The nation's employers, including some of its largest and most sturdy, announced plans yesterday to slash more than 55,000 jobs, a staggering one-day toll that highlighted how quickly layoffs are accelerating and how widely misery is spreading throughout the labor market.
The U.S. government "quietly" agreed not to collect billions of dollars in potential taxes from Citigroup Inc as part of its deal to allow the bank to repay its taxpayer bailout, The Washington Post reported.
The Internal Revenue Service issued a notice on Friday that extends the benefit to Citi and other companies in which the government owns a stake, the Post reported.
Total financial collapse, once a problem only for developing countries, has now come to Europe. The International Monetary Fund is imposing its "austerity measures" on the outer circle of the European Union, with Greece, Iceland and Latvia the hardest hit. But these are not your ordinary third world debtor supplicants. Historically, the Vikings of Iceland repeatedly repulsed British invaders; Latvian tribes repulsed even the Vikings; and the Greeks conquered the whole Persian empire. If anyone can stand up to the IMF, these stalwart European warriors can.
But what I do know is this, that when this correction has run its course, it might be the last decent entry point to buy the precious metals and their shares for a very long time to come... as this bull market in gold and silver has a long long way to go before it breaths its last.
In short, a stabilization in the jobs market does nothing to improve the balance sheets of zombie banks. An improvement in the big bank balance sheets is the prerequisite which would allow the Fed to mop up the excess liquidity, not am improvement in the jobs market. So, in short, the Gold market has probably overreacted a bit, and may continue to trade lower into the next jobs report. When market participants are reassured that the Fed is in a box and that the excess liquidity must stay in the system for the foreseeable future, gold prices will resume its trend higher and currency carry trades will be put back on.
We are now the laughing stock of Asia. Our dollars are no longer respected; our ambitions, no longer mimicked.
Our way of life, often based on consuming far beyond our means, is being flat-out rejected.
I can’t even exchange a $100 bill on the street here anymore: Most of the street money changers will take euros, Singapore dollars, even Chinese yuan. But fearful of losing their shirt with sinking exchange rates, they don’t want U.S. dollars.Oh, and the retail numbers came out and were higher then expected but that's primarily because of the b12 shot of the government loaning money out for the Cash4Clunkers thing. Retail wise people are still only buying the minimum and cutting back on expenses.
To those who study the numbers, it is now obvious that America’s fiscal situation is hopeless. Given the country’s current debt and unfunded liabilities of $75,000,000,000,000, an amount growing by at least $5,000,000,000,000 per year, it will be statistically impossible for the United States to pay its obligations unless it repudiates them in large measure, or the dollar is sacrificed on the altar of searing, society-altering inflation.
HERE'S a riddle: How many electricians, carpenters and painters does it take to build a seasonally-adjusted single-family home?
I'm waiting. Take a guess!
I figure that's enough of a taste to get you to jump over.
Now check out:
Green Shoots Wither As Gold Grows a New Set of Legs
Finally, check out:
Where the price of gold is concerned, there is no other focus of interest as all points of interest have but one common denominator.
That entity is the US dollar.
The Fundamental illustration below is dollar flow momentum.
China holds in its hands the future of the category, “Foreign Purchasers of US bonds.”
China wishes the annihilation of the Fed policy of “Quantitative Easing.”
The Fed wishes to accommodate China.Right now as I write gold's spot price is $942.30. There doesn't appear to be a whole lot of action. Typical in my opinion of this time of year.