"... I remind the reader that 'Obamacare' with its private sector 'mandate' is in reality a long-standing Republican proposal, originally conceived in the conservative Heritage Foundation think tank, to use the private sector to try to manage healthcare costs, rather than the 'single payer' option. Prior to Obama the largest implmentation of this approach was achieved and lauded in Massachusetts by guess who. ..."
You can almost always count on the Supreme Court to do the wrong thing. In fact, just about every major decision by the U.S.
"... The following are 15 reasons why the Obamacare decision is a mind blowing disaster for America....
#1 According to the U.S. Supreme Court, the federal government has the power to force you to buy private goods and services. Now that this door has been opened, what else will we be forced to buy in the future?
#2 Obamacare is another step away from individual liberty and another step toward a "nanny state" where the government dominates our lives from the cradle to the grave.
#3 The IRS is now going to be given the task of hunting down and penalizing millions of Americans that do not have any health insurance. In fact, the Obama administration has given the IRS 500 million extra dollars "outside the normal appropriations process" to help them enforce the provisions of Obamacare that they are in charge of overseeing. ..."
"... The new short interest numbers for both SLV and GLD were posted over at the shortsqueeze.com website earlier this week. The short position in SLV declined by 3.80% to 13,476,900 shares/ounces. In GLD there was a smallish increase of 1.48%...and the short position there stands at 18,962,600 shares, or 1.90 million ounces. None of these shares have any physical metal backing them at all. ..."
“... There’s no business. There’s no IPO business, there is no merger and acquisition business. In fact, I would suggest as much as we knew the 99% was having a problem, I can guarantee you the 1% is having a big problem today, particularly over in Europe.
"It (the big money over in Europe) should be frightened. We have bank runs going on over there. If anybody took the time to look at the balance sheet of a bank or a country in Europe, there’s no other conclusion to make other than they won’t be able to meet their obligations. Those are easy conclusions to come to.
"Just as it was easy for me, back in 2007, to say the following companies are broke, GM, Fannie Mae, Freddie Mac, Citigroup, you just take a look at the balance sheet. You can’t make it. You’re beyond a Minsky moment, and most countries are in that situation today. They (central planners) just keep printing more money all the time. ..."
"As rising costs have outpaced incomes for decades, households have been priced out of the middle class.
In Why the Middle Class Is Doomed (April 17, 2012) I listed five "threshold" characteristics of membership in the middle class:
1. Meaningful healthcare insurance 2. Significant equity (25%-50%) in a home or other real estate 3. Income/expenses that enable the household to save at least 6% of its income 4. Significant retirement funds: 401Ks, IRAs, income property, etc. 5. The ability to service all debt and expenses over the medium-term if one of the primary household wage-earners lose their job I would now add a sixth: 6. Reliable vehicles for each wage-earner Author Chris Sullins suggested adding these additional thresholds: 7. If a household requires government assistance to maintain the family lifestyle, their Middle Class status is in doubt. ..." Click through for the rest.
"In Part I of this series we looked at the decaying state of confidence and how this is assisting in the deflationary process that is slowly, inexorably, moving forward, with limited action from central bankers and very little action at all from politicians. We looked at Christine Legarde's comments that highlighted the need for value and measures of value to keep the monetary system under control. And then we looked at the loss of money velocity, deflation and the damage it's doing to the solvency of banks and nations.
"Since then the process has moved forward with 28 Spanish banks downgraded by Moody's ratings Agency, while the Spanish government has formally asked for financial assistance from the E.U. Cyprus now makes the fifth E.U. member to put its hand out for a bailout. Italy's borrowing cost jumped to new highs too.
"What are we really looking at in the Eurozone crisis? We ask this question knowing that this story is being played out in Europe first, to be followed by the U.S. then the rest of the world in time, as they are part of the same global monetary system. The Eurozone crisis is a confidence crisis among banks and nations, followed by asset and debt deflation, as the loss of confidence is priced in.
"... Unfortunately, the thing that brings gold back into the picture is usually something bad in the financial markets. Certainly that was the case in 2008, and that’s where we’re headed again. Let’s face it, the euro is a lot bigger deal than Lehman Brothers and the subprime credit mess.
"One thing that came out of 2008 was that the default reaction of policymakers to that kind of market environment is to print. We’ve seen Bernanke deny, on several occasions, that he would ever extend quantitative easing, and then low and behold, at the last Fed meeting we extended QE in the form of Operation Twist.
"So these guys (central planners) are scrambling and they don’t really know what they are doing. They are making it up as they go along, that’s clear to me. When this does get worse, you can be sure the bazookas (printing money) are going to be lined up and firing at high speed. But when the smoke clears, on the other side of that, gold is going to be the high ground. ..."
"Stocks were weak after the morning GDP report which was flat but a nice increase in the chain deflator from 1.7% to 2.0%.
"They took a dive as the US Supreme Court upheld the Affordable Healthcare Act, contrary to expectations. Robert Reich called this one and I think his reasoning is substantially correct. There were a few more political angles in that one that he allowed, but it was good enough to trade.
"The stocks rallied in late afternoon, almost unmistakably driven by algo buying centered in the SP futures. It was a tape painting exercise for the end of the second quarter as I had cautioned. They have struck a level and will seek to hold it into Friday's close.
"The wiseguys sat on the metals to lessen the damage to their results from their naked short positions while they drove up prices on stocks in their portfolios. ..."
"The Fed's approach to determining risk levels in banks' assets to assess their capital adequacy is encouraging the government to devour money at the expense of the private sector, financial analysts say.
"Banks that lend to private enterprises and small businesses are required to hold more capital than those that invest in government bonds. While getting banks to maintain higher capital reduces the possibility of a crisis-driven bailout from taxpayers, the crackdown on private lending will curtail the flow of business both within and outside the U.S., affecting the nation's long-term economic growth. Large parts of the financial community are rife with fears that the Federal Reserve's lack of transparency in how it assigns loss rates, for the banks on its radar, will further crimp credit supply.
"For instance, CoMerica (NYSE: CMA), which is an active private lender, must hold $3 more in capital reserve for every dollar in assets, compared to the Bank of New York Mellon (NYSE: BK), which has a much smaller portion in private client assets, an analyst explained anonymously.
"Under the Federal Reserve's proposed capital reserve regulations, U.S. banks are compelled to strengthen their capital buffer by holding more money in reserves -- at least 7 percent of their loans and investments, adjusted for risk, compared to the earlier mandate of 5 percent of risk-weighted assets as a portion of capital. ..."
"Japan's exports of gold plunged to a 15-month low in May to 2.79 tonnes, down 67 percent from a year ago, as sales of gold bars and jewellery by consumers fell sharply after prices eased, resulting in a steep fall in gold scrap.
"Gold touched a record of about $1,920 an ounce in 2011, when investors turned to the metal as a safe haven during the debt crisis in Europe. But bullion has lost some of its appeal after the U.S. Federal Reserve decided to take only a modest step to boost the economy and the market turmoil prompted investors to cash in the metal to cover losses. ..."
"The global economy is now addicted to debt. Once debt stops expanding, the economy shrivels. But expanding debt forever is unsustainable. Welcome to the endgame.
"Regardless of whether you call it debt saturation or diminishing return on new debt, the notion that taking on more debt will magically enable us to "grow our way out of debt" is not supported by data. Correspondent David P. recently shared this chart of Total Credit Market Debt Owed and GDP and this explanation: ..."
"Inflation is a natural consequence of loose government monetary policy. If those policies get too loose, hyperinflation can occur. As gold investors, we'd like to know if the precious metals would keep pace in this extreme scenario.
"Hyperinflation is an extremely rapid period of inflation, but when does inflation (which can be manageable) cross the line and become out-of-control hyperinflation? Philip Cagan, one of the very first researchers of this phenomenon, defines hyperinflation as "an inflation rate of 50% or more in a single month," something largely inconceivable to the average investor.
"While there can be multiple reasons for inflation, hyperinflation historically has one root cause: excessive money supply. Debts and deficits reach unsustainable levels, and politicians resort to diluting the currency to cover their expenses. A tipping point is reached, and investors lose confidence in the currency.
"Confidence" is the key word here. Fiat money holds its purchasing power largely on the belief that it is stable and will preserve that power over time. Once this trust is broken, a flight from the currency ensues. In such scenarios, citizens spend the money as quickly as possible, typically buying tangible items in a desperate attempt to get rid of currency units before they lose value. This process increases the velocity of money, setting off a vicious cycle that destroys purchasing power faster and faster. ..."
"... Resistance [for gold prices] is at the top of the past week's range in the $1587-88 area," says technical analysts at bullion bank Scotia Mocatta, who add that further resistance is seen at $1625.
"News of an agreement among European leaders on the use of bailout funds ""has been positive for the Euro and positive for confidence in general," adds Scotia's head of precious metals Simon Weeks.
"[This] means that equities and commodities, including gold for the time being, have all received a shot in the arm."
"European leaders meeting in Brussels have asked the European Council to consider proposals for the creation of a single Eurozone banking supervisor "as a matter of urgency by the end of 2012", an summit statement issued early on Friday said. ..."
... When asked about the Supreme Court decision on the health care bill, Schiff responded, “Well, it’s a horrible decision. The minority (dissenting view) was 100% correct. The whole thing should have been thrown out.
"In the end, they basically said it was a tax. There wasn’t even an enforcement mechanism in there. There was a tax, but if you didn’t pay it, the government couldn’t come after you for the money.
"They essentially said that even though the intent may have been to punish people for not buying insurance, the effect is that they don’t get punished because it’s really just a tax. They basically said it’s constitutional because it’s not going to work.
"But it’s not a tax because a tax is there to raise revenue. This is not there to raise revenue, it’s there to punish you. It’s there to make you buy health insurance. So even though the Supreme Court said it’s not going to work, it doesn’t mean it’s constitutional just because it’s not going to work. ..."
"This weekend I had a conversation with a fund manager friend who I admire. He lives in the Asia-pac region and has tremendous knowledge of and insight into markets. I asked him what his advice would be. He told me it’s simple. My advice for the next three months is patience. My advice for the next three years is precious metals. People often feel the need to complicate things by over-trading and over-thinking the situation. In this piece, we want to keep it simple for Gold and Silver and the mining shares. ..."
Interesting read and analysis. click through for full piece.
"European Union leaders focused on immediate help for Spain and Italy at the start of a two-day summit intended to chart a path out of their financial crisis.
"The 27 government chiefs will discuss buying Spanish and Italian government bonds to bring down borrowing costs that are near euro-era records, Finnish Prime Minister Jyrki Katainen said. He also proposed that bailout funds buy collateralized government debt in primary markets.
"The Finnish proposal joined discussion of whether the euro area’s rescue fund should aid banks directly and the role of the European Central Bank, which has already bought more than 200 billion euros ($249 billion) of government bonds and pumped more than 1 trillion euros of three-year loans into the banking system. It shelved its bond-purchase program earlier this year amid growing resistance to the policy on the ECB Governing Council.
"European Union Economic and Monetary Affairs CommissionerOlli Rehn said the ECB’s actions have prevented the crisis from worsening. He also called for “concrete measures” to help Italy and Spain and more debate about mutualized public debt. ... "
HOUSTON -- Bears in gold and silver have been especially active and vocal over the past while. We have come to expect that when gold or silver or both are flirting with obvious important technical support levels ($1,525 for gold and $26 for silver). But the bear’s dour salesmanship that the precious metals Bull Run is “over” is not a convincing story to the largest holders of precious metals exchange traded funds (ETFs).
"Equities did it again - and no matter what narrative a mainstream media channel needs to comprehend the monkey-hammering that occurs every second in our 'market', it seems a fat-finger 50k block of S&P 500 e-mini futures (or around $3.3bn notional equivalent) was enough drive the nominal price index up 1% to close the day-session almost green (and rather notably right at yesterday's closing VWAP). All the highly correlated sectors of the equity market surged with them (led by Energy and leaving financials just in the red) and while Treasury yields did leak higher and EURUSD did rally, the moves were miniscule in comparison to someone's desire to own $3.3bn equivalent equity market risk into the close. Silver and Oil plunged early but recovered some into the close as stocks surged but tracked each other tick for tick for tick in general. ..."
"ALL ANIMALS ARE EQUAL. BUT SOME ANIMALS ARE MORE EQUAL THAN OTHERS - George Orwell, "Animal Farm"
"There's not a lot to say about the SCOTUS decision on Obamacare other than, "okay, now how does the Government pay for this?" That plus now that the SCOTUS has upheld the ability of the Government to "mandate" how you have to live your life by calling the individual mandate a "tax," where exactly will our Government draw the line on regulating everything you do?
"Quite honestly this is probably one of the most depressing events I have witnessed with respect to the abdication of individual liberty - and the annexation of power and control - by the Federal Government. The fact that this particular SCOTUS put its stamp of approval on this move toward a totalitarian system is quite shocking. ..."
Sharing your scoops to your social media accounts is a must to distribute your curated content. Not only will it drive traffic and leads through your content, but it will help show your expertise with your followers.
How to integrate my topics' content to my website?
Integrating your curated content to your website or blog will allow you to increase your website visitors’ engagement, boost SEO and acquire new visitors. By redirecting your social media traffic to your website, Scoop.it will also help you generate more qualified traffic and leads from your curation work.
Distributing your curated content through a newsletter is a great way to nurture and engage your email subscribers will developing your traffic and visibility.
Creating engaging newsletters with your curated content is really easy.