Weekday NEWS to Comfort the Disturbed and Disturb the Comfortable.
Mon 07.06.2009
Gold Price Manipulation: So What? Whether or not the price of gold, as many have been arguing here and elsewhere, is being manipulated or not, interestingly enough, doesn't matter. Gold is told to be an excellent preserver of wealth, especially in rough times like these. I agree with that but I don't think the manipulation hypothesis should be given as much focus as it's been given so far, simply because there is nothing wrong with central and commercial banks occasionally pushing the price lower.
Gold may cross $1,200/ounce! Investors who are in doubt about the gold price in the coming months have some soothing words from the Chinese Gold & Silver Exchange Society. Gold prices are set to cross $1,200 per ounce in coming two years’ time, that is what the chairman of Chinese Gold & Silver Exchange Society Feng Zhijian said. Addressing a conference, Feng said the price of the precious metal may rise as the global recession and political instability in some parts of the world sustain its appeal as a haven investment.
Gold is Money and Nothing Else The title of this post is actually a quote from Mr. JP Morgan in the early 1900s during a Congressional hearing in the United States. Big league bankstas know the role of Gold in the system. Gold is the asset base upon which paper schemes and leverage are constructed. Gold is not a way to get rich, but it is savings and it is money. When paper schemes and scams collapse, he/she who holds the Gold gets to start and/or participate in the new scheme because he/she has the money! Speculating in currencies is fine if it is one's interest, but Gold speculation is simply that. There are many other inflation hedges besides Gold. But to preserve wealth in US Dollars or any other paper fiat currency is risky over the longer term.
The Patriotic and Moral Imperative for Owning Gold and Silver Remember when you learned those words? It was back when everything was simple. The Pledge of Allegiance was written in 1892 by Francis Bellamy, the circulation manager of the Boston based "The Youth's Companion" magazine. The end of the Nineteenth Century was a much simpler time. The world was a much simpler place. It is not so simple anymore. When we recite those seemingly patriotic words, what are we really pledging our allegiance to? To the flag? To the United States? To the Republic for which it stands?
Zimbabwe seeks Chinese investment in gold mines Zimbabwe, a nation with 100000 per cent inflation, is on way to reforming its main economic sources - mining sector. As part of this strategy, Zimbabwe has changed a lot of laws related to mining sector. Following this several global mining companies, who used to shy away from investing in Zimbabwe, have now started showing interest in putting their money in this nation’s gold mines. Zimbabwe, from its part, has now started inviting countries to invest in their gold mines. Recently, the government appealed to Chinese firms to invest in Zimbabwean mines, asking companies to ignore the country’s recent troubles.
So You Think Gold Fell Due To A “Strong Dollar”? Don’t Make Me Laugh Just a month ago, the Dow Jones Industrial Average was completing a bizarre run from 6,800 to 8,800, following the monster decline from 14,000 less than a year ago. Aside from the obvious “dead cat bounce” phenomenon, the market (helped, of course, by the omnipresent PPT) was aglow with dreams of “green shoots of economic recovery”, a propagandist platform created by a combination of Washington, Wall Street, and scheming media outlets such as CNBC.
Gerald Celente the disintegration of Empire America
HyperInflation or Deflation Depression Which is More Probable? The inflation / deflation debate continues to rage as deflationists see continuing collapse in the global economies under the weight of the deleveraging debt mountain as recently iterated in a 20 minute video by the worlds foremost proponents for deflation. On the other hand the more consensus view is that of hyper inflation as most recently voiced by Marc Faber, as a consequence of governments printing money to monetize debt to ignite economic recovery. Which is more probable?
Biden Says Obama Administration ‘Misread’ Economy Vice President Joe Biden said the Obama administration “misread the economy” when it forecast unemployment would peak at 8 percent if Congress enacted a $787 billion fiscal stimulus. Biden, appearing on the ABC News program “This Week,” said that in crafting its initial economic policies, the Obama administration followed consensus views of the severity of the crisis. Unemployment reached 9.5 percent last month, the Labor Department said July 2. “The truth is, there was a misread” of how bad the economy was earlier this year, Biden said.
This Economy Is Getting Uglier This week things got a lot uglier with Thursday's employment report along with other news in the financial world that we'll discuss in a moment. For our part, our positions on the "short" side of the market performed well with unrealized gains of +2.0% in our interest rate position, +1.2% and +3.3% in our two inverse index positions and 0% in our currency position. We continue in the "Red Flag" mode as we expect lower prices ahead and those expectations were bolstered by this week's news and market activity.
Biden's Just Setting Up The Second Stimulus So did Joe Biden just pull another "Biden" with his line this morning about "misreading" how bad the economy was? Some folks in the White House may chalk it up to "Joe being Joe," but make no mistake, the administration is laying the groundwork for the second stimulus. We predicted on Thursday, after the weak jobs report, that the second stimulus was no definitely on its way. The very next day, Paul Krugman, a reliable thermometer for establishment thinking, chimed in and said we must do a second, bigger stimulus.
Current Recession Is a Severe Credit Bust of Depression-Era Magnitude There's a big difference between inventory-driven recessions and credit-driven recessions. An inventory recession is caused by a mismatch between supply and demand. It's the result of overcapacity and under-utilization which can only work itself out over time as inventories are pared back and demand builds. Credit-driven recessions are a different story altogether. They typically last twice as long as and can precipitate financial crises. The current recession is a severe credit bust of Depression-era magnitude.
Were in the Middle of a Crash 1/2 - Nassim Taleb
Inflationary Crack-up Boom has Commenced in the G7 Economies! There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as a result of a voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved. --Ludwig von Mises Make no mistake, we are in the latter category (total catastrophe) throughout the G7, unfolding over the next four years or less, but many opportunities are presented during these periods as these booms create Mal-Investments, MISPRICED ASSETS AND MARKETS OF ALL STRIPES; some will zoom higher and others lower. In the G7, Mal-Investments have been piling up for almost three decades as credit was turned into an entitlement and as easy money (money below the rate of inflation) became a policy of G7 central banks and banking systems. Combine this with tax, spending and entitlement policies created by public servants, mandates, overregulation and misstated inflation numbers – which generated excess demand in many UN-ECONOMIC sectors – and many of these economies have been converted into asset-backed economies. Now as the debt pyramids collapse, so do the industries, businesses, state, local and federal government programs which were supported by them.
Summary of Inflation and Deflation in the United States Since 1800, the U.S. has had more years of inflation than deflation, 92 versus 53. The record for the two precious metals is remarkably similar. Both lost purchasing power in every inflation in the United States until the last period mentioned, 1951 to 1979, where silver out-performed gold. What adds interest to this similarity is that silver was effectively demonetized in 1834, whereas the gold standard prevailed a century longer. It is true that the U.S. Congress was fiddling with the silver market from 1807 through 1920, but the effect was to put a floor under the silver price, with the gold price being strictly set. And from 1933 until 1975, U.S. citizens could not buy gold.
Administration plans for end of ‘too big to fail’ Megabanks may be slimmed down, told to prepare plans for own demise They are the biggest of the big — the Citigroups, the Goldman Sachses, the AIGs and other financial behemoths. The Obama administration doesn't want so many around anymore. Financial regulations proposed by the president would result in leaner and simpler institutions that don't carry the weight of the system on their marble columns. Around Washington and Wall Street they have come to be known as TBTF — too big to fail. It's not just size, though. These companies are so far-flung, so intertwined and so precariously leveraged that a single one's collapse can create systemwide tremors that imperil the finances of millions of Americans.
Achilles' Heel BIG PICTURE – The much anticipated economic recovery is now fully discounted by the financial markets. Most strategists and economists seem to agree that the US economy is stabilising and will start to revive towards the end of the year. Interestingly, the ‘great depression’ hyperbole doing the rounds last autumn has now been replaced by the ‘green shoots’ hype. It seems as though everyone is spotting some kind of ‘green shoots’ somewhere in the economy. If one didn’t know any better, after reading the latest headlines in the media, one could easily get the impression that perhaps the geniuses in the financial community have now become experts in horticulture!
A Political-economic Oligarchy has Taken Over the United States of America CNN interviewed a person recently who was seriously burned when his vehicle burst into flames because a plastic brake-fluid reservoir ruptured. Having sued Chrysler, he was now concerned that its bankruptcy filing would enable Chrysler to avoid paying any damages. A CNN legal expert called this highly likely, since the main goal of reorganization in bankruptcy is preserving the company’s viability and that those creditors who could contribute most to attaining that goal would be compensated first while those involved in civil suits against the company would be placed lowest on the creditor list since compensating them would lessen the chances of the company’s surviving. This rational clearly implies that the preservation of companies is more important than the preservation of people. Of course, similar cases have been reported before. The claims of workers for unpaid wages have often been dismissed as have their contracts for benefits.
Green Shoots of Economic Recovery and Other Bernanke Lies In the first televised interview by any Federal Reserve Board Chairman in two decades, Bernanke on March 15, 2009 appeared on 60 Minutes. Asked if he's seeing any progress, Bernanke said, "I think all of our efforts, so far, have produced results. We're buying about $500 billion in mortgages, in package and securities by the G.S.E.s, Fannie Mae and Freddie Mac. And that seems to have brought down mortgage rates significantly. It allows people to refinance. To get out of high rate mortgages. We are seeing progress in the money market mutual funds, and in the business lending area. And I think as those green shoots begin to appear in different markets and as some confidence begins to come back that will begin the positive dynamic that brings our economy back.
Were in the Middle of a Crash 2/2
India Joins Russia, China in Questioning U.S. Dollar Dominance Suresh Tendulkar, an economic adviser to Indian Prime Minister Manmohan Singh, said he is urging the government to diversify its $264.6 billion foreign-exchange reserves and hold fewer dollars. “The major part of Indian reserves are in dollars -- that is something that’s a problem for us,” Tendulkar, chairman of the Prime Minister’s Economic Advisory Council, said in an interview today in Aix-en-Provence, France, where he was attending an economic conference. Singh is preparing to join leaders from the Group of Eight industrialized nations -- the U.S., Japan, Germany, Britain, France, Italy, Canada and Russia -- at a summit in Italy next week which is due to tackle the global economy. China and Brazil will also send representative to the G-8 summit.
Dollar's Days of Dominance Are Over While it may not constitute the final “nail in the coffin”, India commemorated the 4th of July by joining China and Russia in announcing they were seeking “alternatives” to the U.S. dollar (as “reserve currency”). With yet one more “prop” removed from the gangrenous greenback, this left only the submissive Japanese as the last major holder of U.S. dollars who strongly supports its continued status. Bloomberg reported Saturday that the economic advisor to Indian Prime Minister Manmohan Singh has publicly and explicitly recommended that India reduce the U.S. dollar component of its currency reserves. “The major part of India reserves [totaling $264 billion] is in U.S. dollars – that is something that's a problem for us,” said Suresh Tendulkar.
Obama heads to Moscow for "reset" summit President Barack Obama heads to Moscow on Sunday promising a far-reaching effort to "reset" U.S.-Russia relations that hit a post-Cold War low under the Bush administration. Obama is expected to clinch summit deals on the outlines of a new nuclear arms pact and improved cooperation in the Afghan war effort, but deep divisions will remain over U.S. missile defense, NATO expansion and the 2008 Russia-Georgia war.
Trichet Sees Risk Big Nations Won’t Coordinate Economic Policy European Central Bank President Jean- Claude Trichet said he’s concerned that a lack of coordination of economic policy around the world will allow the imbalances that led to the financial crisis to persist. “There is a very big danger that major countries internalize their problems,” Trichet said at an economic conference in Aix en Provence, France, today. “If we return to a picture of internal and external deficits that led to this crisis, we’ll have the recipe for a new crisis.”
Recession may get worse, Gordon Brown warns world leaders The worst of the recession may be yet to come and world leaders are in danger of hampering the recovery, Gordon Brown will say today. As he begins a week of meetings with world leaders, the Prime Minister will strike an unexpectedly gloomy note about the prospects of an upturn and will demand that fellow heads of government “sound a second-wake up call for the world economy”. Soaring oil prices, rising 75 per cent this year, protectionist measures contributing to a 10 per cent drop in trade and the failure of banks to start lending again could all put the recovery at risk, according to Downing Street.
Dollar discomfort thrust onstage for Italy summit World leaders are bound to express the hope that the worst of the global economic crisis is passing when they meet this week, but they are now under pressure, too, to manage a Chinese challenge to dollar supremacy. Beijing, which has floated the idea of an alternative to the dollar as world reserve currency, wants the matter -- sensitive in financial markets wary of risks to U.S. asset values -- broached at a July 8-10 summit in Italy, officials say.
Dollar status unlikely to be in G8 communique: G8 source The dollar's status as the top global reserve currency is unlikely to be mentioned explicitly in the final communique at next week's Group of Eight summit, a European G8 source involved in preparations for the meeting said on Friday. "It is expected to be mentioned and discussed remotely. But the discussions have not yet reached the level of putting it in writing in the communiques," the source, who asked not to be identified, told Reuters.
Treasury’s Distressed Debt Plan Said to Begin With $20 Billion The U.S. Treasury Department may begin its program to spur purchases of mortgage-backed securities from banks with about $20 billion in public and private money, down from as much as $100 billion when it was announced in March, two people familiar with the matter said. The Treasury plans provide about $1.1 billion in capital to eight to 10 money managers it will pick for the Public-Private Investment Program, according to the people, who asked not to be identified before the details are announced. The firms will raise about $1.1 billion each for funds to buy distressed mortgage securities, less than they had expected the government to support. The plan also will include about $10 billion in government-backed loans.
For Banks, Wads of Cash and Loads of Trouble H. Averett Walker used hot money to turn Security Bank from a sleepy Southern lender into a regional powerhouse. Darrell D. Pittard used hot money to jump-start his brand-new MagnetBank, allowing it to lend hundreds of millions of dollars even though it did not have a single drive-up window or even a customer with a checking account. It is a formula being replicated at banks across the United States. Rather than simply wooing local customers, they have turned to out-of-state brokers who deliver billions of dollars in bulk deposits, widely known as “hot money,” from investors nationwide. In fast-growing regions like this one in central Georgia, the money produced record bank profits and financed whole new communities, built at a phenomenal rate.
Bailouts for Everyone, But Who's Going to Rescue Uncle Sam? Fourth of July weekend is a time for celebration and relaxation, but also reflection on the critical juncture our nation faces. The U.S. has been on an "unsustainable cycle of buying and spending" that cuts across all strata of society, says TJ Marta, chief strategist at MartaontheMarkets.com. The problem is that with everyone having a hand out -- from illegal immigrants to Wall Street to state and local governments -- the Federal government has now extended itself to the limits of its ability, and perhaps beyond.
Zero Money Down, Not Subprime, Led To Foreclosure Crisis The most important article you can read this weekend is economist Stan Leibowitz's analysis of loan level data on 30 million mortgages. His conclusion is straight-forward: the most important driver of foreclosures is homeowner equity. This means that the loans most likely to default are high loan to value, low-down payment loans. Equally arresting is the list of things we've come to associate with the boom that make very little difference on foreclosures. Subprime lending--nope. Teaser rates--not the problem. Liar loans--just move along. Predatory loans--sorry, kids. It's the low down payments.
Mortgage Loan Losses Nearly 65% For Alt-A It's not just delinquencies, defaults and foreclosures that have blown apart any models for mortgage lending. So are the loan loss severity numbers. Gretchen Morgenson at the NY Times writes about the work of Alan M. White, an assistant professor at the Valparaiso University law school in Indiana. White analyzed data on 3.5 million subprime and alt-A mortgages in securitization pools overseen by Wells Fargo and found the average loss was 64.7 percent of the original loan balance.
Securing a Jumbo: No Small Task EVEN as the federal government works to help loosen consumer credit, one home loan product is becoming more expensive and difficult to obtain: the nonconforming “jumbo” mortgage. These mortgages exceed the conventional “conforming” loan limit of $729,750 set by Fannie Mae and Freddie Mac, the government-owned companies. Interest rates on jumbo mortgages have typically been higher than rates on conforming loans, in large part because they are considered riskier without a guarantee that Fannie Mae and Freddie Mac will buy them.
So Many Foreclosures, So Little Logic LAST week, the stock market tumbled on news that housing foreclosures and delinquencies rose again in the first quarter. The Office of the Comptroller of the Currency said that among the 34 million loans it tracks, foreclosures in progress rose 22 percent, to 844,389. That figure was 73 percent higher than in the same period last year. But the comptroller’s office also said that amid the gloom, there was promising data about loan modifications: they rose 55 percent in the quarter. That growth came on a very low base, of course, but the move encouraged John C. Dugan, head of the comptroller’s office.
Virtual Currency In China Is A $2 Billion Economy The Chinese government is a little worried about how much virtual cash is being traded in the country, The New York Times reports. In fact some virtual currency, like the QQ coin, is actually affecting the market for the renmibi, China's actual currency. Much of the $2 billion in virtual currency is used to play games, but significant chunks, David Barboza writes, are now being traded for real physical goods, like clothes, food and services. The shift of using virtual currency to pay for real products is part of what's freaking out the Chinese central bank.
Japan backs dollar as reserve currency China has asked for a new currency to replace the dollar as the world's reserve, but Japan says major countries should stick with the greenback. Major countries should support the dollar as the key international currency, although emerging nations may discuss a new global reserve currency on the sidelines of the G8 summit next week, a Japanese official said on Friday. China has asked for debate on a new global reserve currency when leaders from the Group of Eight (G8) meet with the G5 emerging economies next week in Italy, G8 sources told Reuters. News of the Chinese request pushed the dollar down to a three-week low on Wednesday.
Here Comes The Second Stimulus! Today's disappointing jobs number is certain to trigger a serious push for a second stimulus bill. The talk was already happening. Earlier this week, John Judis at The New Republic argued that one was needed. Also this week, Obama responded to a question about a possible second stimulus by saying it was "too soon" to know whether one would be needed, suggesting that it's certainly on the table. Of course, House Speaker Nancy Pelosi was in favor of a second stimulus before the ink even dried on the first one, so it shouldn't be much of a stretch to get it through the Congress, especially with the Democrats newly-solidified supermajority in the Senate (welcome Sen. Franken!). And now we've heard it at least 10 times this morning on CNBC. The market is looking for its hit. Prediction: We'll get it by the end of the year.
Cap and traitors Selling out has a bipartisan flair Conservative activists are angry at eight Republican members of the House of Representatives for voting in favor of the American Clean Energy and Security Act (ACES), which passed the House June 26. They are right to be angry, but their outrage is misplaced. With the exception of New Jersey's Rep. Christopher H. Smith, these so-called RINOs (Republicans in name only) represent districts that voted for President Obama after he campaigned on a promise to fight global warming at any cost. As such, they were only following the misguided will of their constituents.
Americans Under Squeeze: Higher Credit Card Rates, Taxes Have "Devastating" Effect Citigroup this week joined Bank of America and JPMorgan in sharply raising fees on credit cards for late payments, balance transfers and the like. The banks appear to be trying to raise rates before new consumer-protection rules go into effect. They're also putting the squeeze on the same U.S. consumers whose taxes pay for the industry's ongoing bailouts. TJ Marta, chief strategist at MartaontheMarkets.com, sympathizes with the outrage but says there's more going on than just a craven effort by big corporations to take advantage of their clients.
Bankruptcies low in states that don't seize wages States that prohibit debt collectors from seizing wages have lower bankruptcy rates than peers States that allow debt collectors to seize consumers' wages have sharply higher bankruptcy rates than neighboring states that prohibit or strictly limit the practice, an Associated Press analysis has found. This link highlights a dilemma for credit-card companies and other debt chasers: By going after wages -- an increasingly popular maneuver since the recession began, lawyers say -- they risk pushing consumers into bankruptcy court, where judges can reduce or wipe away all sorts of financial obligations.
As retailers cut back cities confront 'ghostboxes' Communities confront 'ghostbox' buildings when big-box retailers leave Hundreds of anxious shoppers watched as city officials used power saws to cut 2-by-4s during Home Depot Inc.'s ribbon-cutting ceremony for its 102,700-square-foot building center in Bismarck. Less than three years later, the home improvement retailer shuttered the underperforming store, leaving a big orange empty eyesore on the outskirts of town. The building, sitting derelict and silent on acres of asphalt, is now listed for sale at $10.5 million. But there's been little interest in the near windowless warehouse-like building that occupies a lot the size of a dozen football fields. For potential tenants "it's a hard pitch because for most uses it seems to be a bit of a tough fit," said Brian Ritter, business development director of the Bismarck-Mandan Development Association.
U.S. home prices seen down over 40 percent U.S. housing prices will fall by a double-digit percentage from already beaten-down levels, resulting in an overall 40 percent plunge by the time foreclosures peak in the second half of 2010, Barclays Capital economist Michelle Meyer said. Meyer issued her forecast two days after the Standard & Poor's/Case-Shiller Home Price Indexes showed for April an 18.1 percent year-to-year decline, compared with 18.7 percent in March, in the rate of home price declines in 20 major U.S. metropolitan areas. The indexes have tracked the prices of U.S. single-family homes since 1987.
The unemployment timebomb is quietly ticking One dog has yet to bark in this long winding crisis. Beyond riots in Athens and a Baltic bust-up, we have not seen evidence of bitter political protest as the slump eats away at the legitimacy of governing elites in North America, Europe, and Japan. It may just be a matter of time. One of my odd experiences covering the US in the early 1990s was visiting militia groups that sprang up in Texas, Idaho, and Ohio in the aftermath of recession. These were mostly blue-collar workers, – early victims of global "labour arbitrage" – angry enough with Washington to spend weekends in fatigues with M16 rifles. Most backed protest candidate Ross Perot, who won 19pc of the presidential vote in 1992 with talk of shutting trade with Mexico.
Earnings Drop Worldwide as Job Losses Hurt Consumers Earnings at such companies as Ford Motor Co. and ArcelorMittal may continue to decline in the next three months as the highest unemployment in a quarter-century keeps consumers from spending. The year-over-year profit slide for Standard & Poor’s 500 Index members may narrow to 21 percent from July through September, after declines of an estimated 34 percent in the second quarter and about 60 percent in the year’s first three months, according to data compiled by S&P and Bloomberg. Earnings may rise by year-end based on comparisons to late 2008, which was roiled by the meltdown in financial markets.
U.S. Job Cuts in June Deeper Than Forecast, Paychecks Strained Employers in the U.S. cut more jobs than forecast in June and the unemployment rate rose to the highest in almost 26 years, limiting wages and threatening to erode the consumer spending essential to an economic recovery. Payrolls declined by 467,000 and followed a 322,000 drop in May, according to Labor Department figures released yesterday in Washington. The jobless rate rose to 9.5 percent, the highest since August 1983. Earnings per hour climbed at a 0.7 percent annual pace on average over the last three months, the smallest gain since records began in 1964.
Kennedy Plan Calls for Government Health Program, Employer Fees Senator Edward Kennedy’s health committee released a new health-care overhaul plan that lawmakers said would lead to coverage for most Americans, in part by assessing fees on companies that don’t offer insurance. The plan includes a government-run insurance program as an alternative to private coverage, and would cost about $400 billion less than an earlier proposal.
The Battle Of Health Care
Health care: Will 'pay or play' chase employers away? The latest proposal out of the Senate is estimated to keep the employer-sponsored insurance system in tact. But one skeptic has serious doubts. It is one of the touchiest issues in the health care debate: Would a government-run health plan upend the employer-based health insurance system used by 160 million Americans? Senate Democrats behind a key proposal released Thursday say the answer is no. Sens. Edward Kennedy, D-Mass., and Chris Dodd, D-Conn., say their plan would preserve employer-sponsored insurance coverage and create an affordable public option for those who need it.
Biden: U.S. won't stand in Israel's way on Iran Vice President Joseph R. Biden Jr. seemed to give Israel a green light for military action to eliminate Iran's nuclear threat, saying the United States "cannot dictate to another sovereign nation what they can and cannot do." Israel considers Iran its most dangerous adversary and is wary of hard-line Iranian President Mahmoud Ahmadinejad, who just won a disputed re-election. He repeatedly has called for Israel to be wiped off the map and contends the Holocaust is a "myth."
Iran clerics declare election invalid and condemn crackdown Iran’s biggest group of clerics has declared President Mahmoud Ahmadinejad’s re-election to be illegitimate and condemned the subsequent crackdown. The statement by the Association of Researchers and Teachers of Qom is an act of defiance against the Supreme Leader, Ayatollah Ali Khamenei, who has made clear he will tolerate no further challenges to Mr Ahmadinejad’s “victory” over Mir Hossein Mousavi.
Ousted Honduran president seeks to return after OAS move Ousted Honduran President Manuel Zelaya prepared to fly back home on Sunday, setting the stage for a possible confrontation as the interim government that has defied international pressure said it would not let him enter the country. Honduras' interim government, slapped with suspension from the Organization of American States over its refusal to reinstate Zelaya, said it would refuse Zelaya permission to land.
U.S. misread scale of Honduran rift Zelaya's ties to Venezuela's Chávez was source of concern for opponents Although the U.S. government knew for months that Honduras was on the brink of political chaos, officials say they underestimated how fearful the Honduran elite and the military were of ousted President Manuel Zelaya and his ally President Hugo Chávez of Venezuela. Rumors were buzzing in the capital that the fight between Zelaya and his conservative opponents had reached the boiling point, but diplomatic officials said the Obama administration and its embassy were surprised when Honduran soldiers burst into the presidential palace last Sunday and removed Zelaya from power.
Kuwait Wants Oil Prices to Stay Above $60 a Barrel Kuwait, the sixth-biggest OPEC producer, wants to see oil prices stay above $60 a barrel and will watch the market closely before deciding on its output at OPEC’s meeting in September, the country’s oil minister said. “We’d like to see the price not go below a certain level, at least to meet our budgetary target,” Sheikh Ahmed al-Abdullah al-Sabah told reporters today in Kuwait City. That certain level for Kuwait is $60 a barrel, he said.
North Korea Test-Fires Seven Missiles, Drawing Condemnation North Korea test fired seven short- range missiles, two days after launching four rockets, spurring condemnations from the U.S., South Korea and Japan. The launches took place between 8 a.m. and 5:40 p.m. today, from Kitdaeryong in Kangwon province, the South’s Joint Chiefs of Staff said in statements. “South Korea’s military is fully prepared to deal with any threats and provocations by the North, based on a strong joint defense alliance with the U.S.,” the statements added.
China urges calm after North Korea strikes CHINA has urged calm after North Korea test-fired seven missiles off its east coast in an act of defiance apparently timed for the US Independence Day holiday. "China ... hopes that all sides will maintain calm and restraint, and jointly safeguard peace and stability in the region," foreign ministry spokesman Qin Gang said. The launch of the ballistic missiles -- which the North is banned from firing under UN resolutions -- yesterday further fuelled tensions after the reclusive state conducted a nuclear test in May. On Thursday the North test-fired four short-range missiles with a range of 120km into the Sea of Japan. The US, Britain, France, Japan and Australia have condemned the latest launches, which come after a series of bellicose moves by North Korea this year.
RSS
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_7a.gif)