Archive for November 30th, 2009

Potential for Fed to hyperinflate

Monday, November 30th, 2009

Full story here from Bob Chapman. Sorry for the downer Monday, but I don’t make it up, I just report it…

“The following information may be the most important we have ever published. One of our Intel sources, highly placed in banking circles, tells us that on 1/1/10 all banks that have received TARP funds have been informed by the Federal Reserve that they must further restrict any commercial lending. Loans have to be 75% collateralized, 50% of which has to be in cash, which is a compensating balance. (more…)

US bankruptcy: a guaranteed default

Monday, November 30th, 2009

Full story here.

It’s one of those numbers that’s so unbelievable you have to actually think about it for a while… Within the next 12 months, the U.S. Treasury will have to refinance $2 trillion in short-term debt. And that’s not counting any additional deficit spending, which is estimated to be around $1.5 trillion. Put the two numbers together. Then ask yourself, how in the world can the Treasury borrow $3.5 trillion in only one year? That’s an amount equal to nearly 30% of our entire GDP. And we’re the world’s biggest economy. Where will the money come from? (more…)

Canada’s “missing” gold explained (well, sort of)

Monday, November 30th, 2009

Full story here.

RCMP have solved a bizarre mystery: How did $15.3 million in gold vanish from the Royal Canadian Mint? And while their report is still two weeks away, CTV News has learned the answer.

“Senior government officials say there was a colossal error at the mint itself,” said CTV Ottawa Bureau Chief Robert Fife on Tuesday night.

Mint officials double-counted some gold bullion they sold, and also underestimated the shrinkage of the gold during processing.

The federal government had withheld bonuses for mint executives until the mystery was solved. It’s unclear whether those bonuses will still be paid out.

Junior Transport Minister Rob Merrifield, who’s responsible for the mint, called in the RCMP on June 9 after he learned that an audit would not “rectify the problem” of the missing gold. That’s about 10 weeks after the government first learned of the missing gold.

The Deloitte and Touche audit cost taxpayers $360,000.

Ottawa now requires the mint to report on inventory levels of metals every three months.

Last month, Liberal critic for Crown corporations Joe Volpe said the security, reputation and the quality of the Canadian Mint’s product has been compromised.

In early June, it was discovered that there was an unreconciled difference between the value of gold on the mint’s books and the physical count of gold for the 2008 fiscal year.”

Me again…OK, so they not only double-counted some gold (alertness in the staff is encouraged) but failed to account for “shrinkage” of the gold during processing. Ummm, are they the receiving end on those Cash For Gold commercials? They failed to account for not-pure gold? Is this their first week doing this? Just fell off the mayonnaise wagon and landed at the Mint?! You figure the Mint’s been doing this for some time and might have the odd procedure in place.