Daily Digest 11/25 - Gold Demand Falls 11%, Skills Don't Pay The Bills
Gold has been much stronger than the stock market recently, especially with the down day of the Dow Jones on Friday and the intraday rally of gold (with the Dow Jones to Gold Price ratio reaching almost a decade low). The dollar index was also down. Peter Schiff believes that those market actions are related to the economic expectations and the fiscal cliff, as it becomes more obvious that the President and the Congress will work out a solution to avoid to go over the fiscal cliff. Now here it gets interesting. Peter thinks that going over the fiscal cliff will be the first step in reducing deficits, based on tax increases. He believes it would be much better to cut down government spending, as it would result in freeing up resources from the public to private sector where they can be used more efficiently and productively. That’s how Peter believes an economy grows, led by a decrease in debts.
Gold Demand Falls 11% (ScubaRoo)
Gold is beginning to re-establish itself as part of the fabric of the financial system," said Marcus Grubb, managing director at the WGC. "In the medium term, the quantitative easing initiatives in the West and the continuing growth story in the East, particularly in India and China, coupled with the seasonally strong quarter coming up in Asia, are excellent indicators for further growth in the gold market."
"This forecast is based entirely using technical & cyclical analysis and is in keeping with the mathematical form displayed so far in the bull run that has taken Silver from $8 an ounce in 2008 to its current price of $32 an ounce – having hit $50 an ounce in 2011."
Meeting your next-door immigrant in the EU (westcoastjan)
A Czech family serves goulash and dumplings to Chechen asylum-seekers. A Chinese immigrant family serves very different dumplings to a family of Czechs. And here in Jiri and Leona's modest apartment, a Nigerian family sits down to wiener schnitzel and potatoes.
The preparedness industry, always prosperous during hard times, is thriving again now. In Douglas’s circles, people talk about “the end of the world as we know it” with such regularity that the acronym Teotwawki (tee-ought-wah-kee) has come into widespread use. The Vivos Group, which sells luxury bunkers, until recently had a clock on its Web site that was ticking down to Dec. 21, 2012 — a date that, thanks to the Mayan calendar, some believe will usher in the end times. But amid the alarmism, there is real concern that the world is indeed increasingly fragile — a concern highlighted most recently by Hurricane Sandy. The storm’s aftermath has shown just how unprepared most of us are to do without the staples of modern life: food, fuel, transportation and electric power.
Skills Don't Pay The Bills (jdargis)
Eric Isbister, the C.E.O. of GenMet, a metal-fabricating manufacturer outside Milwaukee, told me that he would hire as many skilled workers as show up at his door. Last year, he received 1,051 applications and found only 25 people who were qualified. He hired all of them, but soon had to fire 15. Part of Isbister’s pickiness, he says, comes from an avoidance of workers with experience in a “union-type job.” Isbister, after all, doesn’t abide by strict work rules and $30-an-hour salaries. At GenMet, the starting pay is $10 an hour. Those with an associate degree can make $15, which can rise to $18 an hour after several years of good performance. From what I understand, a new shift manager at a nearby McDonald’s can earn around $14 an hour.
“There’s a mixed picture,” said George Mokrzan, director of economics for Huntington National Bank in Columbus, Ohio. “Even though the consumer has shown some greater strength, business equipment spending has weakened. That may be a function of all this uncertainty that is primarily because of the fiscal cliff.”
Scientists are studying such developments and focusing on the demands on the resources of the Amazon, the world’s largest remaining area of tropical forest. Though Brazilian officials have historically viewed the colonization of the Amazon as a matter of national security — military rulers built roads to the forest under the slogan “Occupy it to avoid surrendering it” — deforestation in the region already ranks among the largest contributors to global greenhouse-gas emissions.
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