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CARTEL CAPITULATION WATCH
The PPT was given a Presidential debates curve ball when Merck announced it was going to take a major product, Vioxx, off the market. It took around 75 points off the DOW. Not to allow any dismay, the PPT went into operating mode to keep the DOW from falling apart. It worked as the DOW only fell 56 to 10,080. The DOG rose 3 to 1897.
The US economic news:
08:30 Jobless claims for w/e 9/25 reported 369K vs. consensus 343K
Prior week revised to 351K from 350K
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08:30 Aug. Personal Income 0.4% vs. consensus 0.4%; Spending reported 0.0% vs. consensus 0.1%
Prior Income revised to 0.2% from 0.1%; prior spending revised to 1.1% from 0.8%.
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10:00 August Help Wanted Index reported 37 vs. consensus 38
July reading was 37.
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10:00 Sept. Chicago Purchasing Manager's reported 61.3 vs. consensus 58
August reading 57.3.
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10:30 EIA reports natural gas inventories +69bcf vs. consensus +72bcf
For reference, year-ago data was +101bcf.
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06:39 FNM FNM target of possible accounting fraud by DoJ, reports WSJ (66.25)
The criminal investigation opens a new chapter in the saga against FNM, and is the latest in the intensifying scrutiny by the government of FNM, following the agreement between FNM and OFHEO. Chief spokesman for FNM Chuck Greener said they had no knowledge of the investigation and could not comment. Note that Rep. Michael Oxley received the authority so subpoena FNM executives, according to Bloomberg (see 9/29 16:47
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SURE:
10:10am 09/30/04
Snow: global economy roaring By Corbett B. Daly
WASHINGTON (CBS.MW) - The global economy is in its best shape in three decades and no major economy is in recession or facing high inflation, Treasury Secretary John Snow said Thursday. "Talk of 'bubbles, 'overshooting' or 'hard landings' is rarely heard these days," Snow said in remarks prepared for delivery to the Bretton Woods Committee. "We can - and should - celebrate the fact that, this year, there is no major financial crisis to talk about. Remember that in the 1990s we were preoccupied with such crises," Snow said. –END-
Another Gold Cartel groupie is feeling the heat. Rarely a week goes by when Citigroup, JP Morgan Chase, Deutsche Bank, Goldman Sachs and others in the cabal are not cited for wrongdoing in a major league way. This is because this is the manner in which they do business. With all that GATA has come up with, how can the clueless not get it these bums have been rigging the gold price in order to make billions. What makes it more obvious is in the gold case, they have even had the blessing of the US Government and the regulatory authorities. This crowd routinely gets in trouble without this blessing. You have to be very naïve to not get it here. The gold fraud scheme was right up their alley, at the top of their money making list of con games.
Thursday September 30, 6:24 AM
AIG Faces U.S. Criminal Probe
NEW YORK (Reuters) - The U.S. Justice Department has opened a criminal probe into whether American International Group Inc., the world's largest insurer by market value, helped a major banking client move bad loans off its books, AIG said on Wednesday.
The insurer said it believes the investigation relates to a U.S. Securities and Exchange Commission probe into whether the company's AIG Financial Products Corp. unit helped PNC Financial Services Group Inc. cloak $762 million of bad loans, inflating the bank's profit by $155 million.....
-END-
GS, China and GATA:
Bill,
I think yesterday's Goldman Sachs statement that, "Goldman sees metals boom going on — Worries about China construction slowdown 'overblown',” is like the trumpeter sounding the call to retreat. No one should know better than Goldman that intervention is failing and that nothing can stop the rise in gold and metals prices.
On another front, the news that China has finalized its takeover of Canada's largest mining company, Noranda, shows what Chinese priorities are and how they will try to recycle their enormous dollar reserves. Scarce resources will find their way into the strongest hands. The next few years ought to be real interesting for owners of metals. GATA own PMs if you want to play!
Best wishes,
Peter R.
Mining executives disagree on state of gold market
Reuters
Wednesday, September 29, 2004
DENVER -- Senior executives of the world's top two gold producers disagreed on Wednesday over the state of the market for the precious metal, often seen as a safe investment haven in economic hard times.
Kelvin Williams, marketing director for South Africa's AngloGold Ashanti, the second largest producer, was concerned that demand for jewelry has dropped off dramatically.
Consequently, he was guarded in his assessment of the gold price, which has risen steadily since 2001 from around $275 an ounce to hit a 15-year high above $430 in April this year. It has slipped some since then. On Wednesday, December gold closed at $414.70 an ounce, up 50 cents, on the COMEX in New York.
In contrast, Pierre Lassonde, president of the world's No. 1 gold producer Newmont Mining Corp., was bullish, drawing similarities to the economic situation 30 years ago.
"We still do have a kind of half-completed rally ... and as we all know, it is the COMEX and the trading positions of gold that drives the price of gold," Williams told industry executives and analysts at the Denver Gold Forum.
"Progressively, we haven't seen the interest in COMEX return to the levels of April (when gold hit its high) and we don't think there's been matching activity in OTC (over the counter). We need to see how this plays out toward the end of the year," he said.
"On the physical market, we've seen what we view as a worrying situation where in the last five years, we've seen global jewelry demand decline by almost 25 percent.
"I am almost certain that if either of our competitors in platinum or diamonds had to face a fall of 25 percent in their major source of consumption, I can imagine they would be extremely concerned."
Williams said that although the market was healthy, "in a sense, the evolutionary upward movement had stalled."
Later, Lassonde was asked his opinion of the gold market:
"Well, unlike my predecessor (Williams) who was down and out with gold, we are very positive. Jewelry accounts for 70-80 percent (of demand), but at the end of the day, gold is a monetary asset."
The Newmont executive went on to compare the current state of the world's economy with the early 1970s, saying the similarities were "absolutely eerie."
"Then you had the Vietnam War; now we have the al-Qaeda war. The Fed was printing money then and the current account deficit in the '70s prompted the French to get rid of dollars."
There was a negative real rate of interest then, and we have it now, Lassonde said, and just like 1972-1978, when the dollar lost 50 percent of its value against a basket of currencies, the dollar is relatively weak now.
-END-
Gold rush as mainland banks jump retail queue
Olivia Chung
September 30, 2004
Without waiting for Beijing's approval, banks in Guangzhou and several other mainland cities have begun retailing gold bars to investors eager to seek alternatives to China's relatively low interest rate returns and battered stock markets.
Mainland retail investors, who have long held gold in special esteem, have responded by flocking to banks in such numbers that one of them had to keep its doors open after office hours.
Beijing launched the Shanghai Gold Exchange and allowed gold trading to institutional investors and industrial end-users in October 2002 with a promise from the People's Bank of China that ``in time'' individuals would also be allowed to trade gold.
However, some commercial banks, looking for an edge in the country's increasingly competitive banking market, decided to quietly start selling gold even before the central bank gave its formal okay.
It has hardly been quiet, however. According to the Guangzhou-based Yangcheng Evening News, the city's residents flocked to buy the precious metal after local branches of China Merchants Bank set up counters to sell gold bars to individuals a week ago.
The move followed similar decisions by banks in five other cities.
Mainland consumers, like people in many other countries, have long considered gold to be a hedge against uncertain times and a powerful status symbol. As a consequence, gold jewellery has long been a big seller.
On September 22, the first day Merchants Bank offered individual gold sales, the bank's Guangzhou branches reported brisk business. At one bank, the queue of would-be buyers was so long that the bank was forced to extend its opening hours. Over the first four days, the bank sold 49 kilograms of gold bars, with one buyer putting down more than 800,000 yuan (HK$754,400) for a single purchase.
The bank's offer price is based on gold quotes from the London Metal and Shanghai Gold Exchanges.
Though some analysts claimed the Guangzhou gold rush suggests the yellow metal will soon outstrip all but stocks as the favourite investment of Chinese savers, others dismissed that as marketing hype.
Gold bars are much cheaper on an ounce-for-ounce basis than gold jewellery, said a senior analyst of Guangdong Yuebao Gold Investment Corporation in Guangzhou, which is one of the 108 trading members of the Shanghai Gold Exchange. Since there's no easy way for individuals to sell gold bars, he said it would be some time before investors began to speculate in it.
``Without frequent buying and selling, it can hardly be called an investment market,'' said the analyst, who would only give his surname as Hua.
He said he believed gold trading would become more commonplace as the market develops.
-END-
Postive gold news is pouring in from all over the world is shaking up the Orwellians.
Secretary Snow was out on the circuit today talking about helping the poor countries again. Why is it guys like him only care about the poor when the gold price is rallying? Looks like the desperados are as bad off as we think when it comes to having enough physical gold on hand to stop going from exploding:
A Golden Opportunity: New Report Urges IMF Gold Sales To Finance Debt Cancellation
WASHINGTON - September 29 - As G-7 Finance Ministers prepare to meet in Washington on Friday with poor country debt cancellation near the top of their agenda, a report released today by Debt and Development Coalition Ireland demonstrates the feasibility of the sale of IMF gold to fund debt cancellation.
The report, "The IMF, Gold Sales, and Multilateral Debt Cancellation" by Sony Kapoor of the New Economics Foundation in London, finds that responsible and transparent sale of the IMF's gold at a rate of 5 million ounces per year for the next twenty years could raise $30 billion with no significant impact on the world price of gold. It recommends that proceeds from the sale of IMF gold go to fund multilateral impoverished country debt cancellation.
"Given the devastation that the debt is wreaking on peoples' lives, it is imperative that the G-7, and the IMF and the World Bank in their meetings this weekend, take responsible action and cancel the debt," said Jean Somers, Coordinator of Debt and Development Coalition Ireland. "This report offers gold sales as a viable solution to the debt crisis. By taking a close look at the impact the sale of gold by many rich countries over last 10 years, it debunks the argument that IMF gold sales would lower gold prices." .
The research is particularly timely because G-7 nations are coming into Friday's talks where much of the discussion is likely to center on how debt cancellation will be financed: this report offers gold sales as a strong and viable option.
"The sale of IMF gold is an approach to financing poor country debt cancellation that should please all G7 nations," said Neil Watkins, a spokesperson for Jubilee USA Network. "The IMF is sitting atop a mountain of outrageously undervalued gold. With thousands of people dying due to HIV/AIDS in Africa and elsewhere, the sale of IMF gold could easily finance the IMF and World Bank's share of desperately needed debt cancellation for impoverished nations."
The report points out that gold only represents 2% of total resources available to the Fund, so a sale would not significantly impact the Fund's operations. The paper also considers the potential impact of gold sales by the IMF on the world price of gold. It documents recent large sales by rich country central banks and suggests that even if the sale were to potentially impact the world price of gold, several options were available to mitigate the effects.
"Selling IMF gold to help alleviate poverty must surely take precedence over the long term portfolio rebalancing needs of rich country central banks which continue to sell large quantities of gold " says Kapoor, the report's author, who will be in Washington this week, while suggesting that IMF gold could be sold under the existing Central Bank Gold Agreement under which rich country central banks plan to sell 80 million ounces of gold over the next five years. "Instead of selling 16 million ounces of gold a year, these central banks could reduce their quota to 11 million ounces and let the IMF sell 5 million ounces with no market impact."
The report also examines the impact of gold sales on HIPC countries; argues for sales rather than a revaluation approach; and considers precedents for the sale of gold.
-END-
How SICKENING! If these low-lifes would stop rigging the price, it would soar. The economies of many of these countries would pick up substantially and give these people a chance to help themselves. The IMF, Snow and The Gold Cartel are a rotten group.
An update from my friend, Mahendra who continues to be hot as a pistol:
Dear Members,
Gold has been playing hide & seek with the investors but this is a game that cannot go on for long. For the last two weeks, Gold has been in hiding but since this is not a rule of the game, it will have to come to an end.
I have faith that gold will never break any rule or defy the instructions of Mars and Jupiter. That is what I would like to see in next 48 hours. Final 9 days I and gold has together. I may change my out look on, If gold doesn't perform in 9 days by reaching new high 2004.
All major currencies should strongly rise against the USD.
Starting from Friday, the stock market should fall. This will continue for 14 days after which there will be a slight bounce back lasting for 3 days. Following the brief resurgence, the drop will then recommence. It is a part of nature that in everything, correction usually comes after each fall.
Thanks & God Bless
Mahendra
http://www.mahendraprophecy.com
Some well meaning Café members continue to confuse outside contributed market commentary in the MIDAS with GATA. Unless specifically designated, it usually has nothing to do with GATA. It is presented for your Café paying membership information and enjoyment.
Nice to see:
Klondike Star Reports 16 g/t Gold Over 2m From Lone Star Zone
SEATTLE, September 29, 2004 (BUSINESS WIRE) -- Hans Boge, President of Klondike Star Mineral Corporation (OTCBB:KDSM) is pleased to announce that ongoing chip sampling of a previously untested trench at the northwest end of the Lone Star zone intersected 16.11g/t gold over 2.0m (0.47oz/ton over 6.6 feet) collected from rusty quartz-muscovite schist. This sample, together with rotary drill hole 93LS07 50m to the west, represent the northwest limit of the previously defined Lone Star zone. Hole 93LS07, drilled by Kennecott in 1993, intersected 2.90g/t gold over 12.2m (including 8.65g/t over 1.5m) and 3.98g/t gold over 6.1m (including 10.10 g/t over 1.5m). The former producing Lone Star mine is located 400m to the southeast…..
Klondike Star Mineral Corporation is developing 5 mineralized zones on a 60 square km land position underlying the site of the Klondike Gold Rush. The area has been in constant Placer production since the discovery of gold in 1896. Thousands of ounces of gold continue to be produced from placer mining operations each year on streams in the Klondike….
-END-
The gold and silver shares were rockin’ all day. The XAU leaped 2.56 to 101.95, while the HUI jumped 7.40 to 231.78. The boat is leaving port. Even saw some life in the smaller golds. Samex came to life, lifting 17 cents to 94 cents, a huge move percentage-wise. We are not there yet, as mainstream is gold/silver share clueless. When that changes and they want in the coming Gold Rush, there will be a gold/silver share buying panic.
There is every reason for the price of silver and gold to go bananas. For their prices to be this low is absurd. We know why that is the case, a case which The Gold Cartel won’t give up on without a major fight. Fortunately for our camp, we know what they have done and why. We also know they don’t have the physical gold to win their war. They will lose.
Gold, silver and the shares remain THE historic investment opportunity of a lifetime.
GATA BE IN IT TO WIN IT!
MIDAS
