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Gold Runs Out In Germany

Gold Runs Out In Germany

Allan Hall
London Evening Standard
October 12, 2008

Risk-averse Germans are turning to gold in troubled times – but there’s none left.

German gold dealers say demand has skyrocketed this past week to 10 times normal so no more orders can be taken for the foreseeable future.

“The demand exceeds our capacities by a great deal,” said Heiko Ganss, head of precious metal company Pro Aurum.

“The requests cannot be satisfied right now,” a dealer from the Düsseldorf WGZ Bank confirmed.

“Demand for gold as a conservative investment has risen dramatically,” said stephan Henkel. “right now the demand is about 10 times as high as in normal times.”

Gold deliveries now take between four and six weeks.

The US mint said on Monday it had exhausted some of its supply of bullion coins and was struggling to meet demand for gold, silver and platinum.

South Africa’s Rand Refinery, producer of the world’s most popular gold bullion coin, the Krugerrand, temporarily ran out of the coins in August.

 

Londoners Queue-Up on Sidewalk to Buy Gold in Rush for Money Haven

Bloomberg
October 9, 2008

Londoners stood in line outside the largest gold coin and bar retailer in the city’s West End shopping district, clogging the lobby and trading among themselves as they sought a safe haven for their money.

“People want something tangible, something they can hold on to, something the banks can’t give them,” said Chris Burrow, the owner of ATS Bullion, the gold dealer in the Strand that traces its roots back to the 17th century. “There’s no time to breathe. We’re rushed off our feet. Staff are exhausted.”

As U.K. stocks tumbled to a five-year low, paced by financial-services companies, gold advanced. Since Lehman Brothers Holdings Inc.’s Sept. 15 filing for bankruptcy protection, exacerbating the worldwide credit crisis, gold for immediate delivery has jumped 19 percent.

“Investors are rushing to safe havens and physical gold seems to be the favorite one,” said Frederic Panizzutti, a senior vice president at MKS Finance, one of Switzerland’s four bullion refiners.

British government action to prop up the banking industry has failed to reassure investors. The U.K. on Oct. 8 promised 50 billion pounds ($86 billion) of capital to banks, the same day the Bank of England cut its benchmark interest rate by half a percentage point. Last month, the government brokered a takeover of HBOS Plc, Britain’s largest mortgage lender, and seized control of Bradford & Bingley’s mortgage division.

Read Full Article Here

 

Austria Witnesses New Gold Rush

BBC
October 12, 2008

The financial crisis is prompting people to look for safer forms of investment than stocks and shares.

The interest in gold coins is so great that many of the world’s major mints are struggling to keep up with demand, including the Austrian Mint, which produces the Vienna Philharmonic – one of the best-selling bullion coins worldwide.

Sales of Vienna Philharmonic gold coins have gone up by more than 230% since last year.

Kerry Tattersall, the director of marketing at the mint, says production has gone into overdrive.

“We are running at present something like three shifts on all of the machines, on the presses, producing both gold and the silver bullion coins.

Read Full Article Here

 

Central banks all but stop lending gold

Javier Blas
Financial Times
October 8, 2008

Central banks have all but stopped lending gold to commercial and investment banks and other participants in the precious metals market, in a move that on Tuesday sent the cost of borrowing bullion for one-month to more than twenty times its usual level.

The one-month gold lease rate rocketed to 2.649 per cent, its highest level since May 2001 and significantly above its five-year average of 0.12 per cent, according to data from the London Bullion Market Association.

Gold lease rates for two, three, and six months and for a year also jumped to levels not seen in the last seven years.

Traders said the jump reflects the fact that central banks — mostly European — have almost completely stopped lending gold in the last few days and are not rolling forward old leases after maturity. This is because of fears that some borrowers might not repay their bullion loans if they are engulfed by the financial crisis.

“A number of central banks have been cutting back on their gold lending,” said Tom Kendall, a precious metals strategist at Mitsubishi in London.

John Reade, a commodities strategist at UBS, added that there had been a lot of talk about some central banks being unwilling to lend their gold because of a redoubled focus on the risk of borrowers not returning it.

Read Full Article Here

Bullion Shortage and Spot Prices Tell Two Different Gold Stories
http://seekingalpha.com/article/99680-..ces-tell-two-different-gold-stories

Blatant Banker Manipulation Of Gold Prices
http://www.prisonplanet.com/blatant-banker-manipulation-of-gold-prices.html

No Mass Mania for Gold Yet – Less than 1% of Public in Western World Have Invested in Gold
http://news.goldseek.com/GoldSeek/1224161100.php

Spot Gold Price Is Now Meaningless
http://www.istockanalyst.com/article/viewarticle%2Barticleid_2713209.html

Gold expected to rally above $1000 in Q1 2009
http://network.nationalpost.com/np/b..o-rally-above-1000-in-q1-2009.aspx

What the Pros Say: All that Glitters is Gold
http://www.cnbc.com/id/27095525

Kiener: Gold Prices To Double On Paper Market Default
http://www.prisonplanet.com/kiener-..o-double-on-paper-market-default.html

 



Gold Hits $940, Oil $112, Euro $1.59

Gold hits highs of $940, Current Price is $924

IBT Times

April 11, 2008

Gold pushed as high as $940 just before the open of the New York session on Thursday, then fell off until the noon hour, but then reversed field once again, moving higher to finish at $929.40/oz., down $4.60. Overnight, gold has edged lower.

Platinum was higher in the European markets, but declined in New York, to end at $2026/oz., unchanged. Overnight, platinum has slipped lower.

Silver peaked at $18.40 in early London trading, fell off until mid-morning in New York, then traded sideways for the rest of the day, closing at $17.95, down 22 cents. Overnight, silver has been flat.

It was a mixed day for the precious metals, with early weakness giving way to a spate of buying later in the day, and no major changes by the end.

Read Full Article Here

 

Oil Prices Above $112 As Supplies Fall, Current Price $110

AP

April 9, 2008

The price of oil has surged to a new record, with a barrel a crude trading above $112 a barrel on the New York Mercantile Exchange.

A government report that oil and fuel supplies were lower than expected last week gave crude a push past its latest milestone. But months of buying by speculators and by investors seeking refuge from a falling dollar have also lifted oil to its new heights.

Light, sweet crude for May delivery has traded as high as $112.16, surpassing the previous trading record of $111.80 set ast month.

 

US Dollar Hits New Record Low Against Euro

RTT
April 10, 2008

The US dollar declined against its major counterparts in early deals on Thursday, hitting a fresh record low against the euro. Against its other major counterparts, the dollar weakened to new multi-day low during this time period.

The US trade balance, initial jobless and continuing claims are the major economic events slated for release later in New York morning.

The US dollar plummeted to new record low of 1.5915 against the euro at about 5:10 am ET Thursday, compared to yesterday’s closing value of 1.5832.

Read Full Article Here

 

The dollar may face $1.65 against the euro by October

Bloomberg
April 7, 2008

Optimism for a dollar rebound that pervaded the currency market at the start of the year is fading.

Futures traders doubled bets against the greenback in the past two months, data from the Commodity Futures Trading Commission in Washington show. Citigroup Inc., Deutsche Bank AG and Royal Bank of Scotland Group Plc, which handle almost 40 percent of global foreign exchange trading, say the currency may slump to $1.65 per euro by October.

Read Full Article Here

Recent News:

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South Africa: Analysts Say Gold Can Top $1000 Again
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Greenspan: I have no regrets on Federal Reserve’s past policies
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The Great Chinese Crash of 2008
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Soros: USD Won’t Be World’s Reserve Currency
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Soros sounds the alarm again on world economy
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Federal Credit Cards Misused
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U.S. Economy: Consumer Sentiment Drops to 26-Year Low
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Gas, Diesel Prices Hit New Records
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Gas Tops $4 In Chicago
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G24: IMF Regulatory Failures Caused Crisis
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Official: UAE to maintain dollar-peg policy
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WaMu gets $7 billion infusion, cuts jobs, sees big loss
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Dollar Falls Against Euro, Heads for Weekly Decline, Before G-7
US Fed prepares to replenish war chest
US trade deficit jumps despite weak dollar
Pound falls to 80p against the euro
IMF Says U.S. Crisis Biggest Since 1930s
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Soros Predicts End Of Easy Borrowing
Govt Expects Gas To Hit $4

U.S. Economic Collapse News Archive

 



Gold Hits Record $1,009, Oil $111, Euro $1.56

Gold hits new record at $1,009

Bloomberg
March 14, 2008

Gold surged to a record $1,009 an ounce in New York as the Bear Stearns Cos. bailout and a plunging dollar increased demand for the precious metal. Silver also gained.

Bear Stearns got emergency funding from JPMorgan Chase & Co. and the New York Federal Reserve. The securities firm said its cash position had “significantly deteriorated.” The dollar fell to a record against the euro and a 12-year low against the yen. Gold has jumped 19 percent this year, while the Standard & Poor’s 500 Index fell 13 percent.

“Gold’s assault on $1,000 is happening for a good reason,” said James Turk, founder of GoldMoney.com, which had $337 million in gold and silver in storage for investors at the end of February. “Gold is not only an inflation hedge, it’s a catastrophe hedge. Gold is becoming increasingly important as the credit crunch continues to spiral out of control.”

Gold futures for April delivery rose $5.70, or 0.6 percent, to $999.50 an ounce on the Comex division of the New York Mercantile Exchange. The price reached the highest ever for a most-active contract at 10:45 a.m., topping yesterday’s record of $1,001.50. The metal has tripled in the past five years.

Silver futures for May delivery climbed 23.5 cents, or 1.2 percent, to $20.655 an ounce. The price has gained 38 percent this year.

“Gold at $1,000 is a clear sign of a lack of confidence in the dollar and the Fed’s handling of monetary affairs,” said Adrian Day, president of Adrian Day Asset Management in Annapolis, Maryland.

Read Full Article Here

 

Oil Hits Record $111, Euro Reaches $1.56

AFP
March 14, 2008

The dollar struck a fresh all-time low against the euro Friday as gold prices traded close to record highs a day after topping 1,000 dollars for the first time on US economic woes.

Oil prices fell on profit-taking after striking an historic peak of 111 dollars per barrel Thursday.

The European single currency reached a record high of 1.5651 dollars in Asian trade Friday, prompting the EU presidency to voice deep concern.

In later European trading the euro stood at 1.5566 dollars, down from 1.5624 late on Thursday in New York.

Read Full Article Here

 

Jim Rogers: Abolish The Federal Reserve

http://video.google.com/videoplay?docid=-6046520409389956642&hl=en

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White House Urges Consumers To Spend
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Macy’s Grocery Store: Wheat Shortage is Here
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New Purple 5 Dollar Bill Goes Into Circulation
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Subprime writedowns could hit $285 billion: S&P; Stocks Fall
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Feb. foreclosures up 60 percent over year before
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Going, going, gone: a rising auction of scary scenarios
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Foreclosure Crisis Has Ripple Effect
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Palladium and Platinum Rise
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Family forced into bankruptcy by government over unpaid taxes of $1.50
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Goldcorp Sees Higher Gold Prices
Dollar falls below 100 yen; Euro hits new record high above 1.56 usd
Expert Fears Dollar Crash As Greenback Hits New Lows
Corporate Media Snowjobs Dollar Crisis
Ron Paul: Fed Injection A Disaster
Ron Paul: A Recession is Tough Medicine
Ron Paul Warns Of Economic Worldwide Collapse
$1,000 Gold Has Officially Arrived: A Warning From Ron Paul
Oil price hits new high of $110 a barrel with no sign of a fall
Gas Prices Rise to New National Record
Goldman Sachs: Oil May Reach $200
OPEC: Oil Spike To Last Through 2008
Fed pumps up liquidity in funding markets to ease credit crunch
Dollar Declines, Fed May Cut Rates 75 Points
Faber: Bernanke Will Destroy Dollar
Press Secretary Perino: I’ll Be Fired If I Talk About the Dollar

U.S. Economic Collapse News Archive

 



Gold Hits Record of $989 an Ounce

Gold hit record of $989 an ounce, falls back $981

Bloomberg
March 4, 2008

Gold declined from a record today in Asia as some investors judged the recent rally overdone. Silver also fell.

Gold has gained 19 percent this year to a record $989.54 yesterday, as the U.S. dollar tumbled to record low against the euro at $1.5274 while the crude oil rose to record $103.95. Dollar gained to $1.5187 at 1:41 p.m. Singapore time and crude oil declined to $102.25.

“There’s been some short-term profit-taking going on this afternoon,” Charles Dowsett, head of structuring and trading of precious metals at ABN Amro Holding NV., said by telephone from Sydney today. “But we are seeing support at $980 level.”

Gold for immediate delivery fell $2.36, or 0.2 percent, to $981.34 at 1:42 p.m. Singapore time, after reaching as low as $979.00.

Read Full Article Here

 

Buffett: US Economy In Recession
Economists and business heads agree US is in recession, Federal Reserve is doing nothing to counter

Steve Watson
Infowars.net

March 3, 2008

American investor, businessman and philanthropist Warren Buffett is the latest in a string of notable figures to concede that the US economy is now in recession.

Buffett, the largest shareholder and chief executive officer of Berkshire Hathaway, and the third-richest person in the world, made the comments in an interview with cable network CNBC.

“I would say, by any commonsense definition, we are in a recession,” Buffett said.

His comments come on the back of an annual letter to shareholders (PDF), which he released Friday along with Berkshire’s 2007 financial report, in which he made similar warnings.

“It’s a certainty that insurance-industry profit margins, including ours, will fall significantly in 2008,” he said. “Prices are down, and exposures inexorably rise. Even if the U.S. has its third consecutive catastrophe-light year, industry profit margins will probably shrink by 4 percentage points or so.

“If the winds roar or the earth trembles, results could be far worse.”

Buffett is one of the most successful investors in the history and an economic expert.

He has previously warned of the expanding trade deficit’s slow devaluation of the dollar and other U.S. assets.

Buffett is not the only notable figure waving the red flag. A survey released last week by the National Association for Business Economics showed that 45 percent of economists are predicting a recession in 2008.

Indeed, economists everywhere are sounding the alarm and asking why the Federal Reserve continues to do little or nothing to counter the rapid downturn as stocks around the world continue to tumble, inflation spirals and the dollar falls to new lows.

“We are becoming increasingly concerned that the authorities in the world do not get it,” said Bernard Connolly, global strategist at Banque AIG. “The extent of de-leveraging involves a wholesale destruction of credit. The risk is that the ‘shadow banking system’ completely collapses,” he said.

“I never thought I would see anything like this in my life,” said James Steele, an HSBC economist in New York.

“The verdict is in. The Fed’s emergency rate cuts in January have failed to halt the downward spiral towards a full-blown debt deflation. Much more drastic action will be needed. As the once unthinkable unfolds, the leaders of global finance dither. For the first time since this Greek tragedy began, I am now really frightened.” writes Ambrose Evans-Pritchard, International Business Editor for the London Telegraph.

Read Full Article Here

Wheat 80% Higher Than A Year Ago
http://www.nytimes.com/2008/03/03..slogin&pagewanted=print

The Federal Reserve’s rescue has failed
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The Fed Releases Crisis Preparedness Video
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IMF Chief Says Euro Is Overvalued
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Platinum Rises To Record – Palladium Rallies
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OPEC Expected To Maintain Output
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Karl Rove: Redeployment Would Cause Oil Prices to Skyrocket to $200 a Barrel
http://thinkprogress.org/2008/03/02/rove-oil-iraq/

World Stocks Tumble On U.S. Recession Fears
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Soaring Food Prices Imperil U.S. Aid
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Asian Markets Tumble On Wall Street Drop
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Most Americans Using Credit To Stay Afloat
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Stocks fall sharply on economic worries
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U.S. Economy: Spending Eroded By Inflation
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U.S. Economic Collapse News Archive

 



Gold Hit $980 and Oil $103 a Barrel

Gold powers to record on oil, eyes $1,000

Reuters
February 29, 2008

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Gold powered to a new high near $980 an ounce on Friday after crude oil set an all-time high of above $103 a barrel, igniting inflation worries and another round of buying from investors and speculators.
Palladium jumped to its highest level in more than six years and silver hit a 27-year peak. Platinum rebounded from its lows but given the absence of new developments in South Africa’s supply problems, gains are likely to be capped.

Gold jumped as high as $975.90 an ounce, up from $968.90/969.70 late in New York on Thursday. Gold has gained more than 16 percent this year, and the next upside target pegged by dealers is $1,000.

Record high oil and expectations of more interest rate cuts in the United States add to inflation pressures, elevating gold’s appeal as a hedge against rising prices, while volatile stock markets have encouraged investors to shift some of their money into gold and other precious metals.

“The target is $1,000. I personally hope it will be $1,000 within a month,” said Yukuji Sonoda, precious metals analyst at Daiichi Commodities in Tokyo, adding that gold was likely be driven by movements in oil in coming weeks. Crude oil rallied to another record above $103 a barrel as Ecuador shut a key export pipeline and a fire hit a major European natural gas plant.

While oil is at a record price in inflation-adjusted as well as nominal terms, gold has lagged. According to analysts at GFMS gold’s inflation-adjusted record is $2,079 an ounce.

“Most of the funds are buying inflation hedges such as gold, silver and oil. It’s still a bull market, where hedge funds and banks buy precious metals,” said William Kwan, a dealer at Phillip Futures in Singapore.

“I think inflation is really getting out of hand. I am looking at $955 for support and resistance at $985,” said Kwan, who pegged upside target for silver at $20.

Silver rose as high as $19.92 an ounce, its highest in 27 years, up from $19.74/19.79 an ounce in New York.

Read Full Article Here

 

Oil Tops $103 For The First Time In History

AP
February 29, 2008

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Oil prices briefly surpassed $103 a barrel for the first time Friday as persistent weakness in the U.S. dollar and the prospect of lower interest rates attracted fresh money to the oil market.

Light, sweet crude for April delivery on the New York Mercantile Exchange jumped to a new trading record of $103.05 a barrel in electronic trading before slipping back to $102.02 a barrel, down 57 cents, by midday in Europe.

On Thursday, the contract jumped $2.95 to a record settlement price of $102.59 a barrel.

Prices were supported by comments Thursday from Federal Reserve Chairman Ben Bernanke, who said the American economy is not immediately threatened with stagflation, a combination of economic weakness and rising inflation.

Investors chose to see the comments as confirmation of their beliefs that the Fed will continue cutting interest rates to try to shore up the economy.

“It seems that further interest rate cuts, additional dollar weakness and more investment buying will anchor oil to higher prices,” energy risk management firm Cameron Hanover said in its daily report. “It can’t go on forever, but it looks like it can go on for a while.”

Read Full Article Here

 

Euro hits fresh high against dollar

Financial Times
February 29, 2008

The dollar hit another record low against the euro on Friday, as data continued to support the view that the European Central Bank will keep interest rates on hold for the foreseeable future.

Headline inflation in the eurozone stood at 3.2 per cent in January, tallying with earlier estimates and market expectations as food and energy prices leapt. Meanwhile, unemployment in the eurozone held at a record low of 7.1 per cent in January.

“With headline inflation running at a 14-year high and the lingering threat of second round effects, it is premature for the ECB to switch to an easing bias in their policy stance just yet,” said Martin van Vliet at ING.

While the ECB remained unlikely to cut eurozone interest rates at its next policy meeting on Thursday, markets were fully pricing in a cut of 50 basis points at the US Federal Reserve’s meeting on March 18.

“Markets are probably wisely bracing themselves for further monetary policy divergence between the US and eurozone over the next few months,” added Mr van Vliet.

The euro rose to a record high of $1.5238, before retreating to $1.5206, little changed on the session.

Read Full Article Here

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U.S. Home Sales At Lowest Levels In 13 Years
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Video: Why the price of wheat has skyrocketed over the past year
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Bush & Bernanke Lie About Economic Crisis
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Silver Now Outperforming Gold
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Iraq war may cost US USD 7 trillion
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The U.S. Dollar Is Being Destroyed
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Potato growers warn of food shortages unless pay improves
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Iraq war ’caused slowdown in the US’
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$4 Gasoline By Spring Predicted
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USD Falls To Record, Jobless Claims Rise
Bernanke Acknowledges Economic Trouble
Government To Lift Fannie & Freddie Limits
City watchdog warns of ‘permanent’ end to easy credit in wake of crunch
Bank Of America Won’t Let You Access Your Money
Carlyle To Invest $4 Billion In Asian Companies
California City Moves Closer to Bankruptcy Filing
Ron Paul: Bernanke Deliberately Destroying Dollar
Middle Class May Be Subject To Food Rations, Warns UN
Shoppers Warned Food Prices Set To Rise
Traitor Greenspan Urges Gulf States To Abandon Dollar
Stiglitz Blames Greenspan For Recession

 



Gold Hit $959 and Oil $101, Dollar Falls Record Low

Gold hit record $959 and Oil $101 a barrel, Dollar falls record low on fears of another Fed Cut

Reuters
February 27, 2008

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Gold roared above $955 an ounce on Wednesday to its highest level ever, with investors pouring money into the metal after oil hit a record above $101 a barrel and the U.S. dollar tumbled against other currencies.

Spot gold rose as high as $955.70 an ounce, with buying particularly from investors and speculators in Japan. It was up from $946.60/947.40 late in New York on Tuesday and has gained more than 14 percent this year.

Silver rallied to its loftiest level since November 1980 on investor buying as it was still cheaper than other precious metals. Palladium jumped to its best level in more than six years while platinum hovered below last week’s record.

“Investors are still very concerned about the fluctuations and troubles in other markets,” said Darren Heathcote of Investec Australia in Sydney.

“Let’s just say $970 is not inconceivable. As I guess $1,000 is not inconceivable. There doesn’t seem to be much reason to sell gold,” he said.

The U.S. dollar hit a record low beyond $1.50 to the euro after surprisingly weak U.S. data and comments by the Federal Reserve’s No. 2 official reinforced views that the central bank will keep cutting interest rates. [ID:nT78648]

“The stock markets and oil are going up and that attracts buying interest. Going ahead, we are talking about $970,” said Ronald Leung, director of Lee Cheong Gold Dealers in Hong Kong, who pegged support at $930 an ounce.

Gold shrugged off any worries about sales by the International Monetary Fund of some of its bullion reserves, which Leung said would be done in stages and in limited quantity and were unlikely to cause a sharp drop in gold prices.

The United States Treasury has reversed its opposition to the sale of a limited portion of the IMF’s more than 3,000 tonnes of gold stocks, the world’s third-largest holding, and was confident Congress would support the move.

U.S. gold futures also hit record highs. Gold for April delivery , the most active contract, on the COMEX division of the New York Mercantile Exchange hit a high of $959 an ounce, up from Tuesday’s settlement of $948.90 an ounce.

In the physical sector, jewellers cashed in on gold’s rise but there was also buying from speculators, who believed there was still room for gains.

“It’s basically two-way trading. There was selling from jewellers in Indonesia but the volume is low,” said a dealer in Singapore, referring to Southeast Asia’s main consumer.

Silver jumped as high as $19.25 an ounce, its best level in 27 years. The metal was last quoted at $18.65/18.70 late in New York on Tuesday.

Spot platinum rose to $2,145/2,152 an ounce from $2,130/2,140 an ounce but off last week’s record high of $2,192 an ounce.

Palladium rose as high as $546 an ounce, its best level in more than six years, up from $523/528 late in New York.

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http://www.youtube.com/watch?v=karPGdnqljE

Home prices make steepest decline in 20 years
http://mparent7777-2.blogspot.com/200..st-decline-in-20.html

Eight Million Americans Are Paying More Than What Their Homes Are Worth
http://abcnews.go.com/Business/story?id=4332334&page=1

U.S. Bank Fundamentals Look Poor
http://www.bloomberg.com/apps/news?..OmvjI3yeU&refer=home

Bank of America circulating confidential proposal to Congress seeking $739 billion bailout
http://www.sott.net/articles/s..-Congress-seeking-739-billion-bailout

New York Merchants Embrace Euro
http://www.washingtonpost.com..42.html?nav=rss_email/components

Oil Prices Up On Turkish Iraq Invasion
http://www.bostonherald.com/b…bg?articleid=1075289&srvc=rss

Confidence Plunges Inflation Soars
http://biz.yahoo.com/ap/08022..tml?.v=12&printer=1

German State Owned Banks On Brink Of Ruin
http://www.spiegel.de/international/busi..36635%2C00.html

Gold & Silver Poised For Spectacular Gains
Ghost Town Created By U.S. Loan Scandal
Deep recession feared in U.S.
Oil rises above $99 on Iran warnings, Turkish raids
Inflation: Americas Greatest Export
It Is Time To Dump The Federal Reserve
‘Unprecedented national fall in house prices’
Existing Home Sales Decline
Fed lowers economic forecast
Wall Street Bank Run

U.S. Economic Collapse News Archive

 



Bush Unveils $3.1 Trillion Spending Plan

Bush Unveils $3.1 Trillion Spending Plan

AP
February 4, 2008

http://www.youtube.com/watch?v=H5HYIAQn4Lg

President Bush unveiled a $3.1 trillion budget on Monday that supports sizable increases in military spending to fight the war on terrorism and protects his signature tax cuts.

The spending proposal, which shows the government spending $3 trillion in a 12-month period for the first time in history, squeezes most of government outside of national security, and also seeks $196 billion in savings over the next five years in the government’s giant health care programs _ Medicare for the elderly and Medicaid for the poor.

Even with those savings, Bush projects that the deficits, which had been declining, will soar to near-record levels, hitting $410 billion this year and $407 billion in 2009. The all-time high deficit in dollar terms was $413 billion in 2004.

Democrats attacked Bush’s final spending plan as a continuation of this administration’s failed policies which wiped out a projected 10-year surplus of $5.6 trillion and replaced it with a record buildup in debt.

“Today’s budget bears all the hallmarks of the Bush legacy _ it leads to more deficits, more debt, more tax cuts, more cutbacks in critical services,” said House Budget Committee Chairman John Spratt, D-S.C.

Read Full Article Here

 

Platinum stable near record as gold solid above $900

Reuters
February 7, 2008

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Cash platinum was hemmed in a tight band near its record high on Friday as another record high price in Japanese futures prices provided solid support due to concerns over supply problems in South Africa.

Spot gold was solid above $900 an ounce as the metal was supported despite the dollar jumping more than 1 percent against the euro on Thursday.

“There is no ceiling for platinum now as long as supply worries in South Africa remain,” said Tatsuo Kageyama, an analyst at Kanetsu Asset Management in Tokyo.

“You just can’t sell platinum considering that the country which supplies 80 percent of the world’s supply is facing trouble,” Kageyama said.

Cash platinum was trading at $1,840/1,850 an ounce as of 9:43 p.m. ET, from $1,841/1,846 late in New York on Thursday when it hit a record high of $1,850 an ounce the previous day.

Read Full Article Here

 

Peter Schiff On Fox Business News – (2/4/2008)

http://www.youtube.com/watch?v=JKCNZFJWiRc

Signs of Decline: New York Shoppers Can Now Pay in Euros
http://www.reuters.com/arti..RSS&feedName=domesticNews

Dozens of U.S. banks will fail by 2010: analyst
http://www.canada.com/ottawa..2-f8fbb851a367&k=53982

ICBC Deposes Citigroup as Chinese Banks Rule in New World Order
http://www.bloomberg.com/apps/ne..BhYtHt.s3gM&pid=20601103

Greenback Has Lost 30% in Past 7 Years, Becomes “Bernanke Peso”
http://www.dailyreckoning.com.au/greenback/2008/02/04/

IMF Calls For Revamping Global Government
http://www.imf.org/external/pubs/ft/fandd/2007/12/boughton.htmauthor

China’s Inflation Hits American Price Tags
http://www.nytimes.com/2..7600&en=51da850cefb4bbf5&ei=5087

UAE Likely To Revalue Dollar Pegged Currency
http://www.middle-east-online.com/english/business/?id=24186

U.S. recession could be worse than recent downturns
http://www.reuters.com/article/newsOne/idUSN0563297420080205

U.S. loses jobs for first time in 4-1/2 years
http://www.reuters.com/article/ousiv/idUSN3134479520080201

Zimbabwe Inflation At Over 26,000%
http://news.scotsman.com/world/Mugabe-in-poll-setback-as.3734498.jp

U.S. Loses Its Status As World Economic Power
http://www.newsday.com/news/o..n31,0,2812464,print.story

FDIC Gears Up For Large Bank Failure
http://www.marketwatch.com/news/story..yhoof&print=true&dist=printTop