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Nov 15, 2014

GATA | THE GATA DISPATCH - November 15, 2014: Turk says mining shares have never been been cheaper, mining executives are clueless / Swiss central bank could nullify gold initiative with overnight gold swaps / Iran said to open refinery as 'resistance,' doubling annual gold production.

Turk says mining shares have never been been cheaper, mining executives are clueless

Submitted by cpowell on  Saturday, November 15, 2014.  Saturday, November 15, 2014
Dear Friend of GATA and Gold:
In an hour-long interview with the TF Metals Report's Turd Ferguson, GoldMoney founder and GATA consultant James Turk says, among other things:
-- Shares of monetary metals mining companies have never been cheaper.
-- Gold backwardation has never been as severe, indicating massive intervention by central banks against gold.
-- The World Gold Council and most monetary metals mining companies are not defending gold's role as money, nor defending the industry itself, as most mining company executives are clueless about the nature of the monetary metals.
-- Central banks are destroying the world's market economies.
-- And the Swiss Gold Initiative has a chance.
The interview is an hour long and can be heard at the TF Metals Report here:
___________________________________________________________________________________________

Swiss central bank could nullify gold initiative with overnight gold swaps

Submitted by cpowell on  Saturday, November 15, 2014. Section: 
 Saturday, November 15, 2014
Zero Hedge reports today that a market analyst for Deutsche Bank has figured out an easy way for the Swiss National Bank to nullify the Swiss Gold Initiative if it is approved at Switzerland's national referendum on November 30.
The referendum would require the central bank to increase its gold reserves, and the Deutsche Bank analyst, Robin Winkler, writes that rather than purchase more reserves, the bank could just pretend to have them for one day each month, the day of the bank's monthly report, a bookkeeping pretense accomplished with an overnight gold swap, reversed the following day.
Of course such evasion and deception would be perfectly in the spirit of central banking, though it might tend to remind people that central banking has become worse than the disease it purports to cure.
As was confirmed by the secret March 1999 report of the staff of the International Monetary Fund, gold swaps and loans are primary mechanisms of surreptitious manipulation of markets by central banks:
Zero Hedge's report is headlined "How Central Banks Use Gold Swaps To 'Boost' Their Gold Holdings" and it's posted here:
___________________________________________________________________________________________

Iran said to open refinery as 'resistance,' doubling annual gold production

Submitted by cpowell on Saturday, November 15, 2014. 
From The Associated Press
via ABC News, New York
Saturday, November 15, 2014
Iranian state television is reporting that the country has inaugurated a new gold-processing plant that will double the country's annual production to 6 tons.
The report says First Vice President Ishaq Jahangiri attended the inauguration Saturday of the plant near Takab in northwestern Iran.
It says the new processing facility, built next to Iran's Zarshouran gold mine, also will produce an estimated 2.5 tons of silver and 1 ton of mercury a year.
State television says Iran previously produced an estimated 3 tons of gold a year.
This is part of Iran's "economy of resistance" to counter sanctions imposed over Tehran's contested nuclear program. The Islamic Republic is currently negotiating a final deal over its atomic program with world powers.

RT Keiser Report: 'Numpty' Taxes (E680) - November 15, 2014.


Keiser Report: 'Numpty' Taxes (E680)



Published on Nov 15, 2014
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss ‘numpty’ taxes and ‘stupid’ Ireland as bankers and central bankers treat everyone else like the ‘muppets’ they believe we are. They also discuss Angela Merkel refusing to meet with Timothy Geithner and how it is that QE is causing deflation. In the second half, Max interviews Matt Taibbi about his Rolling Stone exclusive on the JP Morgan whistleblower, Alayne Fleischmann, who was interviewed in the previous episode of the Keiser Report.

Twitter Is Junk. Why Are You Surprised?: Article On Bloomberg October 14, 2014 by Matt Levine

Standard & Poor's gave Twitter an unsolicited BB- credit rating yesterday, and I sort of wonder if that was a stunt cooked up by its social media team. Why give any company an unsolicited rating, really? The defining feature of an unsolicited rating is, no one asked you. S&P's statement explains the reasoning behind the rating, but not the reasoning behind doing it in the first place, so I will just blithely assume was to increase its follower count on Twitter.
My favorite reason to do an unsolicited rating is to punish the issuer for not paying you to do a solicited one. That sometimes happens, or at least, ratings agencies sometimes accuse each other of doing that. But it doesn't seem to be what's going on here. Twitter has only convertible debt outstanding, which is not normally rated, so it didn't exactly snub S&P. It's not like it paid anyone else to rate those bonds.
Also that BB- doesn't seem particularly punitive? It seems sort of fine? Fine to generous? The thing about ratings is that they are typically a lagging indicator: The market usually knows a company's creditworthiness before the ratings agencies do. So it's a bit strange that Twitter's stock was down 5.9 percent yesterday on the back of its surprise junk rating. Did people think that Twitter was an investment-grade company?
I mean, maybe. Its financials are ... I guess more Internet-grade than either investment-grade or high-yield. It's got $1.8 billion of debt (two convertible bonds it issued last month), $3.6 billion of cash, negativenet income and around $200 million of EBITDA.1 On present income it looks pretty junky, though S&P is optimistic about "healthy growth in monthly active users and revenues, the possibility of positive discretionary cash flow in 2016, and ongoing minimal debt leverage."
But of course Twitter issued debt two months ago. And, without the benefit of S&P's wisdom, the market went and figured out Twitter's creditworthiness. And you can back out the market's thoughts from how that debt priced two months ago.
That is a bit confounded by the fact that Twitter's debt came in the form of convertible bonds, but we can deal with that. One way to deal with it is to use a convertible bond pricing model to back out the credit component, though that requires some inputs. (And a convertible bond pricing model.2 ) The main inputs are the trading prices of Twitter's convertible and its stock, both of which you can more or less figure out, and the expected volatility of Twitter's stock over the next five or seven years, which is harder. That makes pricing a convertible more of an art than a science, and I have somewhat lost the knack over the last three years. But my best guess would be a credit spread of about 300 basis points,3 meaning that if Twitter issued non-convertible bonds today they'd come at a rate of a bit under 5 percent for five years, or a bit under 5.5 percent for seven.4
You don't have to trust my guess, though. You can trust Twitter's guess! A convertible bond is a combination of a bond (pays interest, pays back principle at maturity) and a call option on Twitter's stock. For accounting purposes, Twitter was required to split up the convertible by separately valuing the bond and the call option, using some basic bond math. Twitter issued a 5-year bond with a 0.25 percent interest rate, and a 7-year with a 1 percent interest rate. Those are not the "right" interest rates for Twitter bonds. Apple just did an 8-year bond with a 1 percent interest rate, and Twitter is no Apple. So Twitter went and applied its "right" interest rate to the bonds, to figure out what they should be worth. And that "right" interest rate is right there in the 10-Q from a week ago:
In accordance with accounting guidance on embedded conversion features, the Company valued and bifurcated the conversion option associated with the 2019 Notes and 2021 Notes from the respective host debt instrument, which is referred to as debt discount, and initially recorded the conversion option of $214.6 million for the 2019 Notes and $267.4 million for the 2021 Notes in stockholders’ equity. The resulting debt discounts on the 2019 Notes and 2021 Notes are being amortized to interest expense at an effective interest rate of 5.75% and 6.25%, respectively, over the contractual terms of the notes. 
Emphasis added, and probably ignore the rest. Twitter is saying that a regular non-convertible Twitter bond would pay interest of 5.75 percent for five years, or 6.25 percent for seven.5 That's higher than my guess, some of which may be due to new-issue premiums, and some of which may be due to conservatism in accounting. A third and even stranger way of doing the math gets a credit spread of around 260-270 basis points.6
What does that tell you? Well, it lets you construct hypothetical debt instruments for Twitter -- say, a 5-year credit default swap spread of about 300 basis points, or a hypothetical new 7-year high-yield bond price of about 5.25 to 5.5 percent.7 Then you can compare those instruments to real instruments. For instance, E*Trade just priced a new 8-year high-yield bond at 5.375 percent. E*Trade is rated Ba3 by Moody's and B+ by S&P, or one notch below Twitter. And here are some credit default swap spreads for other companies with BB- ratings:8


So if you believe my pricing, Twitter looks like a weak BB-, maybe a B+. If you believe Twitter's own pricing of its debt in its financial statements, it looked more like a single-B-area credit.9

RT Videos - November 15, 2014: Looming Disaster: Libya on Brink of Civil War-Sparked Humanitarian Crisis.



Looming Disaster: Libya on brink of civil war-sparked humanitarian crisis

The Telegraph - November 15, 2014: 'Britain has to be prepared to walk away from the EU'.

The Telegraph
Saturday, November 15, 2014
  
Frontpage
 


'Britain has to be prepared to walk away from the EU’
News But the new Foreign Secretary, Philip Hammond, a noted Eurosceptic, tellsPeter Dominiczak that he is now more confident of 'meaningful&rsquo...
Online clues may have signalled plans of Lee Rigby killers
M25 partially closed for 12 hours in heavy rain due to giant pothole as worse weather set to come
France compares Cameron to far-Right leader following his EU fury
New hope for Rosetta mission after scientists reconnect with probe
 
SPORT
Fifa report into World Cup bid process 'misrepresented', says investigator Michael Garcia
Sport Fifa investigator Michael Garcia says report into World Cup bidding 'contains numerous materially incomplete and erroneous representations of facts a...
Dyke: Ched Evans 'is not an important issue'
Fifa report allows sordid show to go on, but the FA are not blameless in sorry affair
Moyes: Fergie backed me to take Sociedad job
Barkley: I see nothing to fear with England
FINANCE
Asda hits out at price gimmicks by 'desperate' rivals
Finance Rival supermarkets are misleading customers by not sticking to price cut promises, according to Asda's merchandising boss
BT plans to scrap £2.4bn Wholesale division
Bitter ebook fight ends as Amazon and Hachette sign new deal
Warren Buffett buys Duracell battery business from P&G
Putin stockpiles gold as Russia prepares for economic war
 
COMMENT
James Kirkup: Are you too ashamed to say you support Ukip? Or are you just all talk?
John Major: John Major's Berlin Speech: the full text
Andrew Gilligan: Lutfur Rahman: is he the biggest liar in London?
 
MOST VIEWED
Culture: Sex and the City 2 - full trailer
Technology: Google search: 15 hidden features
Fashion: BB creams explained
 
HOW ABOUT THAT
Weird animal sightings
Rosetta comet landing day 2: As it happened
FBI’s most wanted cyber criminal caught out by pet cat password
 
VIDEO EDITOR'S CHOICE
Video Editor's Choice Watch: Sainsbury's moving 2014 Christmas advert
Mall displays 'pregnant' schoolgirl mannequins
Five apps to get you through Christmas
Facebook's hidden features

NYT Today's Headlines - November 15, 2014: Top News: Cost of Coverage Under Affordable Care Act to Increase in 2015.

The New York TimesMost Popular | Video | Subscribe: Digital / Home Delivery

Today's Headlines

Saturday, November 15, 2014


Top News
Cost of Coverage Under Affordable Care Act to Increase in 2015

By ROBERT PEAR, REED ABELSON and AGUSTIN ARMENDARIZ

Many Americans with health insurance bought under the Affordable Care Act could face substantial price increases next year - in some cases as much as 20 percent.
Immigrants' rights advocates, like those at a Washington rally, have mobilized again after President Obama's vow of action.
The Big Money Behind the Push for an Immigration Overhaul

By JULIA PRESTON

Many of the gains made by advocates for immigrants to the United States were helped by hundreds of millions in donations from liberal foundations.
A Starbucks in downtown Amsterdam. A tax deal between the Dutch government and the coffee shop company has come under scrutiny.
Europe Takes Aim at Deals Created to Escape Taxes

By DANNY HAKIM

As global authorities ramp up efforts to close tax loopholes, companies are lobbying against proposed reforms.
. Starbucks and Netherlands Are Accused by E.U. of Making Unfair Tax Deal
For more top news, go to NYTimes.com »
Editors' Picks
A waitress at the Masoch Cafe in Lviv, Ukraine, pouring a drink into the mouth of a customer voluntarily tied to a chair.

WORLD

City in Ukraine Tied to Masochism Finds Link Painful, Sure, but Some Like It

By ANDREW HIGGINS

Residents of the western Ukrainian city of Lviv are of two minds on the reputation of Leopold von Sacher-Masoch.

OPINION | OP-ED CONTRIBUTORS

Stopping the Next Amphibian Apocalypse

By KAREN R. LIPS and JOSEPH R. MENDELSON III

We have a chance to prevent a fungus from killing salamanders.
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QUOTATION OF THE DAY

"I want to know more about what it means for him to be on two medications, and no one can really tell me."
JOELLE KENDLE, whose 6-year-old son's behavior problems continued after he started a stimulant. She and his doctor have considered adding an antipsychotic, despite little evidence on how such drugs would interact over time.
Today's Videos
Video VIDEO: If It Moves, Clock It
Armed with a radar gun, the reporter Andy Newman attempts to measure the speed of a running dog, a kite and a seal in Prospect Park.
. Related Article
Video VIDEO: Ask Well | Are Eggs Good for My Heart?
Readers asked Well, are eggs heart-healthy after all? Watch this video before you eat.
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Video VIDEO: Fresh Pumpkin Pie
Melissa Clark's trick for making creamy pumpkin pie: use fresh butternut squash instead of canned pumpkin.
. Related Article
For more video, go to NYTimes.com/Video »
ADVERTISEMENT
World
President Obama appeared with Myanmar opposition leader Aung San Suu Kyi at her residence in Yangon, on Friday.
Obama and Aung San Suu Kyi Meet Again, With Battle Scars

By MARK LANDLER

President Obama met with Daw Aung San Suu Kyi in a show of support for Myanmar's reform process, despite evidence of the nation's backsliding.
Yazidi Girls Seized by ISIS Speak Out After Escape

By KIRK SEMPLE

A few of the thousands of young women from the minority Yazidi religion who were kidnapped by the Islamic State told of a systemized industry of slavery.
A climate change accord to be signed in Paris next year would commit major economies to cutting carbon emissions from sources such as coal-fired power plants, like this one in Ghent, Ky.
U.S. to Give $3 Billion to Climate Fund to Help Poor Nations, and Spur Rich Ones

By CORAL DAVENPORT and MARK LANDLER

The pledge, on the heels of an announcement that the United States and China will commit to curbing greenhouse gas emissions, is expected at the Group of 20 summit meeting this weekend.
For more world news, go to NYTimes.com/World »
U.S.
One Drug or 2? Parents See Risk but Also Hope

By ALAN SCHWARZ

A steadily rising number of parents face a wrenching choice about whether to add antipsychotic drugs like Risperdal to stimulants like Adderall to treat children for attention deficit hyperactivity disorder.
A worker in Ferguson, Mo., boarding up a business on Thursday in preparation for possible unrest after a grand jury decision.
For Ferguson Grand Jury, Details and Responsibilities Are Abundant

By ERIK ECKHOLM and JULIE BOSMAN

Grand juries usually hear just the outline of a case, but prosecutors are presenting all their evidence in the Michael Brown shooting, making for a long and exhaustive process.
A prekindergarten class in San Francisco. A study found preschoolers benefited when their parents received texts with guidance on how to help them.
To Help Language Skills of Children, a Study Finds, Text Their Parents With Tips

By MOTOKO RICH

Preschoolers performed better on literacy tests when their parents received text messages with tips on how to help them, a study in San Francisco found.
For more U.S. news, go to NYTimes.com/US »

Politics
Representative Steve King, Republican of Iowa, right, at Capitol Hill on Friday. He is strongly opposed to President Obama's planned immigration overhaul.

NEWS ANALYSIS

Battle Over Immigration Poses Risks for G.O.P.

By ASHLEY PARKER and MICHAEL D. SHEAR

While some Republicans rule out a government shutdown, others are talking about the possibility, in reaction to President Obama's plan to act on immigration.
House Passes Bill Directing Obama to Proceed on Oil Pipeline

By CORAL DAVENPORT

The House vote and another scheduled for Tuesday in the Senate are chiefly intended to be a political maneuver by Republican and Democratic leaders in the battle for a Louisiana Senate seat.
. Obama to Announce $3 Billion U.S. Contribution to Climate Change Fund
Senator Sherrod Brown of Ohio urged Democrats to distance themselves from Wall Street and focus on issues of concern to lower-income voters.
After Losses, Liberal and Centrist Democrats Square Off on Strategy

By JONATHAN MARTIN

The debate will help shape the last two years of the Obama White House and the Democratic presidential primaries to come.
For more political news, go to NYTimes.com/Politics »
Business
Mark Hayes was a lobbyist for Humana when he spoke in April 2013 with Brian Sutter, a senior House staff member.
Tip on Medicare Spurs Insider Trading Investigation

By JULIE CRESWELL

Federal regulators are looking into whether a report by Height Securities that led to stock price jumps among health insurers was based on information obtained illegally.
Macy's in Herald Square on Thanksgiving last year. This year, many other stores say they will remain closed so employees can enjoy the holiday.
Some Retailers Promote Decision to Remain Closed on Thanksgiving

By STEVEN GREENHOUSE

Last year, more retailers decided to open on Thanksgiving, but this year others are promoting their decision to remain closed on the holiday.
An example of a Facebook post that users told the social network felt too promotional.
Facebook Will Curtail Unpaid Ads by Brands

By VINDU GOEL

The company said it was responding to feedback from its users, who were complaining about too many promotional posts.
For more business news, go to NYTimes.com/Business »
Technology

BITS BLOG

F.C.C. Asks AT&T for Details on Plans to Halt Fiber Expansion

By EDWARD WYATT

AT&T's chairman recently said the company would pause fiber expansion plans until the F.C.C. decided how to regulate broadband internet.

BITS BLOG

Uber Said to Announce Music Partnership With Spotify

By MIKE ISAAC

The two buzzy start-ups will work together to offer personalized music to Uber passengers.
Justice Dept. Apologizes for Inaccuracy in National Security Letters Case

By CHARLIE SAVAGE

The Justice Department said telecommunications companies could disclose receiving the letters, which seek customer records, when in fact they cannot.
For more technology news, go to NYTimes.com/Technology »
Sports
P. J. Williams, left, was the driver who left the scene of an accident on Oct. 5, along with two passengers, including his teammate Ronald Darby.
Florida State Player Fled Crash but Got Only Traffic Tickets

By MIKE McINTIRE and WALT BOGDANICH

The Tallahassee police initially labeled an accident involving a Florida State football player as a hit and run, a criminal act, but later decided to issue him two traffic tickets, an examination by The New York Times found.