Mar 31, 2009

Is the move in crude over?

Crude oil plays such an important and integral part in our lives, whether we care to admit it or not. This one source of energy drives the US economy and indeed the world’s economy.
therefore, what's ahead for the new black gold? After following this market move to its best levels in some time, we have seen a sharp pullback from its recent highs as the crude oil market appears to be mimicking the equity markets.

In this new video you will see in detail as to what the technicals are showing for this market. I think you’ll find the analysis interesting, revealing and above all educational. As always this video is with our compliments. Do not miss it and enjoy it.

To view the video, please click HERE.

Fernando Guzmán-Cavero

The Financial Times Info

Please click HERE for diferent articles. You will have to sign in first (free) to get to the complete article you may be interested.

Click Here for more information Alerts: "Will Obama Fire A Wall Street Chief?"

The White House booted Rick Wagoner from GM. Come April, it could be a banker on the chopping block.

To read full story, click HERE

GATA Dispatches: "China, Argentina to Conduct trade in Chinese currency"

Submitted by cpowell on 07:40PM ET Monday, March 30, 2009. Section: Daily Dispatches China and Argentina in Currency SwapBy Jude WebberFinancial Times, LondonTuesday, March 31, 2009, Chile -- China, which is pushing to end the dominance of the dollar as a worldwide reserve, has agreed a 70 billion renminbi currency swap with Argentina that will allow it to receive renminbi instead of dollars for its exports to the Latin American country.Xinhua, the official Chinese news agency, said the deal was signed on Sunday by Zhou Xiaochuan, governor of the People's Bank of China, and Martín Redrado, Argentine central bank president, in Medellín, Colombia, where they are attending a meeting of the Inter-American Development Bank.An Argentine official confirmed a deal had been discussed and said the fine print was being worked out and negotiations were "very advanced."Beijing has signed 650 billion renminbi ($95 billion, E72 billion, L67 billion) of deals since December with Malaysia, South Korea, Hong Kong, Belarus, Indonesia, and, now, Argentina in an attempt to unblock trade financing that has been severely curtailed by the crisis.Gordon Brown, UK prime minister, told a summit in Chile at the weekend that this week's Group of 20 meeting in London, which both China and Argentina will attend, needed to ensure vast trade credits were unlocked to help get the world economy back on its feet. The World Bank estimates as much as $300 billion (E227 billion, L210 billion) could be needed.China has suggested replacing the dollar with an enhanced version of the International Monetary Fund's unit of account, the special drawing right or SDR. The dollar's future as the world's reserve currency will be on the G20 agenda.Economists say the SDR plan is unfeasible for now but see Beijing's currency swap deals as pieces in a jigsaw designed to promote wider international use of the renminbi, starting with making it more acceptable for trade and aiming at establishing it as a reserve currency in Asia, something that would also enhance China’s political clout.The deals underscore China's loss of faith in the US currency amid the fallout from the financial crisis. The Argentine accord will also boost China's financial presence in Latin America.Mr Redrado voiced support for China's call for a new currency reserve regime at his meeting with Mr Zhou. "One of the issues was this idea to incorporate other options to the dollar. There was a lot of consensus on this," the Argentine official told the Financial Times.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

Mar 27, 2009

GATA Dispatches: "Concentrated shorts proven to suppress gold and silver."

Submitted by cpowell on 06:06PM ET Friday, March 27, 2009. Section: Daily Dispatches 9:05p ET Friday, March 27, 2009Dear Friend of GATA and Gold (and Silver):GATA Board of Directors member Adrian Douglas, editor of the Market Force Analysis letter (, has combined data from the U.S. Commodity Futures Trading Commission and the Office of the Comptroller of the Currency to show that the suppression of the prices of gold and silver in the last several years correlates exactly with the growing concentration of the short positions held by two U.S. banks, JPMorgan Chase and HSBC. Short of the official admissions of the gold price suppression scheme collected and published by GATA over the years, Douglas' report is probably the best proof yet, and certainly the most detailed. Douglas' report is titled "Pirates of the COMEX" and you can find it in PDF format at GATA's Internet site here:'s supporters may be wearying of our many similar requests, but only persistence pays off, so we ask you to print copies of Douglas' report and send them -- by regular mail, not e-mail, which is ignored -- to your U.S. senators and representatives with a covering letter requesting an explanation as to why nothing is being done to stop this market manipulation. For our friends outside the United States, please send copies with similar letters to your own national legislators.CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

From The Desk Of Nick Nicolaas: "Crisis & Opportunity"

The following is a transcript of Nick Nicolaas email, just received by FGC BOLSA - FGC FINANCIAL MARKETS:

From the Desk of Nick Nicolaas (FDNN) #71
March 27, 2009
Doug Casey's Research Crisis & Opportunity Summit

Dear Friends

I had the pleasure to attend the Casey Research Crisis & Opportunity Summit in Las Vegas last weekend March 20 – 22, 2009. This was not only a pleasure - - it was an education! Over time Casey Research has accurately predicted the current crisis making headlines today and therefore I try my best to attend every one of Casey's conferences. Yes, my friends, the financial world has changed forever and is changing as I write this so, the more I can educate myself to - - - what will the future bring - - - the better off I am as an investor. The repeated message at the Conference was we have a serious problem and there is much more pain to come. However, there were those at the Conference, Like John Mauldin a prolific writer and financial expert ( who said: Yes, we have a serious problem but - - - this too shall pass and - - - with the North American entrepreneurial spirit and know how coupled with tenacity - - - we will rise (like the “phoenix from the ashes”) and we will prevail once again! Here are excerpts from some of the presentations: 1) The guest dinner speaker on Saturday evening was Robert Friedland, Executive Chairman of Ivanhoe Mines and he summed it all up by repeated saying all through his dinner speech: “The Situation is Hopeless - - - Not Serious”. This repeated statement is where we are at today and points out that with crisis comes opportunity for those that will look over the horizon rather than looking at the horizon. He also said that one problem was that the policy of the powers to be, are not allowing the entrepreneurial spirit to flourish. Importantly, he pointed out that since you were not getting any interest on your money that the preferred investment should be in the hard assets i.e. Copper, Gold, Silver, Coal, Oil & Gas and other Base Metals. 2) Peter Schiff, President & Chief Global Strategist, Euro Pacific Capital, a broker dealer, asked: “Why are we bailing out all those firms and why are we not letting them go bankrupt?” - - - and he pointed out that all this financial engineering was starting to play havoc including Obama's deficits that are even more irresponsible. “The Government is standing in the way of a turnaround and they are trying to micro-manage everything from Washington. What is required is that we have to invest all that borrowed money properly and what are the Feds doing – they are buying bonds and treasuries. There is an opera still ahead, but one thing is certain, the pin had been pricked in the bubble. The strength of the US Dollar is only for now - - - but it will go into a free fall. The Government will continue to panic, we need prices to fall but what is going to happen is that we are going to have higher prices, which at the moment, are artificially held back. The Government has created an inflationary depression.” “Plan financially for the worst i.e. the collapse in the US Dollar. If you are in cash you may be able to dodge the bullet.” 3) Frank Trotter, President of EverBank Direct, questioned when the second wave of the tsunami was going to hit. He said that housing is not an investment, but it is a utility and he expected that there probably was another 20 to 30% downside to go. With regard housing being a utility he pointed out that the price of a 1975 house was $150,000 and by 2005 it was worth $840,000 and therefore, even without inflation, housing was not a very good return on investment. 4) Simon Black, (not his real name) Senior editor of Casey Research's “Without Borders” who has a dual background in intelligence and investing, pointed out that although we like to think that we have the best medical care in the world, there are many countries who have many times better care. He suggested that in Panama very good medical care was available and the country was very solid economically and as a bonus there is a low cost life style with low crime - - - in other words, not a bad country to live in. 5) Frank Holmes, CEO and Chief Investment Officer of U.S. Global Investors Inc., said that there will be a great demand for commodities by the E-7 countries (Brazil, China, India, Indonesia, Mexico, Russia and Pakistan). He also pointed out that the multi-billion dollar infrastructure stimulus package by China would include a lot of commodities such as steel, copper, zinc and other metals in the stimulus package than in the Us for example because the cost component of salaries in the package would be much less in China tan in the US. 6) Doug Casey ( who is widely respected as one of the preeminent authorities on “rational speculation” especially in the high-potential natural resource industry spoke at length and I will try and paraphrase some of his comments here: - Nobody is calling for a bottom in stocks anymore. - The bottom will not be there until 12% dividends can be had. - Taxes, regulation, inflation are enemy #1. – The US Government is completely “on tilt”, they are throwing around trillions. - You may not like the doom and gloom scenario, but reality is reality, the country is not only financially bankrupt but also morally bankrupt. - The US is going to default on its debt through inflation. - Obama has a really high IQ but is unable to foresee the consequences of his actions. – 9 trillion dollars deficit that's divided by 300,000 million about $30,000 per person and all that money is directed to the State (“Statetism”). – Government is the Predator and you are the Prey. – Yes, I pay taxes in this country but it is for the same reason that I give my wallet to the average mugger at gunpoint. Doug went on and on and - - - as always - - - I really enjoyed his philosophical musings and insights and I would like to write more here. However, I am under a deadline and have to file this FDNN letter. There were many more free-thinking speakers at the Casey Summit who all have clarity of thought and vision, who base their opinions on thorough research, critical thinking, and fact-based analysis and I will write a bit more about them over time but - - - I have to go : -) Please note that I will write my FDNN Alert #57 next weekwhich will zero in on “The Martin Armstrong Economic Confidence Model & Turn-around Date of Monday April 20, 2009”.
Therefore and - - - as always - - Stay Tuned!!

Nick L. Nicolaas
Mining Interactive "Ahead of the Pack"

GATA Dispatches:"GATA and gold price suppression make it into the London Times"

Submitted by cpowell on 05:23PM ET Friday, March 27, 2009. Section: Daily Dispatches Is There Any Gold Inside Fort Knox, the World's Most Secure Vault?By Chris AyresThe Times, LondonSaturday, March 28, 2009 is said to be the most impregnable vault on Earth: built out of granite, sealed behind a 22-tonne door, located on a US military base, and watched over day and night by army units with tanks, heavy artillery, and Apache helicopter gunships at their disposal. Since its construction in 1937 the treasures locked inside Fort Knox have included the US Declaration of Independence, the Gettysburg Address, three volumes of the Gutenberg Bible, and Magna Carta. For several prominent investors and at least one senior US congressman it is not the security of the facility in Kentucky that is a cause of concern: It is the matter of how much gold remains stored there -- and who owns it. They are worried that no independent auditors appear to have had access to the reported $137 billion (L96 billion) stockpile of brick-shaped gold bars in Fort Knox since the era of President Eisenhower. After the risky trading activities at supposedly safe institutions such as AIG they want to be reassured that the gold reserves are still the exclusive property of the US and have not been used to fund risky transactions. In other words, they want to be certain that the bullion has not been rendered as valueless as if a real-life Goldfinger had stolen it. "It has been several decades since the gold in Fort Knox was independently audited or properly accounted for," said Ron Paul, the Texas congressman and former Republican presidential candidate, in an e-mail interview with The Times. "The American people deserve to know the truth." Mr Paul has so far attracted 21 co-sponsors for a bill to conduct an independent audit of the Federal Reserve System -- including its claims to Fort Knox gold -- but an organisation named the Gold Anti-Trust Action Committee (GATA) is taking a different approach. It has hired the Virginia law firm William J. Olson, PC, to test President Obama's promise to bring "an unprecedented level of openness" to the Government and next month it will file several freedom-of-information requests for a full disclosure of US gold ownership and trading activities. "We're taking the President at his word," said Chris Powell of GATA. "If you go online you can find out how to build a nuclear weapon but you won't find any detailed records on central bank gold reserves." A month after President Nixon resigned over the Watergate affair, Congress demanded to inspect the contents of Fort Knox but the trip to Kentucky was dismissed by critics as a photo opportunity. Three years earlier Mr Nixon brought an end to the gold standard when France and Switzerland demanded to redeem their dollar holdings for gold amid the soaring cost of the Vietnam War. Many gold investors suspect that the US has periodically attempted to flood the market with Fort Knox gold to keep prices low and the dollar high -- perhaps through international swap agreements with other central banks -- but facts remain scarce and the US Treasury denies that any such meddling has gone on for at least the past decade. Pressure for more openness is mounting after the collapse of the global banking system and renewed interest in a return to the simpler era of the gold standard -- a subject that is likely to be raised at the G20 summit next week. China and Russia are calling for the creation of a new world reserve currency amid fears that the Federal Reserve's quantitative easing policy -- essentially printing money -- might cause hyperinflation, then collapse. A spokesman for the US Treasury told The Times that US gold holdings are audited every year by the Department of Treasury's Office of Inspector General. He confirmed that although independent auditors oversee the process they are not given access to the Fort Knox vault. The website of the US Mint says that the 147.3 million troy ounces of gold in Fort Knox "is held as an asset of the US." It does not elaborate.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee Alerts: "THE INFLUENCE GAME: 7 big banks"

THE INFLUENCE GAME: 7 big banks seek monopoly.

To read full story, click HERE Alerts: Banks stocks fall...

Bank stocks fall as CEOs indicate problems linger.

To read full story, click HERE

Nick Nicolaas From Mining Interactive... News

Nick Nicolaas from Mining Interactive has sent us the latest post of Adam Hamilton in his weekly Zeal Intelligence Newsletter on the Mining interactive Website

To read full coverage of article , click HERE

Two trending markets revisited and analyzed for you

Last week I watched a video analysis of the S&P and Crude Oil markets. The technical analysis was right on at the time, but those markets have changed quite a bit in the last few days. The S&P had a huge rally and Crude seemed to steady out, so what’s the new analysis? Glad you asked!
Below are two free videos, one on Crude Oil and one on the S&P, that gives us an indepth technical look into these markets. Again the videos are free and very informatitive:

S&P Video Analysis: To view it, click HERE.

Crude Oil Projections: To view it, click HERE

Fernando Guzmán Cavero Alerts: "Streets Retreats Following Rally"

Stocks pare week's gains after consumer income and spending report; Obama meets with bankers.

To read full coverage of this analysis, click HERE

Mar 26, 2009

Nick Nicolaas from Mining Interactive has sent us the following Information

Dear Friends:

With all its projects in Sweden and Mexico (see: 2-page Summary) and with David Henstridge, a seasoned and hard-nosed explorationist at the helm, we are very much convinced that Tumi is one of those exploration companies (see: our attached Resource World article “Taking a look at junior explorers”) where the leverage and upside for an inves¬tor can be potentially enormous. My intelligent-hope says that this Company will be a winner;and I am now averaging down and investing more in Tumi - - -in pennies As always - - - Stay Tuned!!

Nick L. Nicolaas

You can also view Tumi CEO in video interview HERE Alerts:: Stocks Up on GDP Contraction News"

Stocks Up On GDP Contraction News
This is a transcript of the Market Update: Midday video report

Roread Full storu , click HERE

GATA Dispatches: "A new World currency draws nearer Geither's slip"

A new world currency draws nearer after Geithner's slip
Submitted by cpowell on 07:47AM ET Thursday, March 26, 2009. Section: Daily Dispatches By Ambrose Evans-PritchardThe Telegraph, LondonWednesday, March 25, 2009 Treasury Secretary Tim Geithner confessed on Wednesday that he had not read the plans by China's central bank governor for a "super-sovereign reserve currency" run by the International Monetary Fund, but nevertheless let slip that Washington was "open" to the idea. Whoops. This is how matters quickly escalate in geo-finance. China's suggestion – backed by Russia, Brazil, and India, and clearly aimed at breaking US dollar hegemony -- is making its way onto the agenda of the G20 Summit next week. 'Dollar-dammerung' no longer looks so far-fetched. China's paper, by Governor Zhou Xiaochuan, is couched in understated language -- more a 'thought experiment' than a declaration of monetary war. His ideas could be mistaken for the musings of an academic theorist. Nobody should be fooled by decorum. It comes days after premier Wen Jiabow demanded US action to safeguard the value of China's holdings of US bonds -- $740 billion of US Treasuries and a further $600 billion or so of other debt. "We have lent huge amounts of money to the US. Of course we are concerned about the safety of our assets," he said. China's Communist Party seems to fear that the Federal Reserve is orchestrating a beggar-thy-neighbour devaluation -- and a disguised default on America's foreign debt -- by resorting to the nuclear option of printing money to buy US Treasury bonds. China's proposal is to activate the IMF's power to issue Special Drawing Rights (SDRs). The IMF would be groomed as de facto central bank for the planet. The SDRs would gradually become an "accepted means of payment." Call it the "globo." It would be an error dismiss this idea as a pipe dream. Cynics once ridiculed Maastricht plans to launch the euro. John Major famously said chatter about a European currency had "all the quaintness of a rain-dance and about the same potency". Yet once officialdom began assembling the machinery for monetary union, EMU acquired a life of its own. The pitfalls of a world central bank are obvious. It is hard enough for the European Central Bank to run policy for 16 states in a region with a shared history, and shared EU institutions (Commission, Court of Justice, competition police, etc). The politics of global monetary management would be poisonous. The heads of the Fed, the ECB, and the Bank of England, must all testify before parliaments and answer to democracy. There is no world parliament, no world government. Who would control a super-IMF? In theory, this world reserve bank would be above politics. China's plan suggests a resource currency along the lines of the "Bancor" floated by Keynes at Bretton Woods. This was anchored on 30 commodities, giving it a broader base than the Gold Standard. Such a currency would prevent the "credit-based" debauchery of today's fiat system, says Mr Zhou. True, but this would be jumping from frying pan to fire. If the world is running out of oil, metals, freshwater, and arable land -- as many believe -- then the price of commodities must rise over time. The "globo" would become a deflation machine, like the late 19th Century gold as it asphyxiated endebted US farmers. The China-Russia plans may never come to much. As President Barack Obama put it, the US is going through a "rough patch" but still commands the world's biggest economy, under a stable democracy and the rule of law. He might have added that it will largely avoid the aging crisis already dulling Japan's dynamism, and soon to ensnare Germany, Italy, and above all China. For all its bluster, Beijing must move with care. After years of export-driven mercantilism China is even more dependent on US markets than America is dependent on Chinese capital. The risks of currency and trade conflict are not symmetric. The hegemon must prevail. But 10 years hence the picture may look different. If the G20 opens the door wide enough next week, a world currency may yet come into being.
* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:
http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA Alerts: "Stocks Build on Gains"

Stocks Build On Gains
Street strides higher as Geithner talks regulation in Washington.

To read full story please click HERE

Mar 25, 2009

GATA Dispatches: "Dollar Falls on Geither's openness to China proposal"

Submitted by cpowell on 02:26PM ET Wednesday, March 25, 2009. Section: Daily Dispatches By Oliver Biggadike and Ye XieBloomberg NewsWednesday, March 25, 2009 YORK -- The dollar fell the most in almost a week against the euro on concern Treasury Secretary Timothy Geithner supported a Chinese plan to blunt demand among global central banks for the greenback. The U.S. currency pared losses after Geithner clarified comments on the International Monetary Fund's special drawing rights and said the dollar will remain the world's primary reserve currency "for a long period of time." "The dollar's having a bad week," said Jessica Hoversen, a foreign-exchange analyst in Chicago at MF Global Ltd., the world's largest broker of exchange-traded futures and options contracts. "Government policy is only as effective as the government is credible. Having a government official speak out of both sides of his mouth in five minutes erodes credibility." The U.S. currency weakened as much as 1.2 percent to $1.3651 per euro, the biggest intraday decline since March 19, before trading at $1.3602 at 4:16 p.m. in New York. The dollar dropped 0.5 percent to 97.37 yen from 97.86. The euro increased 0.5 percent to 132.42 yen from 131.81. The dollar fell versus most major currencies on Geithner's comment in response to a question at a Council on Foreign Relations event in New York on People's Bank of China Governor Zhou Xiaochuan's proposal regarding the use of special drawing rights, units of accounting at the fund used for member countries' reserves with the IMF. The Treasury secretary said that "as I understand his proposal, it's a proposal designed to increase the use of the IMF's special drawing rights. And we're actually quite open to that suggestion."When Geithner was later asked whether he wanted to clarify his remarks, he affirmed the dollar's role as the world's reserve currency. "It's a big part of American power," said John Taylor, who oversees about $11.4 billion as chairman of New York-based FX Concepts Inc., the biggest foreign-exchange hedge fund. "Our markets are the biggest and the best. Yes, the world's doing really awful and we're the reason the world's doing really awful in a way. But at the same time, everybody's looking to us to get the world out of it." Zhou said on March 23 in a report posted on the bank's Web site that special drawing rights, monetary units valued against a composite of currencies, should also be used for international trade, financial transactions, and commodity pricing. The IMF should aim in the longer term to create a "super-sovereign reserve currency," Zhou said. South Korea's won was the biggest gainer versus the dollar after a finance ministry official said yesterday the government aims to spend 17.7 trillion won ($13.3 billion) by May or June to help the economy recover. "There's some positive sentiment that has led to a softening of the U.S. dollar" against the won, said Thio Chin Loo, a senior currency analyst at BNP Paribas SA in Singapore. The won climbed as much as 2.1 percent to 1,362 per dollar, the strongest level since Jan. 29. South Korea's economic stimulus plan includes funds for cash handouts, cheap loans, infrastructure and job training, the government said yesterday. South Korea's currency is the biggest loser against the dollar this quarter, dropping 7.6 percent on speculation the nation's economic slump will deepen. The dollar fell earlier versus the euro as a government report showed an unexpected gain in orders for durable goods last month, reducing demand for the safety of the greenback. Orders for U.S. durable goods increased 3.4 percent in February, the biggest gain in more than a year, the Commerce Department reported today. The median forecast of 69 economists surveyed by Bloomberg was for a decrease of 2.5 percent. Another report from the department indicated new-home sales increased 4.7 percent from a record low pace in January, compared with a 2.9 decrease forecast by economists. The 16-nation euro advanced earlier versus the dollar as a report showed German business confidence this month was in line with the expectations of economists. The Ifo institute in Munich said its business climate index, based on a survey of 7,000 executives, was 82.1 in March, compared with 82.6 in the previous month. The median forecast of 37 economists surveyed by Bloomberg was for a drop to 82.2. The reading was the worst since November 1982. "Sentiment data is pretty dire around the world at the moment, and the German Ifo is a prime example of that," said Neil Jones, head of European hedge fund sales at Mizuho Corporate Bank Ltd. in London. "However, it more or less matched expectations, and as long as things don't get worse the euro will benefit."
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

GATA Dispatches:Treasuries fall amid doubts on demand, Failed UK bond Auction"

Submitted by cpowell on 01:59PM ET Wednesday, March 25, 2009. Section: Daily Dispatches By Dakin Campbell and Susanne WalkerBloomberg NewsWednesday, March 25, 2009 YORK -- Treasury notes fell for a fifth day after an auction of $34 billion in five-year notes drew a higher-than-forecast yield, spurring concern record sales of U.S. debt are overwhelming demand. U.S. securities dropped even after the Federal Reserve today bought $7.5 billion of Treasury notes, its first targeted purchases of U.S. securities since the early 1960s. The five-year auction drew a yield of 1.849 percent. "This caught a lot of people unaware," said Bulent Baygun, head of interest-rate strategy in New York at BNP Paribas Securities Corp., one of the 16 primary dealers that are required to bid at Treasury auctions. "Prior to the auction the Fed conducted its purchases of Treasuries, which may have compressed interest rates below where they would have been otherwise." The 10-year note yield rose six basis points, or 0.06 percentage point, to 2.77 percent at 3:10 p.m. in New York, according to BGCantor Market Data. The price of the 2.75 percent security due in February 2019 fell 17/32, or $5.31 per $1,000 face amount, to 99 27/32. The 30-year bond yield gained eight basis points to 3.71 percent, while the current five-year note yield appreciated seven basis points to 1.80 percent. Eight trading firms surveyed by Bloomberg News before the auction forecast the five-year to draw a yield of 1.801 percent. The bid-to-cover ratio, which gauges demand by comparing the number of bids to the amount of securities sold, fell to 2.02 from an average 2.18 at the previous 10 sales. The Treasury Department is scheduled to sell $24 billion of seven-year securities tomorrow after auctioning $40 billion of two-year notes yesterday. The U.K. failed to attract enough bidders today at an auction of 1.75 billion pounds ($2.55 billion) of gilts for the first time in almost seven years. President Barack Obama's government is selling record amounts of debt to revive economic growth, service deficits, and cushion the failures in the financial system. Debt sales will almost triple this year to a record $2.5 trillion, according to estimates from Goldman Sachs Group Inc. Orders for U.S. durable goods unexpectedly rose by 3.4 percent in February on a rebound in demand for machinery, computers and defense equipment, the Commerce Department said today in Washington. Purchases of new homes in the U.S. unexpectedly rose in February, increasing 4.7 percent to an annual pace of 337,000 after a 322,000 rate in January, Commerce said. "Better than expected economic data, failure of the long- end auction in the U.K., and low demand at the five-year Treasury auction -- all these factors combined are leading to higher yields," said Anshul Pradhan, an interest-rate strategist in New York at Barclays Capital Inc., another primary dealer. The Fed purchased $7.5 billion of U.S. debt spread among 13 of the possible 19 securities eligible for purchase, it said. The notes mature from February 2016 to February 2019, the Federal Reserve Bank of New York said in a statement today. Nearly $22 billion was submitted to the central bank in the first day of buying, the New York Fed said. "We are really not seeing any kind of meaningful support for the Treasury market," said Kevin Flanagan, a Purchase, New York-based fixed-income strategist for Morgan Stanley's individual investor clients. "Conventional wisdom in the market is that the Fed will concentrate on the five-to10-year or the seven- to-10-year sector." The Fed joins central banks in the U.K. and Japan in extraordinary purchases of government debt. U.S. policy makers announced the decision last week to buy $300 billion of government debt in the next six months along with a plan to more than double purchases of housing debt to $1.45 trillion, hoping to reduce rates on home loans. The dollar fell the most in almost a week against the euro on concern Treasury Secretary Timothy Geithner supported a Chinese plan to blunt demand among global central banks for the U.S. currency. The U.S. currency weakened as much as 1.2 percent to $1.3651 per euro, the biggest intraday decline since March 19, before trading at $1.3574 at 2:55 p.m. in New York. Geithner later affirmed the dollar's role as the world's reserve currency. "The poor communication from the Treasury department has complicated the market for Treasuries," said Jeffrey Caughron, chief market analyst in Oklahoma City at Baker Group, which advises community banks investing $20 billion of assets. The U.K.'s effort to buy government debt wasn't enough to prevent today's failed auction of 40-year gilts, the first time that the government failed to attract enough bids at a sale of nominal debt since 1995. Investors bid for 1.63 billion pounds ($2.4 billion) of 4.25 percent notes, less than the 1.75 billion pounds offered. "The failed gilt auction doesn't bode well for Treasuries," said Michael Franzese, head of government bond trading for Standard Chartered in New York. Average 30-year fixed mortgage rates were about 2.29 percentage points more than 10-year Treasury yields, versus 1.57 percentage points five years ago. Mortgage rates declined to 4.98 percent in the week ended March 19, according to Freddie Mac, the mortgage-finance company under U.S. government control. Treasuries lost 1.68 percent this year, according to Merrill Lynch & Co.’s Treasury Master Index. U.S. debt was down 3.4 percent before the Fed announced its purchase program last week. The difference between what banks and the Treasury pay to borrow money for three months, the so-called TED spread, widened to 1.04 percentage point from 91 basis points on Feb. 10. It reached a two-month high of 1.13 percentage point on March 13. The spread averaged 36 basis points in 2006 before credit markets began to decline the next year.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

Mar 24, 2009

One video to explain it all…about charts

Dear readers:

This is an extraordinary educational video about all you need to know ablout charts:

After I did a post about MarketClub coming out with the new charts they were flooded with over 12,000 email and phone requests for more info! Yes 12,000! It’s clear that these new charts from MarketClub are really making an impact across our industry.
So take time today and watch the video that explains every aspect of these new charts. It is worth your time as these charts will help you improve your knowledge in this trading…period!
Watch an enjoy this video the video HERE.

I’d also recommend checking out the rest of MarketClub and see the charts in action HERE.

I do strongly recommend not to miss this video from Market Club,

Fernando Guzmán Cavero

GATA Dispatches: "Bloomberg TV's lo interviews Murphy,plans gold suppression debate"

Submitted by cpowell on 03:59PM ET Tuesday, March 24, 2009. Section: Daily Dispatches 6:54p ET Tuesday, March 24, 2009Dear Friend of GATA and Gold:From their studio in Hong Kong, Bloomberg TV's Bernard Lo just interviewed GATA Chairman Bill Murphy, speaking from the Bloomberg studio in Dallas, for about 15 minutes on the "Morning Call" program on Bloomberg's Asia Pacific channel. Lo said he had invited Murphy "by popular demand," so we offer our thanks to the GATA army for its political agitation. And when Murphy told Lo that GATA's detractors refuse to debate the evidence of gold price suppression, Lo said he would invite Murphy back on the program for just such a debate. Throughout the interview Murphy stressed that the gold price suppression scheme is a matter of ordinary public record, not mere conspiracy theory.So it looks like a blow was struck for the good guys tonight, and that another may be forthcoming.Thanks to a friend, we hope to have a video of the Bloomberg interview posted at soon.CHRIS POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA Alerts: "Wall Street gives up some ground after huge gains"

The insider trading is winning the battle not the bulls...


To read more of Alert, click HERE

Mar 23, 2009

GATA Dispatches: "Falling dollar prompts BRIC to rethink dollar"

Submitted by cpowell on 07:13PM ET Monday, March 23, 2009. Section: Daily Dispatches By Sebastian Tong and Peter AppsReutersMonday, March 23, 2009 -- A push by the world's leading emerging economies to dislodge the dollar as the dominant global reserve currency appears to be gaining momentum even as a weakening greenback adds further urgency to the discussion.China on Monday added its voice to a growing international chorus seeking the replacement of the dollar as the main reserve currency, urging for an overhaul of the global monetary system to allow for wider use of Special Drawing Rights (SDRs) allocated by the International Monetary Fund (IMF).Chinese central bank chief Zhou Xiaochuan said the SDRs, created by the IMF as international reserve assets in 1965, could be used as a super-sovereign reserve currency, eventually displacing the dollar.His comments come a week after Russia said it would put forward a proposal for the creation of a new reserve currency issued by international financial institutions at the G20 meeting in April.Russia said it had the broad support of its fellow BRIC countries -- Brazil, India and China -- as well as South Korea and South Africa for its proposal.The push underscores growing concerns among emerging-market leaders about the long-term value of the dollar.The dollar saw its biggest weekly slide since 1985 .DXY last week after the Federal Reserve's decision to buy long-term government debt raised the specter of oversupply in dollars.That emerging economies -- among the largest dollar holders in the world thanks to strong export revenues -- want to diversify reserves away from the dollar is not only sensible but inevitable, argues Jerome Booth, Ashmore Investment Management research head."The unknowns are how fast and the disruption this may cause," Booth said.China, which has the world's largest foreign-currency reserves at close to $2 trillion, would be especially keen to avoid a widespread dollar selloff.Chinese Premier Wen Jiabao said this month that he was worried about China's heavy exposure to the United States -- which, taking into account its US Treasuries and other bond holdings, is estimated to represent about a two-thirds of its reserves.Any Chinese move to reweight its reserves portfolio could be destabilizing to the value of the greenback because of the level of market scrutiny."As soon as you selloff a part of your reserves, people will expect you to sell the rest so the value of everything you have would plummet," said Jon Harrison, emerging foreign exchange strategist at Dresdner Kleinwort.SDRs, which have a value based on a basket of key international currencies, also serve as the unit of account of the IMF and some other international organizations."If you really believed that (the SDR adoption) was going to happen, you'd want to sell the dollar and buy other currencies that would be part of the SDR basket -- euros, yen, and perhaps the pound," said Dresdner's Harrison.China's Zhou has said global acceptance of a new reserve currency would take a long time, and would be "a bold initiative that requires extraordinary political vision and courage."Russia, which has significantly reduced the dollar's share of its own reserves in recent years in tandem with the 2005 introduction of a euro/dollar basket for tracking the rouble, has signaled it does not expect to see any reforms rising from the Group of 20 nations meeting in London on April 2.Still, Russia and China's push for a global super-sovereign reserve currency could have resonance beyond the corridors of power in the developing world -- possibly even in Washington.Adopting a super-sovereign reserve currency such as SDRs could do away with the global imbalances of recent years that allowed the United States to run up large twin budget and external deficits while export-oriented emerging economies accumulated dollar-denominated reserves.This global imbalance has been blamed for the cheap borrowing costs in the U.S. that contributed to subprime mortgage bust that triggered the global credit crunch.A United Nations panel of experts this week is set to recommend the world ditch the dollar as its reserve currency in favor of a shared basket.Avinash Persaud, a member of the UN Commission of Experts on International Financial Reform, said the creation of something like the old Ecu -- or European currency unit -- as a hard-traded weighted basket was one of the recommendations that would be delivered to the U.N. on Wednesday.Politics will determine the timing of any diversification moves, Ashmore's Booth said."Central banks are watching each other. ... Many countries may want to start a senior dialogue with the new US administration before selling their Treasuries," he said.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit:

MarketClub just launched new charts, you've got to see them

No one has better charts then these right now...period! Visit the link below to watch a video on how the charts work,Here are a few details: Flash based, automatically update with pricechanges,multiple time periods on one chart, easy to read prices and bars,MarketClub'sTrade Triangle signals, over 230,000 covered symbols, 23 differenttechnicalindicators, and oh yeah...THEY TALK TO YOU! Yes the charts literally tellyouwhat’s going on with the symbol you're looking at. VERY COOL!
Take a few minutes and check out the MarketClub education page to watcht he charts in action:

Do not miss it, you just have to click HERE

Fernando Guzmán

Frank Field: I predict a riot

Frank Field declares to BBC Panorama, to watch it click HERE

Free Video Seminar: Jack Schwager: THE Market Wizard

For those of you who don’t know, Jack Schwager’s career could fill a 20-page resume. He’s done it all, and all signs point that he’s not anywhere close to stopping. Currently, Schwager is the executive director of the board of Fortune Group. He is also the senior portfolio manager for the Global Fund Analysis team at Fortune and the principal investment manager of the Market Wizard Funds.

Schwager is probably best known for the many books he published in the 80s and 90s, which became classics in the financial community. With over 10 titles to his name, Schwager’s books were well received and continue to sell as timeless guides to financial success.His titles include:
Stock Market Wizards: Interviews with America’s Top Stock Traders (2003)Market Wizards: Interviews with Top Traders (2006)Wall Street Stories: Introduction by Jack Schwager (2008)
The Market Wizard series allows individual traders to look over the shoulder of some of the world’s most successful traders, investors and CEOs. These in-depth interviews explore each expert’s trading career, trading philosophy and market anecdotes. Schwager identifies similar characteristics and traits among this group of successful individuals. If you haven’t read the Market Wizard series, then you just have to watch Jack Schwager’s free presentation of “Market Wizard Insights,” on INO

In this complimentary 85-minute video, Jack Schwager will talk about the Market Wizard series and give you an inside view of his finding throughout the years. Remember, you can pause, stop or replay the video anytime… so watch it at your own leisure.I urge you to watch Jack Schwager’s, “Market Wizard Insight” right now.

To watch the video click HERE

Fernando Guzmán

GATA Dispatches:"Chinese central bankers sketches plan for new reserve currency."

Submitted by cpowell on 04:44AM ET Monday, March 23, 2009. Section: Daily Dispatches By Alan WheatleyReutersMonday, March 23, 2009 -- China's central bank chief on Monday proposed a sweeping overhaul of the global monetary system, outlining how the dollar could eventually be replaced as the world's main reserve currency by the Special Drawing Right.The SDR is an international reserve asset created by the International Monetary Fund in 1969 that has the potential to act as a super-sovereign reserve currency, Zhou Xiaochuan, governor of the People's Bank of China, said in remarks published on Monday on the bank's website,"The role of the SDR has not been put into full play due to limitations on its allocation and the scope of its uses. However, it serves as the light in the tunnel for the reform of the international monetary system," Zhou said.Zhou did not refer directly to the dollar.But his speech, issued in English as well as Chinese, spells out in detail Beijing's dissatisfaction with the primacy of the U.S. currency, which Zhou says has led to increasingly frequent international financial crises since the collapse of the Bretton Woods system of fixed but adjustable exchange rates in 1971."The price is becoming increasingly high, not only for the users, but also for the issuers of the reserve currencies. Although crisis may not necessarily be an intended result of the issuing authorities, it is an inevitable outcome of the institutional flaws," Zhou said."The desirable goal of reforming the international monetary system, therefore, is to create an international reserve currency that is disconnected from individual nations and is able to remain stable in the long run, thus removing the inherent deficiencies caused by using credit-based national currencies," he added. A super-sovereign reserve currency not only eliminates the risks inherent in a credit-based currency such as the dollar -- in contrast to one backed by gold -- but also makes it possible to manage global liquidity, Zhou argued."And when a country's currency is no longer used as the yardstick for global trade and as the benchmark for other currencies, the exchange rate policy of the country would be far more effective in adjusting economic imbalances. This will significantly reduce the risks of a future crisis and enhance crisis management capability." he said.Reform of the international monetary system is likely to take a back seat to the more pressing task of economic and financial stabilisation when leaders of the Group of 20 developed and emerging economies meet in London on April 2.But Zhou's speech shows that the issue is a pressing one for China, whose top officials regularly bemoan the volatility of the dollar and what they see as mismanagement of the world's leading economy.Zhou acknowledged that establishing a new reserve currency that commands wide acceptance may take a long time. It would be a "bold initiative that requires extraordinary political vision and courage." Allocating more SDRs would not only give the IMF more resources but would also help it address imbalances in the representation and voice of developing countries in the IMF, where the United States wields a veto over major decisions.As well as a further allocation of SDRs, Zhou proposed the following steps to broaden the unit's use so it can fully satisfy member countries' demand for a reserve currency:-- Set up a settlement system between the SDR and other currencies so it can be widely accepted in global trade and financial transactions. Currently, the SDR is largely an artificial unit used by governments and international institutions.-- Actively promote the use of the SDR in trade, commodities pricing, investment, and corporate bookkeeping.-- Create financial assets denominated in SDRs to increase its appeal. The introduction of SDR-denominated securities, which is being studied by the IMF, would be a good start, Zhou said.-- Further improve the valuation and allocation of the SDR. The basket of currencies forming the basis for SDR valuation should be expanded to include currencies of all major economies.Zhou said the IMF, with its universal membership and mandate to maintain monetary and financial stability, had a natural advantage to act as the manager of its members countries' reserves in the form of the SDR."This arrangement will not only promote the development of SDR-denominated assets, but also partially makes the management of liquidity in the form of the existing reserve currencies possible. It can even lay a foundation for increasing SDR allocation to gradually replace existing reserve currencies with the SDR," he said.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

Mar 22, 2009

GATA Dispatches: "here comes another trillion to rescue busted banks

Submitted by cpowell on 12:34PM ET Sunday, March 22, 2009. Section: Daily Dispatches Treasury's Toxic Asset Plan Could Cost $1 TrillionBy Martin CrutsingerAssociated Pressvia Yahoo NewsSunday, March 22, 2009 -- The Obama administration's latest attempt to tackle the banking crisis and get loans flowing to families and businesses rely on a new government entity, the Public Investment Corp. to help purchase as much as $1 trillion in toxic assets on banks' books.The plan that Treasury Secretary Timothy Geithner intends to announce Monday aims to use the resources of the $700 billion bank bailout fund, the Federal Reserve and the Federal Deposit Insurance Corp.The initiative will seek to entice private investors, including big hedge funds, to participate by offering billions of dollars in low-interest loans to finance the purchases and also sharing risks if the assets fall further in value.When Geithner released the initial outlines of the administration's overhaul of the bank rescue program on Feb. 10, the markets took a nosedive. The Dow Jones industrial average plunged by 380 points as investors expressed disappointment about a lack of details.Christina Romer, head of the Council of Economic Advisers, said Sunday that it's important for investors to know that the administration is bringing a full array of programs to confront the problem."I don't think Wall Street is expecting the silver bullet," she said on CNN's "State of the Union.""This is one more piece. It's a crucial piece to get these toxic assets off, but it is just part of it and there will be more to come," she said.Also in the coming week Geithner is expected to disclose the administration's proposal to overhaul bank regulations to try to prevent a repeat of the financial crisis.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

Mar 21, 2009

OECD Says World Economy to Shrink

OECD head Angel Gurria believes the world economy will shrink this year
The head of the Organisation for Economic Cooperation (OECD) has said that the world economy is likely to shrink this year.

To read full article, click HERE

Mar 20, 2009

GATA Dispatches: "Own gold,the metal, not paper promise, by John Embry"

Submitted by cpowell on 01:07PM ET Friday, March 20, 2009. Section: Daily Dispatches 4p ET Friday, March 20, 2009Dear Friend of GATA and Gold:In his latest commentary for Investor's Digest of Canada, Sprott Asset Management's chief investment strategist, John Embry, notes the failure of the supposed massive gold purchases by exchanged-traded funds to affect the gold price much. He wonders: Since mine production is declining, where is the ETF gold coming from? And since the custodians of the ETF gold are also the perpetrators of the gold price suppression scheme, is the ETF gold really there at all?Better to hold real metal in one's hot little hands than paper promises of metal, Embry writes, and that's where the headline on his essay comes from. It's "Own Gold, the Metal, Not a Paper Promise," and you can find it at the Sprott Internet site here:
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA Alerts "Stocks Down After Bernanke Remarks"

This is a transcript of the Market Update: Afternoon video report.

To read full story, click HERE Alerts "Stocks fall, endangering week of gains"

Stocks fall, endangering second week of gains.

To read full story, click HERE Alerts "Bank stocks Slump..."

Bank stocks slump as asset concerns resurface.

To read full story, click HERE

Two Markets…Two Directions (S&P and Crude Oil)

Adam Hewison had set us two great videos read him below:

In our new video we are going to be looking at two different markets that are headed in two different directions.
We recently looked at the equity markets and alerted you to some very important levels that we thought the markets would have problems with. Those levels have now been reached and it remains to be seen if we are going to see the kind of market action that we were looking for.
To watch the video , click HERE

The second market were looking at is the crude oil market. This market has recently come alive to the upside and bear watching.
This is a short video, but it may contain the blueprint for these two markets. No registration is required to watch this video.
To watch the video, please click HERE

Adam Hewison
President of
Co-creator of

Mar 19, 2009

BBC WORLD NEWS: "Fed pumps $1.2tn into US economy "

Fed pumps $1.2tn into US economy
US rates are expected to remain low for some time
The US Federal Reserve says it will buy almost $1.2 trillion (£843bn) worth of debt to help boost lending and promote economic recovery.

To read full story, click HERE

BBC MUNDO "La FED bombea dinero"

Redacción BBC Mundo
Con estas medidas la Fed pretende bajar las tasas de interés de los préstamos. La Reserva Federal de Estados Unidos anunció que comprará bonos del Tesoro de largo plazo por valor de hasta US$300.000 millones en los próximos seis meses y que ampliará las compras de deuda respaldada por hipotecas para sostener el mercado de crédito y promover la recuperación de la economía.

Para leer el artículo completo,haga un click AQUÍ

Chaos and market maniputation continue.- By: Fernando Guzmán Cavero

Today, silver lost 20 cents closing at US$ 12.10, the same occurred with gold, which lost 26 dollars, closing at 890. Later on and off trading hours prices began to recover their loss, after the FED announced it was going to buy long term Treasury Bonds for the unthinkable amount of US$ 300 billion in. Who knew this in advance of the announcement and bought gold at approximately its lower price in the past couple of months, in the last week. Isn’t this symptomatic that after three days of continues drop of gold and silver prices , the Treasury announced this new measure, not surprising, but indeed annoyance of the lack of ethical behavior. After all bail-outs to to help the banking and financial sector, stop the economic recession to become a depresion; the economic chaos remains immutable.. but in the last three days the bulls were winning the battle. Is that true? Is not true that most of the newspapers and specialized magazines jumped into the boat, with lots of holes to be fixed so that water will not filter? Is not true that, headlines around the world said the recovery was on its way? I invite you to make a time-voyage to the past, 1971, when president Nixon announced , that the United States of America will no longer support and consequently will not exchange at the price of 35 dollars the ounce of gold as agreed upon in Breton Woods . That was the beginning of the collapse, because the United States of America was financing the budget deficit of the Vietnam War and its trade balance with its own paper money. And today’s injection of 300 US billon dollars into the economy and into the world trade international payments which are still tied- up in US dollars is an intervention which does not benefit the majority of this crisis individuals directly affected. The measure still is designed to benefit the status-quo.

Some maybe working some 30 years long term curves yields , and you know why? To produce again the purchase of paper money, “sell” his mathematical findings to the media, knowing that the only beneficiaries will not be those who put his savings based upon the long term yields but those who know long term yields serve to the purpose of short term market behavior. And be cautious of trust funds, fixed income securities, options and futures markets, and overwhelming projections..
A new Monetary Agreement with new rules to protect the human race is urgently need

Mar 18, 2009

Mining Interactive: " From the desk of Nick Nicolaas"

Gold & Silver prices, news and commentary , from the desk of Nick Nicolaas: , for a full information ,click HERE

Investment firm buys 11 % stake in Anglo Gold Ashanti

Submitted by cpowell on 07:41PM ET Tuesday, March 17, 2009. Section: Daily Dispatches By Saijel Kishan and Thomas BiesheuvelBloomberg NewsTuesday, March 17, 2009 & Co., the New York-based investment firm run by John Paulson, bought a stake in AngloGold Ashanti Ltd. from Anglo American Plc for $1.28 billion as hedge funds increase their gold holdings. Paulson paid $32 a share for the 11.3 percent stake in the Johannesburg-based gold miner, Anglo American said today in a statement. The purchase makes Paulson the company's second- largest shareholder, according to data compiled by Bloomberg. "We believe AngloGold Ashanti is one of the best managed and undervalued of the major global gold-mining companies," Paulson said in an e-mailed statement. "We look forward to the implementation of their global expansion strategy." Hedge funds are turning to gold to mitigate potential inflation as governments around the world increase spending to stimulate their recession-bound economies. David Einhorn, founder of New York-based Greenlight Capital Inc., told investors in January that he is buying gold for the first time. Hayman Advisors LP's Kyle Bass said investors are seeking precious metals as central banks print more money. Paulson also owns a 4.1 percent stake in Kinross Gold Corp., making the hedge fund the fourth-largest holder of the gold producer. Paulson is also the second-largest shareholder in chemical-producer Rohm & Haas Co. and has holdings in Cheniere Energy Inc. Paulson, 53, manages about $30 billion. His Credit Opportunities Fund soared almost sixfold in 2007 on bets that subprime mortgages would plummet. Last year, his flagship fund returned 37 percent, compared with a loss of 19 percent for hedge funds on average. The firm may have made L311 million ($428 million) since September by betting against the shares of Lloyds Banking Group Plc and HBOS Plc, according to regulatory filings last week. "He made a name by being able to see the potential for extreme economic events and making bets on those that can pay off," said Michael Dubin, president of New York-based the LongChamp Group Inc., which allocates client money to hedge funds. Hedge funds are private, largely unregulated pools of capital whose managers can bet on falling as well as rising asset prices, and participate substantially in profits from money invested. Gold prices have risen 3.7 percent this year compared with a 15 percent decline in the Standard & Poor's 500 Index of the largest U.S. companies. Gold futures for April delivery fell $5.30, or 0.6 percent, to $916.70 an ounce at 3:20 p.m. on the New York Mercantile Exchange's Comex division. "Hard currency is coming to the fore, as evidenced by the investment choices of some of the world's most seasoned investors," AngloGold Ashanti Chief Executive Officer Mark Cutifani said today in an e-mailed statement. AngloGold's American depositary receipts, each representing one ordinary share, rose 57 cents, or 1.7 percent, to $34.27 at 3:20 p.m. in New York Stock Exchange trading. The shares have gained 24 percent this year. AngloGold, the fourth-biggest diversified mining company, dropped 37 pence, or 3.2 percent, to 1,116 pence in London trading. Anglo, founded in 1917 to mine the world's biggest gold field, said in 2005 it would give up control of the gold business that helped build the Oppenheimer family's fortune and concentrate on copper and iron ore. It has reduced its stake from 51 percent since then, and has also spun off paper and steel units. Anglo said last month it sold 10.4 million AngloGold shares for about $280 million. AngloGold is reducing contractual commitments to sell gold at fixed prices so as to secure more room to benefit from earning spot-market prices. The gold producer, whose biggest mines are in South Africa, also is benefiting from declines by the rand because it pays most of its costs in the currency and sells gold for dollars. Deutsche Bank AG advised AngloGold and Anglo American, while UBS AG and Goldman Sachs Group Inc. advised Anglo American.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA

Mar 17, 2009

GATA Dispatches: " Crisis Changes Central Bank reserve management"

Submitted by cpowell on 07:30PM ET Tuesday, March 17, 2009. Section: Daily Dispatches By Jamie McGeeverReutersTuesday, March 17, 2009 -- Global financial turmoil has had a "major" impact on the reserve management policies of two thirds of central banks and almost all are rethinking diversification tactics, a survey showed on Wednesday.The survey of 39 central banks who control reserve assets worth $3.2 trillion, just under 42 percent of the world's total, showed reserve managers were much more conservative and cautious last year than a year earlier.Reserve managers expressed "great concern" about credit and liquidity risks, with over two thirds of respondents saying they experienced bouts of illiquidity in even the major bond markets.Over 90 percent of respondents to the survey conducted by Central Banking Publications said they have been forced to reassess counterparty risk and most said the hunt for diversity and yield in recent years has been severely curtailed.The majority of respondents in the survey, carried out late last year, also said they expect reserves to fall as the crisis unfolds before recovering to only "marginally" above current levels over the next four years."The unprecedented changes to the financial landscape witnessed over the last (few) months have dramatically altered previous paradigms and beliefs," said a respondent from a central bank in the Americas."These events have increased risk aversion and central banks have not been an exception."This was in stark contrast to the findings in last year's survey, which showed reserve managers still inclined to seek yield and almost 60 percent of them saying derivatives were an attractive asset class in which to invest FX reserves.This year's survey showed that as the financial turmoil ebbed and flowed reserve managers, like most other investors, opted for safety."Less credit and more 'plain vanilla' instruments are preferred," said one European reserve manager.Over two thirds said they had experienced illiquidity in important government bond markets, and the survey said reserve managers had expressed surprise that even these markets had frozen up as spreads widened and trades failed to settle.Almost 80 percent of respondents said government bonds rated AA or higher were a more attractive investment than a year earlier, 61 percent said the same for agency paper, and 57 percent said gold was a better investment.Between roughly two thirds and all the respondents said virtually every other asset class was a less attractive investment than a year ago: equities, mortgage-backed securities, derivatives, lower-rated government bonds, commodities, and hedge funds, amongst others."In view of the coming recession in the world economy, almost all the listed instruments are considered too risky for central bank investments," said an Asian reserve manager.The survey's findings also suggested there had been a loss of faith in credit rating agencies.Just over half the respondents said they had altered the way they judge credit quality, with some of their comments noting a downgrading of agencies' assessments and an increasing recourse to other external indicators such as credit default swaps, share prices, and/or a strengthening of internal models.In terms of reserves' currency composition, 74 percent of respondents said there was no change over the year in the number of currencies they invested in, and 94 percent of them said they didn't even consider investing in other currencies."Central banks have refrained from diversifying their reserves in terms of currencies," the survey noted."Whereas previous surveys had revealed interest or active allocation in non-traditional reserve currencies, that was not the case in 2008."Reserve managers believe overall reserve levels will fall this year as countries draw down the cash needed to fund the huge financial and economic rescue packages needed to fight recession.Most believe reserves will slowly accumulate again over the next four years but a significant minority -- almost a quarter -- believe the crisis will bring the build up in reserves over recent years to a shuddering halt.
* * * Join GATA here:Bahamas Investment ConferenceThursday-Friday, March 26-27, 2009Atlantis Resort and Casino, Nassau* * *Help keep GATA goingGATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at:http://www.gata.orgTo contribute to GATA, please visit: GATAinfo@gata.orgGold Anti-Trust Action Committee7 Villa Louisa RoadManchester, Connecticut06043-7541 USA Capiltalismblog

You will find interesting articles from Capitalismblog: "Reform the architechture of regulation", by Henry Paulson, "Let fairness triumph over corporate profits", by Trevor Manuel, "Capitalism needs a revived Glass-Steagall and much more to read and subscribe to the Financial Times, clicK HERE Alerts: AIG disclosures fuel calls for more transparency

AIG disclosures fuel calls for more transparency:

To read full story click HERE

CNBC- Behind the Money: Financial Investors living in a land of confusion,by John Melloy

There's too many men...

Too many people....

Making too many problems...

And not much love to go round.

Can't you see this a land of confusion.


This is how John Moley begins his refletion. To read full story click HERE

Mar 16, 2009

Today's Crisis is a Photograph of the crash of 29, By Fernando Guzmán Cavero

Today’s Crisis is a Photograph of the crash of 29: By Fernando Guzmán Cavero

Today’s Crisis is a Photograph of the crash of 29: By Fernando Guzmán Cavero

Why of the current economic and financial crisis? The crash in the global economy is now mired, without having a clear picture of the magnitude of the consequences, whose roots are exactly the same as the crisis of 29: the lack of state real control to avoid designed schemes to inflate the prices of securities listed in the New York Stock Exchange,plus a lack of supervision of commercial banks credit among others. Since that experience, the USA started to search an answer to explain the crisis and began to re-think about the limits the free enterprise economic system should have. Something must be done to prevent abuses the imperfect markets have, was one voice; and mostly heard from those responsible of the development of the crisis. The following step , was to begin establishing a series of controlling norms with the purpose prevent that few astute and powerful persons do not profit of thousands of thousands of people who believed in their proposals to invest in overvalued assets. The Securities and Exchange act of 1933, is the beginning of a continuous institutions established to prevent financial fraud.

The Great Depression according to Jim Powell does not have to do with immoral investments bankers and other financial advisors who traded stocks with insider information and structured schemes well known in our days, to increase artificially the stock prices. The article of Mr. Powell is a response to Adam Cohen:: ”Nothing to fear: FDR’s inner circle and the hundred days that created Modern America, Adam Cohen, Penguin,352.His argument, as Opposed to Cohen point of view, who praised Roosevelt’s New Deal, is basically the following:: “The main reason people lost money in the stock market was not in fact fraud. Rather, stock prices went down principally in response to Federal Reserve efforts to curb speculation. Unit Banking laws contributed to bank failures, by preventing them from opening branch offices to diversify deposits bases and loan portfolios”…… In the same manner he argues with Cohen, saying: Cohen also praises the Agricultural Adjustment Act for destroying, raising farm prices and farm income. Yet he ignores the effect it had on three-quarters of Americans who were not farmers they were consumers ,millions of them poor who had to lay out more money for food and clothing.(Cotton was among the crops destroyed.) Nor does Cohen acknowledge that from the beginning farm subsidies always went disproportionately to big farms, since the subsidies were paid on a per acre basis. He does not seem to consider FDR’s National Recovery Administration adversely affected farmers by establishing cartels that fixed prices above market level, requiring farmers for the supplies there needed.” Let me make some important precisions with regard to the statement, which attributes: Unit Banking laws, to failures in the banking system.

This statement is partially true, because not all the states banned branches. However, those which allowed branches, had less failures than those which prohibited them, see Wheelock 1995, Mitchener 2000, 2004. This is consistent with the diversification hypothesis, but not necessarily undoubtedly.

According to Mark Carlson and Kris James Mitchener; Calomiris and Mason (2000) and Carlson 2004 found out, precisely the opposite conclusion: bank with branches were more likely to fail than those called unit banks. The reason lays on the strategy pursued: ones emphasized in diversification, while the others privileged the reduction of reserves (see: Branch Banking, Bank Competition and Financial Stability; Mark Carlson and Kris James Mitchener).It is also very interesting, Jim Powell’s opinion regarding the creation of the Tennessee Valley Authority.
Powell, wanders the validity of such a state depending Agency, Organization or institution, that acted, if I well interpret him, as convened to its principal authorities power status. The numbers are the least important arguments; accountants can explain you, how hide or inflate personal or Corporations income. The arguments that state employees are paid at the expense of taxpayers is the neo classical, argument, which fails to be reasoned by the heavy it is and falls by its own weight. Never to say, that something had to be to be done and will have to be done now; where competition is not perfect and abuses arising from private monopolies are worst in last instance than those arising from arbitrary state policies. Are not both, the same photograph in different scenarios of the same lack of solidarity with the poorest people in this inhuman world? That is not the point Mr. Powell, the problem goes beyond which system of production of goods and services is better. I do believe that the human beings are walking around a circle since Marx and Adam Smith or Adam Smith and Marx, immersed in byzantine discussions. I wonder whether the debate should not start on the reflection of the anti-values that had conquered us since the biblical story of Cain and Abel. Are we going to open our eyes and recognize that the first matter is ethical, as to whether the natural resources of our planet could supply the needs that its human race demands (of all and not only of a few privileged), leaving around two thirds of human beings on the margin of its own existence. .If we do not start a new debate, with a different benchmark than the proposed, I will have to say:
“SEE YOU LATER ALLIGATOR; SEE YOU IN A WHILE CROCODILE” Alerts "Us Banks rally, lead Wall Street higher"

US bank stocks rally, lead Wall Street higher:

For a full full coverage of the story, click HERE

GATA Dispatches " Russia wants new international reserve currency"

Russia wants new international reserve currency:

Submitted by cpowell on 08:22AM ET Monday, March 16, 2009. Section: Daily Dispatches Russia Proposes Macro-economic, Budget Standards to G-20From Russian News and Information AgencyRIA Novosti, MoscowMonday, March 16, 2009 -- Russia has proposed that compulsory international standards for macro-economic and budget policy be adopted in a new document to the G-20 addressing the global financial crisis, the Kremlin website said on Monday. "It is necessary to work out and adopt internationally recognized standards for macro-economic and budget policy, which are binding for the leading world economies, including the countries issuing reserve currencies," the Kremlin proposals read. The G-20 summit, involving advanced and emerging economies and international financial institutions, will be held in London on April 2 and will discuss the international community's efforts to overcome the ongoing global financial crisis. Russia is also proposing to the G-20 summit that measures be outlined that will address the current global financial crisis and the economic challenges, as well as building a new structure for the global financial system to help avoid future crisis. In particular, Russia put forward an idea for holding an international conference after the G-20 summit to adopt conventions on a new global financial structure. "At the upcoming London summit, we need to reach accord on the basic parameters of the world financial system. In this connection, we propose holding an international conference after the London summit to agree the basic parameters of a world financial architecture and international conventions for a new world financial order," the Russian document read. Russia has also proposed reviewing the role and the mandate of the International Monetary Fund (IMF) and boosting its financial resources. "We believe that the total financial resources available to the fund must be adequate for it to perform its creditor functions. We also consider it necessary to draw up new credit mechanisms making it possible to provide assistance to countries experiencing financial difficulty," Russia's proposal read. In addition, Russia has put forward a suggestion to the G20 summit which would see the IMF examining possibilities for creating a supra-national reserve currency, and also forcing national banks and international financial institutions to diversify their foreign currency reserves. "We believe it is necessary to consider the IMF's role in this process and also define the possibility and the need to adopt measures allowing for Special Drawing Rights (SDRs) to become an internationally recognized super-reserve currency," the Russian document said.
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Bear market rally...or serious reversal?

Adam Hewison gives us a great insight perspective about three major markets (Dow, Nasdaq and S& P) potential reversal on its present downtrend.
Using the Fibonacci Retracement method for these market indexes, he makes it clear, that the market had not made a major reversal..

We better watch Adam's technical approach, Click HERE Alerts: "Wall Street Opens Higher"

Wall Street opens higher, building on 4-day rally.

To read full story, click HERE Alerts " Bernanke says recession could end en 2009

Bernanke says recesssion could end in 2009:

To read full story please click HERE

GATA Dispatches: "James Turk: Extraordinary stress in the silver market"

James Turk: Extraordinary stress in the silver market

Submitted by cpowell on 06:13PM ET Sunday, March 15, 2009. Section: Daily Dispatches 9:05p ET Sunday, March 15, 2009Dear Friend of GATA and Gold (and Silver):GoldMoney founder James Turk, editor of the Freemarket Gold & Money Report and consultant to GATA, reports tonight that the silver market has been in backwardation for 38 days, which he believes is unprecedented and signifies enormous stress in the market -- a serious shortage.Backwardation is when material for immediate delivery is priced higher than material for later delivery, often because buyers doubt that the material can be delivered later. Turk writes: "Rumors abound in London in particular about the shorts being late in meeting deliveries. So the present backwardation is not surprising. It is in effect a confirmation of these rumors, but it also shows that promises to deliver are being increasingly doubted. In other words, people who hold physical silver are not willing to exchange their metal for some paper promise, nor should you. Hold real physical silver; do not accept any paper substitutes like certificates, pool accounts and ETFs."Turk's analysis is headlined "Extraordinary Stress in the Silver Market" and you can find it at the GoldMoney site here: POWELL, Secretary/TreasurerGold Anti-Trust Action Committee Inc.
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From The Desk Of Fernando Guzmán Cavero

 Dear Friends:  I would like to express hereby my apologies for couldn't fulfill to be with you with my "Daily Financial News Blog&...