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Jul 7, 2015

Has the mainstream media completed avoided the crisis in Yemen?: RT America Video News - July 7, 2015:

Has the mainstream media completed avoided the crisis in Yemen?

RT America

Neal Goyal Sentenced to Six Years in Prison and Ordered to Pay More Than $9.2 Million in Restitution for Wire Fraud: SEC Litigation Release - July 7, 2015:

SEC Seal


Litigation Release No. 23300 / July 7, 2015

Securities and Exchange Commission v. Neal Goyal, Civil Action No. 14-cr-00301 (N.D. Ill.) (MFK)

Neal Goyal Sentenced to Six Years in Prison and Ordered to Pay More Than $9.2 Million in Restitution for Wire Fraud

The Securities and Exchange Commission announced that on July 3, 2015, U.S. District Court Judge Matthew F. Kennelly sentenced former Chicago, Illinois investment fund manager, Neal Goyal, to six years in federal prison for operating a Ponzi-type scheme since 2006. In addition, Judge Kennelly ordered Goyal to pay more than $9.2 million in restitution to the victims of his fraud.
On May 29, 2014, in an action that paralleled the Commission's securities fraud case against Goyal, the U.S. Attorney's Office of the Northern District of Illinois filed a criminal information against Goyal based on a scheme in which he fraudulently obtained more than $11.3 million from more than 40 investors who invested in private funds under his control.
Among other things, the criminal information alleged that Goyal misused the stolen funds to support his lavish lifestyle, to pay business expenses and to open and support two baby clothing boutiques. Goyal also used funds from new investors to make Ponzi-type payments to other investors. Goyal concealed his fraud from investors by creating and distributing phony account statements. On February 6, 2015, Goyal entered a guilty plea to one count of wire fraud.
The Commission's case against Goyal is based on the same events. The SEC's complaint, filed on May 28, 2014, alleged that Goyal along with Caldera Advisors and Blue Horizon Asset Management violated Section 17(a) of the Securities Act of 1933, Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5, and Sections 206(1), 206(2), and 206(4) of the Investment Advisers Act of 1940 and Rule 206(4)-8(a).
On May 28, 2014, the Court entered an order, pursuant to Goyal's consent, permanently enjoining him from further violations of the antifraud provisions of the federal securities laws, freezing his assets along with the assets of Caldera Advisors, LLC and Blue Horizon Asset Management, LLC, and ordering him to pay disgorgement and civil penalties in amounts to be determined in a separate hearing. On June 6, 2014, the Honorable Rebecca R. Pallmeyer appointed Kevin B. Duff of Rachlis, Duff, Adler, Peel & Kaplan, LLC as the receiver over Goyal, Caldera Advisors, LLC and Blue Horizon Asset Management, LLC (as defendants) and Caldera Investment Group, Inc. (as a relief defendant). On July 31, 2014, the Commission entered an order barring Goyal from the securities industry.
For further information, see Litigation Release No. 23008 (May 29, 2014).

U.S. Mint sold out of silver coins due to strong demand: GATA | THE GATA DISPATCH - July 7, 2015.

U.S. Mint sold out of silver coins due to strong demand

Submitted by cpowell on ET Tuesday, July 7, 2015.  From Reuters
Tuesday, July 7, 2015

The U.S. Mint said on Tuesday it temporarily sold out of its popular 2015 American Eagle silver bullion coins due to a "significant" increase in demand, the latest sign that plunging prices have spurred a resurgence of retail buying.

In a statement sent to its biggest U.S. wholesalers, the Mint said its facility in West Point, New York, continues to produce coins and expects to resume sales in about two weeks.
This is the second time the mint has sold out of silver coins in the past nine months. It ran out of 2014-dated American Eagles in November last year.

In 2013 the historic drop in precious metals prices unleashed a surge in global demand for coins, forcing the mint to ration silver coin sales for 18 months. ...

... For the remainder of the report:

RT Keiser Report Episode 780 - July 7, 2015: Yanis Varoufakis 'Shane' of Greece.

Keiser Report: Yanis Varoufakis 'Shane' of Greece (E780)


Published on Jul 7, 2015
In this episode of the Keiser Report, Max Keiser and Stacy Herbert discuss the Greek referendum results, financial terrorism and bail-in fears induced velocity of money. In the second half, Max interviews Professor Steve Keen about the Greek ‘OXI’ (No) vote and the dictatorship of the ECB.

Federal Reserve Board announces approval of application by BB&T Corporation: FRB Announcements - July 7, 2015.

DealBook P.M. Edition July 7, 2015: Top Story: Greece Delays Offering New Plan on Debt.

Tuesday, July 7, 2015
Greeks caught up with the news in Athens on Tuesday, ahead of an emergency summit meeting of European leaders.
Greece Delays Offering New Plan on Debt As eurozone finance ministers met in Brussels, the new Greek finance minister arrived without a detailed new bailout proposal.
In 1953, Hermann Josef Abs, center, signed an agreement that effectively cut West Germany's post-World War II debt in half.
Economic Scene: Germany's Debt History, Echoed in Greece As policy makers know well - and Germany perhaps better than any - major debt overhangs are solved only by writing down the debt. And the longer the delay, the deeper the pain.

U.S. stocks stage Greece-fueled rebound: Wall Street at Close Report - July 7, 2015.

U.S. stocks stage Greece-fueled rebound

Anora Mahmudova, Sara Sjolin
What a wild ride! U.S. stocks staged a dramatic finish Tuesday after a morning selloff to end the session with modest gains, following news reports that Greek Prime Minister Alexis Tsipras has proposed an interim financing until the end of July.

Greece asked for extra funds in exchange for some overhauls being demanded from Greece’s parliament, according to The Wall Street Journal.

The S&P 500 SPX, +0.61% recovered from a 1% decline to end with a 12-points, or 0.6% gain, to 2,081.34. The sharp fall in the morning had at one point pushed the index below its 200-day moving average, a key technical level last breached in October.

The Dow Jones Industrial Average DJIA, +0.53% fell more than 200 points at session lows, but recovered to finish up 93.40 points, or 0.5%, higher at 17,776.
The Nasdaq Composite COMP, +0.11%  also pared more brutal declines to close 5 points, or 0.1%, higher at 4,997.46.

CMI Spot Prices as of Close of Trading in New York on July 7, 2015.

CMI Gold & Sliver

Spot Prices as of traditional New York closing times

Tuesday, July 07, 2015


Today Change Week Ago Month Ago Year Ago
$1,153.40 -$21.30 $1,173.30 $1,174.80 $1,316.85


Today Change Week Ago Month Ago Year Ago
$14.99 -$0.81 $15.58 $15.99 $21.05


Today Change Week Ago Month Ago Year Ago
$1,034.00 -$32.50 $1,085.00 $1,103.10 $1,499.70


Today Change Week Ago Month Ago Year Ago
$653.40 -$26.75 $673.65 $747.40 $875.10

Gold/Silver Ratio


USAGold: U.S. Mint suspends sale of silver eagle coins: GATA | THE GATA DISPATCH - July 7, 2015.

USAGold: U.S. Mint suspends sale of silver eagle coins

Submitted by cpowell on  Tuesday, July 7, 2015.  Tuesday, July 7, 2015

USAGold in Denver reports today that the U.S. Mint has suspended sale of U.S. silver eagle coins:
This is another of the counterintuitive things that happen when central banks try to smash down the price of monetary metals. If, as the silver futures market is proclaiming today, silver is so darned plentiful and cheap, why are the silver coins disappearing from the mint? Why aren't they turning up as the prize in Crack Jack boxes?
One thing is certain: None of this will spark any curiosity among mainstream financial journalists.

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

TF Metals Report: Commodity Collapse: GATA | THE GATA DISPATCH - July 7, 2015.

TF Metals Report: Commodity collapse

Submitted by cpowell on  Tuesday, July 7, 2015  Tuesday, July 7, 2015

The TF Metals Report's Turd Ferguson today attempts some technical analysis of the crash in commodity prices but qualifies it this way: "We keep repeating the mantra 'there are no markets, just interventions,' and, if that's the case, maybe all my old tried-and-true methods are now obsolete."
Ferguson adds: "In the end, if you still believe that the entire global market structure is a fraud with limited lifespan, then the ability to convert fiat and stack physical metal at these depressed paper prices is a gift, not a disaster."
Of course it would be a much more valuable gift for people in their 20s and 30s than for people in their 60s and 70s. Indeed, for the latter group it could look more like another ripoff.
Ferguson's commentary is headlined "Commodity Collapse" and it's posted at the TF Metals Report here:

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

Bloomberg View - July 7, 2015: A Pragmatic Compromise for Greece

Bloomberg View
Share The View
The Latest Opinions From Bloomberg View

Jul 07, 2015

Mohamed A. El-Erian: "The conditions for a Greek deal can be met only through a 'pragmatic compromise' involving a well-designed two-stage process. It must be underpinned by a quick restoration of mutual trust, the delivery of promised action and a credible verification mechanism. And any agreement must be sold to domestic constituencies that are even more skeptical than their leaders." Read more...
Leonid Bershidsky: "A lot of the money from the two Greek bailouts went to banks, including local ones and the subsidiaries of foreign banks operating in Greece. Yet lenders are now the weakest link in the Greek economy. So what happened to all that bailout money?" Read more...
Mark Gilbert: "Since Greece's exit would likely mean an eventual default on its debts anyway, it would be sensible for Europe to preemptively offer the country debt forgiveness on its way out the door. A parting gift of that sort could ease the pain of Greece's departure, and put its economy on a smoother road to recovery." Read more...

Noah Smith: "We could use a new, improved Export-Import Bank. Instead of focusing on large, established companies, a new U.S. trade promotion agency would focus on providing temporary boosts for first-time exporters. The goal would be to get more American firms exporting, not to support established exporters. In effect, the U.S. government would be acting not like a bank but like a venture capitalist." Read more...

U.S. Economy
A. Gary Shilling: "Reducing debt levels after a financial crisis, especially one caused by a borrowing binge, normally takes about a decade. ... U.S. household debt relative to after-tax income has fallen to 102 percent from 130 percent, but it's still a long way from the 65 percent norm. Nevertheless, the process will end at some point, and I continue to believe it will be followed by rapid real economic growth of at least 3.5 percent a year." Read more...

Eli Lake: "One of President Obama's first breaks with Israel was when he disregarded what its foreign ministry considered an informal U.S. agreement to accept limited expansion of Jerusalem suburbs built on land Israel won in the 1967 Six-Day War. It turns out this decision -- a flash point for Jerusalem -- was quietly supported by Bush's second secretary of state and first foreign policy tutor, Condoleezza Rice." Read more...

The Editors: "In 2008, Congress began enforcing a law requiring country-of-origin labeling on meat products including pork, beef and lamb. ... The unstated goal was to give U.S. producers a leg up on Mexican and Canadian ranchers trying to break into the American market. Six years later, the law seems not to have had much effect on either front. What it has done is create a serious trade dispute between the U.S. and its neighbors." Read more...

Health-Care Reform
Peter R. Orszag: "To obtain better value for health-care dollars, it's important to evaluate in detail which ones are well-spent and which are not. The $150-billion-a-year market for implantable medical devices in the U.S. -- which includes everything from artificial hips to pacemakers -- is a good illustration of this challenge and how to meet it." Read more...

Cass R. Sunstein: "Last week's Supreme Court decision striking down a federal regulation on mercury and other pollutants from coal-fired power plants is a temporary setback for those who seek to reduce air pollution. At the same time, however, it should be welcomed as a ringing endorsement of cost-benefit analysis by government agencies. It's a kind of rifle shot, with potentially major effects on a host of future regulations that have nothing to do with the environment." Read more...

Latin America
Mac Margolis: "In his welcome to Pope Francis, who arrived in Quito on Sunday to begin a weeklong, three-country visit of the region, Ecuadorean President Rafael Correa didn't disappoint. Correa acknowledged that 'the pope is Argentine' and 'God is probably Brazilian,' but added, playfully, that 'Paradise surely is Ecuadorean.' His political opponents might be forgiven for failing to see the humor." Read more...

News Roundup
Barry Ritholtz (Read the news roundup)

GATA | THE GATA DISPATCH - July 7, 2015: Don't keep monetary metals in bank safe-deposit boxes, Turk warns | Dave Kranzler: Gold and silver are paper-slammed -- Is the system collapsing? | Chinese trading suspensions freeze $1.4 trillion of shares amid rout.

Don't keep monetary metals in bank safe-deposit boxes, Turk warns

Submitted by cpowell on Tuesday, July 7, 2015.  Tuesday, July 7, 2015

Government intervention in markets always makes things worse, GoldMoney founder and GATA consultant James Turk tells King World News today, adding that as the world financial system teeters, gold and silver owners better not be keeping their metal in bank safe-deposit boxes. An excerpt from Turk's interview is posted at the KWN blog here:

Dave Kranzler: Gold and silver are paper-slammed -- Is the system collapsing?

Submitted by cpowell on Tuesday, July 7, 201512:04p ET Tuesday, July 7, 2015

Dave Kranzler of Investment Research Dynamics today notes the latest "paper slam" of monetary metals prices and wonders if the world financial system is collapsing.
Kranzler writes: "How is it that day after day gold and silver get smashed when the New York Comex floor trading opens? Does it seem odd that all of a sudden, nearly every day for the last four-plus years at 8:20 a.m. ET all the world decides to unload paper gold and silver positions?
"How is it at all possible that the prices of gold and silver are collapsing like this when China has imported a record amount of gold in the first half of 2015? China and India combined are importing more gold than is being produced on a daily basis. India is importing by far a record amount of physical silver. These countries require the physical delivery of the metal they buy. It's not good enough for the bullion banks to offer free vault storage in London or New York. The misrepresentation of the true, intrinsic price of gold and silver by the New York and London paper markets is perhaps the greatest fraud in history.

"The criminality operating in the U.S. financial markets has become pervasive. The markets just ooze with unfettered theft and wealth confiscation. The government doesn't just 'look the other way.' The government is the criminal cartel. ..."

Kranzler's commentary is headlined "Gold and Silver Are Paper-Slammed -- Is the System Collapsing?" and it's posted at the Investment Research Dynamics Internet site here:

Chinese trading suspensions freeze $1.4 trillion of shares amid rout

Submitted by cpowell on Tuesday, July 7, 2015By Fox Hu
Bloomberg News
Tuesday, July 7, 2015
Chinese companies have found a guaranteed way to prevent investors from selling their shares: suspend trading.
Almost 200 stocks halted trading after the close on Monday, bringing the total number of suspensions to 745, or 26 percent of listed firms on mainland exchanges, according to data compiled by Bloomberg. Most of the halts are by companies listed in Shenzhen, which is dominated by smaller businesses.
The suspensions have locked up $1.4 trillion of shares, or 21 percent of China's market capitalization, and are becoming increasingly popular as equity prices tumble. If not for the halts, a 28 percent plunge in the Shanghai Composite Index from its June 12 peak would probably be even deeper.
"Their main objective is to prevent share prices from slumping further amid a selling stampede," said Chen Jiahe, a strategist at Cinda Securities Co. ...
... For the remainder of the report:

FTC Scam Alerts - July 7, 2015: Getting calls from your own number?

Federal Trade Commission Consumer Information
by Bikram Bandy
Do Not Call Program Coordinator, FTC
It’s like a scene out of a strange sci-fi movie. You get a call, look at the caller ID, and see that your own number is calling. Weird! No, this isn’t an alternate reality where your future self is calling the present you. It’s a scammer making an illegal robocall.
Read more >

FTC Action Stops Massive Payday Loan Fraud Scheme: FTC Enforcement Action - July 7, 2015.

FTC Banner

FTC Action Stops Massive Payday Loan Fraud Scheme

Defendants Agree to be Banned from Consumer Lending
The operators of a payday lending scheme that allegedly bilked millions of dollars from consumers by trapping them into loans they never authorized will be banned from the consumer lending business under settlements with the Federal Trade Commission.
The settlements stem from charges the FTC filed last year alleging that Timothy A. Coppinger, Frampton T. Rowland III, and their companies targeted online payday loan applicants and, using information from lead generators and data brokers, deposited money into those applicants’ bank accounts without their permission. The defendants then withdrew reoccurring “finance” charges without any of the payments going to pay down the principal owed. The court subsequently halted the operation and froze the defendants’ assets pending litigation.
According to the FTC’s complaint, the defendants told consumers they had agreed to, and were obligated to pay for, the unauthorized “loans.” To support their claims, the defendants provided consumers with fake loan applications or other loan documents purportedly showing that consumers had authorized the loans. If consumers closed their bank accounts to stop the unauthorized debits, the defendants often sold the “loans” to debt buyers who then harassed consumers for payment.
The defendants also allegedly misrepresented the loans’ costs, even to consumers who wanted the loans. The loan documents misstated the loan’s finance charge, annual percentage rate, payment schedule, and total number of payments, while burying the loans’ true costs in fine print. The defendants allegedly violated the FTC Act, the Truth in Lending Act, and the Electronic Funds Transfer Act.
Under the proposed settlement orders, the defendants are banned from any aspect of the consumer lending business, including collecting payments, communicating about loans, and selling debt. They are also permanently prohibited from making material misrepresentations about any good or service, and from debiting or billing consumers or making electronic fund transfers without their consent.
The orders extinguish any consumer debt the defendants are owed, and bar them from reporting such debts to any credit reporting agency, and from selling or otherwise benefiting from customers’ personal information.
The defendants are Coppinger and his companies, CWB Services LLC, Orion Services LLC, Sandpoint Capital LLC, Sandpoint LLC, Basseterre Capital LLC, Basseterre Capital LLC, Namakan Capital LLC, and Namakan Capital LLC, and Rowland and his companies, Anasazi ervices LLC, Anasazi Group LLC, Vandelier Group LLC, St. Armands Group LLC,; Longboat Group LLC, doing business as Cutter Group, and Oread Group LLC, d/b/a Mass Street Group.
The settlement orders impose consumer redress judgments of approximately $32 million and $22 million against Coppinger and his companies and Rowland and his companies, respectively. The judgments against Coppinger and Rowland will be suspended upon surrender of certain assets. In each case, the full judgment will become due immediately if the defendants are found to have misrepresented their financial condition.
The Commission vote approving the proposed stipulated final orders was 5-0. The documents were filed in the U.S. District Court for the Western District of Missouri. The proposed orders are subject to court approval.
NOTE: Stipulated final orders have the force of law when approved and signed by the District Court judge.
To learn more, read Online Payday Loans.
The Federal Trade Commission works for consumers to prevent fraudulent, deceptive, and unfair business practices and to provide information to help spot, stop, and avoid them. To file a complaint in English or Spanish, visit the FTC’s online Complaint Assistant or call 1-877-FTC-HELP (1-877-382-4357). The FTC enters complaints into Consumer Sentinel, a secure, online database available to more than 2,000 civil and criminal law enforcement agencies in the U.S. and abroad. The FTC’s website provides free information on a variety of consumer topics. Like the FTC on Facebook (link is external), follow us on Twitter (link is external), and subscribe to press releases for the latest FTC news and resources.

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Frank Dorman
Office of Public Affairs

Matt Wilshire
Bureau of Consumer Protection

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European Markets at Close Report on July 7, 2015: European stocks slide for 4th day as Greece stalemate persists.

European stocks slide for 4th day as Greece stalemate persists

Carla Mozee, Sara Sjolin, Josie Cox 
European stocks fell for a fourth straight session on Tuesday after a closely watched meeting of eurozone finance officials ended with little progress on solving Greece’s debt problems.
The Stoxx Europe 600 SXXP, -1.57%  slumped 1.6% to 372.74, its lowest close since Feb. 11. Germany’s DAX 30 DAX, -1.96%  dropped 2% to 10,676.78 and France’s CAC 40 PX1, -2.27%  swung 2.3% lower to 4,604.64. In southern Europe, Spain’s IBEX 25 IBEX, -1.84%  dipped 1.8% to 10,346, while Italy’s FTSE MIB FTSEMIB, -2.97%  shaved off 3% to 20,958.48.
In debt markets, the yield on Germany’s 10-year benchmark bond TMBMKDE-10Y, -15.40% fell 13 basis points to 0.639%, according to electronic trading platform Tradeweb. Yields fall as bond prices rise and a strong bid for assets considered safest during times of stress has supported German debt in recent days.