Baltic Dry Index. 720 -23
LIR Gold Target by 2019: $30,000. Revised due to QE programs.
It’s morally wrong to let a sucker keep his money.
UBS Bankster, with apologies to W. C. Fields.
More on how modern banksterism has come to
dominate our nominally capitalist economy later, first this from Japan. Japan is
about to embark on the biggest round of stimulation measures Japan has ever
seen. Today the BOJ announced the first
baby step. Next year comes the Shinzo Abe money deluge. Stay long physical
precious metals. In 2013, America, Japan and Europe are all intending to trash
their fiat currencies in a new error of epic proportions, to try to keep the corrupt
bankster dominated Great Nixonian Error of fiat currency running. It is all
going to end badly though we just don’t know when or how.
"The great merit of gold is precisely that it is scarce; that its quantity is limited by nature; that it is costly to discover, to mine, and to process; and that it cannot be created by political fiat or caprice."
Henry Hazlitt
BOJ Loosens With Pledge to Review Inflation Objectives: Economy
By Toru Fujioka & Masahiro Hidaka - Dec 20, 2012 7:22 AM GMT
The Bank of Japan (8301) expanded its asset-purchase program for the third
time in four months, and will reconsider its objectives for inflation as
incoming Prime Minister Shinzo Abe urges more action to end price declines. The central bank expanded its asset-purchase fund to 76 trillion yen ($906 billion) from 66 trillion yen, according to a statement released in Tokyo today. The bank kept its credit lending program unchanged at 25 trillion yen.
The expanded purchases failed to halt gains in the
yen, which reversed three days of declines today as investors sought a haven
amid concerns at a stalemate in U.S. budget talks. Abe, whose party swept to
victory in this week’s election, will have a chance to reshape the BOJ early
next year when the terms of Governor Masaaki Shirakawa and his two deputies
expire. He’s pressing for a 2 percent inflation target, compared with an
existing 1 percent goal.
---- “Today’s action will have little impact on economic activity in the next quarter as demand to borrow funds provided by the central bank remains weak,” said Junko Nishioka, chief economist at RBS Securities Japan Ltd. and a former BOJ official.
The BOJ board will discuss “medium- to long-term price stability” at its next meeting on Jan. 21-22, the statement said, indicating that the bank may consider revising its inflation goal. Shirakawa has asked BOJ staff to examine “issues for discussion” and report back to the board, the statement said.
---- Japan’s economy shrank
an annualized 3.5 percent last quarter after a 0.1 percent decline in the
previous three-month period, meeting the textbook definition of a recession.
The median estimate of analysts surveyed by Bloomberg News is for a 1.4 percent
expansion next quarter.
More
Elsewhere,
the news at the end of 2012 continues grim. Despite all the voodoo economics,
and QE bankster welfare programs, we seem to have reached the “end of the world
as we knew it” without any help from the Mayans. 2013 looks like being a
historic year, ranking alongside 1588, 1688, 1704, 1706, 1759, 1781, 1815,
1914, 1939.
Bank of England warns of triple dip
The Bank of England has warned that the economy is “quite likely” to shrink in the final three months of the year, bringing the recovery to an abrupt end, as it forecast that inflation will remain above 2pc “for the next year or so”.
The
warning on growth, made in the minutes to this month’s Monetary Policy Committee
meeting, is in keeping with Governor Sir Mervyn King’s prediction that
the UK faces a “zigzag” path to economic health, but will renew fears of a
triple-dip.
The
economy recovered from three quarters of contraction to grow 1pc in the third
quarter but economists say it is potentially on course to shrink by 0.1pc in
the final three months.
Underlining
concerns, the minutes raised fresh questions about the vital rebalancing of the
UK economy away from consumption and towards exports due to Britain’s weak
productivity over the past two years.
Unit
labour costs have risen 5pc in a year compared with “a historical average of a
little over 2pc”, the minutes noted. The recent appreciation in the value of
sterling against the euro has also worked against the UK’s export
competitiveness, the minutes said, echoing Sir Mervyn’s recent call for a currency
devaluation.
Inflation
will be above the Bank’s 2pc target into 2014 but is out of policymakers’
hands, the minutes claimed. “Inflation was likely to remain above the 2pc
target for the next year or so, owing in part to the continuing impact of the
rise in university tuition fees and higher domestic gas and electricity and
other administered and regulated prices.
More
Global economy at great risk of falling into renewed recession: UN report
UNITED
NATIONS, Dec. 18 (Xinhua) -- Growth of the world economy has weakened
considerably during this outgoing year and is expected to remain subdued in the
coming two years, a UN report said here Tuesday.
The
global economy is expected to grow at 2.4 percent in 2013 and 3.2 percent in
2014, a significant downgrade from the UN' s forecast of half a year ago, said
the report, "The World Economic Situation and Prospects 2013 (WESP)",
which was released here Tuesday by the UN Department of Economic and Social
Affairs.
"Four
years after the eruption of the global financial crisis, the world economy is
still struggling to recover," the report said. "During 2012, global
economic growth has weakened further. A growing number of developed economies
have fallen into a double-dip recession."
More
Up next, more detail on how the giant Swizz bank with
an addiction to breaking the law, rigged the British Banker’s Association’s
Liebor. Why has this bank still got a banking licence, comes to mind.
Why did I take up stealing? To live better, to own things I couldn't afford, to acquire this good taste that you now enjoy and which I should be very reluctant to give up.
UBS, with apologies to Cary Grant. To Catch A Thief.
How UBS built its Libor racket
Corruption, bribes, collusion, panic and downright stupidity – the tale of UBS’s scandalous Libor rigging between 2005 and 2010 reads like a modern crime thriller.
At least
45 individuals at the Swiss investment bank were part of a racket that
manipulated the market “in various locations around the world, including Japan,
Switzerland, the UK and the USA”, the Financial Services Authority (FSA) said.
A number of brokers at smaller houses became UBS’s paid flunkeys, and rival
traders colluded for a share of the spoils.
Those
spoils, though unquantified, were potentially huge. Libor is a benchmark
interest rate used in transactions worth $500 trillion (£310 trillion)
globally, so even the tiniest market wriggle can have enormous implications. One
UBS manager in October 2008 admitted that a single basis point move in Libor –
or 0.01pc – would be worth $4m to the bank. For traders, a basis point could
mean the difference between splashing their bonus on a yacht or a dinghy.
UBS began
manipulating inter-bank borrowing, or Libor, in early 2005 – with traders
making false submissions to the organisations that compiled banks’ offers to
set the daily rate.
By 2007,
though, UBS’s rigging was industrial in scale – with “illicit fees” paid to
brokers that ran into hundreds of thousands of pounds and deals struck with
rivals so that everyone would have the chance to cash in. The scale of the
abuse was on a radically different level from that at Barclays, which is why
UBS’s £940m fine was more than three times bigger.
The
mastermind behind some of the most egregious cases at UBS was the 33-year-old
Tokyo-based Briton Tom Hayes, identified in the FSA’s notice only as “Trader
A”.
----Brokers were integral to Mr Hayes’s rigging campaigns. Because they provided the banks with intelligence on where others were likely to set Libor, they wielded significant influence over final decisions. And Mr Hayes had at least five brokers on side, “spoofing” the market as they played what they called the “Libor game”.
In an exchange
in September 2008, he told one: “If you keep 6s [six month Libor] unchanged
today… I will ----ing do one humongous deal with you ... I need you to keep it
as low as possible ... if you do that ... I’ll pay you 50,000 dollars, 100,000
dollars… whatever you want… I’m a man of my word.”
He made
sure brokers were kept happy. Using a system of “wash trades”, which were
pointless for UBS but created cover to pay brokers, Mr Hayes created £170,000
of “illicit fees” for a single firm, the FSA said. “In addition, UBS made
corrupt payments of £15,000 per quarter to brokers to reward them for a period
of at least 18 months,” it added. That’s another £108,000. One broker alone
received £5,000 per quarter for his “fixing service”.
More
UBS $1.5 Billion Libor Settlement Signals More to Come
By Silla Brush & Phil Mattingly - Dec 20, 2012 5:05 AM GMT
UBS AG (UBSN)’s $1.5 billion settlement for manipulation of interest rates
and criminal charges against two former traders paves the way for additional
sanctions in a global investigation of more than a dozen banks and brokers. Switzerland’s biggest bank settled with U.S., U.K. and Swiss regulators for manipulating rates thousands of times over six years through relationships with multiple banks and brokers. Two traders were charged with conspiracy in a criminal complaint, while UBS’s Japanese affiliate pleaded guilty in the U.S. to felony wire fraud. Hong Kong authorities today said they’ve started a probe into potential misconduct by the bank.
--- The Hong Kong Monetary Authority has started an investigation to see if there was wrongdoing by UBS in its submission of data for setting the Hong Kong Interbank Offered Rate, according to a statement from the de-facto central bank today. The HKMA is also reviewing whether the potential misconduct may have had a material impact on the rates.
The Royal Bank of Scotland Group Plc is in settlement negotiations with regulators, according to people with knowledge of the matter. Meanwhile, traders at Deutsche Bank AG, Credit Agricole SA (ACA) and HSBC Holdings Plc (HSBA) are under investigation, according to a person with knowledge of the matter who asked not to be identified because the probes are continuing.
More
http://www.bloomberg.com/news/2012-12-19/ubs-1-5-billion-libor-settlement-signals-more-to-come.html
Libor scandal: Fannie Mae and Freddie Mac could have lost $3bn
America's two largest mortgage lenders could have lost more than $3bn (£1.85bn) as a result of banks’ alleged manipulation of Libor.
Fannie
Mae and Freddie Mac, the giant US mortgage lenders, have been told they should
consider suing banks amid allegations that several major financial institutions
rigged key borrowing rates for several years.
According
to reports, the two lenders are likely to have lost several billions of dollars
as a direct result of interest rates being artificially increased and decreased
by banks.
The
reports came as banks brace themselves for a tidal wave of claims relating to
the manipulation of interest rates after UBS joined Barclays in admitting to
complicity in the fraud.
Lawyers
are working on civil litigation claims relating to losses flowing from the
rigging of Libor around the world. It is thought any damages payouts could
dwarf the billions of pounds the banking industry faces paying in regulatory
fines and penalties.
----Ms Leon said: “Today’s news about UBS’ $1.5bn settlement with UK, US and Swiss authorities has wide ranging implications for businesses whose lending is based on LIBOR and particularly those who were obliged to enter into derivative contracts such as interest rate swaps.
“The end
result of many of these products was that the customer ended up paying
significantly more as rates fell.”
We end for today with icy Russia. In Russia this December,
hell has frozen over. Is this the real arrival of our new Dalton Minimum
sunspot effect? Only time will tell.
Down to -50C: Russians freeze to death as strongest-in-decades winter hits
19 December, 2012, 19:00
Russia is
enduring its harshest winter in over 70 years, with temperatures plunging as
low as -50 degrees Celsius. Dozens of people have already died, and almost 150
have been hospitalized.
The
country has not witnessed such a long cold spell since 1938, meteorologists
said, with temperatures 10 to 15 degrees lower than the seasonal norm all over
Russia.
Across
the country, 45 people have died due to the cold, and 266 have been taken to
hospitals. In total, 542 people were injured due to the freezing temperatures,
RIA Novosti reported.
The
Moscow region saw temperatures of -17 to -18 degrees Celsius on Wednesday, and
the record cold temperatures are expected to linger for at least three more
days. Thermometers in Siberia touched -50 degrees Celsius, which is also
abnormal for December.
The
Emergency Ministry has issued warnings in 15 regions, which have been put on
high alert over possible disruptions of communication and power.
Across
the country, heat pipelines have broken down due to the cold. In southeastern
Russia’s Samara, the cold has broken down many heat pipelines, leaving hundreds
of homes without heating, including an orphanage and a rest house. Many schools
and kindergartens have been closed for almost a week.
The cold
spell, along with snowfalls, has disrupted flights all over the country, and
led to huge traffic jams. In the southern city of Rostov-on-Don some highways
were closed due to snowfalls over the past two days, triggering a traffic
collapse.
More
Banks are an almost irresistible attraction for that element of our society which seeks unearned money.
J. Edgar Hoover
At the Comex silver depositories Wednesday final figures were: Registered 43.15
Moz, Eligible 104.45 Moz, Total 147.60 Moz.
Crooks and
Scoundrels Corner
The bent, the seriously bent, and the totally
doubled over.
Bah humbug! In
Washington the never ending war went on. Another day, and another day closer to
America’s “fiscal cliff.” The markets
though are still complacently expecting Santa to show up with a compromise before
year end, ushering in a new era of peace and harmony. From faraway London, another bitter 4 year
campaign looks increasingly likely in Washington, or at the least, a two year no
holds barred war until the mid-term elections. A house divided cannot stand,
says the bible, and it knows of what it speaks. Stay long physical precious
metals.
Every
kingdom divided against itself is brought to desolation; and every city or
house divided against itself shall not stand.
Matthew
12:25.
"Fiscal cliff" talks turn sour, Obama threatens veto
WASHINGTON |(Reuters) - Talks to avoid a fiscal crisis appeared to stall on Wednesday as President Barack Obama accused Republicans of digging in their heels due to a personal grudge against him, while a top Republican called the president "irrational."
As the clock ticks toward a year-end deadline, Obama and House of Representatives Speaker John Boehner, the top Republican in Congress, are trying to reach a deal to avert harsh tax hikes and spending cuts that could trigger a recession.
Obama said he was puzzled over what was holding up the talks and told Republicans to stop worrying about scoring "a point against the president" or forcing him into concessions "just for the heck of it."
"It is very hard for them to say yes to me," he told a news conference in the White House. "At some point, you know, they've got to take me out of it."
The rise in tensions threatens to unravel significant progress made over the last week in the so-called fiscal cliff talks.
Boehner and Obama have each offered substantial concessions that have made a deal look within reach. Obama has agreed to cuts in benefits for seniors, while Boehner has conceded to Obama's demand that taxes rise for the richest Americans.
However, the climate of goodwill has evaporated since Republicans announced plans on Tuesday to put an alternative tax plan to a vote in the House this week that would largely disregard the progress made so far in negotiations.
Obama threatened to veto the Republican measure, known as "Plan B," if Congress approved it.
Boehner's office slammed Obama for opposing their plan, which would raise taxes on households making more than $1 million a year and is a concession from longstanding Republican opposition to increasing any tax rates.
More
“Those who don't know history are destined to repeat it.”
Edmund Burke
The monthly
Coppock Indicators finished November:
DJIA: +103 Up. NASDAQ: +123 Up. SP500: +125 Up.
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