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May 16, 2013

Fundamentals always win eventually -- but who will define eventually: GATA I THE GATA DSPATCH May 16, 2013.

Fundamentals always win eventually -- but who will define eventually?

10:41p ET Thursday, May 16, 2013

Market analyst John Rubino remarks tonight on the futility of technical analysis in a manipulated market like gold.

Rubino writes: "When big players with regulatory immunity can move an asset's price -- and can see resistance/support levels and moving averages just as clearly as anyone else -- smaller traders don't stand a chance."

"Fundamentals always win eventually," he adds, and maybe they do, but the question lately on the minds of gold investors may be whether fundamentals always win within the course of a normal human lifespan. As long as many gold investors -- including some very big ones -- buy paper gold, which can be created to infinity, instead of real metal; as long as the gold mining industry is so oblivious to the rigging of the price of its product and does nothing to defend itself; and as long as mainstream financial news organizations have no interest in committing actual journalism, central banks won't have to worry about any threat to their totalitarian power.

Those are the variables on which GATA continues to work.

Rubino's commentary is headlined "Golden Bullseye" and it's posted at 24hGold here:

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

MarketWatch I Asian Markets Latest Reports at the Time


Japanese blue-chip stocks fall, extending losses into a second day after sharp gains earlier in the week, though Chinese and Australian shares inch higher.
 Japan stocks slip, but Australia, China rise

LOS ANGELES (MarketWatch) -- Stocks in Australia rose in early trading Friday as financial issues posted modest gains and as miners were higher following recent weakness in the sector. The S&P/ASX 200 was up 0.1% at 5,182, though the benchmark was still on track for its first weekly loss in four weeks. Lenders Commonwealth Bank of Australia and Australia & New Zealand Banking Group each added 0.8%, while metals producer BHP Billiton Ltd. rose 1.6% and Rio Tinto Ltd. advanced 0.6%. But shares of gold producer Newcrest Mining Ltd. shed 2.5%, looking at their sixth consecutive loss. Meanwhile, WorleyParsons Ltd. shares slid 14% after a yearly profit warning from the engineering company. 8:37 p.m. Today
 Australia stocks higher, but face weekly loss 
  LOS ANGELES (MarketWatch) -- Japanese stocks extended their losses in early Friday action, with a weak overnight performance on the U.S. markets helping send the Nikkei Stock Average down 0.9% to 14,909.21, adding to Thursday's 0.4% retreat that followed a major jump of 2.3% on Wednesday. The broader Topix pulled back 0.5%. Tech-sector blue chips were among the leading decliners, with Advantest Corp. down 2.9%, Pioneer Corp. tumbling 4.9%, and Sony Corp. dropping 3% after NPD Group data late Thursday showed April U.S. videogame-console sales plunging 42% from year-earlier levels as consumers awaited new devices from Sony and rivals Microsoft Corp. and Nintendo Co. . Shares of Nintendo traded 1.9% lower. Other significant losses for blue-chip issues included a 2% drop for broker Nomura Holdings Inc. , a 4% dive for J. Front Retailing Co. , and a 4.1% drubbing for recently volatile shares of Sharp Corp. . Among the advancers, Hitachi Ltd. rose 1.1% after the conglomerate tipped earnings for the 2015-16 fiscal year that bested analyst expectations. Utilities also traded higher, with Tokyo Electric Power Co. , commonly known as Tepco, rallying 3.1%. Tepco shares have now tripled in value since the start of the year, though they remain well below their levels before the 2011 earthquake and tsunami caused a major disaster at the company's Fukushima Daiichi nuclear power plant. 8:22 p.m. Today
 Japan stocks retreat after Wall Street weakness

Libya in Mind, Obama Urges Better Security at Embassies: The New York Times Global Update May 16, 2013.

The New York Times International Herald Tribune
May 16, 2013
Compiled 20:45 GMT

Global Update


Libya in Mind, Obama Urges Better Security at Embassies

President Obama made an appeal for new financing on Thursday amid ongoing criticism from Republicans over the handling of last year's attack in Benghazi.

E.U. Considers Emission Fines on Chinese and Indian Airlines

Ten carriers are accused of not providing required emissions data and not participating in a system that entitles airlines to emit greenhouse gases in European airspace.

Attack on U.S. Military Vehicles Kills at Least 16 in Kabul

Six Americans are among the dead after a car packed with explosives shook the relative calm that has prevailed for months in the Afghan capital.
Fashion & Style

Slide Show: Grading on the Curve

Pregnant women add to the conversation about who is wearing what, and how, on the red carpet.


The Law Against the Judges

It's Egypt's entire political class that has failed to push for transitional justice, not its judges.
Mexico City Journal

Murder Reveals The Still-Dark Side Of a Gentrifying Town

The beating death of Malcolm Shabazz, the grandson of Malcolm X, was in a district that has not benefited from the city's recent improvements.

Mandela Fades Amid Battles Over Who Will Claim Legacy

As Nelson Mandela, 94, grows more fragile, the struggle in South Africa over how he will be remembered, and what he has to pass on, has become increasingly acrimonious.

In France, a Beleaguered President Defends His Tenure

As his country slid back into a recession, President François Hollande of France promised new measures to lower unemployment and coordinate economic policies in the euro zone.
Bits Blog

New Apps Arrive on Google Glass

Google announced seven new apps for its Internet-connected glasses, including ones from Facebook, Twitter, Tumblr, CNN, Elle and Evernote.

Pills Tracked From Doctor to Patient to Aid Drug Marketing

Vast databases of patient and doctor information being used by drug makers let them know which medications a physician is prescribing and how that compares to colleagues.

Investors and Religious Groups Press Retailers on Safety

A jointly signed letter urges big American retailers to unite with a coalition of mainly European chains to work toward workplace safety in Bangladesh.
Bits Blog

Google Buys a Quantum Computer

Google and NASA are forming a joint research lab to look at quantum computing for things like facial recognition and understanding of disease.

Amtrak Is Introducing Acela-Like Wi-Fi

The railroad said it had upgraded its cellular-based Wi-Fi offering using broadband technologies that will improve speed and reliability.

Cisco Profit Rises 14.5%

After moving into technologies like online video and cloud computing, Cisco Systems posted quarterly earnings that beat expectations.

Chelsea Proves You Don't Need Stability to Win

The team is due to change its coach yet again, but that didn't prevent it from winning the Europa League final.

Rugby Faces Tricky Task in Trying to Lengthen Off-Season

Players say they need more time to recover from a long season, but coming up with a schedule that doesn't shortchange one competition is not easy.

Yankee Stadium Will Host Two N.H.L. Games

The games, part of an outdoor stadium series, will feature the Rangers and the Devils on Jan. 26, and the Rangers and the Islanders on Jan. 29.

Baffling Rise in Suicides Plagues the U.S. Military

Of the crises facing American troops today, suicide ranks among the most emotionally wrenching - and confounding.

At Least 6 Killed in North Texas Tornado

Officials said they were no longer searching for survivors after a mile-wide tornado touched down in the town of Granbury.
Op-Ed Contributor

Assad's Spillover Strategy

Spreading violence into Turkey and other countries is a key part of the Assad regime's strategy to keep its neighbors from intervening in Syria's civil war.
Op-Ed Guest Columnist

The Migrant Cash Lifeline

First-generation migrants sent a staggering amount of dollars to their families in developing countries. Is it a Band-Aid, or can it help build a foundation for economic development?
Op-Ed Contributor

When to Talk to Monsters

Assad's a butcher, but a diplomatic deal is the best hope for Syria.

Regulators Overhaul Derivatives Market, but With a Caveat: DealBook P.M. Edition May 16, 2013.

Thursday, May 16, 2013
Regulators Overhaul Derivatives Market, but With a Caveat The Commodity Futures Trading Commission voted in favor of new rules to shine a light on risky Wall Street trading, but the commissioners softened a crucial aspect of the plan in the face of lobbying pressure from banks.

Vikram Pandit acrimoniously stepped down as chief executive of Citigroup last year.
Pandit Rejoins Banking With Stake in Indian Firm Vikram Pandit, the former Citigroup chief executive, and his business partner Hari Aiyar have bought a three percent stake in the Indian firm JM Financial.
JPMorgan Appoints Co-Heads of Global M.&A. Hernan Cristerna and Chris Ventresca were named co-heads of the global mergers and acquisitions practice, in newly created roles at the bank.
Standard Deduction: A Dickensian Delay at the I.R.S. Victor Fleischer says that the main story at the Internal Revenue Service is one of incompetence, not conspiracy, when it comes to the review of applications from groups seeking tax-exempt status.
Berkshire's Rating Is Cut After S.&P. Revises Its Methodology Standard & Poor's cut the credit rating of Berkshire Hathaway one notch on Thursday after changing its methodology for evaluating insurers, but it affirmed the company's overall financial strength.
Hess and Elliott Settle Fight Over Makeup of Board The activist hedge fund Elliott Management will back Hess's slate of five nominees, all of whom are new and independent of management, and Hess will seat three of Elliott's candidates shortly after the annual meeting.
Royal Bank of Scotland to Cut 1,400 Jobs The Royal Bank of Scotland said it would eliminate an additional 1,400 jobs as it continued to reduce operations to bolster profitability.
Judge Rules Against British Activists in Goldman Tax Case A deal between Goldman Sachs and Britain's tax authorities about outstanding payments in 2010 was arranged clumsily but did not break any laws, a judge ruled on Thursday.
Tony Hayward, the former chief of BP, at a House panel in 2010.
Former BP Chief Emerges as Glencore Interim Chairman Tony Hayward was appointed interim chairman of Glencore Xstrata on Thursday, almost three years after he resigned as chief executive of BP after a huge oil spill in the Gulf of Mexico.
A proposal would change the way companies account for leases, like those for aircraft, on their balance sheets.
Significant Changes Proposed in Lease Accounting Rule makers around the world on Thursday issued a new proposal on accounting for leases that would require many companies to report vastly larger amounts of assets and liabilities than they do now.
Economic Reports Information to be released on Friday includes the University of Michigan's preliminary consumer sentiment index for May, and leading indicators for April.

Quotation of the Day
"I've never been a more sort of reluctant and reticent regulator than today on these rules."
Bart Chilton of the Commodity Futures Trading Commission on voting to adopt a softened overhaul of the derivatives market.

Lesson Plans Commencement 2013 | Things to Watch, Read, Teach and Do Commencement 2013 | Things to Watch, Read, Teach and Do ; by Katherine Schulten: The New York Times The Learning Network May 16, 2013.

The New York Times

May 16, 2013

The Learning Network

Lesson Plans

Commencement 2013 | Things to Watch, Read, Teach and Do

Commencement 2013 | Things to Watch, Read, Teach and Do

A viral video and three quick teaching ideas, along with links to Times resources on commencement addresses from 1901 to 2013.
Guest Lesson | Gearing Up for a Summer of Making, Connecting and Learning by Doing

Guest Lesson | Gearing Up for a Summer of Making, Connecting and Learning by Doing

Ideas for teachers and students about how to become a part of the global maker movement, via a new campaign called the Summer of Making and Connecting.
Corporate Irresponsibility? Fashion's Hidden Cost in Bangladesh's Garment Industry

Corporate Irresponsibility? Fashion's Hidden Cost in Bangladesh's Garment Industry

In this lesson students imagine they are executives at major American clothing retailers who are researching and negotiating what policy changes, if any, their company should take in light of the recent human disasters in Bangladeshi garment factories.
What's Going On in This Picture? | May 13, 2013

What's Going On in This Picture? | May 13, 2013

Every Monday we publish a New York Times photo without a caption, headline or other information about its origins. Join the conversation by posting about what you see, and why.
Common Core Practice | Hit Films, Glowing Trees and an Underwater Menagerie

Common Core Practice | Hit Films, Glowing Trees and an Underwater Menagerie

Three recent STEM-related articles that inspired simple student projects exploring video design and gaming.

Student Opinion Questions

How Important Is Driving to You?

How Important Is Driving to You?

Do you see yourself as someone who will drive a car every day as you get older - to go to work, go shopping and get around town? Or, do you imagine yourself walking, bicycling and using public transportation?
When Has a Sports Team Most Disappointed You?

When Has a Sports Team Most Disappointed You?

What teams do you follow or play for? How loyal a fan are you? What bitter defeats have they suffered, and how did you react? When have you been most disappointed by a team? Why?
Do You Have Helicopter Parents?

Do You Have Helicopter Parents?

How involved in your life are your parents? How much do they step in to "help" you with your schoolwork, social life, college applications, hobbies or sports, or anything else? How often do they try to solve your problems? Do you like having their help, or do you find it burdensome?
Should Children Be Allowed to Wear Whatever They Want?

Should Children Be Allowed to Wear Whatever They Want?

How much influence should parents have in determining what clothes their children wear?
The Learning Network Blog

Should What You Say on Facebook Be Grounds for Getting Fired?

Should comments among friends on Facebook be considered private? Or, should we expect that anything said on social media might be viewed by the world?

CMI Gold and Silver Daily Spot Prices at Close in New York May 16, 2013.

CMI Gold and Silver Spot Prices
Spot Prices as of close of trading in New York
Thursday, May 16, 2013
Updated 5/16/2013 Today Change Week Ago Month Ago Year Ago
GOLD $1,389.10 -$9.30 $1,469.90 $1,389.30 $1,536.30
SILVER $22.73 -$0.01 $23.98 $23.81 $27.21
PLATINUM $1,486.60 -$7.20 $1,519.10 $1,456.00 $1,435.90
PALLADIUM $744.10 +$13.80 $717.10 $680.30 $597.00

MarketWatch I Wall Street at Close Report May 16, 2013: U.S. stocks halt record run on Fed talk

By Kate Gibson, MarketWatch 
NEW YORK (MarketWatch)U.S. stocks declined Thursday, halting the S&P 500’s four-session winning streak, after a Federal Reserve official said the central bank could begin tamping back on monetary easing as soon as this summer.
San Francisco Fed President John Williams.
Equities fell to session lows as Bank of San Francisco President John Williams said Fed bond purchases could be reduced if the economy continues to improve. 

Ahead of the Williams speech, delivered in Portland, Ore., Dallas Federal Reserve President Richard Fisher said the Fed should cut its purchases of mortgage-backed securities, with the goal of eliminating them entirely as the year continues. 

“Today we had a whole series of negative reports and a couple of Fed officials out there basically commenting that maybe it’s time to start easing up on the whole quantitative easing program,” said Dave Heidel, regional investment manager for the Private Client Reserve of U.S. Bank Wealth Management. 

The bull market, now in its fifth year, has been fueled by corporate earnings that have exceeded expectations along with monetary easing by the U.S. Fed as well as other central banks around the globe. 

“A constant for many quarters now is the fact that central banks of the world are pumping so much liquidity, and some of it has found its way into stocks,” Heidel said. 

Cisco Systems Inc. CSCO -0.07%  rallied nearly 13%, helping limit the damage on the Dow Jones Industrial Average DJIA -0.28%  the Nasdaq Composite COMP -0.18% and the S&P 500 SPX -0.50% . The network-equipment manufacturer late Wednesday reported a better-than-estimated quarterly profit. See: Cisco sparks rally in networking shares; AMD drops 
Wal-Mart Stores Inc. WMT -1.70%  was among the Dow losers after the discount-retailing giant reported quarterly earnings beneath Wall Street’s expectations and offered a disappointing forecast for the second quarter. 

After rising as much as 26.8 points, and losing as much as 59, the Dow finished at 15,233.22, off 42.47 points. 

The S&P 500 index fell 8.31 points to 1,650.47, with consumer discretionary the worst and technology the best performing among its 10 major sectors. 

The Nasdaq Composite COMP -0.18%  climbed less than half a point to 3,471.98.
For every two stocks that rose, three fell on the New York Stock Exchange, where 684 million shares traded. Composite volume approached 3.5 billion. 

On the New York Mercantile Exchange, gold futures GCM3 -0.89% fell for a sixth session, down $9.30 to close at $1,386.90 an ounce, its fourth lowest settlement value this year. Oil costs increased, with crude futures CLM3 +0.88%  up 86 cents at $95.16 a barrel. 

The U.S. dollar DXY -0.02%  declined against other global currencies, including the euro EURUSD -0.02% . Treasury prices gained, pushing the yield on the benchmark 10-year note 10_YEAR -2.94% to 1.881%. 

Thursday’s session started off with Wall Street pausing after notching record highs the previous day, as data had jobless claims hitting a six-week high and housing starts falling sharply. 

Thursday’s economic reports “tell us a similar story that data have been saying the past several months — that we have sluggish growth. But the data certainly don’t indicate a return to recessionary conditions,” said Brad Sorensen, director of market analysis at Charles Schwab. 

The tepid economy is “a sweet spot for the market, as it keeps the Fed in their easy stance, but it doesn’t indicate severe conditions,” he added, referring to the central bank’s continuing bond purchases to help stimulate the U.S. economy. 

The government reported jobless claims climbed by 32,000 to 360,000 last week, more than economists had projected. Another report had the cost of living in April declining for a second month, with the 0.4% drop in the consumer-price index coming as energy costs fell. 

At the same time, figures released by the Commerce Department had housing starts slipping 16.5% to their lowest level since November. 

Also, the Philadelphia Federal Reserve reported that manufacturing activity in the region took a turn for the worse in May. 

On Wednesday, the Dow industrials and S&P 500 index rose to all-time closing highs on hopes for continuing central-bank stimulus. 

“Regardless of fundamental news, I would be very wary of trying to stand in the way of central banks and what they are trying to do with risk assets,” said Heidel. 

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

The Conscience of a Liberal The Smith/Klein/Kalecki Theory of Austerity; by Paul Krugman: The New York Times Opinion Today May 16, 2013.

The New York Times

May 16, 2013

Opinion Today

Behind the I.R.S. Mess: A Campaign-Finance Scandal

Behind the I.R.S. Mess: A Campaign-Finance Scandal

The behavior of some individuals at the tax agency is inexcusable. What it reveals about our election laws is worse.
Op-Ed Contributors

The Real I.R.S. Scandal

Why does the I.R.S. give political groups tax-exempt status at all?
Targeting Texas

Targeting Texas

The state's emergence as a prime target for partisan realignment has Ted Cruz and other Republican politicians sounding alarms.
Driver's Seat

Driver's Seat

The pendulum on the immigration debate has begun to swing away from hardliners like Joe Arpaio, sheriff of Maricopa County, Ariz., as more and more states allow their undocumented workers to obtain driver's licenses.
Op-Ed Contributor

When to Talk to Monsters

Assad's a butcher, but a diplomatic deal is the best hope for Syria.
Should 501(c)(4)'s Be Eliminated?
Room for Debate

Should 501(c)(4)'s Be Eliminated?

The I.R.S. is in the hot seat for scrutinizing conservative groups applying for tax exemption. But do all 501(c)(4)'s need a second look?
Op-Ed Contributors

Don't Expand the War on Terror

Congress should not grant the president the power to go after any group he deems a terrorist organization.
The Music Teacher's Raid
Opinionator | Disunion

The Music Teacher's Raid

The remarkable story of an unlikely cavalry campaign through Mississippi.
The Law Against the Judges

The Law Against the Judges

It's Egypt's entire political class that has failed to push for transitional justice, not its judges.


Take Politics Away From the I.R.S.

If social welfare groups had to disclose their political donors, the confusion and abuse would end.

After Attacking The A.P., a Peace Offering

The White House now wants a law to protect journalists from government intrusion.

Pension Predators

New York State was right to order an investigation of firms that advertise payments as advances, not high-cost loans, to pensioners.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
The Man Who Cried 'Filibuster Reform'
Taking Note

The Man Who Cried 'Filibuster Reform'

Republicans will get another chance to block the confirmation of an uncontroversial nominee next week, when Harry Reid holds a vote on Richard Cordray.
The Smith/Klein/Kalecki Theory of Austerity
The Conscience of a Liberal

The Smith/Klein/Kalecki Theory of Austerity

No pain (for you), no gain (for us).
Conservatives and Health Care Costs

Conservatives and Health Care Costs

No, the slowdown in cost inflation hasn't undercut the conservative position on health care reform.
The Gun Report: May 16, 2013
Joe Nocera's Blog

The Gun Report: May 16, 2013

A day in the life of armed America.