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Apr 22, 2013

Casey Research's Bud Conrad: Gold crash likely deliberately engineered: GATA I THE GATA DISPATCH -April 22, 2013-.

Casey Research's Bud Conrad: Gold crash likely deliberately engineered

2p ET Monday, April 22, 2013

Bud Conrad, chief economist for Casey Research, writes today that the recent plunge in gold prices seems to have been engineered by a single large participant in the market.

Conrad writes: "We don't have the name of the entity that did this. However, the way the gold was sold all at once suggests that the goal was not to get the best price. An investor with a position of this size should have been smart enough to use sensible trading tactics, issuing much smaller sell orders over a period of time. This would avoid swamping the market; and some of the orders would be filled at higher prices and thus generate more profit. Placing a sell order big enough to affect the overall market price suggests that someone with powerful backing wanted to drive the price of gold down.

"Such an entity could have been a large speculator who already had a sizable short position and could gain by unloading some of its short position once the market momentum had driven the price even yet lower. Or it could be a central bank -- one that might be happy to have the gold price move lower, as it would provide cover for its printing of more new money.

"Of course, it could be some entity that owned long contracts and wanted to get out of the position all at once.

"We don't know, but this kind of activity, resulting in the biggest drop in 30 years, raises more than just suspicion when we consider how important the price of gold is to many markets around the globe.

"Can markets really be influenced by big players? Well, was the LIBOR rate accurately reported by huge banks? Have players ever tried to corner markets? The answer to all the above, unfortunately, is yes."

Conrad's commentary is headlined "Gold Crash 2013 -- Deliberately Engineered?" and it's posted at Casey Research here:

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

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Germany Fines Google Over Data Collection: Business I NYT Global Update -April 22, 2013-.

The New York Times International Herald Tribune
April 22, 2013
Compiled 20:45 GMT

Global Update


Bomb Suspect Is Charged and Could Face the Death Penalty

Dzhokhar Tsarnaev, the surviving suspect in the Boston bombings, was charged Monday with "using a weapon of mass destruction" that resulted in three deaths, and will be tried in civilian court.

Investigators Dig for Roots of Bomb Suspects' Radicalization

The authorities have grown increasingly certain that the two men suspected in the Boston Marathon bombings acted alone and were most likely planning to put a small arsenal to use in additional attacks.

Senators at Immigration Hearing Clash Over Boston Bombings

Senator Charles E. Schumer said fellow senators were pointing to the Boston attack as "an excuse for not doing a bill or delaying it many months or years."

Video: Pakistan's Courts Take On Musharraf

Pervez Musharraf, the once-powerful military ruler of Pakistan, is under house arrest and awaiting charges related to his time in power.

Op-Ed Columnist

A Blogger on Trial

Why the prosecution of Aleksei Navalny matters.

After Earthquake, Chinese Seek Out Private Charities for Their Donations

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No Bunker-Buster Bomb in Israel's U.S. Arms Deal

The Israelis said they would need such a weapon if they were to attack Iran's underground nuclear fuel enrichment site.

Taliban Abduct 11 Civilians From Downed Helicopter

Eight Turkish engineers and at least one Russian are among the hostages after surviving a forced landing in eastern Afghanistan, officials say.

Natural Gas Becomes a Fuel for the Long Haul

Natural gas is expected to gain popularity as a truck fuel for a number of reasons, including its low cost and demand from companies that ship goods.

S.&P. Urges Judge to Dismiss Civil Case

Standard & Poor's urged the dismissal of federal civil accusations that it inflated its credit ratings to win business during the boom in mortgage investments.

Germany Fines Google Over Data Collection

The 145,000-euro levy, the equivalent of about $189,000, was called woefully inadequate to assure compliance by a company with $10.7 billion in 2012 profit.

With Tablets, Businesses Ring Up at More Fanciful Cash Registers

With the advent of the tablet, the payment system is coming unmoored from the cash register bulwark. So far the change has occurred mostly in small businesses.

Sports Goggles Can Provide Vital Data and Distraction

Several companies produce sports eyewear that provides data, including speed and altitude, heart rate and time per mile, but critics say the devices create a distraction that could be dangerous.

A Comedy Show That Comes via a Hashtag

Comedy Central will use Twitter to host a comedy festival. The partnership between the two companies represents the evolving relationship between television and social media.

2 Variations on a German-Spanish Theme

Anything can happen when the best two teams in Germany face the best in Spain in the Champions League semifinals.

McDowell Wins RBC Heritage Playoff

Graeme McDowell defeated Webb Simpson on the first hole of a playoff Sunday to win the RBC Heritage on Hilton Head Island, S.C.

Boston's Win Means a Tie With Montreal

Boston beat the Florida Panthers, 3-0, and moved into a tie with idle Montreal for first place in the Northeast Division.
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Along the Route, Main Streets, Hills and a New Kind of Heartbreak

At least in part, the bombers' intent was to disrupt exactly what events like the Boston Marathon celebrate: the American given, as found along a 26.2-mile stretch of Massachusetts pavement.

Struggle at Home Intrudes on Chechen Haven in America

After the suspects in the Boston bombings were identified as being of Chechen origin, Chechens in the United States said the attack had left them feeling exposed and embarrassed.

Water Rights Tear at an Indian Reservation

The dispute at the Flathead Reservation centers on a proposed bill that would specify who is entitled to the water, and how much they can take from the reservoirs and ditches.
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Africa's Lesson in Self-Reliance

The saga of Mali shows that the nations of Africa bear primary responsibility for the continent's problems and their solutions.
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The Jobless Trap

We are creating a permanent class of unemployed Americans.

MarketWatch I Wall Street at Close Report -April 22, 2013-: Netflix leads S&P 500 higher; Apple anticipated

By Kate Gibson, MarketWatch
NEW YORK (MarketWatch) U.S. stocks climbed on Monday, with the S&P 500 index rebounding from its largest weekly hit in five months, as investors anticipated earnings from the technology sector and Caterpillar Inc. reported Chinese production to be increasing. 

“Last week was an indication that the liquidity, Fed-driven rally, where people were looking for yield in safe places, has started to run into resistance, which you would expect with the Dow approaching 15,000 and the S&P 500 1,600,” said Marc Chaikin, CEO at Chaikin Analytics LLC. 

On Monday, the Dow Jones Industrial Average DJIA +0.14%   rose 41 points and lost nearly 90 before finishing up 19.66 points, or 0.1%, at 14,567.17.
Microsoft Corp. MSFT -0.16%  led gains that included 18 of its 30 members, with shares of the software company rising 3.6% after CNBC reported activist investor ValueAct Capital purchased a $2 billion stake in the software company.
Caterpillar Inc.’s stock CAT +0.19%  rose 2.8% after the heavy-equipment maker projected Chinese output would expand in the second quarter and said it would restart a share repurchase for the first time in years. 

General Electric Co. GE -1.84% fell 1.8%. The stock was cut to neutral from overweight by J.P. Morgan & Chase after GE reported results Friday. 

The S&P 500 index SPX +0.47%  rose 7.25 points, or 0.5%, to 1,562.50, with energy, materials and technology the best performers and utilities and industrials the weakest among its 10 major sectors. 

Netflix Inc. NFLX +20.34%  surged 6.7%, making the stock the top gainer in the S&P 500. After the market close, the online-video provider reported first-quarter earnings above market expectations and said it added over 3 million streaming members during the quarter. 

Apple Inc. AAPL +0.01%  shares climbed 2.1% ahead of its quarterly release on Tuesday. 

“Tim Cook has a chance to pull a rabbit out of a hat by taking cash on the company’s balance sheet to buy back stock and increase Apple’s dividend,” Chaikin said of the consumer technology company’s chief executive officer. “Unless they do something major with their cash in tomorrow’s earnings announcement, we may see some high-volume liquidation of their stock,” he added. 

Shutterstock Enlarge Image
Existing-home sales declined in March, signaling a pause in the market.
The tech-laden Nasdaq Composite COMP +0.86%  rose 27.50 points, or 0.9%, to 3,233.55. 

For every three stocks falling more than four rose on the New York Stock Exchange, where nearly 621 million shares traded. Composite volume approached 3 billion. 

U.S. equities are coming off their worst weekly performance in months, with sentiment weakened by mixed earnings results and further signs of slowing U.S. and global growth. 

“As the housing market has been a lynch pin of this bull market, it’s another data point investors use to take profits. But I don’t think it’s fatal for the rally,” Chaikin said of data from the National Association of Realtors, which reported sales of previously owned homes fell 0.6% in March, while longer trends posted substantial gains

An index of national economic activity released Monday by the Chicago Federal Reserve suggested slowing activity in March, with growth close to the historical trend, as viewed through the three-month average. 

Kate Gibson is a reporter for MarketWatch, based in New York.

DealBook P.M. Edition -April 22, 2013-: S.&P. Urges Judge to Dismiss Civil Case Home |Business Day| Video The New York Times

Monday, April 22, 2013
S.&P. Urges Judge to Dismiss Civil Case Standard & Poor's urged the dismissal of federal civil accusations that it inflated its credit ratings to win business during the boom in mortgage investments.
For the latest updates, go to »

China Insider: Earthquake Response and Political Tensions Back in the Spotlight Bill Bishop says that the government's response to a deadly earthquake is yet another test of its ability to deliver the goods. The administration of President Xi takes more steps to tackle corruption.
Toronto's financial district.
White Collar Watch: Deductive Reasoning Can Be a Dangerous Thing Peter J. Henning says that two insider trading cases involving a Canadian investment banker who used his own deductions to speculate on a merger deal adds an interesting twist to statutes.
ABB to Buy Power-One for $1 Billion The Swiss engineering company ABB is offering stockholders of Power-One, an American renewable energy company, $6.35 a share, 57 percent above its closing share price on Friday.
Breakingviews: ABB's Moment in the Sun The acquisition of Power-One could prove to be a smart one, Quentin Webb contends. For one, ABB should also be able to reap cost savings and extra sales, by plugging Power-One into its global network.
Breakingviews: Taking a Page From Rhodes Peter Thal Larsen says that Stephen A. Schwarzman's move to contribute $100 million to start a scholarship program in China may not be entirely philanthropic, but there will still be many beneficiaries if it helps Western and Chinese elites understand each other better.
For the latest updates, go to »

Quotation of the Day
"S.&P.'s inability, together with the Federal Reserve, Treasury, and other market participants, to predict the extent of the most catastrophic meltdown since the Great Depression, reveals a lack of prescience, but not fraud."
Standard & Poor's brief in response to a civil suit that accused the agency of inflating its ratings to win business during the boom in mortgage investments.

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