Friday, 16 November 2012

Only 38 Days Left To Christmas.



Baltic Dry Index. 1024  +13

LIR Gold Target by 2019: $30,000.  Revised due to QE programs.

I once wanted to become an atheist, but I gave up - they have no holidays.

Henny Youngman

Say goodnight Europe, at least that’s the opinion of Rupert Murdoch’s downwardly mobile Wall Street Journal, mouthpiece of the Bernanke Fed. Below, the Journal looks at the decline and Fall of Europe, brought low by socialism, and dumbed down education and modern TV. Stay long physical precious metals.

I once bought my kids a set of batteries for Christmas with a note on it saying, toys not included.

Bernard Manning.

November 15, 2012, 6:11 p.m. ET

Europe's Lingering Crisis Augurs Badly for Its Clout

Europe's strategic thinkers are worrying about heart failure in the euro zone.

In the early phases of the euro-zone debt crisis, many of them dismissed its significance, arguing it was a transitory financial and economic phenomenon that would have little or no lasting geopolitical impact. Now, the crisis has dragged on for so long that deeper consequences appear unavoidable.

With large parts of the region in economic retreat, and a few countries in depression, there are growing doubts that the European Union will hold together. But even if it does hold on, the current muddle-through speaks of a continuing decline of European influence in the world.

In an article in the journal Survival, François Heisbourg, special adviser to the Paris-based Foundation for Strategic Research, points out that it is "heart failure"—an unwillingness at the center to deal with the problems of the periphery—that ultimately kills political unions.

---- In the article, Mr. Heisbourg paints four possible scenarios for Europe's strategic future: continued muddle-through, a closer union, a splintering of the euro in which countries, such as Greece, leave, or a complete breakdown of the euro zone. All suggest big changes in the strategic landscape.

He says Europe has been lucky to have muddled through as long as it has. With the euro zone in recession and the political climate getting worse, the risks to this approach grow with every month. "We are probably running out of luck," he said Thursday. "I'd be very surprised if we had no accidents in 2013."
More

Up next, the French run, isolated IMF, advocates forgery for the Eurozone. Ironically, forgery is one of the few things that Euroland does really well. The euro is really only forgery on the grandest scale of all. Unbacked by anything more than Germany’s willingness to indulge in transfer payments to the idlers of Club Med. Even their bank notes have pictures of fictitious buildings. The EU’s accounts are so bad that 25% of the money spent, gets stolen, goes missing and simply disappears. The auditors haven’t been able to sign off on the EU’s books in 18 years. Would you put your money in Europe’s super Madoff?

Santa Claus has the right idea - visit people only once a year.

Victor Borge.

IMF's Lagarde says important for euro zone to forge deal on Greece

MANILA | Fri Nov 16, 2012 2:27am EST
(Reuters) - A crucial Eurogroup meeting next week on Greece should forge a deal that will put the insolvent country's economy on a sustainable path, International Monetary Fund (IMF) Managing Director Christine Lagarde said on Friday.

The IMF chief is cutting short her tour of Asia to attend the Eurogroup meeting in Brussels on November 20.
A row between euro zone governments and the IMF over how to make Greece's giant debt mountain manageable is holding up the release of 31 billion euros ($39.5 billion) in emergency loans needed to keep Athens afloat.

---- "It is a question of working hard, putting our mind to it, making sure that we focus on the same objective which is that the country in particular, Greece, can operate on a sustainable basis, can recover, can get back on its feet, can reaccess markets as early as possible."

Lagarde earlier this week publicly disagreed with euro zone finance ministers who have suggested that Greece should be given until 2022 to lower its debt to gross domestic product (GDP) ratio to 120 percent. Lagarde has insisted the existing target of 2020 should remain.

--- Greece's total debt is forecast to rise to nearly 190 percent of gross domestic product next year, meaning it is highly unlikely to fall back to 120 percent of GDP by 2020, the level the IMF has said is the maximum sustainable in the long term.
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Next, while wait to see what happens later in the day in America, as the two warring tribes meet to negotiate a way past the “fiscal cliff,” a timely warning on Reuters to trust nothing in our high tech world. I’ll bet the ex-CIA boss now wishes he’d read this article 
last year.

I stopped believing in Santa Claus when I was six. Mother took me to see him in a department store and he asked for my autograph.

Shirley Temple.

Kill the Password: Why a String of Characters Can’t Protect Us Anymore

By Mat Honan 11.15.12 6:30 AM
You have a secret that can ruin your life.

It’s not a well-kept secret, either. Just a simple string of characters—maybe six of them if you’re careless, 16 if you’re cautious—that can reveal everything about you.

Your email. Your bank account. Your address and credit card number. Photos of your kids or, worse, of yourself, naked. The precise location where you’re sitting right now as you read these words. Since the dawn of the information age, we’ve bought into the idea that a password, so long as it’s elaborate enough, is an adequate means of protecting all this precious data. But in 2012 that’s a fallacy, a fantasy, an outdated sales pitch. And anyone who still mouths it is a sucker—or someone who takes you for one.

No matter how complex, no matter how unique, your passwords can no longer protect you.
Look around. Leaks and dumps—hackers breaking into computer systems and releasing lists of usernames and passwords on the open web—are now regular occurrences. The way we daisy-chain accounts, with our email address doubling as a universal username, creates a single point of failure that can be exploited with devastating results. Thanks to an explosion of personal information being stored in the cloud, tricking customer service agents into resetting passwords has never been easier. All a hacker has to do is use personal information that’s publicly available on one service to gain entry into another.

This summer, hackers destroyed my entire digital life in the span of an hour. My Apple, Twitter, and Gmail passwords were all robust—seven, 10, and 19 characters, respectively, all alphanumeric, some with symbols thrown in as well—but the three accounts were linked, so once the hackers had conned their way into one, they had them all. They really just wanted my Twitter handle: @mat. As a three-letter username, it’s considered prestigious. And to delay me from getting it back, they used my Apple account to wipe every one of my devices, my iPhone and iPad and MacBook, deleting all my messages and documents and every picture I’d ever taken of my 18-month-old daughter.

Since that awful day, I’ve devoted myself to researching the world of online security. And what I have found is utterly terrifying. Our digital lives are simply too easy to crack. Imagine that I want to get into your email. Let’s say you’re on AOL. All I need to do is go to the website and supply your name plus maybe the city you were born in, info that’s easy to find in the age of Google. With that, AOL gives me a password reset, and I can log in as you.

First thing I do? Search for the word “bank” to figure out where you do your online banking. I go there and click on the Forgot Password? link. I get the password reset and log in to your account, which I control. Now I own your checking account as well as your email.

This summer I learned how to get into, well, everything. With two minutes and $4 to spend at a sketchy foreign website, I could report back with your credit card, phone, and Social Security numbers and your home address. Allow me five minutes more and I could be inside your accounts for, say, Amazon, Best Buy, Hulu, Microsoft, and Netflix. With yet 10 more, I could take over your AT&T, Comcast, and Verizon. Give me 20—total—and I own your PayPal. Some of those security holes are plugged now. But not all, and new ones are discovered every day.
More

We end for the week, with the logical outcome of a world built on fiat money. Deficits don’t matter, provided you have your own fiat money and a central bank. If bailing out banksters is good for the nation state, how much better to bail out one and all?

Bah, humbug!

Confessions of a deficit denier

By Anatole Kaletsky November 15, 2012
Here is a confession: I am a deficit denier.

To say this in respectable society is to be reviled as a self-serving rogue, worse than someone who denies climate change. Yet whenever I see a budget crisis — the U.S. falling off a fiscal cliff; austerity protests paralyzing Europe; Britain’s governing coalition tearing itself apart over missed budget targets -– I cannot resist the same conclusion: These countries’ leaders should take a deep breath, relax and stop worrying about deficits.

For there is actually no fiscal crisis in the United States, Britain or most European countries — including even Italy and Spain. Greece is another matter. But the very specific Greek disaster hardly justifies a generalized global panic about all government debts.

Consider some statistical facts. Interest rates are lower today than at any time in history, meaning that governments find it easier to borrow money than ever before. This hardly suggests impending bankruptcy.
Especially since the investors falling all over themselves to lend them money are not naïve widows and orphans or government-controlled central banks. Rather, hedge funds, billionaires and the sovereign-wealth funds of financially sophisticated nations like Norway and Singapore have all poured far more money into government bonds than into shares, property or gold over the past three years.

Why are sophisticated investors unmoved by the deficit panic? Because they know that governments, at least outside the euro zone, are nowhere near bankruptcy. In fact, debt levels are not dangerously high. The U.S. government net debt is expected to stabilize at 89 percent of gross domestic product from 2014 to 2017, according to the International Monetary Fund, even if all the Bush tax cuts were extended and without any of the spending cuts assumed in the fiscal cliff. Similar stable debt levels are projected for Germany, France, Italy, Britain and even Spain. Assuming debt levels do stabilize in the rage of 85 percent to 100 percent of GDP, these won’t be worryingly high. U.S. national debt peaked at 110 percent of GDP in the late 1940s, and Britain’s was even higher. But nobody worried much about national bankruptcy after World War II – and the confidence proved justified. For the U.S. and Britain both enjoyed their strongest economic performance in the two decades after their deficits peaked at more than 100 percent of GDP.

The U.S. and British fiscal situations today are even less troubling — partly because two-thirds of the government debt issued since the 2008 crisis has been bought by the central banks. Since the Federal Reserve and the Bank of England are part of their respective governments, the bonds they own represent debts the government owes to itself.

Once central bank holdings are consolidated within the government, the true burden of debt owed to the public falls to roughly 65 percent of GDP in both Britain and the United States.

Britain belatedly began to acknowledge this fiscal reality in a path-breaking move last Friday, when the Treasury decided to credit back to itself the interest payments it had been theoretically making to the Bank of England. At a stroke, this will slash £35 billion off government deficits and spending.

The next logical step might be to cancel completely the £375 billion worth of bonds held by the Bank of England, thereby reducing reported debt by some 25 percent of GDP.
More

"Oh, for the good old days when people would stop Christmas shopping when they ran out of money."

Anon.

At the Comex silver depositories Thursday final figures were: Registered 35.82 Moz, Eligible 105.31 Moz, Total 141.13 Moz.  


Crooks and Scoundrels Corner
The bent, the seriously bent, and the totally doubled over. 

Today, it’s the banksters again. It’s not their fault, really it isn’t. When it comes to lying, cheating, stealing, they just can’t help themselves, even to save their lives. “My word is my bond,” leave it out Gov’, give us a break!

Christmas is coming and the geese are getting fat,
Please put a trillion in the banksters’ hat.
If you haven’t got a trillion a billion will do,
If you haven’t got a billion, God damn you!

Ebenezer Squid

RBS claim it's 'co-operating' on Libor is false, says Canadian regulator

Canadian regulators have publicly refuted a claim by the Royal Bank of Scotland that it is “co-operating fully” with authorities around the world in the on-going Libor probe.

The Ottawa-based Canadian Competition Bureau (CCB) said RBS was not co-operating because it has been refusing to hand over relevant documents for months.

In a move that escalates an on-going spat, the CCB said it felt duty bound to point out inaccuracies it had spotted a recent regulatory filing made by RBS that said it was working with regulators.

“The suggestion that the RBS Group is “co-operating fully” with the Bureau is false,” the authority said in a statement posted on its website. It added: “The RBS Group has not applied to the Bureau’s Immunity or Leniency Programs and, in fact, has challenged a production order issued by the Ontario Superior Court of Justice in relation to the Bureau’s investigation.”

Phil Norris, a spokesman for the CCB, told reporters: “We take misleading statements regarding our investigations very seriously, so in this case we did not hesitate to release a statement, to take the appropriate action to correct them,”

RBS quickly issued a statement itself saying that it was “simply not accurate to imply that we do not want to co-operate.”

JP Morgan banned from trading electricity in the US

JP Morgan has been banned from trading electricity in the US after a regulator accused the bank of making "egregious" misrepresentations during an investigation into alleged market maniplation.

The six-month ban imposed by the Federal Energy Regulatory Commission (FERC) is the latest sign that US authorities are stepping up their policing of the country's vast energy market. Last month, it proposed Barclays be fined $435m (£274m) for allegedly manipulating electricity prices.

The punishment handed down to JP Morgan relates to a dispute that began in 2011, when the state operator of the power grid in California asked the bank for documents during an investigation into alleged price manipulation in the wider market.

The California Independent System Operator (CAISO) fined the bank $486,000 in February for failing to submit the documents, a fine that JPMorgan asked FERC to overturn because it claims it was not required to produce the documents.

Although JP Morgan withdrew its appeal in June, FERC this week imposed the ban because of the "egregious nature of JP Morgan's repeated submission of false and misleading statements", to CAISO that it found during its own investigation.

Energy experts said that it is the first time that a major company has been suspended from the energy markets since the Enron scandal in 2001. FERC was equipped with new powers after Enron, once the world's largest energy trader, was found guilty of accounting fraud.

“Money's scarce
Times are hard
Here's your f***ing
Xmas card”

Ebenezer Squid, with apologies to Phyllis Diller.

The monthly Coppock Indicators finished October:
DJIA: +92 Up. NASDAQ: +99 Up. SP500: +102 Up.

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