Daily Digest 8/27 - Gold Standard Idea Seen As Full Of Bugs, Australia's Mining Boom Over?
Gold has returned to the political discourse recently with the growing prominence of politicians like Ron Paul, the congressman from Texas who has said that he decided to enter politics on the day that President Richard Nixon shut the "gold window" in 1971, and with the Tea Party, which helped Utah pass a law last year to make gold legal tender.
This authoritarian desire to pledge fealty to institutions and leaders is indeed the dynamic that resides at the core of so many of our political conflicts (the 2006 book by Canadian psychology professor Bob Altemeyer, The Authoritarians, is a superb examination of how this manifests in the right-wing political context).
A video of what activists described as the fifth and latest mass grave to be filled showed two small children near the edge. Up close, in the field where there were more bodies than people to wash and prepare them for burial, the scent of decay swirled and gunshot wounds could be seen in the heads of many men.
A worldwide economic decline had suppressed arms sales over recent years. But increasing tensions with Iran drove a set of Persian Gulf nations — Saudi Arabia, the United Arab Emirates and Oman — to purchase American weapons at record levels.
The jury awarded Apple more than $1 billion in damages. A court hearing in the coming weeks could determine whether a judge moves to permanently block the sale of Samsung products that infringe on Apple patents. The verdict could give Apple even greater leverage in its efforts to discourage other handset companies, like Samsung, that make devices based on Google’s Android operating system.
One measure of aggregate money supply, M1—includes currency and demand deposits, increased by 4% since late June. In addition, petroleum prices increased (see above) and the price of gold is up by 2.7% over this period. If there was a direct relationship between the prices of gold and oil, commodity traders, entrepreneurs, and the Fed could benefit from knowing using this relationship to forecast the future spot price of oil. A recent article in the Washington Times outlines a direct relationship between these commodity prices and provides a simple calculation to forecast the price of oil with the price of gold.
Australia's Mining Boom Over? (James S.)
BHP is the world’s largest mining company, and its announcement earlier this week that it would not likely approve any spending on major projects this fiscal year due to a decline in metal prices is bad news for Australia, whose economy has soared with major investment projects in iron ore, coal and natural gas.
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