Daily Digest

Daily Digest 12/11 - China Gold Demand Soars, Life After Madoff's 'Big Lie', More Adults are Living with Parents

Saturday, December 11, 2010, 11:00 AM
  • China Gold Demand Soars
  • Life After Madoff's 'Big Lie'
  • Number Of Adult Americans Living With Their Parents Has Exploded (Chart)
  • Mortgage Rates, at Six-Month High, Threaten Refis and Fed
  • Saudi Shares End Little Changed; China Concern Overshadows Oil
  • Occidental Petroleum Buys Major U.S. Assets, Unloads Argentina Operations
  • Globetrotting Utilities Commissioners Raise Questions With Travels

Our 'What Should I Do?' guide offers tips for how to stay healthy in an emergency.

Economy

China Gold Demand Soars



In 2003, the government of China began an aggressive campaign to secure resources of gold. They began by increasing the country's gold reserves. Since that time, the People's Bank of China has added 21.2 million ounces to the country's gold holdings. China now has the fifth largest national gold reserve, with over 1,054 tonnes in reserves. While boosting reserves, the Chinese government also began to deregulate the gold mining industry and invite foreign investment for the development of domestic resources. The measures were a runaway success; China is now the world's largest gold producer with output increasing 70% in the past decade.

Life After Madoff's 'Big Lie'



Two years ago, Bernard Madoff told his two sons that his multi-billion-dollar investment business was "one big lie," according to authorities. That dramatic confession, and Mr. Madoff's arrest the next day, unleashed one of the biggest fraud investigations in history. He is now serving a 150-year sentence in a North Carolina federal prison. Otherwise, the wheels of justice have turned slowly. Though some victims have recovered money, as a group they haven't seen much redress. Of seven people arrested besides Mr. Madoff, five were lower-level employees of his firm. The most senior figures charged have been his his lieutenant and his accountant.

Number Of Adult Americans Living With Their Parents Has Exploded (Chart) (pinecarr)



Empty nest parents, be warned: the number of adults aged 25 to 34 who are living with their parents has exploded, according to this rather shocking chart put together by economist Tom Lawler and posted on Calculated Risk. Earlier this year, a study published in the journal Transitions to Adulthood titled "What's Going on with Young People Today? The Long and Twisting Path to Adulthood" concluded that the economic downturn has caused an entire generation to delay adulthood.As ScienceDaily summarized the study: "In 1969, only about 10 percent of men in their early thirties had wages that were below poverty level. By 2004, the share had more than doubled. Overall, the share of young adults in 2005 living in poverty was higher than the national average."

Mortgage Rates, at Six-Month High, Threaten Refis and Fed



Rising government borrowing costs have driven mortgage rates to their highest level in six months, challenging the still-shaky housing market and the Federal Reserve's efforts to boost the U.S. economy. The rate for a 30-year, fixed-rate mortgage averaged 4.61% this week, according to the weekly survey from government-backed mortgage firm Freddie Mac, up from 4.46% a week ago and the highest level since June 24. The higher rates have likely snuffed out a refinancing boomlet that began earlier this year and put billions of dollars into homeowners' pockets.

Energy

Saudi Shares End Little Changed; China Concern Overshadows Oil



Saudi Arabian shares pared gains as concern that China may raise interest rates undermined petrochemical stocks. The 146-stock Tadawul All Share Index closed little changed at 6,455.99, the lowest since Dec. 7, at 3:30 p.m. in Riyadh. About 148 million shares changed hands, 15 percent less than the three-month daily average and the lowest since Nov. 10. “Investors are feeling good about oil, with seemingly no desire by OPEC and Saudis to raise output levels,” said Amro Halwani, a trader at Shuaa Capital PSC in Riyadh. Still, “investors will remain hesitant to place larger bets on petrochemical stocks until they see the extent of China’s monetary tightening.”

Occidental Petroleum Buys Major U.S. Assets, Unloads Argentina Operations



Occidental Petroleum Corp. was buying American on Friday, announcing major acquisitions of more than $3.2 billion in crude and natural gas assets in North Dakota and southern Texas, in what may signal heightened energy-company interest in building up domestic production. The Westwood company, the nation's fourth-largest oil and gas exploration outfit, also said it had sold its operations in Argentina for $2.5 billion and would increase holdings in pipelines while boosting dividends to shareholders. And it said it would buy out Sempra Generation's 50% of the Elk Hills power plant near Bakersfield, bringing its ownership to 100%.

Globetrotting Utilities Commissioners Raise Questions With Travels



The Colorado Public Utilities Commission on Thursday approved a $1.3 billion plan that requires Xcel Energy to significantly reduce the use coal-burning power plants in favor of natural gas. The conversin will enable the utility to meet clean-air requirements while increasing ratepayer costs an estimated 2.4 percent to pay for it. It's a big win for environmentalists and natural-gas interests. The loser is the state’s coal mining industry, which stands to lose significant revenue and jobs under the plan. The Colorado Mining Association made an unsuccessful attempt to have PUC Commissioners Ron Binz and Matt Baker disqualified from ruling on the deal after e-mails were released that showed the pair had been heavily involved in negotiations with Excel Energy and lawmakers.

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6 Comments

vinnya's picture
vinnya
Status: Bronze Member (Offline)
Joined: Jan 5 2009
Posts: 27
Re: Daily Digest 12/11 - China Gold Demand Soars, Life ...

Fruit for though

http://vinceseconomicblog.wordpress.com/2010/12/11/fruit-for-though-a-wo...

SagerXX's picture
SagerXX
Status: Diamond Member (Offline)
Joined: Feb 11 2009
Posts: 2219
Madoff's son Matthew found dead...

...by hanging.  

Some will figure it's not suicide (which the police are calling it), but regardless, this doesn't put the money back in the pockets of the victims.

Nacci's picture
Nacci
Status: Silver Member (Offline)
Joined: Apr 22 2009
Posts: 194
Re: Daily Digest 12/11 - China Gold Demand Soars, Life ...

I find It worth noting to this community that APMEX, the largest supplier of precious metals, specifically Silver, on the Net uses JPMorgan Chase as it's banker.  This means when you purchase Silver from the APMEX in an attempt to to squeeze JPMorgan on it's alleged short, possibly naked position on silver you will wire payment directly to the very bank that many are attempting to break.  JPMorgan Chase through the magic of fractional reserve banking is no doubt reaping huge profits from this arrangement.

Do we know the true relationship between the APMEX and JPMorgan, specifically; why would the APMEX choose the very bank suspected of massive manipulation and fraud in precious metals market as it's banker?  Nacci.

 

Ken C's picture
Ken C
Status: Platinum Member (Offline)
Joined: Feb 13 2009
Posts: 753
Re: Daily Digest 12/11 - China Gold Demand Soars, Life ...
Nacci wrote:

I find It worth noting to this community that APMEX, the largest supplier of precious metals, specifically Silver, on the Net uses JPMorgan Chase as it's banker.  This means when you purchase Silver from the APMEX in an attempt to to squeeze JPMorgan on it's alleged short, possibly naked position on silver you will wire payment directly to the very bank that many are attempting to break.  JPMorgan Chase through the magic of fractional reserve banking is no doubt reaping huge profits from this arrangement.

Do we know the true relationship between the APMEX and JPMorgan, specifically; why would the APMEX choose the very bank suspected of massive manipulation and fraud in precious metals market as it's banker?  Nacci.

 

I have seen this statement before. What source do you have that shows JPM is the bank used by APMEX? I am not sure how to get that information.

 

Ken

Nacci's picture
Nacci
Status: Silver Member (Offline)
Joined: Apr 22 2009
Posts: 194
Re: Daily Digest 12/11 - China Gold Demand Soars, Life ...
Ken C wrote:
Nacci wrote:

I find It worth noting that APMEX uses JPMorgan Chase as it's banker.  

What source do you have that shows JPM is the bank used by APMEX? 

When you purchase PM's through the APMEX, at least in quantities large enough to require a wire transfer, payment is wired directly to JPMorgan Chase, New York, NY.  Nacci.

doorwarrior's picture
doorwarrior
Status: Silver Member (Offline)
Joined: Oct 13 2009
Posts: 166
Re: Daily Digest 12/11 - China Gold Demand Soars, Life ...

 "Nacci. I have seen this statement before. What source do you have that shows JPM is the bank used by APMEX? I am not sure how to get that information. Ken"

I have bought from APMEX and I wired the money to JP Morgan. I made two pruchases  last year and both were wired to JP. The purchases I made in 2006-2008  were wired to some bank in Oklahoma  I think.I wondered about this too and I am not sure what to make of it.  It make you wonder what's really going on.

 I have stopped using them because I don't like the connection, their premiums are too high and shipping charges. Don't get me wrong I think they do good business and are promt at delivery.   I just looked around a little more in my town and have been able to find sellers that don't want such big commissions and don't charge for shipping.

Rich

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