Wednesday, April 13, 2011

Research Summary 4/13/11


Submitted by: Francis Soyer 4/13/11

News:
Obama Said to Call for Entitlement Cuts, Higher Taxes (Bloomberg) Change we can believe in yeahhh!!!! What a clown...


•Banks Face Sovereign Debt Scrutiny in EU Stress Tests (Bloomberg)
•ECB: Ireland’s Taxpayers Must Share the Pain (FT)
•BRICS Push Resource-Hungry China to Buy Finished Goods (Bloomberg)
•China’s Nuclear Freeze to Last Until 2012 (FT)
•TEPCO still working on plan to end Japan nuclear crisis (Reuters)
•Schneider Says Currently No Talks With Tyco About Alliance (Bloomberg)
•Portugal's Leaders Bicker Over Bailout (WSJ)
•Chinese Companies Go on Global Bond Spree (FT)

Overnight Markets:
France CAC 40 4,011 +33.99 (+0.85%)

Germany DAX 100 7,180 +76.86 (+1.08%)
Hong Kong* Hang Seng 24,135 +158.66 (+0.66%)
Japan* Nikkei 225 9,641 +85.92 (+0.90%)
U.K. FTSE 100 6,021 +56.47 (+0.95%)

GFMS 2011 Gold Survey Released, Sees Gold Price Surpassing $1,600 Before Year End

Reuters) - Demand for gold bars grew strongly last year, helping lift overall physical investment despite weaker inflows into exchange-traded funds, metals consultancy GFMS said in its annual Gold Report on Wednesday.


Fed POMO Day today

Tuesday, April 12, 2011

Van Hoisington Eviscerates QE2: Full Q1 Review And Outlook

Van Hoisington shares a good analysis at the reverse psychology that the prevailing crowd grasped, and yet was completely lost on the Ivy League educated Academics at the Marriner Eccles building.


If the objectives of Quantitative Easing 2 (QE2) were to: a) raise interest rates; b) slow economic growth; c) encourage speculation, and d) eviscerate the standard of living of the average American family, then it has been enormously successful. Clearly, with the benefit of 20/20 hindsight these results represent the Federal Reserve’s impact on the U.S. economy, regardless of their claims to the contrary.


For example, the Fed promoted the idea that implementation of QE1 and QE2 would lower interest rates. Apparently this fantasy was based on the assumption that the flow of their purchases would heavily offset (and in the case of QE2 almost fully offset) the flow of new debt being issued by the U.S. Treasury. This flow analysis appears irrefutable in concept, but actually interest rates rose across the yield curve in both cases. Why? Concentrating on the flow of Treasury debt, apparently the Fed failed to take into account that the existing stock of outstanding Treasury debt totaled nearly $8 trillion. The holders included individuals, mutual funds, pension plans, insurance companies, state and local governments and foreigners. Their actions indicate that they perceived Federal Reserve activity to be inflationary, and therefore harmful to their position. Their response was to reduce their relative holdings of Treasuries and purchase riskier assets. Interest rates rose. One large investor famously sold all his Treasuries—a rational choice in the shorter end of the Treasury market as some day QE2 will have to be reversed.
Why the Fed would believe the economy could benefit from the addition of $600 billion (the QE2 target) in reserves to a banking system that already had over $1.1 trillion in unused, idle, but potentially inflationary reserves on hand nearly defies understanding. The action, however, was not lost on holders of the $8 trillion Treasury securities outstanding.
This increase in the level of interest rates occurred, not only during QE2, but in QE1 as well. Thus the Federal Reserve engineered a rate increase, and the injection of excess reserves had several other deleterious ramifications for the U.S. economy.

According to Van Hoisignton this is what needs to happen:
Presently the Fed is odd man out among the world’s leading central banks. A major divergence in opinion has risen between the Fed on one side, and the European Central Bank (ECB), the Bank of England, and the PBOC on the other side. These major foreign central banks, unlike the Fed, believe that extreme monetary intervention has contributed to higher inflation. For that reason the ECB has taken rates higher to stop inflation tendencies and the BOE is preparing to take initial steps to remove extreme monetary accommodation. Such actions are likely to produce lower inflation and better results than Fed policy. While terminating QE2 will not result in a restoration of the Fed’s balance to a reasonable size, this is an essential first step. Such a move will serve to reinforce actions by the ECB, BOE and PBOC. As such, the global upturn in inflation will reverse, thereby placing the global economy on a more stable footing. risk adverse investments. This will release funds for the mortgage market and credit worthy state and local governments. Upward pressure on commodity prices will abate. This will begin to mitigate the downward pressure on real wage income and consumer confidence. The lower commodity prices will also serve to unwind the corporate margin squeeze that resulted from the higher commodity costs.
While the economy will slow initially, the drop in inflation over time should lift real income and serve to stabilize the economy. The dollar should firm, encouraging foreign investors to place additional funds in U.S. markets. Taken together, these factors should give the economy the opportunity to stand on its own, rather than rely on massive governmental interventions whose potentially negative and unintended consequences are unknown.
The evidence of the past three years seems clear in that monetary and fiscal policy have been unable to improve the average American’s standard of living. Time will be required to reestablish balance sheets to more normal levels, and in the interim disinflationary/deflationary tendencies will be ascendant. This environment is favorable for holders of long dated Treasuries. Positioning for an inflation boom will prove to be disappointing.
We agree. Which is why this outlook will never be realized. The Fed will simply never accept the risk of another bout of deflation. Period.

And now something different and FUN


Submitted by: Francis Soyer 4/12/11

Tentative Outright Treasury Operation Schedule

The Desk's tentative outright Treasury operation schedules for the purchases associated with the $600 billion purchase program announced by the FOMC on November 3, 2010 and for the purchases associated with the reinvestment of principal payments from agency debt and agency MBS announced by the FOMC on August 10, 2010.
Across all operations in the schedule listed below, the Desk plans to purchase approximately $97 billion. This represents $80 billion in purchases of the announced $600 billion purchase program and $17 billion in purchases associated with principal payments from agency debt and agency MBS expected to be received between mid-April and mid-May.
Range Expected Purchase Size

April 13, 2011 April 14, 2011 Outright Treasury Coupon Purchase 10/15/2012-09/30/2013 $4 - $6 billion

April 14, 2011 April 15, 2011 Outright Treasury Coupon Purchase 05/15/2018-02/15/2021 $6 - $8 billion

April 15, 2011 April 18, 2011 Outright Treasury Coupon Purchase 04/30/2015-09/30/2016 $5 - $7 billion

April 18, 2011 April 19, 2011 Outright Treasury Coupon Purchase 08/15/2028-02/15/2041 $1.5 - $2.5 billion

April 19, 2011 April 20, 2011 Outright Treasury Coupon Purchase 10/31/2013-03/31/2015 $5 - $7 billion

April 20, 2011 April 21, 2011 Outright TIPS Purchase 04/15/2013-02/15/2041 $1 - $2 billion

April 25, 2011 April 26, 2011 Outright Treasury Coupon Purchase 10/31/2016-03/31/2018 $6 - $8 billion

April 26, 2011 April 27, 2011 Outright Treasury Coupon Purchase 05/15/2021-11/15/2027 $1.5 - $2.5 billion

April 28, 2011 April 29, 2011 Outright Treasury Coupon Purchase 04/30/2015-09/30/2016 $5 - $7 billion

April 29, 2011 May 2, 2011 Outright Treasury Coupon Purchase 10/31/2013-03/31/2015 $5 - $7 billion

May 2, 2011 May 3, 2011 Outright Treasury Coupon Purchase 05/15/2018-02/15/2021 $6 - $8 billion

May 3, 2011 May 4, 2011 Outright Treasury Coupon Purchase 11/15/2016-05/02/2018 $6 - $8 billion

May 4, 2011 May 5, 2011 Outright TIPS Purchase 04/15/2013-02/15/2041 $1 - $2 billion

May 5, 2011 May 6, 2011 Outright Treasury Coupon Purchase 08/15/2028-02/15/2041 $1.5 - $2.5 billion

May 6, 2011 May 9, 2011 Outright Treasury Coupon Purchase 11/15/2013-04/30/2015 $5 - $7 billion

May 9, 2011 May 10, 2011 Outright Treasury Coupon Purchase 05/15/2018-02/15/2021 $6 - $8 billion

May 10, 2011 May 11, 2011 Outright Treasury Coupon Purchase 05/15/2015-10/31/2016 $5 - $7 billion

May 11, 2011 May 12, 2011 Outright Treasury Coupon Purchase 11/15/2016-05/02/2018 $6 - $8 billion
The next release of the approximate purchase amount and tentative outright Treasury operation schedule will be at 2 p.m. on May 11, 2011. At that time, the Desk will also publish information on prices paid for securities included in the operations listed above.

"I Give Up - Pay Anything"

Daily Show: I Give Up - Pay Anything...


As greedy public workers bankrupt states, America makes it harder for honest corporate citizens to create jobs.

http://www.thedailyshow.com/watch/mon-march-28-2011/i-give-up---pay-anything---
 

Trade Alert buying 1/4 Position COW $31.45 or better


Submitted by: Francis Soyer 4/12/11

Buying COW etf 1/4 position meaning Franics is ready to commit 3/4 more nominal position size (position size never to exceed) 5% of portfolio value at 31.45 o/b (or better)

Stop and buy more (Next 1/4 leg in) $29.50
Next 1/4 $29.00
Final 1/4 28.50
Time Frame 3-4 Months
Upside Target sell all at $38.10

SENATE TRAITORS WHO VOTED TO EXTEND THE PATRIOT ACT!.

http://www.facebook.com/album.php?aid=2108901&id=1097273037

Richard Russell - Buy Pullbacks in Gold & Ignore the Top Callers

With gold and silver consolidating recent gains, the Godfather of newsletter writers Richard Russell had some interesting things to say in his latest commentary, “In all my years of investing, I have never seen an asset hit record highs, as gold has done recently, with less fanfare. There were no front page stories in the Wall Street Journal or Financial Times, heralding the new milestones." Fred Hickey, editor of the High-Tech Strategist and a member of Barron's Roundtable.”
After quoting Hickey, Russell continued:
“Gold is another story. The daily chart (above) shows gold breaking out of a head-and-shoulders bottom to the upside. Course of action -- sit with your precious metal position. Buy more on any pull-back toward the line of support (line of support is now at about 1450).
Russell comments on gold and silver -- Because the precious metals are in a massive bull market, many eager amateur analysts are now trying their hand on calling "the top." This is a hopeless and ridiculous endeavor during a powerful bull market. Much of this top-calling is done by an anti-gold element: Those who dislike gold or those who have missed the entire gold bull market. My advice all along has been to "ride the bull" and to ignore the "top callers."
The precious metals will correct when they are ready, and I might add that in ten years of closely following gold and silver, I have never come across anyone who has successfully called tops or who has successfully traded in-and-out of the metals. Advice -- stay invested in the metals until they exhaust themselves in panic buying.
Even then, what would you sell you gold for -- more fiat paper? We'll talk about selling precious metals when the time comes, which may be months or even years in the future.
Last, we turn to the Dollar Index...The Index is perched precariously above the critical 75 level with MACD in the process of turning negative.
A much longer view of the Dollar Index....Major critical support comes in at 70.69. I would think anything below 70 might set off a dollar panic.”
Gold has broken out above the $1,450 area and as Russell says, generally you want to buy on pullbacks toward that level. The public might be too skittish to do that, but the professionals certainly will. If that level holds, it will provide the base for the next leg higher in gold. For the non-professionals, simply accumulate each month on the same day and dollar cost average your purchases over time. This is a huge secular bull market, enjoy the ride. As far as the US dollar goes, God help us when we finally break 70 on that index.

Goldman Advises Clients To Sell Brent Down To $105 (As Goldman "Client Facing" Team Is Better Buyer?)

Yesterday Goldman launched the first salvo in the crude correction trade, telling clients to take premature profits on its CCCP (crude among others) basket as we reported previously. Today, Goldman sell-side energy analyst, once again completely unconflicted and ignorant of what is happening across the Chinese wall where all those former prop traders and now better known as "client facing associates" buy on behalf of Goldman's multi-billion balance sheet, has released his latest hit piece on oil. "We expect the oil market will experience a substantial pullback toward our $105/bbl near-term Brent crude oil price target." And for those wondering, when is the last time Goldman ever dropped their oil price forecast? Well, usually a month or so before the firm hikes it to $150 (see 2008).

RANsquawk European Morning Briefing - Stocks, Bonds, FX etc.

Daily Research Summary 4/12/11


Submitted by: Francis Soyer

Yesterdays sell off in Silver as caused by a $1,000,000 dollar bet by COMEX (Crimex) that SLV would fall to $25.00 an ounce by July is the main suspect for the retreat. However, taking a closer look at this trade that went through something interesting to note. For one thing, half the daily volume were calls, and check out the total Open Interest (People Short This Downside Bet) This says that there are 3.2 million contracts betting against SLV would ever reach $25.00 By July. This is hardly a large bet that SLV will fall as described yesterday in the media. I suspect this may have even been a trade error. Or a larger player is using their weight to spin some headlines to get longer at a discount. The other possibility is that a trader on a desk probably fat fingered the key board when executing an order for July 35 Puts and his/her ass is grass today with the portfolio manager. It does happen unfortunately.


Symbol    OptVolume       Puts          Calls           AvgDailyVol    OpenInt

SLV          698,162            382,221    315,941       228,700          3,270,383



Unfortunately by the time everyone figured out this was a bogus move down SLV this morning is already recovering thus eliminating the chance to leg in further at a discount.
Japan raises nuclear threat to highest level


Ivorian leader promises reconciliation

France: Says NATO not doing enough in Libya

Swaziland protest organizers arrested

Asian indices were in the red with the Nikkei down 1.69%. Major European indices are down and US futures indicate a negative open.
UK retail sales fell 1.9% year-over-year in March, the steepest decline in six years. Non-food retailers took an especially hard hit and the pound slid against the dollar on the news
German investor confidence plummeted in April due to rising oil prices and the ECB rate hike

Monday, April 11, 2011

Drop In Silver Attributed To $1 Million 37% Downside Bet On SLV

With everyone transfixed by the relentless move higher in silver, stories, myths and virtually anything is used a catalyst to explain any move lower in the precious metal. While earlier there already were two rumors that the COMEX would imminently hike gold and silver margins again (so for untrue) what is true, and what many are attributing the move in silver to, is what according to some is an outsized option bet that SLV will drop 37% by July. Bloomberg reports: "A trader’s almost $1 million bet that an exchange-traded fund tracking silver will plunge 37 percent by July was today’s biggest single options trade on U.S. exchanges as futures on the metal reached a 31-year high. The 100,000 options to buy 100 shares each of the iShares Silver Trust (SLV) at $25 by July changed hands at the ask price of about 10 cents and exceeded the open interest of 6,054 outstanding contracts before today, indicating that a buyer of a new bearish position initiated the transaction. The ETF rose to the highest intraday level since trading began five years ago, $40.33, before erasing gains. It fell 0.5 percent to $39.67 at 12:54 p.m. It hasn’t closed below $25 since November."


“It’s definitely a massive downside bet on silver,” said Henry Schwartz, president of Trade Alert LLC, a New York-based provider of options-market data and analytics. “It’s so far out of the money that the buyer is probably just looking for a moderate pullback because a $3 retracement to where it was in March could double the position to $2 million.”
Silver for May delivery in New York climbed as much as 3.4 percent to $41.975 an ounce, the highest level since January 1980, when futures reached a record $50.35. It last traded at $41.33. Silver, where half of global consumption is industrial, has been rising because it benefits from a rebounding global economy as well as demand for a haven, according to UBS AG.
Of course, such a simplistic analysis certainly ignores what are likely numerous other components to a trade that is almost certainly multi-handed. After all let's not forget that it was none other than Morgan Stanley on Friday explaining why there appears to be a sizable short-gamma position in the market, which is substantially higher than just a $1 mm notional exposure, and which if anything, is a far more potent driver in the price of silver. Furthermore, if a $1mm bet is sufficient bet to push the market in either direction, then it is safe to say that there is absolutely no liquidity in the PM market whatsoever.
We are confident much more will emerge in the story of who is betting what and how much on future silver moves before June 30 comes.
Lastly, anybody out there heard of... gasp... hedging?

Exclusive: Bill Gross Is Now Short US Debt, Hikes Cash To $73 Billion, An All Time Record

A month ago, Zero Hedge first reported that Bill Gross had taken the stunning decision to bring his Treasury exposure from 12% to 0%: a move which many interpreted as just business, and not personal: after all Pimco had previously telegraphed its disgust with US paper, and was merely mitigating its exposure. This time, in another Zero Hedge first, we discover that it is no longer business for Bill - it has now become personal (and with an attendant cost of carry). In March, Pimco's flagship Total Return Fund (TRF) has now taken an active short position in US government debt: -3% on a Market Value basis (or $7.1 billion), and a whopping -18% on a Duration Weighted Exposure basis. And confirming just what PIMCO thinks of US-related paper is the fact that the world's largest "bond" fund now has cash, at a stunning $73 billion, or 31% of all assets, as its largest asset class on both a relative and absolute basis. We repeat: cash is more than PIMCO's holdings of Treasurys and Mortgage securities ($66 billion) combined. To paraphrase: in March PIMCO was dumping everything related to US rates (see chart below). This is the first net short position that PIMCO has had in Government-related debt since the Great Financial Crisis of 2008, and going positive in February of 2009 only after it became clear that the Fed would commence monetizing US debt one month later. This is the closest that Gross has come to making a political statement and is now without doubt putting his money where his mouth is. The only event that could possibly derail Gross' thinking is a huge market crash forcing a rush to Treasury safety. Alas, as has been made all too clear recently, US debt is no longer the safe haven it once was. Which begs the question: when will the TRF break out a "gold" asset holdings line item.

Ex-PBOC Official Wakes Up From The Acid Trip: "U.S. Treasury Market Is A Giant Ponzi Scheme"

Ex-PBOC Official Wakes Up From The Acid Trip: "U.S. Treasury Market Is A Giant Ponzi Scheme"


Submitted by Tyler Durden on 04/11/2011 09:31 -0400

After years of being the primary supplier of funding to the US credit-money shell game, one more ex-PBoC member wakes up from the "great normalization" acid trip, and in a Caixin editorial says what virtually everyone now understands all too well: the Treasury market is one "giant Ponzi scheme." Oh, and it wasn't obvious when China was the biggest holder of debt for years (until the Fed became the biggest monetizer of US Treasuries late in 2010)? Sounds like a rather serious case of buyers remorse is creeping into the buying mindset of America's formerly primary enabler. The $64 trillion question now, as always, is whether China, whose holdings have been flat for a year will follow in Pimco's footsteps and actually commence selling longer-dated paper. If so, and with QE3 now expected to end even if temporarily, the aftermath will not be what Congress wants to see.
From Market Watch:

A former adviser to China's central bank said on Monday that China should have retreated from the U.S. government-bond market and instead allowed the yuan to appreciate more freely, warning that U.S. sovereign debt was akin to a giant Ponzi scheme, according to a newswire report that cited an editorial on Caixin Media Group's website. Yu Yongding, a former member of the People's Bank of China monetary-policy committee and now a member of a state-run policy group, said allowing appreciation of the yuan against the U.S. dollar under a free-floating currency regime would have reduced China's need to acquire U.S. Treasuries. He likened the U.S. Treasury market to a "giant Ponzi scheme," arguing that Federal Reserve buying of Treasuries has artificially kept bond prices high, but that they would eventually fall to levels which reflected fundamentals of the U.S. economy.

Liberal Media Refuses To Cover George Soros New World Order

Right now, there are only two groups that have written about George Soros New World Order event in New Hampshire that is taking place today. NTEB and Fox News. This is very odd when you consider that the giants of world politics and finance will be at these meetings, and Nancy Pelosi is the Keynote speaker. Just a tad odd, wouldn’t you say, that none of the main stream media are covering it in any way? So it would appear that there is a conspiracy among the various outlets to allow Soros’ meetings to take place unreported.

The first gathering in Bretton Woods, N.H., is an economic conference Soros once described as “a grand bargain that rearranges the entire financial order.” In October 2009, Soros committed $50 million to the Institute for New Economic Thinking (INET). A week later, the glib lefty investor wrote a column calling for a new Bretton Woods event, to recreate the one that helped design the post-WWII economy. Only he wants this one to knock America down a peg or three.
The announced speakers include a lot of prominent lefties, globalists and economists on the board of the organization he has throwing the event – more than two-thirds of the overall total have ties to Soros. To underscore their connection to history, INET is hosting the conference at the Mount Washington Resort, the very same hotel that held the first gathering.
INET Executive Robert Johnson defended his event in a March 31 interview with Lou Dobbs. Johnson, a former managing director at Soros Fund Management, who is on the Board of Directors for the Soros-funded Economic Policy Institute, avoided saying “Soros” despite Dobbs mentioning Johnson’s boss several times. In his last response, he tried to rationalize the Soros connection, by saying “I have a group of funders including George Soros.” With $50 million, Soros alone makes a pretty big group. Of course, Soros will also be speaking in Bretton Woods about “The Emerging Economic and Political Order.” source – Fox News
TY Mary Jane Moore-Wright

Frontrunning: April 11

Frontrunning: April 11
Submitted by Tyler Durden on 04/11/2011 07:51 -0400



•Obama Push to Seize Budget Initiative (FT)

•China gives all clear on bond issuance bubble: Government Boosts the Bond Markets (China Daily)

•You mean they can't use 200% debt financing? Nasdaq OMX Needs Shareholders to Embrace Rejected Bid (Bloomberg)

Complacent Europe Must Realise Spain Will be Next (FT)

•Japan's seismic nerve center (Japan Times)

•Kan’s DPJ Suffers Election Setback One Month After Japan Quake (Bloomberg)

•Edano Says Japan Doesn't Need BOJ to Help Fund Post-Quake Disaster Relief (Bloomberg)

•State Prosecutor Summons Mubarak (FT)

•US Doubts Air Power Can Turn Libyan Tide (FT)

China Lashes Out At US "Hypocrisy", Blasts US Human Rights "Double Standard" In Pursuing "World Hegemony"

In what can only be described as a stunning deterioration in foreign relations between the world's two superpowers, following Friday's release by the US State Department of the annual report on human rights, which expressed sharp criticism of the human rights records of China, North Korea, Cuba and Belarus, among others, China decided it has had enough. Less than 48 hours later, it has lashed back at the US with a report that is making headlines at every government controlled, and otherwise, media in mainland China, which makes a mockery of the US double standard when it comes to human rights, and exposes US "hypocrisy" which China (rightly many would claim) asserts is merely a pretext for continued US attempts at world "hegemony". As Xinhua reports on its front page, "The Human Rights Record of the United States in 2010 was released by the Information Office of China's State Council, or cabinet, in response to the Country Reports on Human Rights Practices for 2010 issued by the U.S. Department of State on April. The U.S. reports are "full of distortions and accusations of the human rights situation in more than 190 countries and regions including China. However, the United States turned a blind eye to its own terrible human rights situation and seldom mentioned it," China's report said." The war of words hits a new all time record: "The United States has taken human rights as "a political instrument to defame other nations' image and seek its own strategic interests," the report said. While illustrating a dismal record of the United States on its own human rights, China's report said the United States could not be justified to pose as the world's "human rights justice." "However, it released the Country Reports on Human Rights Practices year after year to accuse and blame other countries for their human rights practices," the report said. These moves fully expose the United States' hypocrisy by exercising double standards on human rights and its malicious design to pursue hegemony under the pretext of human rights, it said. The report advised the U.S. government to "take concrete actions to improve its own human rights conditions, check and rectify its acts in the human rights field, and stop the hegemonistic deeds of using human rights issues to interfere in other countries' internal affairs." While that last sentence may not be an explicit warning for the US to shut the hell up and focus on its own dirty laundry, or else, it sure does sound like one.


VIOLATION OF CITIZENS' RIGHTS
In the United States, the violation of citizens' civil and political rights by the government is severe, said the report.
Citizen's privacy has been undermined. More than 6,600 travelers had been subject to electronic device searches between October 1, 2008 and June 2, 2010, nearly half of them American citizens, said the report, citing figures released by the American Civil Liberties Union (ACLU) in September 2010.
The report said abuse of violence and torturing suspects to get confession is serious in the U.S. law enforcement, and "wrongful conviction occurred quite often."
While advocating Internet freedom, the U.S. in fact imposes fairly strict restriction on cyberspace, said the report.
The United States applies double standards on Internet freedom by requesting unrestricted "Internet freedom" in other countries, which becomes an important diplomatic tool for the U.S. to impose pressure and seek hegemony, and imposing strict restriction within its own territory, the report said.
The U.S. regards itself as "the beacon of democracy." However, its democracy is largely based on money, the report said.
According to media report in 2010, U.S. House and Senate candidates shattered fundraising records for a midterm election, taking in more than 1.5 billion U.S. dollars as of October 24. The midterm election, held in November 2010, finally cost 3.98 billion U.S. dollars, the most expensive in the U.S. history.
HIGHEST INCIDENCE OF VIOLENT CRIMES
One out of every five people is a victim of a crime in the United States every year, said the report.
The United States reports the world' s highest incidence of violent crimes, and its people's lives, properties and personal security are not duly protected, the report said.
In 2009, an estimated 4.3 million violent crimes, 15.6 million property crimes and 133,000 personal thefts were committed against U.S. residents aged 12 or older, and the violent crime rate was 17.1 victimizations per 1,000 persons, said the report, quoting figures from the U.S. Department of Justice.
The United States also ranks first in the world in terms of the number of privately-owned guns and had high incidence of gun-related crimes, said the report, noting that the United States exercised lax control on the already rampant gun ownership.
Some 90 million people own an estimated 200 million guns in the United States, which has a population of about 300 million, the report said citing figures from the public media.
Statistics showed there were 12,000 gun murders a year in the United States, the report said.
The report also said that the frequent campus shootings in colleges in the United States came to the spotlight in recent years.
RACIAL DISCRIMINATION DEEP-SEATED
"Racial discrimination, deep-seated in the United States, has permeated every aspect of social life," said the report.
Minority groups confront discrimination in their employment and occupation. The black people are treated unfairly or excluded in promotion, welfare and employment, the report quoted U.S media reports as saying.
It is reported that one-third of black people confronted discrimination at work, against which only one-sixteenth of the black people would lodge a complaint.
The New York Times reported on September 23, 2010 that by the end of September 30, 2009, Muslim workers had filed a record 803 claims of complaints over employment discrimination, up 20 percent from the previous year.
The report said U.S. minority groups have high unemployment rate, and do not enjoy the same political status as white people.
Poverty proportion for U.S. minorities is high in the United States. The poverty proportion of the black was 25.8 percent in 2009, and those of Hispanic origin and Asian were 25.3 percent and 12.5 percent respectively, much higher than that of the non-Hispanic white at 9.4 percent, said the report, citing U.S. media figures.
The report also said that U.S. minority groups face obvious inequality in education, and the health care for African-American people is worrisome.
Racial discrimination is evident in the law enforcement and judicial systems, racial hate crimes are frequent, and immigrants' rights and interests are not guaranteed, said the report.
RIGHTS OF WOMEN, CHILDREN IS BOTHERING
Gender discrimination against women widely exists in the United States, and women in the country often experience sexual assault and violence.
Statistics showed that some 20 million women are rape victims in the country, some one fifth female students on campus are victims of sexual assault, and nearly 3,000 female soldiers were sexually assaulted in fiscal year 2008, up nine percent from the year before.
Women are also victims of domestic violence in the United States, said the report, as some 1.3 million people fall victim to domestic violence every year, with women accounting for 92 percent.
Many children in the U.S. live in poverty and their physical and mental health is not ensured as nearly one in four children struggles with hunger, according to the report.
The report also pointed out that violence against children is very severe in the country, citing figures from the official website of Love Our Children USA that every year, over three million children are victims of violence reportedly and the actual number is three times greater.
More than 93,000 children are currently incarcerated in the United States, and between 75 and 93 percent of children have experienced at least one traumatic experience, including sexual abuse and neglect, the report said.
According to the report, pornographic content is rampant on the Internet and severely harms American children as seven in 10 children have accidentally accessed pornography on the Internet and one in three has done so intentionally.
INTERNATIONAL HUMAN RIGHTS VIOLATIONS
The United States has a notorious record of international human rights violations, said the report.
The U.S.-led wars in Iraq and Afghanistan have caused huge civilian casualties.
Figures from the WikiLeaks website revealed up to 285,000 war casualties in Iraq from March 2003 through the end of 2009, with 63 percent of the 109,000 people killed in the Iraq war being civilians.
"The U.S. military actions in Afghanistan and other regions have also brought tremendous casualties to local people," said the report.
The report cited the notorious case on a "kill team" formed by five soldiers from the 5th Stryker Combat Brigade, 2nd Infantry Division of the U.S. forces in Afghanistan. The team had committed at least three murders, where they randomly targeted and killed Afghan civilians, and dismembered the corpses and hoarded the human bones.
In addition, the U.S.-led North Atlantic Treaty Organization troops had caused 535 Afghan civilian deaths and injuries in 2009. Among them 113 civilians were shot and killed, an increase of 43 percent over 2008, the report quoted McClatchy Newspapers as saying.
PRISONER ABUSE SCANDALS
The United States have been holding individuals captured under the pretext of the "war on terror" and abusing detainees with various methods, according to the report.
The U.S. Central Intelligence Agency (CIA) established secret detention facilities to interrogate so-called "high-value detainees," said the report, citing a document submitted to the United Nations Human Rights Council in May 2010.
According to the document, the CIA had taken custody of 94 detainees, and had employed "enhanced techniques" to varying degrees, including stress positions, extreme temperature changes, sleep deprivation and "waterboarding" in the interrogation of 28 of those detainees.

Friday, April 8, 2011

Highest and Lowest Unemployment Rates

Comment: Francis Soyer

Take a look at these "reported" rates coming from (AP). To get the real number multiply these numbers below by 2.


(AP) -- Unemployment rates fell in more than three-quarters of the nation's 372 largest metro areas in February, a sign that recent hiring gains have been widespread and not limited to a few healthy regions.
Below are the cities with the highest and lowest unemployment rates. Figures are in percentages.
Best and Worst Metro areas
Highest unemployment rates Feb. 2011
1.El Centro, Calif. 26.9

2.Yuma, Ariz. 21.5

3.Merced, Calif. 21.3

4.Yuba City, Calif. 21.3

5.Fresno, Calif. 18.2

6.Modesto, Calif. 18.1

7.Visalia-Porterville, Calif. 18.1

8.Hanford-Corcoran, Calif. 18.0

9.Stockton, Calif. 17.6

10.Ocean City, N.J. 17.0

Lowest unemployment rates Feb. 2011
1.Lincoln, Neb. 4.2

2.Bismarck, N.D. 4.6

3.Ames, Iowa 4.7

4.Iowa City, Iowa 4.7

5.Fargo, N.D. 4.7

6.Burlington, Vt. 4.8

7.Midland, Texas 4.8

8.Honolulu, Hawaii 5.2

9.Portsmouth, N.H. 5.2

10.Charlottesville, Va. 5.3

Financial_System_Designed_To_Self_Destruct

As each day passes the US dollar loses prestige and its status as a world reserve currency. Washington and Wall Street pay little attention to its slide and the changes a lower dollar and loss of reserve status will bring. Once the dollar is dethroned Americans will have to learn to live on the edges of the economic and financial world. Those of you who have not read G. Edward Griffins’ “Creature from Jekyll Island” should. It tells you why the Federal Reserve was created and why the Federal Reserve was created and what its function is. It also shows you why except for Wall Street, banking and selected elitist corporations why the system was designed to self-destruct. If you read economic and financial history you will discover why such economic and financial destruction takes place repeatedly and that more often than not does not happen due to incompetence, war or error, but it is planned that way. What has happened to the dollar since Bretton Woods and the planned removal of gold backing from the dollar is an example of deliberate destruction and in that process the destruction of the greatest nation in history. In that process of 97 years the wealthy and connected have become wealthier and powerful and have become even more so. They truly expect to exit this maelstrom and war as the leaders of the future. We have news for them. The power of talk radio and the Internet stretches worldwide and the world now understands what they are up too, and they are not going to be successful in their efforts to bring about world government. The collapse of the dollar is but one aspect in the change planned in the shift in world power.

Silver Shorts Getting Slapped Around...


Submitted by: Francis Soyer 4/8/11 06:55

As the government shutdown approaches notice what happens with precious metals and the dollar. As one economist put it, (Martin Armstrong) is an issue of the ECM (Economic Confidence Model). Not to be confused with consumer confidence or investor confidence which are two completely seperate issues. The ECM model is directly related to confidence in governmental systems. This is why precious metals will continue to rise and rise sharply over the next 18 months with little or no pullbacks of any consequence. By my own work it is not unreasonable to expect Silver at $300 and Gold at $3,000 to $5,000 3 being the low end and 5 upper.

The key issue being that world governments and their stability are directly linked to world central banking. World central banking and their continued monetary value dilution do nothing but erode the ECM model. It erodes that model in that the stimulus intended to spark growth simply gets absorbed into the banking system however never reaches the general economy in the form of loans to spark economic growth. I think very few economists of any salt would disagree that the system is broken and badly so.

Hence why precious metals and also commodities in general will continue to rise in dollar / eur / Yen etc. in that it takes more of them to have the same purchasing power as in the past because their value continues to fall as central banking prints more of them out of thin air. For more on this concept please visit Armstrong Economics at http://armstrongeconomics.com/

He just got out of prison so no posts as of recently but he did some brilliant work while serving time. :)