Today's Assignment

Tue, May 7, 2013 - 9:51am

While we watch the morning raid and hope for a recovery FUBM, here's a video for you to consider.

A link to this was sent to me yesterday. The lady that gives the presentation is named Christine Hughes. She's the President of something called Otterwood Capital Management, which appears to be a money manager or hedge fund, based in Toronto. I don't completely agree with all of her analysis...and that's OK. Since when does everybody agree on everything? But I've determined that this video is worth your time to watch.

Though her analysis of gold is faulty because she is simply looking at the paper price and paying no mind to the physical market fundamentals, I want you to watch this for the greater, macro discussion.

Christine does an excellent job of breaking down into understandable terms the fallacy of the current BankofJapan and Shinzo Abe yen devaluation plan. After watching this video, not only will you understand why Japan is doomed, you'll also be able to apply much of the same rationale to the United States.

Further, think about the warnings from Jim Willie of the "Treasury Market Tower of Babel" and how global, sovereign debt is going to create a "black hole" that will eventually suck in almost all available capital as rates collapse to zero and even go negative.

So, don't just absorb the information presented here. Chew on it. Digest it. Really think about the global implications, not just Japan, as the entire globe rushes to debase and devalue. Furthermore, if this path to the future is so obvious, what do you expect the Creditor Nations of China, Russia, India and others to do? Just sit idly by or would you expect them to have their own plan? If Christine Hughes can see this coming from her office in Toronto, we must assume that President Xi can see it from Beijing, too.


About the Author

turd [at] tfmetalsreport [dot] com ()


May 7, 2013 - 3:56pm


appears to have been found in Monday thread, the appended ad "buying Silver now" inter alia, prohibits new postings, and as some may have guessed, the target has been identified and proposed attack plans are being drafted, but this bug prohibits postings on the last tread of yesterday, at the end thereof, where sillyness can hide on the back page to not interrupt the daily hard on flow. Admin heads up, unless intended eyes closed. Let me know please. This post may be deleted by Admin at will.

Southern Cross
May 7, 2013 - 4:09pm

Worth A 1,000 Words

Homeless Man Sleeps In Subway Near Whitehouse

Tuesday, May 7, 2013 13:00

Cry Me A River
May 7, 2013 - 4:09pm

Here's Two More

I've Cleaned This Of Pops And Scratches Successfully Using Audacity. This Is The Original Recording:

BACK ALLEY BLUES - The Beale St Gang - 1948

And Here's Some More Jimmy McGriff: "Turn Blue" As Performed By The Great Chris Codish: (He ends this with the famous passage used at the "Triple Rock")

Turn Blue
Cry Me A River
May 7, 2013 - 4:18pm

One More Then I'll Stop

This Was One Of The Coolest Beatnik Era Music Scene Shows On The Tube At The Peak Of The Beatnik Scene in 1961---Featuring Jimmy Smith---My Kinda Music:

Video unavailable
May 7, 2013 - 4:19pm

Homeless Man....

But it's Bush's fault. (AP)

But it's the Republican's in the House who put him there. (MSNBC)

Obama tell Hillary, "You handle that homeless man." (Wash. Post)

And he's suffering from AIDS because of Reagan. (SF Chronicle)

Mayor Bloomberg suggests banning multiple blankets to solve homeless situation. (NY Times)

Southern Cross
May 7, 2013 - 4:19pm


Coast Guard ordered to stay in port

Tuesday, May 7, 2013 13:09

MIAMI, FL – Drugs, weapons, illegal aliens all are welcome under a new directive. There is an ongoing, emergency situation with the U.S. Coast Guard, which is now an agency under the U.S. Department of Homeland Security.

“By directive, starting last Monday, 29 April 2013 (barring emergency calls) Coast Guard District 7, which stretches from the Carolinas to Alabama to Florida, has been restricted from activity. There will be no enforcement patrols of large or small craft allowed in U.S. territorial seas, district-wide,” according to a WDW confidential source.

This directive will mean that, of several hundred craft available, neither the close-in enforcement operations (out to 20-nautical miles) nor the larger, blue water enforcement craft – cutters and the like – are actively engaged in protecting our shoreline. All such operations have ceased; no fuel is to be used to protect the U.S. shores, at least in District 7. All vessels would be confined to port, and personnel would be standing around, passing time onshore. Emergency rescue and limited air operations still continue.

Our confidential source states, “To put a perspective on this: an average Coast Guard small boat, for example, is a light, maneuverable outboard-equipped craft capable of quickly answering calls for detaining, boarding and inspecting vessels close to shore. They look for drugs, human trafficking, and weapons – including nuclear devices – which, incidentally when found are disarmed or turned over to the U.S. Navy bomb disposal units.”

Such a boat might interdict 50 craft per watch, or shift. That’s hundreds of boarding’s, scores of criminals/terrorists, and tons of contraband or worse – every watch, of every day, over thousands of miles of U.S. coastline – that are not happening.

Will Congress query the other Coast Guard operational districts, perhaps even including our lakes and river ways, to see if the same directive applies?

What’s more: Jacksonville, Florida is homeport to three of the U.S. Navy’s incredibly powerful nuclear submarines, as well as many surface ships.

Our source notes, “Until this week, (following the devastatingly successful small boat attack on the defenseless U.S.S. Cole), a Coast Guard small craft escort was provided to all such important Navy assets as they made their way in and out of the port of Jacksonville. As of Monday, this escort is no longer provided!”

May 7, 2013 - 4:21pm

Rickards' Bottom

He's a smart man and everyone knows it. That's why the EE will HAVE TO bang gold below 13XX to make him look like an idiot.

The Watchman
May 7, 2013 - 4:25pm

Smart Country

China’s Gold Consumption Jumps 26% in First Quarter Before Rout

By Bloomberg News - May 7, 2013 5:10 AM ET

Gold consumption in China, the world’s largest user after India, jumped 26 percent in the first three months of 2013 from a year ago amid strong bullion sales and rising jewelry demand, an association said.

Total consumption reached 320.54 metric tons in the first quarter, the China Gold Association said today in an e-mailed report. Purchases of gold bars surged 49 percent to 120.39 tons, while jewelry gained 16 percent to 178.59 tons, it said. Gold output in China, the world’s largest producer, gained 11 percent in the same period to 89.91 tons, according to the association.

First-quarter sales preceded gold’s slump into a bear market last month, with prices tumbling 14 percent the two days through April 15, the worst drop in three decades. The slump led to a surge in demand for jewelry, coins and bars from India and the U.S. to China. China’s imports of the metal from Hong Kongsurged to a record in March, the Hong Kong government said on its website today.

“This came out better than our expectation because these sales were done before the gold market rout in April when more people rushed to buy gold,” Song Qing, fund manager at Lion Fund Management Co., China’s first asset manager to place money in foreign exchange-traded gold funds.

Bullion of 99.99 percent purity on the Shanghai Gold Exchange dropped 4.3 percent in the first quarter, and was at 294 yuan a gram ($1,486 an ounce) today. The weeklong Lunar New Year holiday, when consumers bought gold jewelry and bars as gifts in the most-important festival, was in February this year. In London, gold for immediate delivery traded 13 percent lower this year at $1,459.29 an ounce.

To contact Bloomberg News staff for this story: Feiwen Rong in Beijing at frong2[at]bloomberg[dot]net

May 7, 2013 - 4:27pm

Knew This Guy was Banned Year's Ago

Paul Craig Roberts - The Financial Press...A Disinfo Machine

“I can remember when I was a Wall Street Journal editor and columnist, a Business Week columnist, a Scripps Howard News Service columnist and appeared regularly in the major mainstream print media and even from time to time on TV talking head programs. Today, the editor or producer who gave me a forum would be fired instantly, and they all know it.”

May 7, 2013 - 4:35pm

from Don Vialoux today

Beware What You Read in the Monthly BLS Report

Following is an interesting observation reported in “A Pfennig for Your Thoughts” yesterday.

“Well, we saw the color of the BLS’s latest survey on job creation AKA the Jobs Jamboree last Friday. On the outside, it looked good. not pretty good. not great. But good. According to the BLS the U.S. created a net of 165,000 jobs in April. And the unemployment rate sunk to 7.5% from 7.6%… Now, you may remember, that I said on Friday morning, pre-Jobs Jamboree, that I thought the number would be disappointing, before the "adjustment" that the BLS makes each month. Well, I was bang on that! You see the "adjustment" was adding 193,000 jobs to the survey. Otherwise the job creation in April would have been negative”

Editor’s Note: A Pfennig for your Thoughts is a free blog written daily by Chuck Butler at Everbank World Markets. Main focus of the blog is currency markets, but the blog frequently provides interesting tidbits and observations on economic reports.

Realization that the BLS report was virtually “unbelievable” was a major reason why U.S. equity markets failed to follow through gains recorded on Friday after a breakout by the Dow Industrials and S&P 500 Index to all-time highs.

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Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

Key Economic Events Week of 8/5

8/5 9:45 ET Markit services PMI
8/5 10:00 ET ISM services PMI
8/6 10:00 ET Job Openings
8/8 10:00 ET Wholesale Inventories
8/9 8:30 ET Producer Price Index

Key Economic Events Week of 7/29

7/30 8:30 ET Personal Inc/Spending & Core Inflation
7/30 10:00 ET Consumer Confidence
7/31 8:15 ET ADP employment
7/31 2:00 pm ET FOMC Fedlines
7/31 2:30 pm ET CGP presser
8/1 9:45 ET Markit Manu PMI
8/1 10:00 ET ISM Manu PMI
8/2 8:30 ET BLSBS
8/2 10:00 ET Factory Orders

Key Economic Events Week of 7/22

7/23 10:00 ET Existing home sales
7/23 10:00 ET Richmond Fed Manu Idx
7/24 9:45 ET flash Markit PMIs
7/25 8:00 ET Count Draghi/ECB policy meeting
7/25 8:30 ET Durable Goods
7/25 8:30 ET Wholesale Inventories
7/26 8:30 ET Q2 GDP first guess

Key Economic Events Week of 7/15

7/15 8:30 ET Empire State Fed Index
7/16 8:30 ET Retail Sales and Import Price Index
7/16 9:15 ET Cap Ute and Ind Prod
7/16 10:00 ET Business Inventories
7/17 8:30 ET Housing Starts and Building Permits
7/18 8:30 ET Philly Fed
7/19 10:00 ET Consumer Sentiment

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