Reality check: we cannot consume our way to balanced recovery

Rejoice. Like the economy, the UK public finances are at last moving in the right direction. October is an important month for corporation tax inflows, and most of the anecdotal evidence is that with an improving economy, they are picking up nicely. Add in expected increases in taxes from the housing market – and with […]

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Behind the Scenes Glimpse At The War On Gold & Silver

“Open interest is up, particularly for silver, but both gold and silver prices are stuck near support.  The price of gold has hardly moved over the past week, and remains in a narrow trading range on either side of $1280.  Normally one would expect to see a rise in price with the jump in open […]

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Investors Flock to Silver Coins

Silver coins are gaining favor among investors and sales could rise to a record high in 2013, thanks to a sharp fall in the precious metal’s price. Demand for silver, which is sought after by investors and industrial users alike, is expected to rise, consultancy Thomson Reuters GFMS said in a recent report. The industrial […]

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CIA Database Tracks All US Money Transfers

While hardly as dramatic as ongoing revelations of Big NSA Brother probing every aspect of Americans’ lives, overnight the WSJ reported that in addition to the complete loss of privacy – which should now be taken for granted – the CIA has been added to the list of entities that scrutinize every online interaction, and […]

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Empire Manufacturing Collapses To Lowest Since January

The headline Empire manufacturing data missed expectations by the most since January (the 4th month in a row) and plunged to its lowest since January. Across the board sub-indices collapsed (every one of them) into contraction with shipments down from over 13 to -0.5, and New Orders down from 7.75 to -5.5. “Hope” didn’t save it […]

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JPMorgan’s Fruitful Ties to a Member of China’s Elite

To promote its standing in China, JPMorgan Chase turned to a seemingly obscure consulting firm run by a 32-year-old executive named Lily Chang. Ms. Chang’s firm, which received a $75,000-a-month contract from JPMorgan, appeared to have only two employees. And on the surface, Ms. Chang lacked the influence and public name recognition needed to unlock business for […]

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Citi Warns "Fed Is Kicking The Can Over The Edge Of A Cliff"

It is becoming increasingly obvious that we are seeing the disconnect between financial markets and the real economy grow. It is also increasingly obvious (to Citi’s FX Technicals team) that not only is QE not helping this dynamic, it is making things worse. It encourages misallocation of capital out of the real economy, it encourages poor […]

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Moody’s Lowers Ratings of Four U.S. Banks After Review

Moody’s Investors Service cut its ratings on four of the biggest U.S. banks after deciding the government would be less likely to help them repay creditors in a crisis. Morgan Stanley (MS), Goldman Sachs Group Inc. (GS), JPMorgan Chase & Co. (JPM) andBank of New York Mellon Corp. had their senior holding company ratings lowered one level yesterday after […]

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Senate drops the ball on Fed's Janet Yellen

From Nouriel Roubini: ten quick tweets on all those questions that ill-briefed senators were “too naive” to ask Janet Yellen, at her Fed hearings. All we got was muddle, posturing, and bluster, illuminating nothing much. The hearings were like many bad press conferences I have covered as a hack, mostly a spectacle of journalists trying […]

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USD as a Percentage of Global Reserves Down, then Up. What’s next for Gold?

When the euro arrived on the scene, it took over around 32% of global foreign exchange reserves from the USD, with the tacit approval of the U.S. This dropped the USD’s percentage of global reserves from 95% to around 63%. Since then [2000] its percentage of reserves dropped from 63% to 53% and now has […]

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