Well, you knew this was coming.
Moody’s warned that Congressional budget negotiations ahead of the looming “fiscal cliff” will likely determine the future of its triple-A rating on U.S. government debt.
If negotiations aren’t successful, Moody’s said it would expect to lower its rating, probably to Aa1.
Markets haven’t had much of an immediate reaction. Stock futures are up... read more
As prices at the pump gradually move back up, one finds no shortage of people calling for new financial regulations. Frequently blamed on speculators, higher gasoline prices are — as some politicians say — the result of lax laws regulating the financial system.
Nevertheless, can it really be only speculators that are driving up the price of oil? Surely, the petroleum market is deepe... read more
In an upbeat presentation at the Denver Gold Forum, Rob McEwen forecast that gold is going to $5,000, while setting out the path forwards for the company which now bears his name - McEwen Mining.
This year's Denver Gold Forum kicked off yesterday morning and one of the early speakers was Rob McEwen of McEwen Mining. He has a great name in the industry due to his long term stewardship of Gol... read more
While hardly a factor in the Fed's thinking which is due to present its announcement in 4 hours, today's Initial claims report [4]came at 382K, the biggest miss to expectations (370K) in 2 months, and up from last week's naturally upward revised claims of 367K. The 15K jump is the biggest weekly spike in 2 months and 4th largest this year. Just as relevantly, as we warned months ago, those on e... read more
The price of silver has moved up from $27.50 seen just a week ago to stage a test of the $31.00 level. Although technical traders may consider this market currently overbought, the fact remains that a bull market can stay overbought for quite a long time.
It will be interesting to look back on this rally that began in the wake of the Financial Times’ story about the CFTC’s lack of eviden... read more
Gold futures topped $1,700 an ounce for the first time since March on speculation that a sluggish global economy will spur central bankers to boost monetary stimulus, increasing demand for the metal as an inflation hedge.
In August, a U.S. factory index showed contraction for the third straight month, and manufacturing in the euro area shrank more than estimated, suggesting the region’s eco... read more
Begin with a preface to a meaningful event that could change the entire US landscape, a redux of what happened four years ago. Consider the next Wall Street financial firm failure. It is in progress. It is not avoidable. It will have numerous ramifications. It will open the door to account thefts, the burial of documents, the ransack of undesired leveraged positions, the concealment of wrecked... read more
Japan's government is planning to suspend some state spending as it could run out of cash by October, with a deficit financing bill blocked by opposition parties trying to force Prime Minister Yoshihiko Noda into an early election.
The impasse in Japan's parliament has raised fears among investors that the world's third largest economy is being driven towards a "fiscal cliff", Reuters reporte... read more
Following a brief period in which it seemed that US foodstamp recipients may have peaked, with those living in poverty maxing out at 46.514 million in December 2011, and then declining modestly for the next few months, June saw a new surge in those Americans living in poverty and thus eligible for foodstamps, with 173,600 new entrants into the system, bringing the total to a new all time high o... read more
Consumers made the most of the dip in the price of bullion and mainland China’s gold purchases via Hong Kong hit a record 101.7 tonnes in April, up 62 per cent, reported Bloomberg.
Meantime, the Russian central bank has again increased its gold reserves by 500,000 ounces. Former Russian finance minister Alexei Kudrin said that a full-blown economic and financial crisis in the euro zone is... read more
