Saturday, October 2, 2010

MASSIVE MORTGAGE FRAUD....Massive Movements in Silver continue..Commentary Oct 2.2010

Good morning Ladies and Gentlemen:
 
Before beginning my commentary, I would to introduce to you our latest entries into the banking morgue.
 
May they rest in peace:
 
 


Bank Name

City

State

CERT #

Closing Date

 

Shoreline Bank Shoreline WA 35250 October 1, 2010
Wakulla Bank Crawfordville FL 21777 October 1, 2010
Today's commentary will be extremely important for you to read.
 
Gold closed Friday at 1:30pm (comex closing time) at $1316.60 up $9.80 on the day.  It continued on in the access market rising another 2 dollars
 
to close at $1318. 60.  Silver also enjoyed a fine day rising to $22.04 for a gain of 25 cents. It also continued to rise in the access market and closed at $22.09.
 
The total open interest continues to remain strong.  Despite the raid on Thursday, the total gold OI rests at 612,454 for a loss of only 4734 contracts.  The banking
 
cartel needed a lot more leaves to be shaken from the tree.  The total silver OI also remained in its lofty position of 152,540, down 1740 contracts.
 
The new front month of December OI for both gold and silver are as follows:
 
Gold December Open Interest:  429,186  CONTRACTS
 
Silver December Open Interst:   105,236  CONTRACTS
 
 The October trading month has the following open interest left to be served:
 
Gold:  1313 contracts  ( 1,313,000 oz of gold)
 
Silver:   12 contracts  ( 60,000 oz of silver)
 
Every Friday we get the Committment of Traders report.  It basically shows where the demand is coming from and who supplied the unbacked paper.
 
The bankers who supply gold and silver contracts are always going short  and thus have extreme trouble in supplying metal to those who are standing.
 
First, I would like to show you the report and I will comment:
 
 
COT Gold, Silver and US Dollar Index Report - October 1, 2010
The gold COT report:
 

| Source: GoldSeek.com 

Gold COT Report - Futures

Large Speculators

Commercial

Total

Long

Short

Spreading

Long

Short

Long

Short

297,272

39,623

66,647

182,276

485,016

546,195

591,286

Change from Prior Reporting Period

10,704

-2,932

-44

8,606

19,038

19,266

16,062

Traders

226

68

64

40

56

293

165

 

 

Small Speculators

 

 

 

Long

Short

Open Interest

 

 

73,213

28,122

619,408

 

 

 

2,550

5,754

21,816

 

 

 

non reportable positions

Change from the previous reporting period

 

COT Gold Report - Positions as of

Tuesday, September 28, 2010

 

Here we see that in the category of the large speculators, those that have been long continued on their merry way, adding to their positions.
 
They increased their positions by a huge 10,704.  Those large speculators that have been short, saw the light and covered a rather large 2932 contracts.
 
And now for the important banking category, the commercials.
 
Those commercials that have been long for quite awhile and these are smaller banks and financial institutions that are close to physical gold.  These guys buy the gold from the
 
 miners as it comes out of the ground. These commercials increased their longs by a massive 8606 contracts.  Now look at those commercials that have always been short,
 
i.e JPMorgan, HSBC and a few of their friends:  they increased their short position by a whopping 19038 contracts.
 
Our regulators continue to watch on the sidelines, very perplexed as to how to solve their dilemma.
 
Our small speculators have now entered the gold arena.  Those small specs that have been long continued to buy long to the tune of 2550 contracts.
 
But those speculators that have been short continued to add to those positions by a huge 5754 contracts.  The small speculators always get wiped out so watch for gold
 
to rise again blowing these guys out of the water.
 
 
And now for the silver COT report:
 

Silver COT Report - Futures

Large Speculators

Commercial

Total

Long

Short

Spreading

Long

Short

Long

Short

66,066

14,585

28,242

29,034

94,447

123,342

137,274

4,053

1,943

2,862

61

171

6,976

4,976

Traders

105

40

35

33

40

160

98

 

Small Speculators

 

 

 

Long

Short

Open Interest

 

 

30,877

16,945

154,219

 

 

 

476

2,476

7,452

 

 

 

non reportable positions

Change from the previous reporting period

 

COT Silver Report - Positions as of

Tuesday, September 28, 2010

 

 
Thoe large speculators that have been long silver continued on accumulating silver contracts to the tune of 4053 contracts.
 
Those large speculators that have been short silver continued to short silver by 1943 contracts.
 
And now for our important commercial category:
 
Those large commercials that have been long only added 61 contracts to their accumulated positions. However our large bankers
 
only added 171 positions to their massive short buildup. I guess their midnight meetings must have been steamy!!
 
The surprise is the small speculator category.
 
Those small speculators that have been long added only 476 contracts to their accumulated long side.  Look at the small speculators that have
 
been short:  they added a huge 2476 contracts to their shortfall positions.

These guys will be wiped out next week.  Expect silver to rise!!!
 
 
In summary then, in gold, the commercial banks supplied the massive unbacked paper and the large speculators took on the bet.
 
Winner will take all.  The small specs have put a little money on the table backing the bankers.  They will lose.
 
 
In silver: the large speculators continue to pile on but the big commercial banks did not supply the extra paper.  That honour belonged to the small
 
specs and they always get fleeced.
 
 
I would now like to move onto the notices to deliver and changes in inventory at the comex:
 
First a review on Thurday nights chart:
 
Sept 30.2010:
 
 
 
 
Silver
Withdrawals from Dealers Inventory   nil oz
Withdrawals from customer Inventory  303,530 oz
Deposits to the dealer Inventory   n/a oz
Deposits to the customer Inventory 640282 oz
No of oz served  (contracts 21 only  105,000oz
No of oz to be served xxx?  oz  ???
Gold
Withdrawals from Dealers Inventory 
 zero oz
Withdrawals from customer Inventory  zero
Deposits to the dealer Inventory  5,000.00
Deposits to the customer Inventory  n/a
No of oz served (contracts 5375  537,500
No of oz to be served ?//  ?
.
 
and now for Friday night Oct 1.2010:
 
 
 
 
 
 
Silver
Withdrawals from Dealers Inventory   nil oz
Withdrawals from customer Inventory  28,552 oz
Deposits to the dealer Inventory   n/a oz
Deposits to the customer Inventory 33,421 oz
No of oz served  (contracts 0 only  zero oz
No of oz to be served 12  60,000 oz
Gold
Withdrawals from Dealers Inventory 
 zero oz
Withdrawals from customer Inventory  32 oz
Deposits to the dealer Inventory  zero
Deposits to the customer Inventory  n/a
No of oz served (contracts 303  30300 oz
No of oz to be served 1313  131,300
 
 
We have now entered October which is a delivery month for gold.  Traditionally, most of the major players ignore October and go straight to the high
 
liquidity month of December.
 
Let us begin with Silver as there was a massive movement of silver in all directions.
 
Friday, we had one customer add 33,421 oz of silver to registered comex vaults. We also had one customer
 
remove 28,552 oz.  Thus we had a net 4869 oz deposit into customer vaults.
 
We also have a huge transfer (adjustment) of 1,605,097 oz of silver from the dealer to the customer.  That silver stayed in a registered comex vault.
 
The rules of the comex state that  all settlements must first be a deposit of the metal to the dealer and then a withdrawal of that metal to the customer.
 
If the dealer has the metal, then we must see a withdrawal of that metal to the customer.
 
We have not seen this.  However the adjustment of 1.605 million oz of metal is huge.  Is it a repayment of a lease? Is it a handsome reward for supplying silver in previous months?
 
Or are the comex folks settling with a customer with SLV paper and sidestepping normal procedure. There is so much fraud going on it is anybody's guess.
 
Regardless of the situation, when you see this large movement of silver going on you have massive shortages and the comex folk are scrambling supplying the needed
 
metal to those in urgent demand of it.
 
 
There was zero notices served on the holders of exercised silver options.
 
On Thursday, the comex revealed that 21 notices were sent out for a total of  105,000 oz
 
We finally got the dust settled on the remaining silver OI and its total is 12 or 60,000 oz of silver.
 
The total number of silver oz standing this non delivery month of Oct is as follows:
 
105,000 oz (already served)  +  60,000 (oz to be served) =   165,000 oz.
 
(I will bet that there are many more options exercised and they are waiting to be served..you will see that this number will rise throughout the month)
 
 
And now for gold:
 
 
 Amazing, the entire gold comex was comatose.  Only 32 oz of gold was removed from a customer. With each bar having a minimum of 100 0z how
 
on earth 32 oz got removed is in question?
 
The comex folk sent out 303 notices to deliver to our patiently waiting longs. This totals 30,300 oz of gold.
 
The total number of notices sent out so far this month total:  5678 or 567,800 oz of gold.
 
Again, the dust is clear and we see that 1313 contracts remain to be served for a total of 131,300 oz of gold
 
The total number of oz of gold now standing for this delivery month of October is as follows:
 
567,800 oz (already served)  +  131,300oz (to be served)  +  70,800 oz of gold (september options exercised and this moves into the first delivery month to follow and thus October)
 
=  769,900 oz.  or 23.98 tonnes of gold.
 
This is very respectful for October.
 
 
In other physical news, the premium to NAV slipped a bit on the Central Fund of Canada to 6.7% and our PHYS remained steady at 2.5%.  This is basis
 
Thursday, the day of the raid so this is not uncommon.
 
John Brimelow who monitors the Russian cental bank's website informs us that Russia added 300,000 oz of gold to its official reserve: (9.33 tonnes)
 

The Russian Central Bank website indicates that another 300,000 ozs (9.33 tonnes) were added to the country’s FX reserves in August.

 
end.
 
And finally, this report on silver eagles prices in the usa:
 

The US Mint Just Announced a 33% Price Increase on Silver American Eagle Premiums. Dealer pricing throughout the country has just spiked in the last couple of hours. I put together a brief article about the news in case you wish to inform your readers. This is on the heels of the US Mint ceasing production of Gold Buffaloes in 2010.

http://www.trustedbullion.com/blog/item/252-us-mint-announces-33-price-increase-on-silver-american-eagles

end.
 
 
 
 
That ends the physical report on gold and silver and now onto the big economic stories of yesterday. Yesterday we got commentaries on massive
 
fraud in the registering of mortgages by our bankers.
 
As we have pointed out to you on countless occasions, fraud is rampant on the mortgage front as the bankers failed to register them properly.
 
Here is the big story of the day:
 

Yesterday, Representive of the House, Congressman Alan Grayson, put this TV video

out to USA citizens, outlining the massive fraud in the Morgage industry.

 

It outlines how loaner servicers for the banks obtain improper fees in their attempt to foreclose on properties.

Call centres are diverted to India.  He outlines 4 outlandish foreclosures:

 

1. an individual who had his home foreclosed upon even though he paid for his house for cash

   and had no mortgage.

 

2. an individual who had 2 mortgage foreclosure filings served upon him because the bank did not know who had proper

   title to the mortgage.

 

3. an individual who had a perfect record of paying interest and principal on time was foreclosed upon because of a contested 75$ charge.

 

4. an individual was foreclosed upon after receiving a predatory loan and then seeing his mortgage payments rise four-fold.

 

The Securitized mortgages went out of control from 2005 onward.  The required record keeping violated all real

estate laws and thus nobody knows who owns what.  To save fees, the transfer of the mortgage title was

digitalized onto a private system called Mortgage Electronic Registry System or MERS for short. Almost 60 million homes

or 60% of all mortgages are registered this way.  The transfer of mortgages is done by transferring excel spread sheets.

To create phony documents the banks used mill law firms to create any document you wished and then backdate it.

and thus the criminal foreclosure process began with the banks in full knowledge of the massive fraud.  The reason for the securtized

mortgages was to get the mortgages off their books and they proceeded with great haste to create these vehicles which will be their

downfall!

 

 

The courts originally could not conceive that the legal profession who stoop this low and engage in massive fraud.

The first judge to notice something was array was a Cleveland judge two years ago who stopped the foreclosure process on an Ohio home

due to the lack of proper documents.  This was highlighted to you and then Ellen Brown commented on this stating that the entire

banking industry will succumb to this massive fraud.

 

Ladies and  gentlemen:  this is a mandatory video for you to see.

 

/

Listen to this folks.

"THE EASIEST WAY TO MAKE A BUCK IS TO STEAL IT" - Alan Grayson

WHERE ARE THE DAMN HANDCUFFS?

 

end.

 

 

 

 

 

This week we told you that GMAC has decided to stop all foreclosure notices.

 

They were the first.  This was followed by the Bank of America and then finally

 

JPMorgan. 

 

And now National Fidelty has stopped all foreclosure notices  (courtesy of Zero Hedge)

 

Massive Mortgage Mess Update: Title Companies Stop Insuring Foreclosed Properties

Tyler Durden's picture




Today's latest chapter in what is now known as the new 3M: the Massive Mortgage Mess, is that Fidelity National has told lenders to halt foreclosures, and to stop sales of bank owned properties. The reason, and this should be no surprise to anyone, is "possible document flaws." Fidelity is merely the next of, well, all. And while the WaPo reports that the John Walsh, acting director of the OCC has reached out to seven lenders including Chase, Bank of America, Wells Fargo, Citi, PNC Bank, U.S. Bank and HSBC, to review their foreclosure processes in light of the Ally and JPM Chase situations, the news of the day comes from the NYT that Old Republic National Title has stopped insuring title to Ally-foreclosed properties "until further notice." And once the insurers lost faith in the product they are supposed to have 100% confidence in it is game over: virtually no foreclosure transactions will take place going forward. We hope RealtyTrac will provide an update on what they may be seeing in foreclosure trends in the past two weeks : we are confident these have plunged off a cliff across the land.

From the NYT:

As more defaulting homeowners become aware of the lenders’ problems, they are expected to hire lawyers and challenge the proceedings against them. And if completed foreclosures were not properly done, families who bought the troubled homes could be vulnerable to claims by the former owners.

Apparently alarmed about such a possibility, one of the major title insurance companies, Old Republic National Title, has sent a bulletin to agents saying that “until further notice” it would not insure title to properties foreclosed upon by GMAC Mortgage, the country’s fourth-largest home lender and one of the two big lenders at the center of the current controversy.

GMAC declined to comment, and Old Republic representatives did not return calls.

As we have long expected, this merely means that as the foreclosure pipeline gets clogged beyond repair, and as mortgage losses accumulate at an exponentially growing pace, stocks of financial companies will likely surge as very soon their survival will become a binary bet on TARP 2. Very soon the investing public will realize that they are worth either nothing or infinity, which is what we affectionately call the Fed's price target for the US financial sector.

h/t Keith

 

end.

 

Here is this big New York Times  report on the faulty mortgage mess:

 

Foreclosures Slow as Document Flaws Emerge

nytimes

Related Quotes

Symbol Price Change
JPM 38.81 +0.75
Chart for JP Morgan Chase & Co. Common St
, On Friday October 1, 2010, 7:50 am EDT

The foreclosure machinery that has forced millions of Americans out of their homes is beginning to seize up as some lenders and their lawyers are accused of cutting corners in their pursuit of rapid home repossessions.

Evictions are expected to slow sharply, housing analysts said, as state and national law enforcement officials shine a light on questionable foreclosure methods revealed by two of the country’s biggest home lenders in the last two weeks.

Even lenders with no known problems are expected to approach defaulting homeowners more cautiously and look more aggressively for resolutions short of outright eviction.

Despite the turmoil, some economists said the breakdown could ultimately lay the groundwork for a real estate recovery.

Stricken neighborhoods across the country, for example, could benefit. One big factor undermining home sales is fear of a large number of foreclosed homes coming to the market. If the foreclosures are delayed or never happen, housing prices might find a floor.

“Maybe this is like shock therapy,” said the economist Karl E. Case. “Maybe this will actually get the lenders to the table and encourage them to work out deals that are to the benefit of everybody.”

While such a happy ending is possible, the near term is more likely to produce paralysis and confusion.

As more defaulting homeowners become aware of the lenders’ problems, they are expected to hire lawyers and challenge the proceedings against them. And if completed foreclosures were not properly done, families who bought the troubled homes could be vulnerable to claims by the former owners.

Apparently alarmed about such a possibility, one of the major title insurance companies, Old Republic National Title, has sent a bulletin to agents saying that “until further notice” it would not insure title to properties foreclosed upon by GMAC Mortgage, the country’s fourth-largest home lender and one of the two big lenders at the center of the current controversy.

GMAC declined to comment, and Old Republic representatives did not return calls.

GMAC has acknowledged legal missteps in processing mortgages, and JPMorgan Chase has acknowledged the possibility of missteps, and both have suspended all foreclosures in the 23 states where they need a court’s approval. That’s 56,000 in the case of Chase alone; GMAC declined to provide a number.

Attorneys general in half a dozen states are demanding action or opening investigations. The Treasury Department said Thursday it was asking regulators to look into “these troubling developments.”

“We’re seeing a fundamental breakdown in the system, because no one cared that much about getting things right,” said Representative Alan Grayson, a Democrat of Florida, who unsuccessfully asked the Florida Supreme Court to halt all foreclosures in that state.

Wall Street was examining the impact the disclosures could have on the lenders. Moody’s Investors Service has placed the servicer ratings of GMAC and Chase on review for possible downgrade.

The federal government has been the majority owner of GMAC since supplying $17 billion to prevent the lender’s failure during the financial crisis.

Other lenders said Thursday that their foreclosure filings, including the crucial affidavits, had been properly done.

A Citigroup spokesman said the lender required “annual training for our foreclosure employees on the proper execution of affidavits, including having personal knowledge of the information in the affidavit.”

A Wells Fargo spokeswoman said “the affidavits we sign are accurate.” A spokesman for Bank of America, Rick Simon, said, “We do not have anything to tell you at this time.”

GMAC and Chase are in trouble because, overwhelmed with foreclosures, they tried to process them as quickly and cheaply as possible, defense lawyers say. The companies say they are reviewing their procedures to take care of any violations.

The missteps stemmed from the affidavits the lenders file as they seek a quick or summary judgment in thousands of foreclosure cases. The affidavits state certain facts about the case, including the amount owed, which the signer indicates he has personal knowledge of. Without the affidavit, the lender would have to prove the facts at trial.

In depositions taken by lawyers for homeowners, executives at GMAC and Chase said they or their teams signed 10,000 or more affidavits and related documents a month. That did not give them time to review the cases.

Defense lawyers say the disclosures are symptomatic of the carelessness, if not outright fraud, that lenders have been exhibiting for years in their rush to file cases. Many necessary documents have disappeared, with defense lawyers saying the lenders often do not even have standing to foreclose.

In a number of pending cases in Florida, defense lawyers there said, GMAC has already withdrawn affidavits. The lawyers said they would try to have the cases thrown out for possible fraud, although they acknowledged that might be difficult.

GMAC said it would refile the affidavits. Chase said it had not withdrawn any affidavits.

“The way the plaintiffs’ lawyers have handled this has corrupted our legal system,” said Thomas Cox, a Maine lawyer whose deposition of a GMAC executive in June helped prompt the current disclosures. “They tried to manufacture foreclosures the way you’d manufacture cars, on an assembly line. It can’t be done that way.”

Mr. Cox is representing pro bono a rural woman who is in foreclosure on a $82,000 mortgage. The plaintiff in the case is Fannie Mae, the mortgage holding company that failed during the financial crisis and is now under government conservatorship. GMAC serviced the loan for Fannie Mae.

This week, the judge in the case set aside his summary judgment in favor of Fannie when he read Mr. Cox’s deposition of a GMAC executive, Jeffrey Stephan, who said he never reviewed the file he had signed. The case will now go to trial.

“I don’t think they are going to give up easily,” said Mr. Cox.

As the foreclosure crisis has deepened, the length of time borrowers spend waiting for the end has lengthened.

In January 2009 the time between the owner’s first missed payment and eviction was 319 days, according to LPS Applied Analytics. By August it was 478 days.

Since spring, the data firm says, the lenders have been trying to clear their backlog. They have stepped up the rate at which they put defaulting owners into the formal foreclosure process. In August, they started 283,000 foreclosures, up from 220,000 in April.

Now, as the lenders are pressed to examine more closely their filings, those foreclosure starts are likely to fall, prolonging the owner’s time in limbo. Many borrowers use this period, when they are living in their home but not paying for it, to try and get their financial house back in order.

end

 

This will immediately will cause all the banks to fail.  Their collateral is now zero.

We also have new problems as:  what will happen to the previous foreclosed property and the new owner does not have proper title?

You will see massive lawsuits on previous foreclosed property stating fraud had occurred and the original owners want their property back.

This is a mess and as Tyler Durden states, this will be known as the MMM or a Massive Mortgage Mess!!

 

end.

 

For completeness, I will report on other events yesterday..however nothing has startling as the Grayson story.

 

For those of you who think that QE II is not going to happen think again.

This from the second most powerful financial banker, William Dudley of the NY Fed:

courtesy of Market Watch:

 

NY Fed's Dudley: More action likely warranted

WASHINGTON (MarketWatch) -- Putting himself firmly in the pro-quantitative easing camp, New York Fed President William Dudley said Friday that "further action is likely to be warranted" as current levels of unemployment and inflation are "unacceptable."He estimated that $500 billion of purchases of government bonds would provide about as much stimulus as a reduction in the federal funds rate of between half a point and three quarters of a point. He also suggested being "more explicit" on the inflation rate the committee views as compatible with price stability by stating an explicit target.***

 

end.

 

and then this story from Reuters on the same subject:

 

Fed officials say stimulus needed if US stays weak

* Fed's Evans says more stimulus desirable 
* Dudley: more action warranted if outlook stays weak 
* Dudley: stimulus tools costs not prohibitive 
* Dudley a permanent FOMC voter, Evans 2011 voter

NEW YORK, Oct 1 (Reuters) - In the clearest calls yet by Federal Reserve officials to pump more cash into the economy, two Fed policymakers said on Friday that more action would likely be needed unless the outlook improves.

William Dudley, president of the Federal Reserve Bank of New York, described current conditions of high unemployment and low inflation as "unacceptable."

Dudley's comments prompted the dollar to accelerate losses against the euro , traders said, as investors saw an increased likelihood of the Federal Reserve printing more of the U.S. currency to buy more assets.

Chicago Federal Reserve Bank President Charles Evans said more easing was "desirable" and framed the debate over further easing by the U.S. central bank as one of "how much" and "how," rather than whether it should take steps in the first place.

The U.S. central bank said at a policy meeting last week that it is ready to help the recovery again if necessary.

It has already cut interest rates to near zero and pumped $1.7 trillion into the financial system through purchases of longer-term Treasury securities and mortgage-related debt in a further effort to lower borrowing costs.

Many analysts expect the Fed to start a new round of bond purchases, or quantitative easing, as soon as early November.

Weak manufacturing and inflation data on Friday also fueled expectations among investors that the Fed may need to step in.

"Further action is likely to be warranted unless the economic outlook evolves in such a way that makes me more confident that we will see better outcomes for both employment and inflation before too long," Dudley told a conference of business journalists in New York.

As head of the most important regional Fed bank, Dudley has a permanent vote on Fed policy. Evans will rotate into a voting seat on the Fed's committee next year. Both are seen as among the more dovish of Fed officials, who tend to be more focused on tackling high unemployment than the inflation hawks.

The comments followed similar remarks by Boston Fed chief Eric Rosengren on Wednesday as the more dovish members of the Fed's policy panel begin to state their case more loudly…

-END-

 

USA manufacturing growth continues to remain seek.  The ISM national data out on Friday continues to show very weak manufacturing throughout the land:

 

U.S. manufacturing growth slows in September - ISM

NEW YORK, Oct 1 (Reuters) - The pace of growth in the U.S. manufacturing sector slowed in September, an industry report on Friday showed, and employment in the sector also declined.

The Institute for Supply Management said its index of national factory activity slipped to 54.4 last month from 56.3 in August. The median forecast of 79 economists surveyed by Reuters was for a reading of 54.5.

A reading above 50 indicates expansion. While manufacturing has expanded every month since August 2009, the pace of growth has slowed in recent months amid signs a broader U.S. recovery was running out of steam.

In September, sector employment slipped to 56.5 from 60.4 in August. The broader U.S. labor market has remained sluggish this year, and the jobless rate stands at 9.5 percent.

The index's new orders component fell for a fourth straight month, to 51.1 from 53.1. Prices paid, however, jumped to 70.5 from 61.5.

-END-

 

The all important consumer sentiment index remains neutral last month.  Here is this Reuters account:

.

NEW YORK, Oct 1 (Reuters) - U.S. consumer sentiment improved more than expected in September, but was still stuck at its weakest level in more than a year due to economic worries among upper-income families, a survey released on Friday showed.

The Thomson Reuters/University of Michigan's final September reading on the overall index on consumer sentiment stood at 68.2, up from a preliminary figure of 66.6 but down from 68.9 in August.

Analysts had predicted a month-end figure of 67.0.

"The entire late September gain, however, was among households with incomes under $75,000 while upper income households reported much less favorable economic prospects," the survey's director Richard Curtin said in a statement. Curtin said the divergence between the two income groups was partly caused by worries over a protracted delay to an extension of federal tax cuts to families with incomes above $250,000.

"It is hardly a surprise that potential reductions in after-tax incomes a few months from now will influence people's current spending decisions," he said.

This outlook of lower incomes reduced consumer one-year inflation expectations to their lowest in a year. This could be worrisome for the Federal Reserve that is attempting to combat disinflationary pressure and to avert deflation…-END-

 
 
end.
 
 
 
In case you missed this story on Thurday, I will repeat it.  The Argentine courts will not allow mining under a glacier.  This will make mining awfully difficult for barrick gold.
 
This will cut future gold supplies from the market.  As I indicated to you on Thursday, what will the usa do with their "deep storage gold"..?????
 
Here is this important story:
 

Argentine lawmakers pass glacier law to curb mining

Senate narrowly approves glacier-protection law

* Law seen affecting Barrick's vast Pascua Lama project

* President has said will not veto mining measure (Adds comment by Toronto analyst; updates Barrick stock)

By Luis Andres Henao

BUENOS AIRES, Sept 30 (Reuters) - Argentina's Senate passed a law on Thursday that curbs mining on and around the nation's glaciers to protect water supplies, a measure praised by environmentalists but criticized by industry supporters.Analysts and an Argentine mining chamber have warned that the law could hinder construction of the massive Pascua Lama mine, which is being built high in the Andes by the world's biggest gold miner, Barrick Gold Corp (ABX.TO: Quote).Senators approved the law 35 to 33, agreeing to include changes made in the lower house that pro-mining provinces had opposed. Some analysts say provincial government could seek to overturn the law in the Supreme court.

"This vote cut across all party lines and I think we passed the best proposal," ruling party lawmaker Miguel Pichetto told local radio, adding that he expected President Cristina Fernandez to sign the bill into law promptly.Fernandez has indicated she will sign the law this time around after vetoing a similar measure two years ago on the grounds it would hamper growth of provincial economies, a decision that angered environmental groups. Continued...http://af.reuters.com/article/metalsNews/idAFN3028771920100930-END-

 

 

end.

 

Originally in 2004-2005 when the ETF's on gold and silver arrived on the scene I thought they are frauds and I continued to state this for the next 5-6 years.

It is now becoming mainstream that these vehicles are fraudulent.

The highly influential magazine Forbes now aks:  is your gold safe in an etf?

Here is this commentary and it was submitted by Lemetropolecafe's Chris Powell:

 

Noting GATA, Forbes asks: Is your gold safe in an ETF?

Submitted by cpowell on 07:27PM ET Thursday, September 30, 2010. Section: Daily Dispatches

Is Your Gold Bullion Safe In An ETF?

By William Baldwin
Forbes.com
Thursday, September 30, 2010

http://blogs.forbes.com/baldwin/2010/09/30/is-your-gold-bullion-safe-in-...

 

end.

 

 

And finally John Williams has brought out his revisions to GDP and other job revisions.

(courtesy of James Sinclair commentary

 

Jim Sinclair’s Commentary

The following is an essential by subscription service.

- 2nd-Quarter GDP at 1.8%, GDI at 1.3% 
- Census Jobs Reduce September Payrolls by Roughly 78,000 
- New Online Help-Wanted Advertising Takes Drops 2.6%

"No. 327: Second-Quarter GDP Revision, September Employment Outlook" 
http://www.shadowstats.com/article/613

 

That about does it for this week.  I wish you all a grand weekend, and I will report

as usual on Monday.

 

Harvey

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