists of carrying out what it called a terrorist attack. American intelligence and military officials said the plane had been destroyed by a Russian SA-series missile, based on surveillance satellite data that showed the final trajectory and impact of the missile but not its point of origin.
There were strong indications that those responsible may have errantly downed what they had thought was a military aircraft only to discover, to their shock, that they had struck a civilian airliner. Everyone aboard was killed, their corpses littered among wreckage that smoldered late into the summer night.
This description of events was posted on The New York Times website yesterday---and since I read it initially, it has obviously been changed a few times. I thank Roy Stephens for sending it our way.
First it was MH-370. Now, it appears tragedy has struck again, this time on Malaysian Airlines flight MH-17, on route from Amsterdam to Kuala Lumpur, which disappeared from radar moments ago and was reportedly shot down over Ukraine. While there is nothing yet officially confirmed by the carrier, the radar tracked path of the airplane is shown below.
This Zero Hedge article was posted on their Internet site at 11:24 a.m. EDT yesterday---and contains a couple of excellent charts. I thank Michael Cheverton for sharing it with us.
Kiev’s accusations that Russia shot down a Ukrainian Su-25 fighter jet are “absurd,” the Russian Ministry of Defense said.
“This is absurd, like all previous accusations from Kiev officials concerning Russia’s Ministry of Defense,” a ministerial official told journalists on Thursday.
Kiev has accused Russia of downing its Su-25 fighter jet on June 16. Andrey Lysenko, spokesman of the Ukrainian National Security and Defense Council, said a Russian military jet shot down a plane that was fulfilling a military operation over the east of Ukraine at 19:00 local time. Earlier Kiev blamed the attack on self-defense forces.
The high-ranked Defense Ministry official said that “almost every day” Russia "gets exposed" and receives threats that “irrefutable evidence” will be released, but every time “this evidence disappears somewhere.”
This Russia Today story was posted on their website at 2:24 p.m. Moscow time on their Thursday afternoon, which was 6:24 a.m. in New York. It's another contribution from Roy Stephens.
The Ukrainian military has several batteries of Buk surface-to-air missile systems with at least 27 launchers, capable of bringing down high-flying jets, in the Donetsk region where the Malaysian passenger plane crashed, Russian Defense Ministry said.
“According to the Russian Defense Ministry information, units of the Armed Forces of Ukraine located in the crash-site are equipped with anti-aircraft missile systems of "Buk-M1” ... These complexes in their tactical and technical characteristics are capable of detecting air targets at ranges of up to 160 kilometers and hit them at full altitude range at a distance of over 30 kilometers,” the ministry’s statement reads as cited by Ria.
Earlier, Itar-Tass and Interfax news agencies were citing a source familiar with the issue, who said that another battery of Buk systems is currently being prepared for shipment to Donetsk region from the Ukrainian city of Kharkov.
This is another article from the Russia Today Internet site. This one appeared there at 6:35 p.m. Moscow time on their Thursday evening, which was 10:35 a.m. EDT. Once again I thank Roy Stephens for finding it for us.
Ukraine’s armed forces dispatched the Buk anti-aircraft missile system battalion to the area of the city of Donetsk on Wednesday, a well-informed source said referring to the data recording system.
Another battalion of the same weapons is said to be in the process of embarkation in the city of Kharkiv, northwest of Donetsk, the source said adding that the aircraft at an altitude of over 10,000 meters could be shot down only with the weapons of the S-300 or Buk (Beech) missile systems.
In the meantime, militias of the self-proclaimed republics of Donetsk and Luhansk have said they do not possess armament systems of this class.
Militias of the self-proclaimed republics in Ukraine's east are not armed with the Buk anti-aircraft missile systems, the press service of the self-proclaimed Luhansk People's Republic said in comments on the Ukrainian authorities' statements about a possible involvement of the Donetsk and Luhansk militias to the downing of the Malaysian plane.
This news item, filed from Moscow, appeared on the itar-tass.com Internet site at 8:33 p.m. Moscow time yesterday evening---and I thank reader 'David in California' for bringing it to our attention.
While there are various questions that have already emerged from what was supposed to be Ukraine's "slam dunk" proof confirming Russian rebel involvement in today's MH-17 tragedy, perhaps one just as gaping question emerges when one looks at what is clearly an outlier flight path in today's final, and tragic, departure of the Malaysian Airlines Boeing 777.
Perhaps the best visualization of what the issue is, comes from Vagelis Karmiros who has collated all the recent MH-17 flight paths as tracked by Flightaware and shows that while all ten most recent paths pass safely well south of the Donetsk region, and cross the zone above the Sea of Azov, it was only today's tragic flight that passed straight overhead Donetsk.
This very interesting Zero Hedge news item was sent to me by reader M.A. last evening. It was posted on their Internet site at 8:55 p.m. EDT on Thursday evening. The Flightaware link is worth clicking on.
Russia considers the latest package of sanctions against it issued by the U.S. as revenge for the failure of Washington’s schemes in Ukraine and blackmail. Moscow reserves the right to retaliate.
Moscow believes that America is targeting it with sanctions “because the events in Ukraine have not developed the way Washington scripted them,” the Russian Foreign Ministry said in a statement on Thursday.
“The outrageous and groundless desire to blame Russia for the civil war in a neighboring country, which was caused by a deep internal crisis and already resulted in the loss of many lives, proves that the US and its clients in Kiev have failed to pacify the wide public dissent,” the ministry said.
Moscow said Washington is cynical in attempting to dodge responsibility for the bloodshed perpetrated by the Ukrainian troops in the east of the country, which the U.S. is de facto encouraging.
This must read commentary appeared on the Russia Today website at 7:15 a.m. Moscow time on their Thursday morning---and it's courtesy of Roy Stephens.
Following a tumultuous few years of political and economic upheaval, the small European nation of Cyprus has suddenly found itself the subject of more official U.S. interest than it has seen in 50 years. In addition to visits from James Townsend, the assistant undersecretary of Defence for Europe and NATO issues and Amanda Sloat, the assistant US Undersecretary of State for European Affairs this month, the capital welcomed Vice President Joe Biden, the highest ranking U.S. official to arrive in five decades.
“I wanted to come to primarily underscore the value the United States attaches to our growing cooperation with the republic of Cyprus,” Biden said shortly after arriving in May, according to a Guardian report. “This relationship is now a genuine strategic partnership which holds great promise.”
Although the visits have focused on everything from security cooperation to reunification with the island’s Turkish held northeast, the diplomatic push appears rooted in the issue of energy security and regional unity – two issues that are increasingly aligned.
This very interesting commentary appeared on the forbes.com Internet site at 11:26 a.m. EDT on Wednesday---and I thank Casey Research's own Laurynas Vegys for sending this around yesterday.
Israeli tanks rolled into the northern Gaza Strip on Thursday night and naval gunboats pounded targets in the south as Israel began a ground invasion after 10 days of aerial bombardment failed to stop Palestinian militants from showering Israeli cities with rockets.
Israeli leaders said the incursion was a limited one focused on tunnels into its territory like the one used for a predawn attack Thursday that was thwarted. They said it was not intended to topple Hamas, the militant Islamist movement, from its longtime rule of Gaza.
As rockets continued to rain down on Israeli cities, a military spokesman said the mission’s expansion was “not time bound” and was aimed to ensure Hamas operatives were “pursued, paralyzed and threatened” as it targeted “terrorist infrastructure” in the north, south and east of Gaza “in parallel.”
This news item put in an appearance on The New York Times website yesterday sometime---and it's the final contribution of the day from Roy Stephens.
The BRICS summit in northeast Brazil has already made history for one key reason; the creation of the New Development Bank.
Call it the Global South antidote to that structural adjustment racket, the IMF. Over and over again, BRICS member nations and others have insisted on an institutional IMF reform that would recognize the economic weight of the Global South. Reform packages have been languishing in the U.S. Congress since 2010. And once again they were blocked last April.
The New Development Bank will be way more democratic than the US/EU-controlled IMF. Look at the funding; a flat $10 billion contribution by each member country. This means, sooner or later, that other developing nations will also join. I have called it casino capitalism versus a productive capitalism model.
This commentary by Pepe, which is definitely worth reading, showed up on the Russia Today website at 11:02 a.m. Moscow time on their Thursday morning---and I thank reader Thorsten Winkler for bringing it to my attention, and now to yours.
After almost a decade of heated political debate, Australia has become the world's first developed nation to repeal carbon laws that put a price on greenhouse-gas emissions.
In a vote that could highlight the difficulty in implementing additional measures to reduce carbon emissions ahead of global climate talks next year in Paris, Australia's Senate on Thursday voted 39-32 to repeal a politically divisive carbon emissions price that contributed to the fall from power of three Australian leaders since it was first suggested in 2007.
Australia, the world's 12th largest economy, is one of the world's largest per capita greenhouse gas emitters due to its reliance on coal-burning power stations to power homes and industry. In 2011, daily emissions per head amounted to 49.3 kilograms (108 pounds), almost four times higher than the global average of 12.8 kilograms, and slightly ahead of the U.S. figure of 48.2 kilograms.
This longish article was last updated on The Wall Street Journal website at 5:51 a.m. EDT on Thursday morning---and for the moment, it's posted in the clear. My thanks go out to Michael Cheverton for his second contribution to today's column.
1. Keith Barron: "Gold, Silver and How People Are Getting Creative Just to Survive" 2. Egon von Greyerz: "Exchange Controls---and Perfect Fake Gold and Silver Coins" 3. Tom Fitzpatrick: "Gold, Euro, Dollar & Where the Chinese Are Buying Real Estate"
CME Group has expressed interest in taking part in the proposal for reform to the London gold fix, the exchange's head of metals said Thursday.
In reaction to news that the London Gold Market Fixing Ltd. and London Bullion Market Association are working together to reform the current London gold fix, CME's head of metals Harriet Hunnable said the exchange would be "delighted" to be part of this process.
LGMFL said Wednesday that -- with support from the LBMA-- it is looking at the possibility of appointing a third party to administrate the London Gold Fix.
The company said that it "has commenced an request for proposal process with a view to appointing a third party to assume responsibility for the administration of the London gold fixing. LGMFL will continue to liaise with the LBMA, the FCA, and other stakeholders as appropriate, as the RFP process develops."
With the silver fix in the bag, the CME Group is now going after the gold fix. Ted has been calling the CME "crooks" for years---and for good reason. This news item showed upon the platts.com Internet site at 12:57 p.m. BST in London yesterday---and I found it on the sharpspixley.com Internet site.
Investor and industrial consumption of silver has advanced at a healthy pace in 2014, reflected in the silver price increasing 5 percent as of July 15 from the beginning of the year.
Building on an impressive 2013, investors continued to boost silver holdings in the first half of 2014. Silver exchange traded funds (ETF) backed by physical silver added 7.0 million ounces (Moz) of silver bullion through June; in contrast, gold ETF holdings dipped by 1.4 Moz ounces over the same time period. Globally, silver bullion coin sales are up 4.5 percent through the 1st quarter of 2014, according to precious metals consultancy Thomson Reuters GFMS. U.S. Mint sales of American Eagle Silver Bullion coins maintained near record level sales, totaling 24.1 Moz for the first six months of 2014, just shy of the 25.0 Moz sold in the first half of 2013, threatening to overtake the record sales of 42.7 million American Eagle coins acquired by investors last year. Other silver investment products, such as silver bar consumption, appear to be easing so far this year after a strong showing in 2013.
Industrial demand for silver in critical sectors, such as ethylene oxide production, has increased significantly in the first half of the year and is expected to increase 23 percent this year to 8.0 Moz, according to Thomson Reuters GFMS. Ethylene oxide is a vital building block chemical, critical to production of detergents, solvents, plastics and a broad range of organic chemicals, and is an example of the unmatched importance of silver in industry.
Demand for silver in the photovoltaic industry has been driven by a global increase in renewable energy over the past decade, leading to a proliferation of solar module production. Metals Focus, the precious metals consultancy, forecasts that silver demand in photovoltaics will rise by close to 10 percent in 2014.
Here's news from the dark side of The Force, dear reader. It was posted on the silverinstitute.com Internet site yesterday---and it is worth reading. It's the final offering of the day from Elliot Simon.