Tuesday, June 4, 2013

Gold futures shoot up to session high after dismal ISM data

http://spectrum.ieee.org/img/0831_gold_630x420-1358881868486.jpg 
Gold futures spiked to the highest levels of the session on Monday, after data showed that the U.S. manufacturing sector contracted unexpectedly in May, underlining concerns over the U.S. economic recovery.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery traded at USD1,401.25 a troy ounce during U.S. morning hours, up 0.6% on the day.

Comex gold prices held in a range between USD1,388.55 a troy ounce, the daily low and a session high of USD1,402.25 a troy ounce.

Gold futures were likely to find support at USD1,353.55 a troy ounce


Do The Math (It Doesn’t Add Up), Presentation By Grant Williams

Why are stocks/equities are so high when all the economic general indicators are collapsing? Check out this video. Well worth watching at least several minutes of. Covers China, France, gold prices, etc.
Do The Math (May 24, 2013 on YouTube)
“My recent presentation to the 66th Annual CFA Conference in Singapore in which I discuss the disconnect between financial markets and mathematical reality.”
http://www.youtube.com/watch?feature=player_detailpage&v=Osq1yxSFVG0#t=405s
Link above is to the presentation starting at 6 minutes, 45 seconds, when the actual presentation starts after a loooooong preamble. Actual full link is below (recommend skipping to the above starting point mentioned):

What the College Industrial Complex Doesn’t Want You To Know

Dave Hodges
Activist Post

The United States has the most expensive post-secondary education system in the world. In Part One of this series, I detailed how the government, as well as institutions of higher learning, the media and the banks have loosely conspired to dramatically drive up the costs of a college education and enslave middle-class college students through their lifetime by coercing their participation in a system which almost guarantees an adulthood filled with massive debt.

The Exorbitant Cost of a College Education Is No Accident

The elite have created a post-secondary education system which is out of the financial reach of an increasing number of middle-class students. This is deliberate and it is NOT being driven by market forces. It is a conspiracy concocted by the wealthy to limit the elite’s children to the dangers of competition from middle-class children. Yet, on the other side, the elite have convinced the federal government to fund the college educations of the poor and the disadvantaged so they can create competition for the middle class. The omnipresent goal is to create a bifurcated two-class feudal society, and education is the starting point in this plot to control social stratification.

There Is Way to Avoid This

The astronomically rising costs of funding a college education, as well as the establishment of predatory lending practices, are the weapons of the mass destruction being used against the middle class’ ability to obtain a college degree. This is classic divide-and-conquer class warfare. However, there are cracks in the educational caste system, and I am going to reveal a few strategies which might allow you to provide a college education for your children.

The economics underlying the obtaining of a college degree are as exploitative as any scheme which could have been devised by the most ardent dictators who are hell bent on creating a society of “haves and have nots”.



The economics of funding the post-secondary education system is predicated on wealth redistribution by making it increasingly difficult for the middle class to send their children to college as opposed to the wealthy or the poor. Many in the bottom tier of the economic strata get the government to fund elaborate financing mechanisms (e.g. Federal Financial Aid, Federal Work-Study, etc.) in order to pay poor children’s education at the expense of higher taxes for the middle class. And it is ironic that these middle class taxpayers don’t see any economic or educational benefit for their children with the taxes they are paying.

Consequently, middle-class children are cast into a corrupt system of debt enslavement in order to fund a college education.

Conversely, the wealthy don’t blink an eye at spending $60,000 per year to send their children to schools like the University of Southern California. And before the bleeding heart liberals jump through their computer screen to attack me, please allow me to state that I am not opposed to helping poor children to become what God intended them to be. I am opposed to poor children getting access to a benefit which is increasingly being denied to middle class children. Both strata of socio-economic classes deserve the same opportunity. I am not socialist, but in this case I would support taking back the bailout money and ending the war in Afghanistan and applying the savings to funding a free post-secondary education system. Oh, but that would not benefit the agenda of the elite, because their kids might get competition for meaningful jobs by children from the wrong side of the tracks.

You Want Answers?

So, what is a middle-class parent to do? The options are very narrow, but there is a way to finance a college education at a fraction of the cost that young adults face when they set foot on a university campus this coming September. However, I do not expect that this opportunity will remain available indefinitely because universities are actively lobbying against the plan that I am setting forth here which will finance college education at a fraction of the cost. The strategies to reduce college costs will be covered later in this article, but first parents must prepare your child to be college ready at an early age if they want to reap the benefits of the tuition reduction plan.

The Middle School Years Form the Foundation for Funding a College Education

Most college courses require a certain level of literacy, math skills and work ethic. If a child is encouraged to develop the critical and essential basic skills in seventh and eighth grade, a foundation is set in order to take honors classes in ninth and tenth grade. Honors courses often provide a student with the academic rigor that they will need in order to be prepared to master the skill sets needed to begin to take college courses at a young age.

The middle school years are the age that parents need to invest in tutors, if needed, and to look for alternative methods to prepare their children for college courses. For example, last year my son took a reading comprehension and speed reading course on Sunday afternoons at a local college designed for elementary aged children. We also pay a small fee for him to be tutored in math, science and literature.

To get your child college ready, I strongly recommend the development of a study skills plan for your child. The one that I chose for my son is called the Study, Question, Read, Recite, Review (SQ3R). This was the study skills plan that I was taught in seventh grade, along with speed reading. I was able to utilize the SQ3R method starting in middle school and I successfully employed these study principles all the way through my post-graduate education. I teach a modified version of the SQ3R to my students on the first day of class and I am now beginning to teach it to my son. And no, I do not have a business relationship with the creators or publisher of this method. I use the system because it works.

I also suggest that children take as much math as they possibly can at an early age because math forces a child to use different parts of the brain. The earlier math is introduced to a child, the easier the mastery of math is obtained.

The brain goes through a definitive and major change between the ages of 11-12, and this is the time that a child should be taking Algebra as well as foreign language. During the period from six to puberty, scientists have found that the gray-matter spike shifts to the temporal and parietal lobes. These parts of the brain play a major role in language skills and spatial relations which are critical to math. The growth rate of these brain cells then falls off fast, which may explain why, as a rule, the ability to learn languages declines sharply after the age of 12. Therefore, the window of maximum opportunity is narrow. As children age, brain growth moves in a sort of wave from the front of the brain to the rear which results in an increase in gray matter in the front part of the brain right before puberty, which occurs around age 11 in girls and 12 in boys. This is your optimal developmental window to introduce pre-college learning experiences which are critical to later success. How do I know this? This is part of what I have taught at the university level.

I would also advise parents to get their children to take some career interest inventories and identify a career path as early as possible. Academic indecision and changing majors are two huge factors which will drive up the cost of a college education. A solid career interest inventory test that I have utilized is the Self Directed Search by John Holland. Again, I have no financial interest in this testing instrument.

As your child becomes college ready, it is time to move to the next step which involves taking dual enrollment college courses at their local high school.

Turning Eleventh and Twelfth Grade Into a Money-Maker

If you live in or near a metropolitan area anywhere in the United States, you will find high schools which offer dual enrollment. Dual enrollment is a program in which a high school student takes a high school course which is also offered in conjunction with a nearby community college as a 3-5 credit college course. Parents do have to find the funds to pay for these tuition costs. However, these costs are relatively minimal compared to the cost of a university education. Let’s look at a cost comparison in Arizona which is typical for students living in any state.

The University vs. the Community College

It’s fun and it is sexy to go away from home to a major university. There are no parental restrictions, no curfew, there is an abundance of alcohol, a plethora of social gatherings and there is of course the opposite sex. It is exciting, but it is a very expensive way to break away from parental controls. Middle class students should come to grips with the fact that there is a much more efficient and cheaper way to grow into adulthood than the four-year university on-campus experience.

For many students, a four-year university experience can produce the kind debt which can enslave a person instead of creating economic opportunity, which is what education was intended to do. I have composed a typical cost comparison between attending a University or a Community College for two years.

For an incoming freshman who will be attending Arizona State University (ASU), the following are the cost estimates of attending ASU as published on the ASU website.

IN-STATE

Base tuition and fees: $9,724
Room and meal plan (average): $9,094
Books and supplies (average): $1,000
Total direct costs: $19,818

OUT-OF-STATE

Base tuition and fees: $22,977
Room and meal plan (average): $9,094
Books and supplies (average): $1,000
Total direct costs: $33,071

There are some high schools which offer dual enrollment courses for nearly every discipline. In some high schools, students are earning an Associates two-year degree by the time they graduate from high school.

A potential ASU student would save a huge sum of money by enrolling in dual enrollment courses offered through the Maricopa County Community College District (MCCCD) while still in high school.

Maricopa Community College Tuition Schedule – 2013-2014

Registration Fee: $15 per semester

Resident Tuition: $81 per credit hour (subject to change) or $2,430 per year for 15 credit hours

Out-of-County: $317 per credit hour

Audit Fees: $25 additional fee per credit hour/plus tuition/fee

Non-Resident: $317 per credit hour $215 per credit hour – courses offered out of Arizona, including distance learning, to non-resident, out-of-state students

Do the Math

For a total of $4,890 a high school student can fund the first two years of a college education. I did not include book costs because in a state-supported high school, textbooks are generally offered free of charge.

The same student attending ASU for their first two years has paid almost $40,000. Your child is saving themselves over $35,000 by taking dual enrollment courses. By the way, the ASU estimates of only paying a $1,000 per semester for books is grossly underestimated. If a student takes the normal five course (three credits each), they are paying $100-200 per book. Again, do the math and you will note that ASU is understating textbook costs, and many courses require more than one book.

What If Your Local High School Has Limited Dual Enrollment Opportunities?

It is possible that your family may live in area in which your local high school may not offer many dual enrollment courses. Most states mandate open enrollment for just these kinds of reasons. Parents, do your homework and find a high school which offers a variety of dual enrollment courses and subsequently enroll your child.

If all else fails, there are community colleges which offers online dual enrollment college credit and will coordinate with your local high school counselors. Don’t wrinkle your nose up at online learning; it is the inevitable wave of the future because it is cost effective.

This Window May Not Be Open Long

In 2001, I testified before the House of Representatives Education Committee at the Arizona State Legislature with regard to the quality of dual enrollment programs and high school students readiness to take on these challenges. My testimony was offered as a counter to the ASU paid lobbyists which tried to get lawmakers to outlaw dual enrollment programs. ASU’s had a clear financial motive to oppose dual enrollment; it was taking money out of their coffers.

The Arizona Legislature reached a compromise in which they limited students to taking only two dual enrollment courses in any one semester unless they were ahead on their credits needed for high school education. I have discovered that this is a typical restriction in most states. It is very easy to get ahead on credits. For example, in the summer before a student’s junior year, a student should enroll in one or two community college courses, which can be offered as dual enrollment at their high school, or by taking the class online.

If You Can’t Beat Them, Join Them

Today, ASU has embraced online education and is no longer attempting to destroy dual enrollment programs. However, the federal government will not acquiesce so easily. If more and more students opt for dual enrollment as a means of avoiding the predatory lending practices for obtaining and paying back a federal student loan, you can look for the feds to move in and control dual enrollment in the same manner as ASU attempted to back in 2001.

A Final Cost Analysis

Cutting back on college costs and avoiding predatory student loans will result in financial savings which are substantial to a middle income family.

Four years at ASU will cost an in-state student around $80,000. By following the plan I have laid out here in which a student attends an ASU satellite campus for only the last two years and lives at home, will cost a middle-class student around $40,000 to obtain a college degree. And with these kinds of “reasonable” costs, a college student can fund their own college education with a fairly minimal part-time job. And by avoiding predatory federal loan practices, you will, unlike Kenneth Wright, not have a SWAT team breaking down your front door, physically abusing you and terrorizing the rest of your family members for the non-repayment of an estranged wife’s college loan.

The biggest advantage to following this plan is that when a college graduate launches their career, they will not do so under the tyrannical thumb of the federal government, at least not yet.

And one more warning for your soon-to-be college student. Do not send them to a high school where the recently implemented Common Core curriculum is the base standard of their educational system. The system is designed to lessen math achievement and compromise literature courses.

If You Only Knew Some of What Professors Are Teaching

There are strong social and moral reasons to limit your child’s exposure to four-year colleges and universities. Some of what is increasingly taught on college campuses would shock the average person. That is the topic of Part Three of this series.

Sell US Treasurys Before They 'Crash,' Bank of America Says

Investors should sell U.S Treasurys and buy bank stocks because bonds may be headed for a “crash,” according to Bank of America Corp.
“It’s hard to believe that the greatest bond bull market in history will end without some bloodshed,” Michael Hartnett, the bank’s chief investment strategist, recently wrote in a client note.

“Risks of a bond crash are high.”

Declassified: ‘Financial War’ Could Wipe Out 50% of Your Wealth
Markets are getting nervous about the possibility the Federal Reserve will taper its debt-buying program, according to Hartnett, who is based in New York.

Fed Chairman Ben Bernanke said the central bank could curtail its $85 billion in monthly Treasury and mortgage bond purchases if policy makers are confident that improvements in economic growth are sustainable.
U.S. debt has dropped 1.8 percent in May, the steepest monthly loss since December 2009, according to the bank’s indexes. Benchmark 10-year yields declined from 15.8 percent in September 1981 to a record low of 1.38 percent in July last year. The move resulted in a gain of more than 1,000 percent for the bank’s Treasurys index.
“Major breakouts in equity markets tend to coincide with major inflection points in bond yields,” Hartnett wrote. The Standard & Poor’s 500 Index has climbed 16 percent this year, and it set an all-time high of 1,687.18 on May 22.
Bank of America’s bond strategists predict the 10-year yield will rise to 2.25 percent by year-end, according to the report. The company’s economists forecast the Fed will begin paring its bond purchases in April, it said.
The bank is bullish on U.S, European and Japanese banks, along with equities from emerging markets such as Brazil, China, India, Turkey and Russia, according to the report. It is negative on emerging market bonds.

Urgent: Has the US Entered Another Bubble Economy? Will It Burst? Vote Now
© Copyright 2013 Bloomberg News. All rights reserved.

Everything Is Rigged, Continued: European Commission Raids Oil Companies in Price-Fixing Probe

European finance workers
European finance workers
Jason Alden/Bloomberg via Getty Images
We're going to get into this more at a later date, but there was some interesting late-breaking news yesterday.
According to numerous reports, the European Commission regulators yesterday raided the offices of oil companies in London, the Netherlands and Norway as part of an investigation into possible price-rigging in the oil markets. The targeted companies include BP, Shell and the Norweigan company Statoil. The Guardian explains that officials believe that oil companies colluded to manipulate pricing data:
The commission said the alleged price collusion, which may have been going on since 2002, could have had a "huge impact" on the price of petrol at the pumps "potentially harming final consumers".
Lord Oakeshott, former Liberal Democrat Treasury spokesman, said the alleged rigging of oil prices was "as serious as rigging Libor" – which led to banks being fined hundreds of millions of pounds.
The inquiry also involves Platts, the world's largest oil price reporting agency. The concept here is very similar to both the LIBOR scandal, which involved banks manipulating the benchmark rates for interest rates, and to the possible rigging of interest rate swap prices through the manipulation of ISDAfix, the benchmark rate for those instruments, which is also the subject of a regulatory probe.
We wrote about both of those scandals in last month's Rolling Stone article, "Everything is Rigged." In that piece, finance professionals talked about the potential for manipulation in other markets that involve voluntary price reporting:
What other markets out there carry the same potential for manipulation? The answer to that question is far from reassuring, because the potential is almost everywhere. From gold to gas to swaps to interest rates, prices all over the world are dependent upon little private cabals of cigar-chomping insiders we're forced to trust.
"In all the over-the-counter markets, you don't really have pricing except by a bunch of guys getting together," Masters notes glumly.
That includes the markets for gold (where prices are set by five banks in a Libor-ish teleconferencing process that, ironically, was created in part by N M Rothschild & Sons) and silver (whose price is set by just three banks), as well as benchmark rates in numerous other commodities – jet fuel, diesel, electric power, coal, you name it.
One analyst I spoke to for that piece talked specifically about Platts (and another, similar price assessment company), noting that they "do benchmarks for the entire oil market, the entire refined products market" and "you name it" – any of these benchmarks that rely on voluntary reporting could be manipulated.
Everything Is Rigged: The Biggest Financial Scandal Yet
It's not clear yet exactly what is alleged to have occurred, but Europeans have long complained that retail gas prices have not seemed to match wholesale prices. In fact, complaints that wholesale prices at gas stations were noticeably slow to fall when wholesale prices fell prompted the U.K.-based Office of Fair Trading last year to conduct a cursory inquiry into possible anti-competitive behavior in the fuel markets. Early this year, they announced that they hadn't found enough evidence to warrant a full-blown investigation. But complaints persisted.
The story is obviously hugely significant in its own right, just as the LIBOR story was. But both are even more unpleasant in conjunction with each other, and the other price-fixing scandals that have cropped up in the financial markets in the last year or two. We've had other price-fixing scandals involving gas in the U.K. and here in the U.S., just a few weeks ago, it came out that the Federal Energy Regulatory Commission (FERC) concluded that JPMorgan Chase used "manipulative schemes" to tinker with energy prices in Michigan and California.
FERC last year also recommended a massive $470 million fine against Barclays for similar activity. (Barclays has vowed to fight the penalty.) Deutsche Bank, meanwhile, settled with FERC for $1.7 million after the commission alleged that the German bank was involved with manipulation in the California energy markets for several months during 2010.
More on all this later . . .

Three firebombs explode near government offices in central Athens leaving one woman injured

  • One woman was wounded as she emerged from her apartment
  • All three devices consisted of camping gas canisters
  • Firebomb attacks against government or wealth symbols common in Greece
Three small gas canister bombs exploded near government offices and an influential economic think-tank in Athens today.
Gas canister attacks are frequent in Greece, and have been on the rise as it struggles through an economic crisis that has fuelled anger against foreign lenders, politicians and a wealthy elite.
One woman was wounded as she emerged from her apartment. 
Damage: A
Damage: A worker checks damage at the entrance of a building that houses an environment ministry service for development of European programs after a makeshift explosive device went off
One exploded at about 8 a.m. in the fifth floor corridor of an apartment building in central Athens, near the political office of the country's Transparency general secretary, wounding a woman who had just emerged from her apartment.
 
The woman was transferred to a hospital for treatment of slight burns. 
The other devices detonated several hours earlier, one outside a building housing the Foundation for Economic and Industrial Research and one outside a branch of the Environment, Energy and Climate Change Ministry.
There have been numerous makeshift bomb attacks in recent months outside the homes and offices of journalists, politicians and a ship owner, but none has caused injuries
Investigation:
Investigation: Police officers take fingerprints after an explosive device detonated outside the private office of the Justice Ministry's general secretary for transparency, Giorgos Sourlas, on the fifth floor of an apartment block , injuring a woman
'We strongly condemn the `blind' gas canister attack in the building where the transparency general secretary's office is housed ... and we wish a speedy recovery to the victim of the cowardly perpetrators,' government spokesman Simos Kedikoglou said in a statement.
'We are sure that the new attempt to introduce violence into public life will be condemned' by all politicians, he said.
Firebomb attacks against government offices, banks or symbols of wealth are common in Greece, where several small, generally anarchist groups operate.
The bombings are usually carried out late at night.

British Finance MPs To Attend Bilderberg Meeting

Both government and opposition heads of finance to participate in secretive confab

Steve Watson
Prisonplanet.com
June 3, 2013
Both the British Chancellor of the Exchequer, and his opposition counterpart are scheduled to attend the secret elite meeting of the Bilderberg group this weekend.
Chancellor George Osbourne and Shadow Chancellor Ed Balls, often painted up as bitter political rivals in the British media, will be buddying it up behind closed doors at The exclusive Grove Hotel in Watford with over 100 of the world’s elite.
Bilderberg’s own attendee list confirms the attendance of Osbourne and Balls. The list has been released on the group’s otherwise sparse website for the past three years, primarily because it was constantly being leaked to researchers anyway, and as a way of feigning transparency.
While Obsourne and Balls have regularly attended the annual gathering for the best part of a decade, critics have continually asked why the British taxpayer should be paying for elected politicians to attend an undisclosed meeting, completely closed off to media scrutiny, and in the company of private bankers and other foreign finance politicians.
Bilderberg delegates attend in an informal, off-the-record basis and are not bound by their public, “pre-agreed” positions, according to the group’s website. Quite how that marries up with Osbourne and Balls’ attendance, as acting financial heads of Britain’s government, is anyone’s guess. British MP Kenneth Clarke, a long time attendee, is also once again reporting to his masters.
If anyone still actually read the London Times, which they don’t, they would see an article today arguing that Bilderberg is merely a talking shop where no policies are set or agreed upon.
Such detractors routinely contend that the annual elite gatherings are nothing more than an outdated irrelevant get together of aging has-beens whose power on the international stage has long since withered.
Take one look at the attendees at this year’s confab in Watford, however, and it immediately becomes clear that this is the absolute polar opposite of the truth.
Debating policy at this year’s meeting will be Eric Schmidt, Executive Chairman of Google, Craig J. Mundie, senior advisor to the CEO of Microsoft Corporation, and Jeff Bezos, the founder and CEO of Amazon.com. Another notable attendee is Peter Thiel, the man who provided the financial muscle for online ventures like Facebook and Paypal, as well as LinkedIn and Friendster.
There you have luminaries involved with some of the biggest online and social media companies on the globe, all in attendance together at a secret weekend getaway, due to discuss “How big data is changing almost everything.”
That alone should be enough to focus the attention of the mainstream media. But no.
Then factor in that also in attendance are José Barroso, the President of the European Commission, and Christine Lagarde, the much scrutinized Managing Director of the International Monetary Fund. Still no media coverage?
OK, how about the disgraced former CIA head and retired US General David Petraeus, currently embroiled in the centre of the Obama administration scandal regarding the Benghazi intelligence failures. Nah, that’s not interesting to the mainstream media.
Perhaps representatives from major US think tanks would perk interest? You like to have them on your news output every single day right mainstream media? You know, the guys from the Hudson Institute, the Council on Foreign Relations, the American Enterprise Institute, the Hoover Institution, the Peterson Institute for International Economics, the Carnegie Endowment for International Peace, the Foundation for Defense of Democracies – all at Bilderberg.
Bilderberg also has the Vice Chairman and former Chairman of Barclays bank, the Deputy Chairman, Group Chief Executive and Group Chairman of HSBC, the Chairman and Vice Chairman of Goldman Sachs, and the CEO of TD Bank Financial Group.
Bilderberg has other senior figures from major banks, finance houses, and insurance companies all over the globe, including the Deutsche Bank of Germany, the Oesterreichische Kontrollbank AG Bank of Austria, the Swiss National Bank, the Dutch National Bank, the  Zurich Insurance Group, AXA Group, Prudential plc, and Novartis AG.
Not one but TWO Former US Secretaries of the Treasury are attending, as well as several acting European finance ministers and other elected representatives. Both the Dutch Prime Minister and the monarch Princess Beatrix will also be in attendance.
Also present will be executives from major energy companies such as Shell and BP, representatives from huge defense contractors including BAE, officials with bio-medial and pharmaceutical giants including Novartis, and monolithic agriculture producers like Syngenta.
Add a dose of professors, lecturers and researchers from major Universities and colleges all over the globe and you literally have a small gathering of people that oversee everything on the planet.
Yet, according to the mainstream media it’s all just one hell of a round of golf.
Previously leaked documents from meetings, as well as other innumerable examples, have illustrated how the Bilderberg Group, contrary to the media-generated myth that the confab represents a harmless talking shop, actually has a direct influence on world affairs, and sets the consensus for policy decisions sometimes decades in advance.
A clear example is the 1955 Bilderberg meeting held in Garmisch-Partenkirchen, West Germany. Documents read by the BBC and later released by Wikileaks divulge how Bilderberg members were discussing the creation of the euro single currency nearly 40 years before it was officially introduced in the 1992 Maastricht Treaty.
It is clearly asinine to suggest that this group of people hold no power and do not have any sway on the international stage. Their influence is irrefutable.
Ask anyone if they believe banks and corporations have more influence on world affairs than politicians and close to 100% will say yes, so why is it that the G8 summits garner wall to wall media coverage yet Bilderberg does not?
British citizens, as well as citizens of the other countries from around the world, should en mass demand to know why democratically elected Members of Parliament and government, including the heads of national Treasuries, are meeting in secret with private financiers, bankers, defense contractors, oil multinationals, food giants and drug companies.
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