Tuesday, December 8, 2009

The US Dollar Is Not A Safe-Haven

"A real recovery requires real savings, real investment, real jobs, and real increases in earnings. As far as we can tell, they do not exist."
-Bill Bonner, The Daily Reckoning

U.S. Mint now suspends all one ounce gold coin sales due to shortage of physical gold!
"The United States Mint has depleted its inventory of 2009 American Buffalo One Ounce Gold Bullion Coins. ... No additional inventory will be made available. As additional information becomes available regarding 2010-dated American Buffalo One Once Gold Bullion Coins, you will be notified." So said a memorandum issued Friday to authorized purchasers of U.S. Mint gold coins and reported by Jim Sinclair..

Mineweb reported only two weeks ago, on November 25th, the suspension of sales of American Gold Eagle coins by the Mint - U.S. Mint suspends American Eagle 1-ounce gold coin sales - again, which, at the time, reckoned such sales would be resumed early this month - but in the event, not only is the suspension of the Gold Eagle coin sales continuing, but also now the American Buffalo one ounce gold coin sales have also been suspended, with no new sales now planned until some time in 2010 - although the current sharp fall in the gold price may provide the Mint with a bit of respite from its supply/demand woes.

But supply problems also persist with smaller gold coins, particularly given the enormous demand for fractional sized gold coins following the suspension of the one ounce Gold Eagles. Thus the Mint was forced to issue a second memo on Friday saying "the American Eagle Gold Tenth-Ounce Coin inventory was depleted" and that "inventory for the half-ounce and quarter-ounce coins remains very limited." Following the sale of these remaining gold coins on Friday, the Mint anticipated that it would again offer all fractional sizes by mid-December, but in an allocation process.


"A Bull Market Doesn't End When The US Government Can't Meet Gold Demand."
-Le Metropole Cafe

Japan unveils new $81 billion stimulus package
TOKYO (AP) -- Japan's government on Tuesday unveiled $81 billion of new stimulus spending to keep the world's second-biggest economy from lurching back into recession.

Despite shrinking tax revenue, Prime Minister Yukio Hatoyama and his Cabinet agreed to 7.2 trillion yen ($80.6 billion) in new spending after days of negotiations with coalition partners.

The largesse underlines that the world's biggest economies are still too fragile to get by without government life support even as a recovery from the global recession takes shape.

Obama urges major new stimulus, jobs spending
WASHINGTON (AP) -- President Barack Obama called for a major new burst of federal spending Tuesday, perhaps $150 billion or more, aiming to jolt the wobbly economy into a stronger recovery and reduce painfully persistent double-digit unemployment.

Despite Republican criticism concerning record federal deficits, Obama said the U.S. has had to "spend our way out of this recession" with so many people out of work but insisted he was still mindful of a need to confront soaring deficits. More than 7 million Americans have lost their jobs since the recession began two years ago, and the jobless rate stands at 10 percent, statistics Obama called "staggering."

Congressional approval would be required for the new spending.

"We avoided the depression many feared," Obama said in a speech at the Brookings Institution, a Washington think tank. But, he added, "Our work is far from done."

More deficit spending? And the Dollar was rising today as a "safe-haven"? Insane! And where did he get the idea we have avoided a depression? Postponed at best. We are actually in the midst of one, but no one dares to admit it.

Bernanke Sees ‘Formidable Headwinds’ for U.S. Economy
Dec. 7 (Bloomberg) -- Federal Reserve Chairman Ben S. Bernanke said the U.S. economy faces “formidable headwinds,” including a weak labor market and tight credit that are likely to produce a “moderate” pace of expansion.

“The economy confronts some formidable headwinds that seem likely to keep the pace of expansion moderate,” Bernanke, 55, said today in a speech to the Economic Club of Washington. He said inflation remains “subdued” and might even move lower.

Treasuries advanced as traders pared bets the central bank will increase interest rates before August. Bernanke, in response to a question after his speech, repeated the Fed’s statement that rates are likely to remain low for an “extended period.”

And the Dollar rose today as a "safe-haven"? Bumbling Ben says inflation might move lower? That all but guarantees it will be moving higher soon. Ben "Always Wrong" Bernanke is poor predictor of future market reactions:

(Bernanke's Failed CNBC Predictions From 2005-07)

Left-Right Coalition Calls For Fed Audit Before Bernanke Vote
Leaders on opposite sides of the political spectrum joined forces today on a letter to the Senate demanding that Congress mandate an audit of the Federal Reserve Bank before voting to reappoint Federal Reserve Chairman Ben Bernanke for a second term. Although the groups may not agree on all the elements of financial reform, they do agree that the Federal Reserve should be held accountable to taxpayers.

The left-right coalition sent a letter to members of the Senate today includes Campaign for America's Future co-director Robert Borosage, Americans for Taxpayer Reform president Grover Norquist, FireDogLake blogger Jane Hamsher, Eagle Forum president Phyllis Schlafly Campaign for Liberty president John Tate and Center for Economic and Policy Research president Dean Baker.

The letter coincides with the announcement that Sen. Bernie Sanders, I-Vt., is placing a hold on the Bernanke nomination for the reasons cited in the joint letter.

The Federal Reserve took extraordinary actions in the financial crisis, committing trillions of dollars to bolster private institutions, and the letter says that these actions must be reviewed before any decision is made on Bernanke's nomination. Bernanke has opposed a detailed review and has not answered questions from Congress about the trillions of taxpayer dollars the Federal Reserve lent to banks and other private companies.

Bernanke and his supporters have argued that auditing the Federal Reserve would constitute a takeover of monetary policy, but signers of the letter believe this is disingenuous. What is at issue is not monetary policy, but an unprecedented assertion of fiscal authority.

The complete letter follows:

"I predict future happiness for Americans if they can prevent the government from wasting the labors of the people under the pretense of taking care of them."
-Thomas Jefferson


  1. The reality is always harmful to power positions. They must keep the lid down.
    Osama talking to the Brookings Institution reminds me on this one, from 48+ years ago:
    "the Brookings Report does suggest that contact with extraterrestrials (or strong evidence of their reality) could have a somewhat disruptive effect on humanity, and briefly mentions the possibility of withholding such evidence from the public."

  2. Its a very controversial matter that silver is undervalued compared to gold but according to me its a fact. You have introduced very beneficial information here.I Also want to share some useful information to you that is before some time i visited a site that is providing a great collection of silver coins and
    Coin One
    .For more knowledge you can visit that site.

  3. Bluehost is ultimately the best hosting company with plans for any hosting requirments.