Recent News 5-19-2012
Recent News 5-18-2012
By Matt Daily and Leonora Walet
REUTERS - The United States imposed punitive tariffs on solar panel imports from China, the latest in a series of trade disputes between the world's two biggest economies and sparking accusations by Beijing of protectionism.
The new tariffs of 30 percent, much bigger than had been expected, were set on Thursday by the U.S. Commerce Department after it ruled in favour of local firms which said the Chinese exporters were dumping cut-price solar panels on their market.
The size of the tariffs is larger than Chinese companies had expected and some analysts said it might prompt them to manufacture elsewhere or look for alternative markets.
"The U.S. decision lacks fairness, and China expresses its strong displeasure", a spokesman for China's Ministry of Commerce, Shen Danyang, said in a statement posted on the ministry's website (www.mofcom.gov.cn).
"By deliberately provoking trade friction in the clean energy sector, the U.S. is sending the world a negative signal about trade protectionism," Shen said. Read more @ yahoo finance
http://lindseywilliams101.blogspot.com/ for more Lindsey Williams interviews
Jim Comiskey states in his update this evening that his London trader source has informed him that JP Morgan sold 13,000 July silver contracts today on the LBMA, out of a total of 37,616 July silver futures contracts traded today in London.
JPM unloaded IN SIZE…SELLING SILVER DUE TO A MASSIVE MARGIN CALL.
The rumor in the pits is that a major JPM client was served a massive margin call, and was forced to liquidate massive silver positions to meet it. Comiskey believes that this is indicative of a market bottom in silver.
Recent News 5-17-2012
As was leaked earlier today, so it would be:
- MOODY'S CUTS 16 SPANISH BANKS AND SANTANDER UK PLC
- MOODY'S CUTS 1 TO 3 LEVELS L-T RATINGS OF 16 SPANISH BANKS
- MOODY'S DOWNGRADES SPANISH BANKS; RATINGS CARRY NEGATIVE
In summary, the highest Moodys rating for any Spanish bank as of this point is A3. But luckily the other "rumor" of a bank run at Bankia was completely untrue, at least according to Spanish economic ministry officials, so there is no need to worry: it is all under control. The Banko de Espana said so.
Read more @ Zerohedge.com
While claims were expected to improve from last week's pre-revision print of 367K, we got not only a miss but a deterioration, with the print coming at 370K on expectations of 365K. But all is well, for the media already has its spin: "Unchanged", because you see last week's number was as usual pushed up higher to 370K, hence no change. Of course, next week this week's 370K will be revised to 374K or something, but the algos will be long past caring. What is worse is that the exodus from the cliff continues, as those off EUCs and Extended benefits declined by another 68K (and down by 1.14 million from this time last year): people who no longer get their weekly allowance from Uncle Sam and having been without a job for 99 weeks are pretty much guaranteed to not find a job, thus making them rely exclusively on disability and foodstamps.
Initial Claims are stabilizing around 20% higher than pre-crisis levels - not exactly positive...

and bear in mind that Initial Claims is just one part of the reality that is our unemployment picture (as the aggregate of continuing, emergency and extended benefits hows here)...

As for the revision history... why only fools see propaganda where only propaganda exists:
Recent News 5-16-2012
democracynow
Soros, PIMCO, Paulson, Texas Teacher Retirement Fund Buy Gold in Q1Prudent money with an understanding of gold's long term diversification benefits continues to accumulate gold as seen in the latest SEC filings.
Billionaire investor George Soros significantly increased his shares in the SPDR Gold Trust in the first quarter. Soros Fund Management nearly quadrupled its investment in the largest exchange-traded gold fund (GLD) to 319,550 shares - compared with 85,450 shares at the end of the fourth quarter.
John Paulson maintained his large stake, the ETF’s largest stake and other large and respected institutional buyers were PIMCO and the Teacher Retirement System of Texas.
Paulson, 56, who became a billionaire in 2007 by betting against the U.S. subprime mortgage market, told clients in February that gold is a good long term investment, serving as protection against currency debasement, rising inflation and a possible breakup of the euro.
Eric Mindich’s Eton Park Capital also bought 739,117 shares in the SPDR Gold Trust during the first quarter. The New York-based fund held no shares of the exchange-traded product as of December 31.
Recent News 5-15-2012
Zerohedge.com: While the long-term decline in bank deposits over the past 3 years has been well documented both on Zero Hedge and elsewhere, it is the most recent, acute post-election phase that has not gotten much coverage. Minutes ago Bloomberg sent out a notice that things in Greece may be on the verge of the final collapse. From Bloomberg: "Anxious Greeks have withdrawn as much as 700 million euros ($893 million) from the nation’s banks since the inconclusive May 6 election, President Karolos Papoulias told party leaders yesterday, according to a transcript of the meeting posted on the presidency’s website today. Papoulias said he got the information from the head of the Bank of Greece, the central bank, George Provopoulos, according to the transcript." While this was likely a negotiation talking point to facilitate the formation of the government, the reality as we now know is that there has been NO government formed, which now means that the bank run will only get worse. Needless to say, a Greek banking system which is now virtually shut out of any extrenal funding except for the ELA, where it has a few billions euros in access left, will be unable to deal with hundreds of millions in deposit outflows.
This may be the beginning of the end for Greece, just as Buiter and later JPM warned over the weekend.
And courtesy of Russian_market, here is a picture of the first Greek ATM lines:
Germany's Bundesbank confirmed yesterday that the German gold reserves are held overseas by the Federal Reserve, the Bank of England and the Banque de France.
There has been a lack of clarity and transparency regarding the German gold reserves, as there are with many other nations gold reserves, and this had led politicians and journalists seeking transparency.
The Bundesbank has previously resisted calls for a more transparent accounting of the German gold reserves.
Some Germans are concerned about the risk of contagion in the eurozone and the risk that the single currency could fall apart. They wish to know that the German gold reserves are secure and can be relied upon in the event of a currency crisis.
The Bundesbank said it has complete confidence in valuations and the security of its gold holdings at other central banks and said that "there is no doubt about the integrity and the reputation of these foreign central banks where the gold is held." Read more @ goldcore.com
Recent News 5-14-2012
commodityonline.com via goldsilver.com
NEW YORK (Commodity Online): The International Monetary Fund (IMF) is planning to purchase more than $2 billion worth of gold on account of rising global risks. The IMF currently holds around 2800 tonnes of gold at various depositories
“The Fund is facing increased credit risk in light of a surge in program lending in the context of the global crisis. While the Fund has a multi-layered framework for managing credit risks, including the strength of its lending policies and its preferred creditor status, there is a need to increase the Fund’s reserves in order to help mitigate the elevated credit risks”, Bloomberg quotes a report by an IMF staff while also adding that a $2.3 billion gold purchase is in the planning.
IMF's borrowers include Eurozone countries like Greece and Portugal. Greece is IMF's biggest borrower and the nation is currently caught in a political deadlock that seems bent on denying itself the much needed bailout fund.
Countries like Spain is also officially in recession after its first quarter GDP contracted. Other nations in the Eurozone region is also showing increased signs of slow manufacturing activity and economic growth.
In such a risky financial environment, the IMF's move could be considered wise and can be seen as an indication of how much trust the mainstream financial community now has on precious metals like gold.
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