Daily Digest

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Daily Digest 9/15 - China Flooding Globe With Cheap Steel, Gold To Reach $10k/ounce?

Saturday, September 15, 2012, 12:36 PM


Euro Ruling Not as Simple as It Seems (cmurray)

But the slip of the tongue reflects a deeper truth. Nobody seriously believed that the plaintiffs, led by the stubborn conservative Bavarian politician Peter Gauweiler, would win an outright victory. But the court's ruling contains a number of details that could cast a shadow over the winning side's victory, and possibly grant a not insignificant triumph to the other side -- which is why Gauweiler himself spoke of a "huge success."

China flooding globe with cheap steel (westcoastjan)

Turkish rebar, for example, was sold at around $610 delivered to customers in the Middle East this week, while Chinese exports were at around $560 on the same basis, according to price provider Platts SBB.

UBS rogue trader's $2.3-billion 'naked gamble' nearly destroyed bank, court told (westcoastjan)

Ms. Wass said Mr. Adoboli’s motives were to increase his annual bonus, his status within the bank, his job prospects and his ego. She said his fraudulent deals had wiped 10 per cent, or about $4.5-billion, off the Zurich-based bank’s share price.

Spanish Debt, Bank Borrowings Soar To Highest In Decades As Home Prices Fall By Most Ever While GDP Shrinks (westcoastjan)

Spanish home prices fell the most on record in the second quarter as the euro area’s fourth- largest economy shrank and a reduction in mortgage lending crimped demand for property.

Dollar no longer primary oil currency as China begins to sell oil using Yuan (Ben)

For the first time since the 1970's, when Henry Kissenger forged a trade
agreement with the Royal house of Saud to sell oil using only U.S. dollars,
China announced its intention to bypass the dollar for global oil customers
and began selling the commodity using their own currency. ... Since China
is not a natural oil producing nation, the question most people will ask is
how will the Asian economic power get enough oil to affect dollar hegemony?
That question was also answered by Lindsey Williams when he pointed out a new
trade agreement that was signed on Sept. 7 between China and Russia, in which
the Russian Federation agreed to sell oil to China in any and all amounts
they desired.

Nick Barisheff – Gold Is Really Going To $10,000 Per Ounce (Paul B.)

Gold didn’t spke today because there’s a run on high end jewelry. Rather, it went up because the dollar got dramatically weaker. The Fed’s QE3 is the reason. Its part of an irreversible trend, including the aging and retiring baby boomers, less availability of inexpensive recoverable oil and the declining employment trend. Taken together this means that inflation and gold are going way up. Nick believes that the only defense against this massive wealth destruction event is buying gold and silver.

Nick Barisheff comments on QE3 & confirms his $10,000 gold price outlook (Taki T.)

In the following quote, we bring the official statement which we received yesterday directly from Nick Barisheff. He explains the irony of the Fed’s actions: on the one hand Mr Ben Bernanke is very concerned about the stagnation of the labour market (indeed a reason for concern as we see the lowest labor force participation rate in 30 years). But on the other hand, the bad employment figures are simply the result of excessive monetary stimulus by the Fed.

BofA Sees Fed Assets Surpassing $5 Trillion By End Of 2014... Leading To $3350 Gold And $190 Crude (tshtf)

Since the Fed is effectively becoming the marginal player in both the MBS and Treasury markets, a very relevant question is how much private market debt is left to sell. Short answer: not much. According to BofA's calculation, the Fed will own more than 33% of the entire mortgage market by 2014.

John Embry Expects a Silver Price Explosion Driven by Physical Shortage (Taki T.)

The fundamentals have never been better for gold and silver. Our own analysis on the gold & silver price influencers shows that almost all indicators are “in green” since this week. After the most important Central Banks announced monetary easing on a global scale, even the chart technicals turned bullish. Only sentiment remains bearish for the time being.

Shipping gas to Asia a race against time, B.C.’s Clark says (westcoastjan)

In competition with Canada to fill China’s oil and gas needs are not only nations like Australia and Russia, but the country’s own domestic reserves. China is accelerating efforts to extract its own shale gas reserves, despite conventional wisdom that holds most of its reserves are too deep in the ground to extract cost-effectively.

Oil prices push higher as Fed stimulus supports (adam)

Birol said Europe and China are most vulnerable to high prices but declined to say whether this latest price jump could prompt the IEA to release oil reserves. He said the agency was monitoring markets very closely.

Front-month November Brent crude rose 78 cents to settle at $116.66 a barrel, after reaching $117.95, the highest since prices reached touched $118.45 on May 3.

Japan unveils plan to phase out nuclear power (westcoastjan)

Nuclear plants were shut down for safety checks in the wake of the March 2011 earthquake and tsunami which led to the Fukushima nuclear disaster. The restart of reactors in the town of Ohi in July sparked large public protests.

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Earthquakes Insurance

4th Earthquake in 3 yrs this morning in Maryland. I thought the east coast didn't have earthquakes, or tornadoes for that matter, racking them up. I wonder if they are covered on a homeowners policy.


You can kill someone for a cucumber but if you can't grow one, you will eventually starve. Skills, baby skills!

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