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Aug 12, 2013

Gold is no deader than John Barleycorn. GATA | THE GATA DISPATCH AUGUST 12, 2013.

Gold is no deader than John Barleycorn

10:27p ET Monday, August 12, 2013

News reports tonight suggest that the Indian government's crackdown on gold is not only failing in India but prompting an explosion of gold imports into neighboring countries, presumably to facilitate smuggling into India but causing concern among government officials in those neighboring countries about their own potential imbalance in trade.
Of course those concerns are bogus, insofar as any country exchanging paper or electronic money for metal is getting the better of the deal -- the gold will last, the paper and electrons will devalue. Indians are showing their silly government that they prefer gold to the rupee as currency, and the government's restrictions on the import of gold may inspire similar preferences among the neighbors.
Just as the journalist Daniel Okrent noted that the best way to get kids to brush their teeth would be to outlaw toothbrushes and toothpaste, the best way to re-establish gold as the superior currency may be, as India's government is doing, to try to obstruct its possession. And now, as the story from The Indian Express appended here reports, the Indian government is -- oh, happy day! -- raising import duties on silver as well -- and of course silver used to be pretty good money too.

 For 14 years GATA has been engaged in a long struggle, a tiny part of humanity's endless struggle to understand and democratize money, and while that struggle is far from won, today central bankers from New Delhi to Basel to London to Washington can be seen scurrying desperately to prop up their financial system as it crumbles under its own weight of deception, expropriation, plutocracy, and corruption.
Thus in our trenches tonight we're humming the old English folk song "John Barleycorn Must Die," remade so well by the English rock band Traffic 43 years ago:
There were three men came out of the west ...
-- maybe Keynes, Nixon, and Bernanke? --
Their fortunes for to try,
And these three men made a solemn vow:
John Barleycorn must die.
They've ploughed, they've sowed,
They've harrowed him in,
Threw clods upon his head.
And these three men made a solemn vow:
John Barleycorn was dead.

But he wasn't:
http://www.youtube.com/watch?v=Op_Q8P9ocWc
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
* * *
India's Gold Guzzling Still High, Spurs Neighbors to Act
By Jo Winterbottom
Reuters
Monday, August 12, 2013
NEW DELHI -- Indians bought more gold in July than June despite a series of moves by the RBI to strangle supplies, and their insatiable appetite has forced neighbouring countries to take steps to curb their own imports. India's gold imports hit $2.9 billion in July, up from $2.45 billion in June, official data showed on Monday, confirming Finance Minister P. Chidambaram's fears that despite hikes in import duties and steps by the Reserve Bank of India (RBI) to stem supply, demand is on the rise again.
... For the full story:
http://in.reuters.com/article/2013/08/12/india-gold-idINDEE97B0AD2013081...
* * *
Duties on Gold Import, Non-Essential Items May Go Up: P. Chidambaram
From the Press Trust of India
via The Indian Express, New Delhi
Monday, August 12, 2013
http://www.indianexpress.com/news/duties-on-gold-and-nonessential-items-...
Duties on gold and silver imports and non-essential goods are set to go up even as the government announced a slew of measures including easier overseas borrowing norms to fetch an additional $11 billion this fiscal year to arrest the Indian rupee's fall and check the burgeoning current account deficit (CAD), Finance Minister P. Chidambaram said.
The interest on foreign currency non-resident accounts has been liberalised to attract more deposits.
The customs notifications on the import of these items will be placed in Parliament tomorrow, P. Chidambaram told a press conference hours after he made a statement in both the Houses on measures to contain the CAD at US$79 billion or 3.7 per cent of GDP.
He refused to disclose the actual figures on import duties, saying Parliament was in session and he would not make any statement outside.
"CAD is a problem (but) we have solutions. We will implement the solution (and) there is no room for panic," the minister told reporters, adding that these initiatives would help in reducing foreign exchange volatility and contain the CAD.
"CAD is as much a red line as the fiscal deficit. If we can contain CAD, sentiment about the currency market and rupee will significantly improve", he said.
As regards the measures to increase capital flows, Chidambaram said that permission would be given to IRFC, PFC, and IIFCL to collectively raise US$4 billion through quasi-sovereign bonds for the infrastructure sector.
Chidambaram said that PSU oil companies would be permitted to raise additional External Commercial Borrowings (ECBs) to the tune of USD 4 billion.
He further said the liberalisation of the ECB norms and non-resident deposit schemes (NRE/FCNR) would fetch US$2 billion and US$1 billion respectively.
The minister also expressed satisfaction over the decline in oil and gold imports in the current fiscal year.

* * *

NYT | Global Update August 12, 2013.

August 12, 2013
Compiled 20:45 GMT

Global Update


TOP NEWS

Embassies Open, but Yemen Stays on Terror Watch

By ERIC SCHMITT
The American Embassy in Yemen remained closed, underscoring the challenges President Obama faces in trying to reshape the nation's counterterrorism strategy.

Israel Names Palestinian Prisoners to Be Released

By ISABEL KERSHNER
The move to free 26 prisoners is part of a deal for the resumption of peace talks, set to begin Wednesday, but neither side seemed enthused about the announcement.

Greek Economy Shrinks for 20th Straight Quarter

By DAVID JOLLY
The economy has been shrinking since the third quarter of 2008, but a slower pace of economic contraction provided a glimmer of hope for beleaguered Greeks.
World

Video: Piazza Vittorio's Many Voices

The emporium at Piazza Vittorio has evolved into the heart of multiethnic Rome. As Italy continues to grapple with immigration, the market presents a vision of easier coexistence through commerce.
Opinion

Op-Ed Columnist

One-State Dream, One-State Nightmare

By ROGER COHEN
It is an illusion to think that Israelis and Palestinians can live together as equals in a single state.
WORLD

Gays in Russia Find No Haven, Despite Support From the West

By DAVID M. HERSZENHORN
Despite the breathtaking wealth and vibrant culture in its metropolises, Russia remains a country where discrimination and violence against gay people are widely tolerated.

Tell Us About Your Experiences Being Gay in Russia / Быть геем в России: расскажите о вашем личном опыте

By THE NEW YORK TIMES
Recent legislation in Russia has spurred an international furor and a national debate on gays in society.

5 Soldiers Killed in Southern Yemen

By THE ASSOCIATED PRESS
Gunmen suspected of being militants with Al Qaeda killed the Yemeni soldiers, an official said, as American Embassies across the Muslim and Arab world reopened after a terrorism threat.
BUSINESS
DealBook

Still Trailing Rivals, BlackBerry Seeks a Way Out

By MICHAEL J. DE LA MERCED and IAN AUSTEN
The company said that it was exploring a joint venture or a potential sale of itself, as the faded smartphone maker continues to cast about for a solution to its woes.
DealBook

Campbell Soup to Sell Some European Operations

By MARK SCOTT
The private equity firm CVC Capital Partners is in talks to buy the Campbell Soup Company's operations in France, Germany, Sweden and Belgium.
TECHNOLOGY
DealBook

Prosecutors and F.B.I. Examine JPMorgan Over Losses

By BEN PROTESS and JESSICA SILVER-GREENBERG
People briefed on the matter say an investigation could yield a fine and a reprimand of the bank over the trading blowup known as the "London Whale."

Path to United States Practice Is Long Slog to Foreign Doctors

By CATHERINE RAMPELL
Despite a shortage of doctors in some parts of the United States, a trend that may worsen under the new health care law, it takes years for a foreign doctor to be licensed here.
SPORTS
Keeping Score

Trip to Vegas Makes Mets' Davis a Tough Out

By BENJAMIN HOFFMAN
Ike Davis, who was demoted in June to find his swing, is leading the majors in August with a .706 on-base percentage, but his power has been absent.
Mets 9, Diamondbacks 5

Niese Comes Back With Win as Pieces of Mets' Puzzle Fall Into Place

By PAOLA BOIVIN
In his first start since June 20 - and his first victory since May 16 - Jon Niese pitched six pain-free innings against the Diamondbacks.
U.S. NEWS

Bulger Guilty in Gangland Crimes, Including Murder

By KATHARINE Q. SEELYE
James (Whitey) Bulger, the mobster who terrorized South Boston in the 1970s and '80s as leader of the Winter Hill Gang, faces a sentence of life in prison.

Sinkhole Opens Under Florida Resort

By JOHN SCHWARTZ
None of the 36 guests in the affected part of a complex in Clermont were injured, and officials were at the scene to assess the damage.
OPINION
Opinionator | The Stone

Bursting the Neuro-Utopian Bubble

By BENJAMIN Y. FONG
Psychosocial problems cannot simply be solved in the neuroscientist's lab.
Op-Ed Columnist

Bill Thompson, the Anti-Weiner

By BILL KELLER
In the mayor's race, Bill Thompson makes the case for safe-and-boring.
Op-Ed Columnist

Milton Friedman, Unperson

By PAUL KRUGMAN
The curious case of a disappearing icon.

The Wrong Lesson From Detroit's Bankruptcy: NYT | Opinion Today August 12, 2013.


August 12, 2013

Opinion Today


Opinionator | The Great Divide

The Wrong Lesson From Detroit's Bankruptcy

By JOSEPH E. STIGLITZ
There is more than enough blame to go around for the largest municipal insolvency in American history. But in restructuring, the city's interests, not creditors', should be foremost.
Op-Ed Contributors

Republicans and Democrats Both Miscalculated

By R. GLENN HUBBARD and TIM KANE
If we are to restore economic sobriety and intergenerational fairness to the budget, a more binding solution - a Constitutional amendment - may be needed.
Opinionator | The Stone

Bursting the Neuro-Utopian Bubble

By BENJAMIN Y. FONG
Psychosocial problems cannot simply be solved in the neuroscientist's lab.
Deconstructing Lyme Disease
Room for Debate

Deconstructing Lyme Disease

Why is this mysterious affliction so controversial, and what are the next steps to better understanding it?
The Mad Race for Moscow Mayor
Latitude

The Mad Race for Moscow Mayor

By MASHA GESSEN
How a Russian bureaucrat turns a local election into an opportunity to make life in the city that much worse.
Born Again in Mississippi
Opinionator | Disunion

Born Again in Mississippi

By LEEANNA KEITH
Union General Lorenzo Thomas enjoyed asking those who opposed the enlistment of African Americans to step out of their ranks on the parade ground, then having them hauled off to the stockade.
What's the Story?
Opinionator | Measure for Measure

What's the Story?

By ADAM SCHLESINGER
Lots of amazing songs aren't "about" anything. Some by Fountains of Wayne are little vignettes, but others are more abstract.
Opinionator

Boola (breath) Boola

By DICK CAVETT
A college reunion, approached with slight dread, proves to be more warm and affectionate than grisly and sad.
ADVERTISEMENT
Editorial

Wrestling With Dying Hospitals

By THE EDITORIAL BOARD
In Brooklyn and beyond, aging institutions pose hard questions for the next administration.
Editorial

Chinese Foot-Dragging

By THE EDITORIAL BOARD
Asians must unite in pushing Beijing to avoid hostilities in the South China Sea.
Editorial

A Veto of an Import Ban

By THE EDITORIAL BOARD
It is important for the technology industry to create technical standards and for companies to cross-license patents to each other.
Editorial Observer

How to Play Baseball in All Innocence and Fun

By FRANCIS X. CLINES
"C'mon, kid. Throw it in there!"
Editorial Notebook

Audio & Photos: The Maryknoll Sisters, at Work in the World

Maryknoll sisters have devoted their lives to missionary work abroad since the order's founding in 1912.

The Opinion Pages

Read the full opinion report, including editorials, columns, op-eds and Opinionator. Go to the Section »
Steve King Still Stands by 'Cantaloupe' Comments
Taking Note

Steve King Still Stands by 'Cantaloupe' Comments

By JULIET LAPIDOS
The lawmaker from Iowa confirms voters' worst suspicions about the Republican Party.
Joe Nocera Blog

Weekend Gun Report: August 9-11, 2013

By JENNIFER MASCIA
A weekend in the life of armed America.
Synthesis Lost
Paul Krugman Blog

Synthesis Lost

By PAUL KRUGMAN
So much for the classical verities.

DealBook P.M. edition August 12, 2013: New York Attorney General Sues High-Interest Lender



Monday, August 12, 2013
TOP STORY
New York Attorney General Sues High-Interest Lender The lawsuit accuses Western Sky Financial and its affiliates of offering short-term loans at interest rates of more than 300 percent, violating New York usury laws that cap interest rates at 25 percent.
  • DEALBOOK »
  •  
    DEALBOOK HIGHLIGHTS
    The government is using a civil asset forfeiture case to try to take more money from SAC Capital Advisors, the bulk of which would come from Steven A. Cohen because he has about $8 billion of his own invested in the firm.
    SAC Capital Closes a Trading Unit The closure is the latest setback for SAC Capital, the once-powerful hedge fund run by the billionaire Steven A. Cohen that has been hobbled by a criminal indictment.
    White Collar Watch: For S.E.C., Any JPMorgan Settlement Could Serve as a Template Requiring the bank to admit to violations of the securities laws in the case of the so-called London Whale could be a guide for how to handle such Wall Street cases, says Peter J. Henning.
    Campbell Soup to Sell Some European Operations The private equity firm CVC Capital Partners is in talks to buy the Campbell Soup Company's operations in France, Germany, Sweden and Belgium.
    Dole's Chief to Buy Out Company for $13.50 a Share The chief executive of the Dole Food Company has agreed to buy full control of the fruit and vegetable producer, valuing the company at about $1.6 billion, including debt.
    Steinway Says It Has Received Higher Bid The maker of Steinway & Sons pianos says it has received an offer of $38 a share – nearly 9 percent higher than an earlier bid – from an unidentified affiliate of a large investment firm.
    IDC, a company that tracks technology sales, found that despite its new phones like the Q10, BlackBerry had fallen into fourth place in the global market behind devices using Windows Phone.
    Still Trailing Rivals, BlackBerry Seeks a Way Out The company said that it was exploring a joint venture or a potential sale of itself, as the faded smartphone maker continues to cast about for a solution to its woes.
    Breakingviews: Who Would Buy BlackBerry? For a potential suitor, the Canadian company's clean balance sheet may be appealing, but its business prospects are very daunting, says Robert Cyran.
    LOOKING AHEAD
    Economic Data Data to be released on Tuesday will include retail sales for July.
    Overseas The European Union reports on euro zone industrial production.


     

Wall Street at Close Report by MarketWatch August 12, 2013: U.S. stocks end with Dow loss, Nasdaq gain

U.S. stocks end with Dow loss, Nasdaq gain

By Victor Reklaitis, MarketWatch 
 
NEW YORK (MarketWatch)U.S. stocks closed a low-volume, light-news session with slight losses on Monday, though the technology-dominated Nasdaq Composite managed a gain. 

The S&P 500 SPX -0.12%  edged down 1.95 points, or 0.1%, to 1,689.47 and the Dow Jones Industrial Average DJIA -0.04%  dipped 5.83 points, or 0.04%, to end at 15,419.68. 

But the Nasdaq Composite COMP +0.27%  gained 9.84 points, or 0.3%, to 3,669.95. A nearly 3% gain by Apple Inc. AAPL +2.84%  provided a lift to the tech-heavy index, after a report over the weekend that the next iPhone will debut on Sept. 10. Investors also were digesting a price-target cut for Apple by Needham analysts.
The Dow had been down as much as 0.4% out of the gate. Last week, the blue-chip index lost 1.5% to snap a six-week winning streak, and the S&P 500 shed 1%.
On Monday, IT and telecom stocks were performing best among S&P sectors, as energy and utilities fared worst. Caterpillar Inc. CAT +2.14% and Cisco Systems Inc. CSCO +1.10%  did best among Dow components, while Walt Disney Co. CVX -0.57%  was the biggest decliner. 


Apple expected to launch new iPhone
Apple is expected to unveil its next iPhone on Sept. 10. Here’s a look at what to expect at Apple's big event and how the company is competing in the global smartphone market. 

A disappointing economic report from Japan accounted for the lower open, but then takeover talk helped stocks pare losses, said Kim Forrest, senior equity analyst at Fort Pitt Capital Group. She pointed to BlackBerry Ltd. BBRY -0.09%  saying it’s considering a sale, alongside buyout speculation swirling around U.S. Steel Corp. X +2.13%
“That’s sort of making the rounds,” Forrest told MarketWatch. “Gains in either are not driven by fundamentals.”
BlackBerry, the struggling smartphone maker, surged nearly 11%, while U.S. Steel added 2.1%.
Forrest suggested stocks are somewhat stretched. Her team is focused on long-term, value investing, and it’s sticking with a year-end price target of 1,625 for the S&P 500. “Stock prices have outperformed the actual results of the companies,” she said.
Bruce Bittles, chief investment strategist at R.W. Baird, also views the stock market as somewhat extended.
“Over the very near term, we anticipate that the summer rally will resume and could carry into early September,” he said in emailed comments Monday. “But the rise in stock values this summer has also introduced more risk in the market. Valuations are stretched.”
He added that the strongest support for stocks continues to be Federal Reserve policy, but improving economic conditions are associated with a less stock-market-friendly Fed.
In Japan, the Nikkei 225 JP:NIK -0.70% shed 0.7% on Monday on news the country’s gross domestic product grew by 2.6% in the second quarter, missing forecasts for 3.6% growth.

Reuters  Image
Weaker-than-forecast GDP data weighed on the Nikkei 225 and U.S. stocks Monday.
“It’s a big miss,” said Fort Pitt’s Forrest. “That’s kind of a cautionary note to the bankers of the world who think they can fix their economies.”
Other Asian markets gained ground on Wednesday. The Shanghai Composite CN:SHCOMP +2.39%  and Hong Kong’s Hang Seng Index HK:HSI +2.13% finished 2.4% and 2.1% higher, respectively, after a report that Beijing was “quietly offering financial stimulus” to key cities and provinces to support the local economies.
Gold futures rose after a major gold-oriented exchange-traded fund logged its first increase in holdings since June. 

Victor Reklaitis is a New York-based markets writer for MarketWatch. Follow him on Twitter @VicRek. Barbara Kollmeyer contributed to this report.

Wall Street at Close Report by CNBC August 12, 2013



Stocks kicked off the week on a lackluster note, after major averages logged their worst week since June, as investors found little reason to buy.
 (Read more: Why a 4-6 percent pullback may happen soon: Pros)
Name Price Change %Change
DJIA Dow Jones Industrial Average 15419.68
-5.83 -0.04%
S&P 500 S&P 500 Index 1689.47
-1.95 -0.12%
NASDAQ Nasdaq Composite Index 3669.95
9.84 0.27%

The Dow Jones Industrial Average finished near the flatline. Disney led the blue-chip laggards, while Caterpillar rose.
The S&P 500 and the Nasdaq ended narrowly mixed. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, traded near 13.
Among key S&P sectors, utilities led the laggards, while techs edged higher.
(Read more: Financials near to regaining S&P 500's top spot).

Are the bears back?
Bespoke Investment released a poll showing the highest bearish sentiment this year, with CNBC's Herb Greenberg and Bob Pisani
While the S&P 500's average price change in August was the third worst since WWII and that a decline after the index hit the 1,700 mark was a "normal occurrence," S&P Capital IQ's chief equity strategist Sam Stovall said a pullback is not imminent. "First, we already had a summer swoon when the S&P 500 declined nearly 6 percent from May 22 through June 24," he explained in his latest note. "Second, history says (but does not guarantee) that the odds of a second summer swoon are low." (Read more: 'Hindenburg Omen' hovering over Wall Street again) BlackBerry soared after the smartphone maker said its board of directors has formed a special committee to explore strategic alternatives, including going private. Shares of the troubled Canadian company have fallen nearly 20 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008. "Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives," Timothy Dattels, chairman of BlackBerry's Special Committee of the Board, said in a statement. Also among techs, Apple rose after a report that the tech giant will unveil its next-generation iPhone on Sept. 10 ahead of the holiday sales period. Meanwhile, rival Samsung is scheduled to take the wraps off a new Galaxy phone in Berlin, a week ahead of Apple's event, according to sources. Separately, Needham cut its price target on Apple to $595 from $710. (Read more: Apple sets new iPhone date, Wall St says buy now) Tesla Motors CEO Elon Musk said he will reveal details on his "Hyperloop" transportation system later this afternoon. Musk has claimed that the high-speed ground transporation sysem could move passengers from Los Angeles to San Francisco in 30 minutes. But shares were lower after Lazard downgraded the stock to "neutral" from "buy." The Japanese Nikkei fell to a six-week low after second-quarter GDP came in at an annualized rate of 2.6 percent, lower than market forecasts of a 3.6 percent gain. However, Japanese officials said the data highlighted the success of "Abenomics", as it marked a third straight quarter of expansion. Meanwhile, the Shanghai Composite rallied to a 7-week high after a key measure of China's money supply showed a 14.5 percent increase in July on the previous year, and new bank loans grew better than expected. The data, released late Friday, was the latest sign of a rebound in China's economy, following last week's upbeat industrial production numbers. (Read more: China data blitz points to stabilizing economy)
While the S&P 500's average price change in August was the third worst since WWII and that a decline after the index hit the 1,700 mark was a "normal occurrence," S&P Capital IQ's chief equity strategist Sam Stovall said a pullback is not imminent. "First, we already had a summer swoon when the S&P 500 declined nearly 6 percent from May 22 through June 24," he explained in his latest note. "Second, history says (but does not guarantee) that the odds of a second summer swoon are low." (Read more: 'Hindenburg Omen' hovering over Wall Street again) BlackBerry soared after the smartphone maker said its board of directors has formed a special committee to explore strategic alternatives, including going private. Shares of the troubled Canadian company have fallen nearly 20 percent this year. Its market value has fallen to $4.8 billion, from $84 billion at its peak in 2008. "Given the importance and strength of our technology, and the evolving industry and competitive landscape, we believe that now is the right time to explore strategic alternatives," Timothy Dattels, chairman of BlackBerry's Special Committee of the Board, said in a statement. Also among techs, Apple rose after a report that the tech giant will unveil its next-generation iPhone on Sept. 10 ahead of the holiday sales period. Meanwhile, rival Samsung is scheduled to take the wraps off a new Galaxy phone in Berlin, a week ahead of Apple's event, according to sources. Separately, Needham cut its price target on Apple to $595 from $710. (Read more: Apple sets new iPhone date, Wall St says buy now) Tesla Motors CEO Elon Musk said he will reveal details on his "Hyperloop" transportation system later this afternoon. Musk has claimed that the high-speed ground transporation sysem could move passengers from Los Angeles to San Francisco in 30 minutes. But shares were lower after Lazard downgraded the stock to "neutral" from "buy." The Japanese Nikkei fell to a six-week low after second-quarter GDP came in at an annualized rate of 2.6 percent, lower than market forecasts of a 3.6 percent gain. However, Japanese officials said the data highlighted the success of "Abenomics", as it marked a third straight quarter of expansion. Meanwhile, the Shanghai Composite rallied to a 7-week high after a key measure of China's money supply showed a 14.5 percent increase in July on the previous year, and new bank loans grew better than expected. The data, released late Friday, was the latest sign of a rebound in China's economy, following last week's upbeat industrial production numbers. (Read more: China data blitz points to stabilizing economy)
On the economic front, the U.S. government posted a $98 billion budget deficit in July, according to a report from the Treasury. Analysts polled by Reuters had expected deficit of $96 billion. Among earnings, Sysco slipped after the food distributor posted earnings that fell short of expectations. Steinway shot higher after the manufacturer of musical instruments said it received a $38-per-share buyout offer from an investment firm, topping an earlier bid by Kohlberg & Co. General Motors is gradually pulling out of South Korea amid mounting labor costs and militant unionism, according to sources. In Europe, Greece posted a second-quarter GDP contraction of 4.6 percent year on year, narrowly better than the 5 percent decline analysts had forecast.
—By CNBC's JeeYeon Park (Follow JeeYeon on Twitter: