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Gold Prices Spike on Safe-Haven Appeal, South Korea Buy to $1660.10
NEW YORK (TheStreet ) — Gold prices hit record highs Tuesday as the Bank of Korea bought more gold and as the Senate passed the debt ceiling deal.
Gold for December delivery popped $22.80 to close at $1,644.50 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,646.80 and as low as $1,618.80 while the spot gold price was skyrocketing almost $30, according to Kitco’s gold index.
Silver prices added 78 cents to close at $40.09 an ounce. The U.S. dollar index was up 0.22% at $74.48 while the euro was down 0.36% vs. the dollar.
With the debt-ceiling issue basically behind U.S. markets, investors are now looking at the health of the economy and the picture isn’t bright. Worries of slowing global growth were the main factors boosting gold prices.
Not only have quarterly growth numbers been anemic and July’s manufacturing index was barely above the critical 50 growth-mark, but the debt plan aims to Read more…
The Imminent $2.5 Trillion Debt Ceiling Hike Will Unleash A Gold Price Surge To $1,950 And Higher
Two weeks ago we presented a chart that shows the uncanny correlation between the debt ceiling and the price of gold. Now that we know the final amount of the next debt ceiling hike, somewhere in the $2.5 trillion ballpark, it allows us to extrapolate where gold will end up as a result of the debt ceiling hike which will likely be voted into law at 7pm PDT. A simple correlation rule of thumb allows us to predict that gold will be at $1,950 by the end of the year if it simply retains it close correlation to the debt ceiling. Should Bernanke announce that he will additionally need to monetize some or all of this incremental debt amount, we anticipate that gold will be well over $2,000 by the end of the year, courtesy of yet another round of accelerated dollar debasement, which also means that real gains in US stocks will be negated courtesy of the devaluation of the currency in which they are priced. The same, however, does not apply for gold, which with every passing day is priced in nothing but itself.
The Bloomberg chart of the day first presented on July 20.
Super Congress To Target Second Amendment
The so-called “Super Congress” that is about to be created with the debt ceiling vote will have powers far beyond just controlling the nation’s purse strings – its authority will extend to target the second amendment – eviscerating normal protections that prevent unconstitutional legislation from being fast-tracked into law.As the Huffington Post reported last month, the debt deal that has already been passed by the House and faces the Senate tomorrow will create an unconstitutional “Super Congress” that will be comprised of six Republicans and six Democrats and granted “extraordinary new powers” to quickly force legislation through both chambers.
Legislation decided on by the Super Congress would be immune from amendment and lawmakers would only be able to register an up or down vote, eliminating the ability to filibuster. The Speaker of the House would effectively lose the power to prevent unpopular bills from making it to the House floor.
But far from just being a committee that would make recommendations concerning the debt ceiling, the body is now to be granted Read more…
The United States Only Has $54 Billion Of Cash Left In The Bank
Um, John, we’re about to go broke. What say we call off the circus act and finally do something about it?
Image: AP Photo/Harry Hamburg
Maybe this news will wake up those irresponsible idiots in Washington.The United States only has $54 billion of cash left in the bank.
That’s down from $100+ billion only eight days ago.
In the middle of last week came the shocking news that Apple, Inc., had more cash than the United States. Now, Apple has a lot more cash than the United States.
By early next week, if Congress can’t get its act together, the United States will have less cash than Google. Then Salesforce.com. Then, eventually, Pets.com.
Maybe, instead of preening in front of TV cameras, Congress folks should just hit the streets of Washington with hats in hand this weekend. If all 535 members spend all weekend out on the Mall, we might scrape together enough cash to last a few more hours. And these efforts will certainly Read more…
In Secret, Senate Panel May Re-Up Vast Surveillance Dragnet
Most of Congress is busy debating whether to raise the debt ceiling. But starting Thursday, Danger Room is hearing, a group of Senators meeting behind closed doors may consider renewing a controversial law permitting widespread government surveillance of Americans’ communications.
That law would be the FISA Amendments Act of 2008, which gave the cover of law to President George W. Bush’s warrantless surveillance program. Beloved by the Obama administration, the law is set to expire — not this year, but in 2012.
But the Senate Select Committee on Intelligence may not be so keen on waiting, Congressional sources say. When the committee meets to finalize the fiscal 2012 intelligence authorization bill to the full Senate floor — the bill that approves the activities of the 16 U.S. spy agencies – some senators will push to include a measure re-authorizing the surveillance act.
The so-called “mark-up” process begins on Read more…
Gold rises as U.S. debt impasse continues
TOKYO (MarketWatch) — Gold futures continued to rise Wednesday as a prolonged standoff in Washington over hiking the U.S. debt ceiling continued.
Gold for August delivery /quotes/zigman/700181 GC1Q +0.42% , the contract with the most volume, rose $5.30, or 0.3% to $1,622.00 an ounce in electronic trading.
The December contract /quotes/zigman/661658 GC1Z +0.41% , which has the most open interest, was at $1,623.90 an ounce, up $4.50, or 0.3%, after earlier rising to a fresh peak of $1,626.90.
On Tuesday, August gold added $4.60, or 0.3%, to end at $1,616.80 an ounce on the Comex division of the New York Mercantile Exchange. The December gold contract added Read more…
‘Super Congress’: Debt Ceiling Negotiators Aim To Create New Legislative Body
WASHINGTON — Debt ceiling negotiators think they’ve hit on a solution to address the debt ceiling impasse and the public’s unwillingness to let go of benefits such as Medicare and Social Security that have been earned over a lifetime of work: Create a new Congress.
This “Super Congress,” composed of members of both chambers and both parties, isn’t mentioned anywhere in the Constitution, but would be granted extraordinary new powers. Under a plan put forth by Senate Minority Leader Mitch McConnell (R-Ky.) and his counterpart Majority Leader Harry Reid (D-Nev.), legislation to lift the debt ceiling would be accompanied by the creation of a 12-member panel made up of 12 lawmakers — six from each chamber and six from each party.
Legislation approved by the Super Congress — which some on Capitol Hill are Read more…
A visualization of the US Debt
US raised debt ceiling 102 times – economist
President Obama has warned the US is running out of time to deal with its financial troubles – the Congress must raise the current $14.3-trillion debt ceiling again. And as Professor Rodrigue Tremblay told RT, this has become a tradition in the US.
The US repeatedly gets away with raising the debt ceiling, Rodrigue Tremblay told RT.
“This system that the US has, has been in place since 1917. They raise the debt ceiling each year, they have done it 102 times; eight times under George W. Bush alone. Most countries do not run their Read more…
China ratings house says US defaulting: report
BEIJING — A Chinese ratings house has accused the United States of defaulting on its massive debt, state media said Friday, a day after Beijing urged Washington to put its fiscal house in order.
“In our opinion, the United States has already been defaulting,” Guan Jianzhong, president of Dagong Global Credit Rating Co. Ltd., the only Chinese agency that gives sovereign ratings, was quoted by the Global Times saying.
Washington had already defaulted on its loans by allowing the dollar to weaken against other currencies — eroding the wealth of creditors including China, Guan said.
Guan did not immediately respond to AFP requests for comment.
The US government will run out of room to spend more on August 2 unless Read more…
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