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Jan 2, 2013

GATA | THE GATA DISPATCH (January 2, 2013).: India's Central Bank Cites CPM Group About Papaer Gold's Magical Properties.

India's central bank cites CPM Group about paper gold's magical properties

5:30p ET Wednesday, January 2, 2013

Calling attention today to a new report issued by a commission appointed by the Reserve Bank of India to study ways of tempering gold demand in India, Zero Hedge's pseudonymous Tyler Durden summarizes

"The real message here is between the lines: Just as the U.S. government's veiled threat to curb gun sales and/or to adjust the Second Amendment altogether resulted in precisely the opposite reaction to that intended -- that is, a record surge in purchases of all gun-related products -- so India's ever-more-aggressive attempts to curb gold as a monetary equivalent will simply force the population to hoard more gold, result in greater gold imports, using both legal and less-than-legal means, but most importantly lead to a surge in the gold black market as the government's more explicit intervention in the definition of what is and isn't money forces more Indians to seek the safety of the yellow metal."

Zero Hedge's excerpting of and commentary on the RBI report is here:

http://www.zerohedge.com/news/2013-01-02/dont-show-bernanke-chart-gold-l...

The RBI report is actually pretty realistic. While it encourages the usual paper gold schemes to enable gold to be thought to be in two or more places at once, it also recogizes that the main forces behind India's gold demand are the unreliability of the Indian government's own currency and the age-old inverse relationship between the price of gold and real interest rates, the relationship central banks long have tried to break with their interventions in the gold market.

"It is necessary to introduce savings schemes and instruments that can provide real returns," the RBI report says. "The dominant reason why a person may like to hold his savings in gold is to secure a hedge against inflation. Therefore, offering a real rate of return considering the high inflation rate prevailing, as an incentive on a financial instrument, would better address the issue of excessive clamor for gold imports. Therefore, products analogous to inflation-indexed bonds may be considered as alternatives."

GATA's researcher R.M. notes a telling detail on Page 58 of the RBI report -- its reliance on Jeff Christian's CPM Group Gold Yearbook 2011 for important data. "Interestingly in the financial markets," the RBI report says, footnoting CPM Group, "the traded amount of 'paper linked to gold' exceeds by far the actual supply of physical gold: The volume on the London Bullion Market Association (LBMA) OTC market and the major futures and options exchanges was over 92 times that of the underlying physical market."

That is, the LBMA has discovered mechanisms for making gold seem to be not just in two but 92 places at once.

Actually, as GATA's Adrian Douglas has noted, Christian advertised the magical properties of LBMA gold in his crucial testimony at the March 25, 2010, hearing of the U.S. Commodity Futures Trading Commission, where he remarked that the leverage in gold trading in London was even better than 92 to 1 -- around 100 to 1:
http://www.gata.org/node/8478

Will the Indian government resolve to try LBMA-style magic on the Indian people? Will Indians fall for it as most Westerners have?

GATA will continue to do what it can to discourage the spread of such gullibility.
The RBI report is posted at GATA's Internet site here:

http://www.gata.org/files/ReserveBankOfIndiaGoldReport-01-2013.pdf

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


NYT Global Update (January 2, 2013).: Dozens of Syrians Killed in Explosions Around Damascus

The New York Times International Herald Tribune
January 2, 2013
Compiled 21:45 GMT

Global Update

TOP NEWS

Dozens of Syrians Killed in Explosions Around Damascus

By ANNE BARNARD
Blasts at a gas station east of the capital and a suburb came as the United Nations said more than 60,000 people had been killed in Syria's 22-month conflict.

House G.O.P. Looks to a Round 2 Obama Hopes to Avoid

By MICHAEL D. SHEAR
President Obama said he would not be pulled into another debt negotiation, but Republicans are looking to reprise a 2011 clash.

House Ignores Storm Relief, to Fury of Local Republicans

By MARC SANTORA
Gov. Chris Christie of New Jersey angrily accused Congressional leaders in his party of "duplicity" after the House refused to take up a federal aid package for states that suffered damage from Hurricane Sandy.
World

IHT Rendezvous

Indian Women Need a Political Party

By MANU JOSEPH
Only a political party whose fate is tied to how women perceive it can begin to influence the system in a deep way.
Opinion

Op-Ed Contributor

The Unspeakable Truth About Rape in India

By SONIA FALEIRO
The volume of protests in the case of a gang-rape victim in Delhi show that change is possible.
WORLD

Laos Could Bear Cost of Chinese Railroad

By JANE PERLEZ and BREE FENG
China wants a railroad linking it to Thailand and on to the Bay of Bengal in Myanmar, but some international groups warn that it may put a big burden on Laos.

With U.S. Set to Leave Afghanistan, Echoes of 1989

By THOM SHANKER
As the United States prepares to withdraw from an unpopular war in Afghanistan, it faces challenges similar to what the country's last occupier, the Soviet Union, had experienced.

Central African Republic Rebels Halt Advance

By REUTERS
The rebels said they had halted their advance on the capital of Bangui on Wednesday and would start peace talks, averting a clash with regionally-backed troops.
BUSINESS

Battered by Crises, Toyota Declares a Rebirth

By HIROKO TABUCHI and BILL VLASIC
Ambitious changes to the automaker's lineup and resolution of recalls and supply chain issues signal a recovery, the company says.

Stocks Jump 2.5% on Fiscal Deal

By NATHANIEL POPPER
Wall Street ended sharply higher, following markets in Europe and Asia, but analysts warned that relief was likely to be short-lived.
DealBook

Avis to Buy Zipcar for $500 Million

By DEALBOOK
The deal represents a new direction for Avis in the fiercely competitive car rental market. Rivals Hertz Global and Enterprise each have hourly rental operations that compete with Zipcar.
TECHNOLOGY

Tech Giants Brace for More Scrutiny From Regulators

By SOMINI SENGUPTA
Lobbying in the nation's capital and overseas is likely to increase as governments worldwide revisit legislation on issues like consumer privacy and online security.

New Frontier for Topics in Science: Social Media

By MARY ANN GIORDANO
In surprising numbers, people posted, viewed and searched for science-related topics in 2012, embracing the ability to communicate with others about global subjects in real time.

Outmaneuvered at Their Own Game, Antivirus Makers Struggle to Adapt

By NICOLE PERLROTH
Consumers and businesses spend billions of dollars a year on antivirus software, but these programs rarely block freshly minted strains, because the malware creators move too fast.
SPORTS

N.H.L. Responds to Union's Proposal

By JEFF Z. KLEIN
After a long day of talks on Tuesday, the players' association said it would study the league's offer, with more negotiations expected on Wednesday.

The Great Diving Debate

By ROB HUGHES
The new calendar year opened without Gareth Bale in the lineup for Tottenham Hotspur. The winger was banned and, in effect, branded a cheat.
Straight Sets

Court Comes Apart at Ferrer's Feet

By BEN ROTHENBERG
Top-seed David Ferrer dug himself a hole, literally, during the first round of the Qatar ExxonMobil Open in Doha, but still pulled out the victory to advance.
U.S. NEWS

From Congress to Halls of State, in New Hampshire, Women Rule

By KATHARINE Q. SEELYE
New Hampshire, which again chose a woman to be governor, will also become the first state in history to have an all-female delegation in Washington.

Rig Runs Aground in Alaska, Reviving Fears About Arctic Drilling

By JOHN M. BRODER and HENRY FOUNTAIN
There are no signs of spilled fuel, but that remains a concern as long as the Shell Oil vessel is stuck; the Coast Guard hopes to get salvage experts aboard to assess the damage.

10 Feet Below Waters Off Midway Atoll, a Famous Flying Dud

By ERIK ECKHOLM
The discovery of the rare wreckage of a Brewster Buffalo in the Midway lagoon has rekindled interest in the aircraft and a record that seems as colorful as tragic.
OPINION
Op-Ed Contributors

The Next Chernobyl?

By KHOSROW B. SEMNANI and GARY M. SANDQUIST
The Bushehr nuclear power plant could turn out to be the most dangerous piece of Iran's nuclear puzzle.
Opinionator

Fixing Our Food Problem

By MARK BITTMAN
Let's resolve to develop a clear plan for improving our food system and fight for it. Patiently.
Editorial

Haiti's Long Road

Three years after the earthquake, recovery is distant and progress slow.

DealBook P.M. Edition (January 2, 2013).: Investigative Firm Started by Krolls Acquires Private Watchdog



Wednesday, January 2, 2013
TOP STORY
Investigative Firm Started by Krolls Acquires Private Watchdog K2 Intelligence, the investigative business started by Jules Kroll and Jeremy Kroll, has acquired Thacher Associates,a leading player in the niche business of overseeing large-scale real estate development projects on behalf of governments and developers to ferret out corruption in the construction process. The deal highlights the growing and lucrative business of internal investigations and corporate monitoring.
  • DEALBOOK »
  •  
  • DEALBOOK HIGHLIGHTS
    Avis to Buy Zipcar for $500 Million The deal represents a new direction for Avis in the fiercely competitive car rental market. Rivals Hertz Global and Enterprise each have hourly rental operations that compete with Zipcar.
    Long After the I.P.O., Deals at a Discount A number of recent deals offer a variation on the takeunder theme: takeovers for less than the initial public offering price. Avis, for example, is buying Zipcar at a 32 percent discount from the I.P.O.
    A Faster Lane to Profitability A $500 million sale to Avis Budget will allow the car-sharing company Zipcar to increase its margins by tapping into Avis's underused fleet, writes Antony Currie of Reuters Breakingviews.
    ArcelorMittal to Sell Stake in Iron Ore Unit for $1.1 Billion The giant steel maker has agreed to sell a 15 percent stake in a Canadian iron ore unit to a consortium of Asian investors that includes Posco of South Korea.
    Buzz Tracker
    Analyst Sees Possible Bank Unit Sales What could banks be shopping this year? Mike Mayo, an analyst with CLSA, says Bank of America's brokerage business, JPMorgan Chase's asset-management unit and Citigroup's Latin American operations are good candidates to be sold to bolster their banks' stock prices, Bloomberg News reports.
    Abbott Completes Spinoff Abbott has completed the spinoff of its research-based pharmaceuticals business, AbbVie, which begins trading on the New York Stock Exchange on Wednesday under the symbol ABBV. AbbVie has $18 billion in annual revenue
    LOOKING AHEAD
    Mathew Martoma, the former SAC Capital employee. is scheduled to be arraigned in Federal District Court in Manhattan on insider trading charges. On the economic calendar, the big retail chains will report sales for December. And the Federal Reserve will release the minutes of its December policy meeting. 
  •  
  • Quotation of the Day
    "What I've come to realize is that car sharing, particularly on the scale that Zipcar has achieved and will achieve, is complementary to our traditional business. "
    Ronald L. Nelson, Avis's chief executive, in a conference call on the Zipcar deal.
      

MarketWatch | Wall Street at Close Report (January 2, 2013).: U.S. stock indexes start 2013 with big rally

By Kate Gibson, MarketWatch 

NEW YORK (MarketWatch)U.S. stocks surged on Wednesday, with the Dow industrials notching their largest first-session-of-the-year-point rise ever, as Wall Street welcomed an 11th-hour deal to avoid steep spending cuts and tax increases and pondered deficit moves still ahead. 

“The next focus will certainly be what happens in the next two months in terms of addressing spending and the effect of whatever we do on GDP growth rates,” Art Hogan, a market strategist at Lazard Capital Markets LLC, said of the impact of reduced government spending on the economy. 

The measure approved by the House of Representatives just after 11 p.m. Tuesday undid tax hikes for all but one to two percent of U.S. households, with the bipartisan vote ending a lengthy standoff over how to avoid more than $600 billion in tax hikes and spending cuts viewed as likely to push the economy back into recession. 

Obama praises fiscal-cliff deal President Barack Obama said he would sign the bill sent to him by Congress to avert the U.S. fiscal cliff. Watch Obama's full statement, in which he praises the late-night deal. Photo: Getty Images. Yet the deal was not the grand bargain on cutting the nation’s red ink that lawmakers intended when they came up with tax-and-spending deadlines during the past few years. 

The measure bypassed much of the immediate trauma poised by the fiscal cliff and marked only one piece towards cutting the federal deficit, with a February battle looming over increasing the $16.4 trillion debt ceiling. 

“We can celebrate the fact that we avoided catastrophe, but we’ll certainly focus on the making of spending cuts to get the rest of the fiscal cliff averted. Does that mean we ignore economic data and the M&A going on? Probably,” Hogan added of upcoming economic reports that include the nonfarm payrolls report for December due on Friday. Read: What’s the chance the relief rally will last?
“As we head into the next couple of weeks, we’ll get to figure out if we can make spending cuts with a scalpel or a sledge hammer,” said Hogan. Separate drama over deficit spending awaits. 
 
The Dow Jones Industrial Average DJIA +2.35%  rose 308.41 points, or 2.4%, at 13,412.55, with Hewlett-Packard Co. HPQ -0.13%  and Caterpillar Inc. CAT +4.34%  leading gains that included all of its 30 components. Read about Wednesday’s biggest stock movers. 
 
The S&P 500 index SPX +2.54%  climbed 36.23 points, or 2.5%, to 1,462.42, with telecommunications the best performing of its 10 major industry sectors, all of which advanced.
Wednesday’s session also marked the first time the S&P 500 opened five years in a row with a gain, with Howard Silverblatt, senior index analyst at S&P Indices noting that “the market moves in the same direction as its opening day 50% of the time.” 

United States Steel Corp. X +8.55%  climbed 8.6% after Credit Suisse upgraded it to a buy rating.
Zipcar Inc. ZIP +47.82%   jumped 48% after Avis Budget Group Inc. CAR +4.79%  said it would acquire the company.
The Nasdaq Composite COMP +3.07%  added 92.75 points, or 3.1%, to 3,112.26. Shares of iPhone maker Apple Inc. AAPL -0.01%  rose 3.2%. Read: Apple sentiment improves with new year.
For every stock that fell more than 10 gained on the New York Stock Exchange, where 859 million shares traded.
Composite volume neared 4.2 billion.
Equities remained in party mode after the Commerce Department reported U.S. construction spending fell 0.3% in November. Separately, the Institute for Supply Management said its gauge of manufacturing activity expanded in December, to 50.7% from 49.5% the month before.
As equities rallied U.S. Treasury prices fell, with the yield on the 10-year note 10_YEAR -0.11%  used in determining mortgage rates and other consumer loans rising to 1.84%.
As the market kicks off the new year with a rally, Mark Hulbert has evaluated the significance of January for stock investors. Read his column here on how different January is from other months.
Hulbert also has another column looking at why the smallest-cap stocks tend to be favored in January. Read that column here.
And for investors wondering whether it’s best to trade or not to trade, here’s a good analysis by Michael Kahn. Read: Don’t be afraid to trade.
Kate Gibson is a reporter for MarketWatch, based in New York.



Seven things you need to know about this tax deal: The White House

The White House, Washington


Working with the President, Democratic and Republican lawmakers this week came together to approve a bill that prevents a tax hike on the middle class that could have thrown the economy back into recession. President Obama will soon sign this agreement into law.

Here's what you need to know:


Graphic: Seven things you need to know about this tax deal

BIV Today's Business News (January 2, 2012).: BC Hydro fails to meet smart meter installation target

 

 

 

Politics and Policy

BC Hydro fails to meet smart meter installation target

BC Hydro ended 2012 having failed to complete the installation of 1.87 million smart meters as required by ... READ MORE

Technology

 

Business as usual for Peer 1 employees during sale: company

It will be business as usual for the Vancouver employees of Peer 1 Network Enterprises, Inc. (TSX:PIX), as the data centre company changes ... READ MORE

Economy and Finance

 

Paying down debt remains Canadians’ financial priority

For the third year in a row, Canadians have identified debt repayment as their top... READ MORE

More News...

   

Surrey tenants want millionaire landlord to turn on the heat

B.C. investors less likely than average to hold foreign investments: Scotiabank

B.C. small business confidence decreases in December, remains above average



Politics and Policy

BC Hydro fails to meet smart meter installation target

BC Hydro ended 2012 having failed to complete the installation of 1.87 million smart meters as required by ... READ MORE

Technology

 

Business as usual for Peer 1 employees during sale: company

It will be business as usual for the Vancouver employees of Peer 1 Network Enterprises, Inc. (TSX:PIX), as the data centre company changes ... READ MORE

Economy and Finance

 

Paying down debt remains Canadians’ financial priority

For the third year in a row, Canadians have identified debt repayment as their top... READ MORE

More News...

   

Surrey tenants want millionaire landlord to turn on the heat

B.C. investors less likely than average to hold foreign investments: Scotiabank

B.C. small business confidence decreases in December, remains above average

NYT Opinion Today (January 2, 2013).: The Fiscal Riff

The New York Times

January 2, 2013

Opinion Today

The Fiscal Riff
Opinionator | The Conversation

The Fiscal Riff

Brooks and Collins on some other cliffs we might fall off and the overlooked virtues of constitutional monarchy.
Fixing Our Food Problem
Opinionator

Fixing Our Food Problem

Let's resolve to develop a clear plan for improving our food system and fight for it. Patiently.
Opinionator | Draft

Make Me Worry You're Not O.K.

In the humiliation essay, my signature assignment, you can't remain dignified and ace it.
Op-Ed Contributor

At the E.R., Bearing Witness to Gun Violence

We doctors are at the front lines of the scourge of gun violence, a threat to public health like smoking.
Op-Ed Contributor

Who Pays for the Right to Bear Arms?

Any effort to address gun violence must focus first on the inner city.
The Power of the Rouge Pot
Room for Debate

The Power of the Rouge Pot

Does makeup help or hinder a woman's self-esteem?
The Grove of Gladness
Opinionator | Disunion

The Grove of Gladness

How the former slaves along the South Carolina coast celebrated Emancipation Day, 1863.
Rape, Lies and Videotapes
Latitude

Rape, Lies and Videotapes

The rape of an elderly woman in Tel Aviv revives Israelis' fears about African immigrants - just in time for the general election.
ADVERTISEMENT
Editorial

America's Retreat From the Death Penalty

More lawmakers and voters are facing up to the costs and mistakes of capital cases.
Editorial

Haiti's Long Road

Three years after the earthquake, recovery is distant and progress slow.
Editorial | The City Life

Gleaners of Cans, Working Overtime

A whole industry of "canners" walk the sidewalks in the wee hours of the morning collecting those castoff empties that can be redeemed for 5 cents each.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
The Cliff is Dead. Long Live the Cliff.
Taking Note

The Cliff is Dead. Long Live the Cliff.

The last-minute compromise set the stage for yet more fighting in Washington.
Latvia, Once Again
The Conscience of a Liberal

Latvia, Once Again

Still not a wonderful success story.
Liberalism's $400,000 Problem
Evaluations

Liberalism's $400,000 Problem

What the fiscal cliff bargain means for the long-term liberal project.
Advice from Cervantes that Suits 2013 and Beyond: Plunge In
Dot Earth Blog

Advice from Cervantes that Suits 2013 and Beyond: Plunge In

A 405-year-old thought from Cervantes applies in a turbulent era.