Daily Digest 8/19 - Metal Thieves Ravage School Buildlings, Does China Plan A Gold-Backed Renmibi?
The unexpected expense "can take away from things that needed to be done during the school year," district business administrator Celeste Ricketts said. "You need to make smart decisions where you don't impact programs."
“After following all the details in this case since day one, I am no longer surprised or shocked by the failure of regulators and the [Department of Justice] to hold anyone accountable for the multiple criminal acts that occurred at MF Global,” says Stanley Haar, a former MF Global customer. “It should be clear to any objective observer, of whatever political persuasion, that this case is all about cronyism and political corruption, not justice. If customer segregated custodial accounts can be looted with impunity, how can anyone have faith in the safety of our financial system?”
“They usually send somebody with a guy … who carries a gun,” she said. “Usually they have two go into Detroit after dark, if they have a delivery … One guy has a legal, he can carry a gun. That night, Timmy was the only one left, they had this one run to do, he said ‘yeah, I’ll do it.’ He’s a kid, he doesn’t think anything’s going to happen to him.”
TBTF has a massive implicit government subsidy: The TBTF have an enormous implicit subsidy. We know that in a crisis the creditors of systemically dangerous institutions will be paid in full. That means that those banks can borrow at a lower rate than everyone else. That is an implicit subsidy, which is unfair to everyone else in the marketplace.
Does China Plan a Gold-backed Renminbi? (Taki T.)
According to the statistics of the World Gold Council, the Chinese central bank did not make any purchases in 2010 or 2011. Official reserves were last reported in June 2009 at 1,054 tonnes. The gold imports from Hong Kong amounted to more than 100 tonnes in April alone; in the year to date, 240 tonnes of gold have been imported. There is a clear upward trend in place: between May 2010 and April 2011 China imported 66 tonnes, and a year later imports were at 489 tonnes – an increase of 640%99. In total, imports in 2011 amounted to 427 tonnes (as compared to 118 tonnes in 2010). We expect not only Chinese private investors but also the PBoC to continue stepping up their accumulation of gold reserves massively. We believe that China holds definitely a far higher volume of gold reserves than the officially confirmed 1,054 tonnes.
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