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Gold Price Dashboard
| Emagazine 02.01.2012 |
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| Emagazine - Emagazine | |
www.familybusinessoffice.net February 6, 2012 NEWS HIGHLIGHTS FOR THE MONTHA reminder: on the Mondays that this Ezine is not published, I write a short weekly summary on my blog, at www.familybusinessoffice.net/blog. If you register at the blog site, you will receive automatic emails with the blog content. You will also automatically receive the blogs I write during the week on various breaking topics. Wayne Peterson 
· The Bureau of Labor Statistics delivered a bullish monthly employment report last Friday: 243,000 jobs added in January, including some in professional and business services, accounting, mining and manufacturing, dropping the government’s U-3 unemployment rate to 8.3%. But the BLS report was affected by seasonal ‘benchmark revisions,’ which revealed that 1.25 million people who were counted as being in the labor force in December are gone. As a result, the percentage of the working-age population in the labor force (one of the few numbers that can’t be fudged) dropped to 63.7% - the lowest number since 1983. John Williams has more to say about this report – see below. · The Fed announced it is going to continue its war on savers – and the middle class – by keeping short rates near zero through at least late 2014. Savers will be forced out of fixed income and into speculative investments. At the same time, the Fed will be fattening up the big banks by giving them access to low cost funds. The Fed will keep rates down by buying its own paper, effectively engaging in counterfeiting – which is a subtle form of QE. 2/7/2012 8:50 AM 
· US real GDP increased just 1.7% in 2011, following a 3.0% increase in 2010. “Although the Bureau of Economic Analysis (BEA) reports that general business activity in the US has recovered its pre-recession levels, no major independent economic series confirms that finding. Only the BEA’s heavily-politicized gross domestic product (GDP) measure makes that claim.” (John Williams) · If you think we’re in a recovery, you need to take the time to study the charts contained in this article by Paul Craig Roberts, which highlights analytical work done by John Williams of www.shadowstats.com. Williams reports weekly on detailed segments of the real US economy. As an example, consider the following comparison of the government’s reported inflation (CPI-U, in red) and Williams measure, in blue, using economic methodology in place in 1980 – before the government decided to exclude food, energy, education, healthcare and other ‘volatile’ factors from its official inflation figures. 2/7/2012 8:50 AM 
· By the numbers: REAL ECONOMIC CONDITIONS reported in January by John Williams (same guy). “Little has changed in the basic outlook. The US economic and systemic-solvency crises of the last five years continue to deteriorate. Yet they remain just the precursors to the coming Great Collapse: a hyperinflationary great depression. The unfolding circumstance will encompass a complete loss in the puchasing power of the US dollar; a collapse in the normal stream of US commercial and economic activity; a collapse in the US financial system, as we know it; and a likely realignment of the US political environment.” · Headline employment numbers for January were “simply not believable. New online help-wanted advertising fell sharply in January, indications from the January purchasing managers survey were mixed, and anecdotal evidence still is running to the contrary of happier numbers. Hard data on payrolls was down 2.68 million jobs.” Williams anticipates future revisions to weaken the January figures. Williams maintains that the government’s labor numbers are worthless, due to the “irregular and unreliable nature of the seasonal-adjustment process.” In addition to these factors, it’s an election year – and economic data has been manipulated by both political parties since the 1960’s! Shadowstats’ figure for actual unemployment (SGS) increased slightly in January to 22.5%. · “Patterns of slowing growth have re-emerged.” Average annual wholesale inflation (PPI) was 6.1% in 2011, while consumer inflation was 3.2%, per the government’s CPI-U index, but 10.7% from Shadowstats SGS. · Data for the sales of existing-homes was revised substantially downward by the National Association of Realtors for the 2008-2011 period. New home sales continued to bottom-bounce in December. · A December 0.1% sales gain, in retailers make-or-break month, was not statistically meaningful, either before or after adjusting for inflation. · November’s monthly trade deficit rose from $43.5 to $47.8 billion, as imports increased and exports declined. 2/7/2012 8:50 AM 
· Institutional fund manager Rob Arnott is warning investors to expect tremendous inflation going forward. "We have all three major developed economy centers cranking the printing press in order to suppress natural market response and natural market interest rates. [This creates] a powerful distortion for the capital markets and an impetus for people to do one of two things: take risks they might not otherwise have been been willing to take – creating the ‘risk-on’ trade. Or two, take their money off the table altogether… Gold is an example of money being taken out of circulation.” · Richard Russell, the Godfather of newsletter writers, advised his readers last week: “If you listen carefully, you can hear the heartbeat of the market. It’s a slow, heavy beat, as if the market is waiting for something. That something is going to be BIG. Bigger that what anyone is expecting. I think the still-forming top will be followed by a phenomenon known as the Kondratief bear cycle. The other name for it is the nuclear winter, a rare and dangerous phenomenon that can last for a generation. 2012 is fated to be a monster year. Keep your eyes on the dollar and gold and the newspaper headlines!” · In his latest Outlook, Pimco’s Billl Gross maintains that the Bernanke bunch is “making it up” as it goes along and that its zero interest rate and currency-creating experiment may not result in stepped-up risk investing (stocks and real estate) after all. But one certain result will be that all the credit being created is going to have to be unwound. “Developed economies where these low yields reside may suffer.. and induce inflationary distortions that give a rise to commodities and gold as store of value alternatives when there is little value left in paper… We are witnessing the death of abundance and the birth of austerity, for what may be a long, long time.” 2/7/2012 8:50 AM 
· The German government called last week for Greece to hand control of its finances over to the European Union as a condition for a second bailout, this time for €145 billion. The Greeks are broke, but resisting furiously. Without further assistance, Greece will default in mid-March on a €13 billion bond payment, most likely followed by a cascade of defaults – collapsing credit default insurance and everything else. The line in the sand that Germany has drawn would end Greece as a sovereign nation – and follows cartel plans for a fully-integrated European government, with the ability to tax individuals. An increasing number of savvy outside observers expect the disintegration of both the euro and the European Union. · At the end of 2011, the European Central Bank gave away $600 billion in loans to European banks so they could buy the bonds of Italy, Spain, Portugal, Greece and Ireland. Private investors won’t touch them. · Consultant Gary Shilling, who forecast the 2007 recession, added his vote to those expecting China’s slowdown to result in a hard landing. The Chinese government reported that exports are down, even as manufacturing remains strong. “Transition is not easy because they are geared up to export.” Residential and commercial real estate excesses are clearly visible and a large dose of inflation to write off bad real estate investments could be coming. · But demand for gold in China continues to surge 
· Here’s a short video by ex-OMB budget director David Stockman of “how big money bought our 2/7/2012 8:50 AM democracy, corrupted both parties and set us up for another financial crisis.” · NDAA: if you’re not up-to-date on recent government moves to strip away the Bill of Rights, you need to be. Section 21 of the Defense Department’s annual appropriation bill (the National Defense Authorization Act), which was signed by Obama on New Year’s Eve, redefines the “battlefield” to include the US, and allows the US military (in violation of the 1878 Posse Comitatus Act, which is used to prevent the military from taking over police duties) to take American citizens away with no charges, no judge, no jury, no trial – and be incarcerated indefinitely. The reason for such an UNCONSTITUTIONAL action would be determination that the person is a “belligerent of the state,” ie, a terrorist. Rand Paul commented on the Senate floor that someone with guns or more than 7-days of food in their house could be classified as opposed to US policies, and therefore a terrorist, and whisked away. Ron Paul introduced legislation to strike section 1021. Gerald Celente calls the act the “No Bill of Rights. It is directly against the Constitution.” · CNN reported that “A growing number of states are seeking shiny new currencies made of silver and gold. Worried that the Federal Reserve and the US dollar are on the brink of collapse, lawmakers from 13 states, including Minnesota, Tennessee, Iowa, South Carolina and Georgia, are seeking approval from their state governments to either issue their own alternative currency or explore it as an option." Although the Constitution bans states from printing or issuing their own paper currency, it's allows them to make "gold and silver coin a tender in payment of debts." That’s what Utah did a year ago, officially recognizing gold and silver coins issued by the US mint as an acceptable form of payment, to be exchanged at their market value. · The US budget deficit grew by another $23 billion, due to recent recognition that the value of GM and AIG stock, which the US Treasury purchased with taxpayer money through TARP, has cratered. 
· California is running out of cash and implied last week it might have to resume delaying payments to creditors starting in March. Meanwhile Illinois’ backlog of unpaid bills has grown to $9.2 billion and could explode to $35 billion by 2017, according to the watchdog group Civic Federation. · Bloomberg reported that Atlanta’s 55-story Bank of America Plaza, the tallest tower in the Southeast, is set to be sold at an open outcry auction - at an estimated 46% loss from its 2006 purchase price. · The US embargo against Iran is backfiring and causing countries to form trade agreements based on gold instead of dollars. Rumor has it that India has agreed to buy Iranian oil using gold, with China considering the same action. These arrangements may lead not only to more problems for the US economy, but also to a return to gold as an international currency. 2/7/2012 8:50 AM · The concentration of naval power in the Strait of Hormuz is heightening the risk of a fourth Gulf War, although it may be an accidental one. US Defense Secretary Panetta expressed concern that Iran is poised to launch missiles against the US in retaliation of an attack by Israel. Jim Rickards commented that “Iran will not be allowed to have nuclear weapons. Diplomacy has failed; war with Iran has begun.” Gerald Celente noted that Obama’s State of the Union address began and ended talking about war: “Get ready for war.” As a further affront, Congression legislation has been introduced to allow the US government to strip Americans of their citizenship for “supporting hostilities against the United States.” And wait .. there’s more. In December, FEMA went out with a request for bids from contractors to staff the estimated 300 camps that have been built in America over the past five years – ostensibly to house “terrorists.” MARKETS – January 1 – February 3, 2012GOLD blew through what should have been strong resistance at $1680, and climbed $165 to close last week at $1730.40/ounce. It finished out of breath, needing a rest before tackling $1750. Stronger resistance exists at $1780, wilth strong support at $1680 and moderate support in a range from $1705-1720. China bought at least 490 tons of gold last year, double its 2010 total. That’s on top of its own production – the largest in the world. People’s Bank of China’s Zhang Jianhua said “No asset is safe now. The only choice to hedge risks is to hold hard currency – gold.” Zhang also said it was smart strategy to buy on market dips. Legendary technical analyst Louise Yamada thinks both gold and silver need additional “repair” (more so for silver) before tackling prior highs; she offered the following additional “piece of evidence supporting the longer-term bull market for gold:” a comparison of the price of gold and the US debt limit. 
SILVER rocketed up almost $6 (21%) since 1/1 to $33.70/oz. It will need to overcome resistance at $33.75, $34 and $35 to head for $40. Support is at $32.50, then $31.30. Here’s a 3-minute video by silver analyst Dave Morgan, explaining how little silver there really is to go around. MINING STOCKS moved higher, with the XAU Index up 11% to 200. Mining stocks are back in a trading range, with strong technical indicators – but haven’t broken out. 2/7/2012 8:50 AM NATURAL RESOURCES (measured by the CCI Index) advanced 5.5% to 594. Crude oil moved $4.40 higher to $97.69/barrel. Last week’s game-changing FOMC announcement pushed all commodities higher. US STOCK MARKETS are up for 2012; the DJI is +5.3% at 12862 and the S&P is +6.9% at 1345. The Dow is now above both its 50-day and 200-day moving averages. Lowry’s Selling Pressure Index is still above its Buying Power Index and corporate insider selling is overpowering insider buying. Richard Russell noted that volume is higher on days when the market declines, not a good sign. FIXED INCOME. The dollar (USD Index) dropped 1.6% in January to 78.92. The USD failed once more to broach a stone-wall of selling 82 and could now drop rapidly: if the Fed opts for some new form of QE, hedge funds and speculators will continue deserting their long bond positions. Treasury bond values fell, with 10-year and 30-year bond yields up 8 and 24 basis points for the year to 1.97% and 3.13%. Our average balanced portfolio is up 8.8% year-to-date. FREEDOM WATCHGoogle is putting a new privacy policy in place, effective March 1. Any time you perform a Google search, your computer’s IP address and cookie are included, and your entire search history is archived. When you receive an e-mail through Gmail, or a voicemail on the Google Voice service, it is archived. Even if you delete the message, it remains on Google's servers. According to www.sovereignman.com, in the first half of 2011, the US government requested information on over 11,000 Google accounts. Google complied with 93% of those requests. Your account might have been one of them, and you would never know. Judge Napolitano delivers a moving oration on how the Constitution has been distorted to expand federal control over the states and the people. On the positive side, he points out that this generation has been granted the great privilege of defending freedom in its darkest hour. If you haven’t seen him on TV, the Judge is on nightly at 7:00 on Fox Business. China recently suspended the distribution of genetically-modified rice, its primary staple crop. What do the Chinese know about GMO food that US government officials pretend not to know? Here’s an article penned by a Laura Saunders in the Wall Street Journal with ideas on “How To Turn In Your Neighbor to the IRS” for cheating on their taxes. "We shall not try to make these people or any of their children into philosophers or men of learning or of science. We are not to raise up among them authors, orators, poets, or men of letters. We shall not search for embryo great artists, painters, musicians." – Frederick T. Cates, business advisor to John T. Rockefeller, on the goal of the state education system, 1913 “You can have everything in life you want, if you will just help enough other people get what they want.” – Zig Ziglar 2/7/2012 8:50 AM 
Imagine the courage it takes to jump off this cliff. 
Here’s a video of a chance encounter with a group of wild gorillas. And a virtual Kaleidoscope – just as glorious as the kaleidoscope you remember from childhood.  
A little silver-haired lady calls her neighbor and says, "Please come over here and help me. I have a killer jigsaw puzzle, and I can't figure out how to get started." Her neighbor asks, "What is it supposed to be when it's finished?" The little silver haired lady says, "According to the picture on the box, it's a rooster." 2/7/2012 8:50 AM Her neighbor decides to go. She lets him in and shows him where she has the puzzle spread all over the table. He studies the pieces for a moment, then looks at the box, then turns to her and says, "First of all, no matter what we do, we're not going to be able to assemble these pieces into anything resembling a rooster." He takes her hand and says, "Secondly, I want you to relax. Let's have a nice cup of tea, and then," he said with a deep sigh ............ "Let's put all the Corn Flakes back in the box." 
A blonde, wanting to earn some extra money, decided to hire herself out as a handywoman and started canvassing the neighborhood. She went to the front door of the first house and asked the owner if he had any odd jobs for her. "Well, I guess I could use somebody to paint my porch," he said. "How much will you charge me?" The blonde quickly responded, "How about $50?" The man agreed and told her the green paint and everything she needed was in the garage. The man's wife, hearing the conversation, said to her husband, "Does she realize that our porch goes all the way around the house?" He responded, "That's a bit cynical, isn't it? Of course, she does." The wife replied, "You're right. I guess I'm starting to believe all those dumb-blonde jokes." A short time later, the blonde handywoman came to the door to collect her money. "You’ve finished already?" the husband asked. "Yes," the blonde replied, "and I had paint left over, so I gave it two coats - no extra charge." 2/7/2012 8:50 AM Impressed, the man reached into his pocket for the $50 and handed it to her. "And by the way," the blonde added ... "it's not a Porch --it's a Lamborghini!  They sent my Tax Return back again.In response to the question: "List all dependents, I replied" 12 million illegal immigrants, 3 million crack heads, 42 million unemployable people on food stamps, 2 million people in over 243 prisons, Half of Mexico; and 535 fools in the U.S. House and Senate. Apparently,this was not an acceptable answer. 
I WENT TO A BOOKSTORE AND ASKED THE SALESWOMAN, "WHERE'S THE SELF-HELP SECTION?" SHE SAID IF SHE TOLD ME IT WOULD DEFEAT THE PURPOSE. 2/7/2012 8:50 AM Western nuclear non-proliferation strategy 
A little boy went up to his father and asked: "Dad, where did my intelligence come from?" The father replied, "Well, son, you must have gotten it from your mother, because I still have mine." "Mr. Clark, I have reviewed this case very carefully," the Divorce Court judge said, "and I've decided to give your wife $775 a week." "That's very fair, your honor," the husband said. "And every now and then, I'll try to send her a few bucks myself." A doctor examining a woman who had been rushed to the Emergency Room took the husband aside and said, "I don't like the looks of your wife at all." "Me neither, Doc," said the husband. "But she's a great cook and really good with the kids." A blonde calls Delta Airlines and asks, "Can you tell me how long it'll take to fly from San Francisco to New York City?" The agent replies, "Just a minute." "Thank you," the blonde says and hangs up. 2/7/2012 8:50 AM  GARFIELD ON THE OIL CRISISA lot of folks can't understand how we came to have an oil shortage here in our country. Well, there's a very simple answer. Nobody bothered to check the oil. We just didn't know we were getting low. The reason for that is purely geographical. Our OIL is located in: Alaska, California, Coastal Florida, Coastal Louisiana, Coastal Alabama, Coastal Mississippi, Coastal Texas, North Dakota, Wyoming, Colorado, Kansas, Oklahoma, Pennsylvania and Texas. Our dipsticks are located in DC Any Questions? NO? Didn't think So. 2/7/2012 8:50 AM  Hope you have a warm and prosperous February!Family Business Office Take a ride in a spy plane. This 10-minute video will take you 13 miles up in a U-2, to experience the thrill of seeing the curvature of the Earth from the blackness of space. Still operational after 50 years of service, the U-2 climbs 10,000 feet per minute on a 103-foot wingspan. Thanks, George for sending… Take a look at the Nyiragongo Crater, deep in the heart of the Great Lakes region of Africa. Thanks Lana for sending… 2/7/2012 8:50 AM 2/7/2012 8:50 AM
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