Daily Digest

Daily Digest 4/21 - 13 Items That Will Cost More, Japan's Exports Fall 2.2% Post-Quake, Gold Prices Hit $1500, Silver At $44

Thursday, April 21, 2011, 9:42 AM
  • That's Pricey: 13 Items That Cost More, Or Will
  • Greece to Sell Bills With Two-Year Note Yields Exceeding 20%: Euro Credit
  • Bernanke May Sustain Stimulus to Avoid ‘Cold Turkey’ End to Aid
  • Dollar’s Destruction Saves Markets (Apparently)
  • Canadian Inflation at 30-Month High of 3.3% Outstrips Central Bank Outlook
  • Japan’s Exports Fall a More-Than-Expected 2.2% After Quake
  • Gold Prices Hit $1500 Record, Silver Rallies Toward $44
  • History On The Auction Block
  • 78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase
  • Welcome To The Era Of 'Extreme Energy' 
  • Study: Algae Could Replace 17% of U.S. Oil Imports
  • The Shores Of Recovery: Deepwater Horizon, One Year Later
  • The Gulf Oil Disaster, One Year Later
  • Paul Stamets On Radiation Contamination Around Fukushima

Learn how to protect your wealth against the Three E forces using our 'What Should I Do?' guide

Economy

That's pricey: 13 items that cost more, or will (Jeff B.)

Four-dollar gasoline is just a part of it. As most any shopper knows, prices are climbing for everything from coffee and chocolate to tires and toilet paper.

The Consumer Price Index has climbed 2.7 percent in the past 12 months, according to government statistics released Friday. That's the largest rise since 2009.

Greece to Sell Bills With Two-Year Note Yields Exceeding 20%: Euro Credit (ES)

Greece’s two-year bond yield exceeded 20 percent yesterday, as official denials that the nation was preparing a restructuring failed to convince investors. The yield on 10-year debt has jumped more than 300 basis points since Feb. 15 when Greece last sold 13-week bills at a yield 3.85 percent.

Bernanke May Sustain Stimulus to Avoid ‘Cold Turkey’ End to Aid (ES)

Federal Reserve Chairman Ben S. Bernanke may keep reinvesting maturing debt into Treasuries to maintain record stimulus even after making good on a pledge to complete $600 billion in bond purchases by the end of June.

Dollar’s Destruction Saves Markets (Apparently) (Ilene)

As David Fry notes: "Monday’s S&P debt downgrade shocker is quickly old news and steamrolled by freshly minted cash (POMO) with ideas of more to come. Keeping money printing presses on high was a green light to sell the dollar which always causes commodities to rise. Why is that a good thing The Fed is also rumored to be selling puts on Treasury bonds to keep rates low combined with maintaining the bogus inflationary “core rate” to keep you mesmerized. It’s some Orwellian-speak to keep the masses happy even though they see the disconnect at the pump and check-out counter."

Canadian Inflation at 30-Month High of 3.3% Outstrips Central Bank Outlook (ES)

Canada’s inflation rate accelerated in March to the fastest in 2 1/2 years, exceeding all economist forecasts, with widespread increases led by energy costs.

Consumer prices rose 3.3 percent from a year earlier after a 2.2 percent gain in February, Statistics Canada said today in Ottawa.

Japan’s Exports Fall a More-Than-Expected 2.2% After Quake (ES)

Car exports fell 28 percent from a year earlier and shipments for electronic devices also slid as the disaster prevented companies from transporting goods. Automakers including Toyota Motor Corp. and Honda Motor Co. were forced to reduce production after the March 11 disaster.

Gold Prices Hit $1500 Record, Silver Rallies Toward $44 (Alfredo E.)

Silver was on fire as the metal glowed toward $44 an ounce and finished up 2.2 percent. Weakness in the U.S. dollar, rising crude-oil and worldwide credit/debt concerns were noted as supporting the two precious metals.

June gold prices advanced $2.20 to close at $1,495.10 an ounce on the Comex in New York. Gold prices have rallied 5.2 percent in 2011.

History On The Auction Block (David B.)

nglo Irish Bank Corp. of Dublin is foreclosing on a 58-acre site owned by John M. Wolters and 129 Parker Street LLC, raising questions about the future of a sprawling office park that was home to Digital Equipment Corp., which was later acquired by Compaq Computer Corp.

The site, assessed by the town at nearly $10 million, will be auctioned at 1 p.m. May 3. Anglo Irish Bank hired Boston Realty Advisors, which specializes in distressed properties, to recruit potential buyers and sell to the highest bidder.

78 Trillion Dollar Derivatives Book Compliments of J.P. Morgan Chase (Claire H.)

Derivatives in strategic markets are controlled by governments through proxy banks and agencies using these instruments. By sheer volume, the trading in paper “tails” wag the physical “dogs”. When market volatility negatively impacts these large institutions they are given a pass by regulators and accounting protocols in the interest of national security and preservation of the status quo. Moreover, this ensures the perpetuation of U.S. Dollar hegemonic power. The following accounts outline how these instruments are used to project this power.

Energy

Welcome To The Era Of 'Extreme Energy' (jdargis)

"It's generally accepted that cheap, easy oil is over," said Brad Bellows, a spokesman for Suncor Energy, which pioneered the development of the area that has come to be known as the Canadian "oil sands." "The future of oil is things like oil sands or deep offshore -- some of the frontier areas and some of the far corners of the world."

Study: Algae Could Replace 17% of U.S. Oil Imports (Alfredo E.)

The study’s researchers found that by growing algae in strategic locations, the U.S. could produce 21 billion gallons of algal oil while reducing the amount of water that is needed for production. That amount of algal oil is equal to the 2022 advanced biofuels goal set by the 2007 Energy Independence and Security Act. And by concentrating algae production in the U.S. regions that have the sunniest and most humid climates – the Gulf Coast, the Southeastern Seaboard and the Great Lakes - the process will use much less water.

Environment

The Shores Of Recovery: Deepwater Horizon, One Year Later (jdargis)

It has been a year since the blowout at Deepwater Horizon, an oil rig in the Gulf of Mexico some 50 miles from south-east Louisiana. Eleven workers were killed and the platform burned for two days before it sank to the sea floor, 5,000 feet below. Oil gushed from the well for 87 days. Workers at the rig tried to contain it, while responders scrambled to corral it, burn it or disperse it. By the time the well was capped, on July 15th, the government estimates that nearly 5m barrels of oil had escaped, making the disaster the largest accidental offshore oil spill in history. Vast tracts of fisheries were closed. People who drew their livings from the waters, by fishing or tourism, feared devastation.

The Gulf Oil Disaster, One Year Later (jdargis)

Studies are ongoing, focused on issues such as dispersant effectiveness and long-term health effects on humans and animals -- and litigation is ongoing, with more than 300 related lawsuits recently consolidated for a trial, beginning in February 2012, that will assign fault in terms of percentages to BP and other companies. Now, one year later, discovering the full extent of the disaster remains difficult, hampered by the scale of the affected area, the volume of the oil and differing explanations of what happened to the bulk of it, and criminal and civil litigation. These images give both a look back and a current view of the area affected by the largest accidental oil spill in history.

Paul Stamets On Radiation Contamination Around Fukushima (jdargis)

The enormity and unprecedented nature of this combined natural and human-made disaster will require a massive and completely novel approach to management and remediation. And with this comes a never before seen opportunity for collaboration, research and wisdom.

The nuclear fallout will make continued human habitation in close proximity to the reactors untenable. The earthquake and tsunami created enormous debris fields near the nuclear reactors. Since much of this debris is wood, and many fungi useful in mycoremediation are wood decomposers and build the foundation of forest ecosystems, I have the following suggestions...

Article suggestions for the Daily Digest can be sent to [email protected]. All suggestions are filtered by the Daily Digest team and preference is given to those that are in alignment with the message of the Crash Course and the "3 Es."

9 Comments

es2's picture
es2
Status: Bronze Member (Offline)
Joined: Dec 31 2010
Posts: 68
http://www.kitco.com/reports/

http://www.kitco.com/reports/KitcoNewsMarketNuggets20110420.html
http://twitter.com/#!/kitconewsnow
Market Nuggets: ETF Securities: Inflation Concerns Help Propel Gold Above $1,500/Oz
Market Nuggets: OptionsXpress: Silver Prices Benefitting From Investment Demand
Market Nuggets: HSBC: Any Chinese Diversification Away From U.S. Assets Would Support Gold

http://www.kitco.com/reports/KitcoNewsMarketNuggets20110421.html

Market Nuggets: Gold Prices Remain Over $1,500 As Commodities Supported By Soft Dollar
Market Nuggets: MF Global: Gold To Remain Underpinned On Continuing Investment Interest
Market Nuggets: Gartman: Asian Central Banks Looking To Increase Gold Reserves

Debt at 200% of GDP Dares S&P Amid Succession: William Pesek
Japan should brace for greater skepticism of its balance sheet as politicians add to a public debt that’s 200 percent of GDP.
In January, S&P lowered Japan’s rating to AA-, the same level as China’s.

Interview: Jim Sinclair on Gold and the World Financial System
Over the counter (OTC) derivatives are the reason we are going through what we are going through now.  An OTC derivative is a kind of wager on what something will do.  Up until 2009, most of these wagers had very little, if any, money behind them and, if the direction you bet on didn’t come to fruition, the amount of leverage resulted in extraordinary losses.  There was a major rollover in derivatives tied to real estate in 2008, as well as in other types, such as those tied to sub-prime auto loans.

Australia Won’t ‘Manipulate’ Currency Now at Record, Rudd Says
Rudd in an interview ruled out intervention in the so- called Aussie, which has gained 15 percent in the past year against the dollar. Spurred by revenue from shipments of coal and iron ore to China, the currency’s surge has hurt Australian tourism, manufacturing and education.

Tepco Must End ‘Whack-a-Mole,’ Cover Fukushima Reactors as Typhoons [season] Loom
Tokyo Electric Power Co. must speed up plans to cover reactors at its crippled nuclear plant and drain tainted water to prevent more radiation leaks as Japan’s cyclone season approaches, engineering professors said.

Dollar weakens against most major currencies
The dollar fell against most major currencies Wednesday, hitting a 15-month low against the euro, after solid earnings from major U.S. companies and a healthier reading on the housing market fueled investors' appetite for currencies linked to higher benchmark interest rates.

$6 Gas? Could Happen if Dollar Keeps Getting Weaker
With the greenback coming under increased pressure from Federal Reserve policies and investor appetite for more risk, there seems little direction but up for commodity prices, in particular energy and metals.

Gas Prices Reach Five Dollars a Gallon in the Nation's Capital
Gas prices reach five dollars per gallon at a gas station in Washington, DC on April 19, 2011. Unrest in the Middle East and price speculation have steadily led to higher oil prices and consequently higher gas prices throughout the year so far.

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Silver Actually Dancing Around $46 (Subject To Change)

 

Silver is actually dancing aroujnd $46 at this time (subject to  change).

Silver's going parabolic?

Poet

saxplayer00o1's picture
saxplayer00o1
Status: Diamond Member (Offline)
Joined: Jul 30 2009
Posts: 4064
es2's picture
es2
Status: Bronze Member (Offline)
Joined: Dec 31 2010
Posts: 68
"Five Sigma" Evidence Of

"Five Sigma" Evidence Of Japanese Repatriation: Meet The Country That Sold The World
Courtesy of Sean Corrigan, we share this stunning chart of Japanese relative buying/selling of foreign stocks denominated in USD (and thus subsequently needing to be converted to JPY).

Poet's picture
Poet
Status: Diamond Member (Offline)
Joined: Jan 21 2009
Posts: 1891
Follow The Money

U.S. households getting more from Uncle Sam than they pay in
"A new study finds that for first time since the Great Depression, tax receipts from households total less than the government paid out in unemployment, Social Security and other programs."
http://money.msn.com/tax-tips/post.aspx?post=63c403d6-0a2f-4506-a8b8-251...

Okay, so the following is off an obviously left-leaning author who hates the Tea Party. But interesting assertions, nevertheless. See below:

$30M Buys Off Rick Scott: FL ONLY Gulf State to Pull Out of BP Lawsuit
"The republican governors of Alabama, Mississipi, and Louisiana not only joined the lawsuit but some even ran public service announcements actively encouraging their citizens to join the lawsuit. Florida prepped as well...under Charlie Crist.  A "dream team" of Florida's best attorneys were assembled along with an oil spill recovery taskforce. Then came the Florida-pocalypse with our criminal, idiot, teabag governor.  He summarily dismissed the attorneys, dissolved the taskforce, and just announced that we have no need for a lawsuit."
http://www.dailykos.com/story/2011/04/20/968550/-$30M-Buys-Off-Rick-Scott:FL-ONLY-Gulf-State-to-Pull-Out-of-BP-Lawsuit

Poet

 

TommyHolly's picture
TommyHolly
Status: Bronze Member (Offline)
Joined: Nov 9 2010
Posts: 90
Poet, I look at the exact

Poet, I look at the exact same chart from Kitco on a daily basis!!  I have it on my i-Phone and look at it every few hours since I purchased Silver.  I agree that the price has gone up too much... but ONLY since February.

I plugged in the prices for both Gold and Silver into Microsoft Excel.  Each figure was taken on Jan 29th of that year and then for the 2010 and 2011, Jan 29th of that month.  You can see that the ratio was usually 1.8% to about 2.1% until they really started pushing Gold on TV in 2008.  You can see right around Feb of 2011 it starts to creep above normal and the last 6 weeks it has skyrocketed above normal!!

 

Gold Silver Ratio in %
Jan-00 287 5.35 1.86%
Jan-01 263 4.79 1.82%
Jan-02 278 4.25 1.53%
Jan-03 370 4.85 1.31%
Jan-04 406 6.55 1.61%
Jan-05 425 6.75 1.59%
Jan-06 465 9.7 2.09%
Jan-07 645 13.25 2.05%
Jan-08 920 16.75 1.82%
Jan-09 895 11.75 1.31%
Jan-10 1080 16.3 1.51%
Feb-10 1110 16.1 1.45%
Mar-10 1110 17.2 1.55%
Apr-10 1170 18.2 1.56%
May-10 1210 18.51 1.53%
Jun-10 1235 18.59 1.51%
Jul-10 1160 17.6 1.52%
Aug-10 1240 18.98 1.53%
Sep-10 1310 21.9 1.67%
Oct-10 1345 24 1.78%
Nov-10 1360 26.75 1.97%
Dec-10 1410 30.48 2.16%
Jan-11 1320 27 2.05%
Feb-11 1410 33.5 2.38%
Mar-11 1420 36.75 2.59%
Present 1505 46.61 3.10%

 

Poet wrote:

 

Silver is actually dancing aroujnd $46 at this time (subject to  change).

Silver's going parabolic?

Poet

es2's picture
es2
Status: Bronze Member (Offline)
Joined: Dec 31 2010
Posts: 68
Interesting this is coming from Obama

U.S. Finances Are ‘Unsustainable,’ Obama Says at Facebook Town Hall Event

"We have an unsustainable situation,” he said. “We face a critical time where we are going to have to make some decisions -- how do we bring down the debt in the short term, and how do we bring down the debt over the long term?”

Sinopec cuts off oil exports: state media

Chinese oil giant Sinopec has stopped exporting oil products to maintain domestic supplies amid disruption concerns caused by Middle East unrest and Japan’s earthquake, a report said yesterday.

pinecarr's picture
pinecarr
Status: Diamond Member (Online)
Joined: Apr 13 2008
Posts: 2237
Sinclair: US Dollar close to an accelerating decline

Hat-tip to Davos, who  posted a link to this article on Jim Sinclair's website, at http://jsmineset.com/2011/04/20/us-dollar-very-close-to-an-accelerating-decline/ , "US Dollar Very Close To An Accelerating Decline"

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