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The U.S. Mint has had a record-setting year in terms of silver American Eagle bullion sales. As of Dec. 10, the Mint reported sales of 43,051,000 ounces of silver. That tops the previous record, set in 2013, of 42,675,000 ounces.
Federal Reserve policymakers meet Tuesday and Wednesday to discuss when to raise interest rates and how they will communicate those intentions without upsetting financial markets or the economic recovery. Unfortunately, the Fed is constrained by its own past missteps, and its credibility is at stake.
Short term rates have been near zero since 2008, and along with quantitative easing - the Fed's purchases and continued holdings of long-term bonds - they have held down the whole structure of rates on bonds, mortgages and consumer loans to arbitrarily low levels and imposed significant distortions on the economy.
Rare double eagle coin designed by Saint-Gaudens going to auction; could fetch up to $1.5M
NEW YORK (AP) - A rare 1907 double eagle $20 coin designed by Augustus Saint-Gaudens could sell for as much as $1.5 million at auction next week. The lustrous gold piece is one of four experimental relief $20 coins that were minted in Philadelphia in 1907 between Feb. 7 and Feb. 14. A majestic flying eagle appears on one side and a figure of Liberty on the other. The coin is one of only two with sans serif-edge lettering. President Theodore Roosevelt commissioned the great American sculptor to redesign the $20 gold piece. Saint-Gaudens died a few months after the first Ultra High Reliefs were coined. Paul Song, director of Bonhams' department of coins and banknotes, said he discovered the coin in 1992 at an estate and it was sold at auction for $143,000. Bonhams is offering the coin for sale Tuesday on behalf of an anonymous American collector. It is estimated to bring from $1.25 million to $1.5 million.
According to a survey of more than 1,123 American workers released Tuesday by Principal Financial Group, two in three Americans said they blew their budget in 2014 - and it's Americans' appetites for food that are the main causes for this budget busting.
Dining out is the No. 1 thing Americans say they blew their budget on in 2014 (consequently, it also means they blow their diets: a study of more than 12,500 people published by Public Health Nutrition this year shows that on days when people eat out they consume an average of 200 calories more than those who eat at home). Eating out is followed closely by spending on food/groceries, with 18% of American workers saying they blew their budget on food/groceries.
Derivatives trade group says RadioShack has not failed to make debt payments
NEW YORK (AP) - A trade group ruled Friday that RadioShack has not failed to make debt payments, despite a lender accusing the troubled electronics retailer of violating terms on a $250 million loan. A panel with the International Swaps and Derivatives Association, a trade group that represents banks and other companies that trade derivatives, ruled that the Fort Worth, Texas, company was keeping up with its debt obligations. The ruling means that investors who had bought derivatives as insurance against a RadioShack default were not entitled to payouts. Earlier this month, RadioShack lender Salus Capital Partners said the electronics retailer had breached loan covenants and was demanding full repayment of the $250 million loan, plus interest. RadioShack said Salus' position was "wrong and self-serving."
"With the adoption of the rule in the House, the CRomnibus grew from 1,603 pages to 1,774 pages," a congressional GOP aide tells Breitbart News. "The rule amended the bill to add some material on pensions that total 171 pages."
The final vote on Speaker John Boehner's , more than $1 trillion omnibus spending bill was in jeopardy after members almost killed the bill on the rule. A total of 214 members voted for it, less than the majority of members in the House, but since all members weren't voting, the 212 against the rule wasn't enough to kill it.
House Republican leaders narrowly quelled a revolt among their conservatives Thursday, then worked to overcome Democratic opposition to legislation to provide $1.1 trillion in government spending and chart a new course for selected, highly shaky pension plans.
Rep. Kerry Bentivolio (R-MI) switched his vote from nay to yay at the last minute.
Rep. Kerry Bentivolio switched his vote to allow to the "Cromnibus" to survive a procedural vote, a Roll Call reporter tweeted: "Sessions spots Bentivolio in the Rayburn subway. Says 'You're a good man, Santa.'"
Most lawmakers have publicly admitted there is no way they could read this bill before voting on it.
WASHINGTON - Retirees covered by financially troubled multiemployer pensions could soon see their benefits cut under a $1.1 trillion congressional spending deal to keep the government running.
"We have a plan here that first and foremost works for the members of the unions, the workers in these companies and it works for the companies," said Rep. George Miller, D-Calif., who worked the deal out with Rep. John Kline, R-Minn.
But it quickly drew fire from some labor unions and AARP, who denounced what they call backroom deal-making that will create hardships for older Americans.
Here are some questions and answers about multiemployer pension plans and the impact of the congressional move.
What are multiemployer pension plans?
These plans are usually found in industries that have many small employers that would not ordinarily put together a pension plan on their own, according to a report from Boston College's Center for Retirement Research.
More than 10 million people are covered by the plans, which involve agreements between labor unions and a group of companies. Many plans cover those who work in construction, but they are also can be found in the transportation, retail and trade sectors.
All told, there are about 1,400 multiemployer pension plans.
How did things get so bad? About 150 to 200 of these plans covering 1.5 million people are in financial trouble and could become insolvent within a few years, according to estimates from the Pension Benefit Guaranty Corp. (PBGC). The agency was established by Congress to take over failed and failing pensions when they run out of money.
The plans were once thought to be secure, but a decline in unionization and financial crises like the Great Recession have left them with fewer workers to pay into them.
The PBGC says it's about $42.4 billion short of the money it would need to pay out pensions for plans that have failed or will fail. That's up from $8.3 billion in 2013.
The congressional proposal essentially shifts much of the risk from the government back onto the retirees and their funds.
Alicia H. Munnell, a Boston College professor and director of the school's Center for Retirement Research, says that decision was made out of desperation.
"They're at a point in time where it's impossible to cut benefits for new employees any further," she said. "It's sort of impossible to ask employers for any more money, so the question is what do you do?
"It's a place where there's no good options."
What kind of cuts are looming This can vary widely, depending in large part on the financial condition of the plan and the wages paid in the industry.
"We have plans where a 10 percent cut will be enough to allow them to survive and thrive," said Randy DeFrehn, executive director of the National Coordinating Committee for Multiemployer Plans, an advocacy group that consulted with Congress on the legislation.
In other cases, reductions as high as 30 percent may be necessary.
Some cuts may eventually be restored. That depends on factors like the industry, the plan's location and how much trouble it was in when the cuts were made.
"It's a function of a lot of different things," DeFrehn said.
People will know whether their plans face a cut because they will have to vote on the cuts.
What about other pension plans? Single-employer pension plans are much more common, covering about 31 million workers and retirees in around 22,300 plans.
The PBGC said in June that it was "highly unlikely" that its single employer program would run out of funds in the next decade.
The improving economy, better market returns and an $869 million jump in income from legislative changes led to the improvement.
"It's a well-functioning pension insurance program, it's adequately funded, it's in fine shape," Munnell said.
The PBGC does not guarantee government pensions, and those were targeted for cuts in the Detroit bankruptcy case. But Munnell said her research shows states are "absolutely committed" to paying benefits.
"In the end, the cuts to pensions in Detroit were relatively modest," she added.
What's the reaction?
Among unions, it's mixed.
The AFL-CIO's Building and Construction Trades Department has been generally supportive. But the Teamsters and Machinist unions blasted the provision.
"Today, we have seen the ugly side of political backroom dealings as thousands of retirees may have their pensions threatened by proposed legislation that reportedly contains massive benefit cuts," said Teamsters President James Hoffa.
Machinists International President Tom Buffenbarger said, "While there is a genuine retirement crisis in this country today, the solution must not be borne by retirees who worked hard and faithfully contributed to their pension plans and have no practical means to replace lost income."
The AARP, which says it represents millions of retirement-age Americans, also attacked the agreement as a "secret, last-minute, closed-door deal between a group of companies, unions and Washington politicians to cut the retirement benefits that have been promised to them."
Karen Friedman of the Pension Rights Center, a group that opposes the changes, called the move "outrageous. We think that Congress is sneaking through a provision that would torpedo the most sacred protections of the federal private pension law and will devastate retirees."
Governor: Detroit's bankruptcy, largest municipal bankruptcy in US history, formally ending
By COREY WILLIAMS
(AP:DETROIT) DETROIT (AP) - Detroit is formally emerging from bankruptcy, marking the end of the largest municipal case in U.S. history bankruptcy will officially end at 12:01 a.m. Thursday.
He thanked the emergency manager who implemented a two-year budget that eliminates $7 billion in city debt.
The city must also try to reverse decades of population loss by attracting new residents and adding jobs.
"We still have enormous challenges delivering services in the city every day," said Mayor Mike Duggan. "But at least now we are no longer a city that's in bankruptcy. So, we're going to start afresh tomorrow and we're going to do the best we can to deliver the kinds of services the people in this city deserve."
Last month, Federal Judge Steven Rhodes approved Detroit's plan to restructure $7 billion of the city's $12 billion debt load. It calls for $1.7 billion in savings and revenue over 10 years to improve city services. About $440 million of that will be used to eradicate blight and help demolish the more than 40,000 houses standing vacant in Detroit neighborhoods. Some $430 million is promised to improve police and fire services, and response times to 911 calls.
.Some retirees also will see their pensions cut by 4.5 percent. Cost of living allowances were reduced for retired police and firefighters.
The impact on retirees would have been more onerous if not for an $800 million promise from foundations, major corporations and the state to help soften cuts to their pensions while protecting city-owned pieces in the Detroit Institute of Arts from possible sale.
Federal judge sentences Liberty Dollar creator Dec. 2 to probation for 2011 conviction
Bernard von NotHaus faced 22 years in federal prison
By Paul Gilkes , Coin World
Published : 12/03/14
Liberty Dollar founder Bernard von NotHaus was sentenced to three years probation Dec. 2 from his 2011 conviction on charges involving the production and distribution of the private voluntary barter currency. Shown is a silver 2005 Liberty Dollar.
A federal judge in North Carolina Dec. 2 sentenced Bernard von NotHaus, creator of the Liberty Dollar private voluntary barter currency, to three years probation for his 2011 conviction on charges the Liberty Dollar violates federal counterfeiting statutes.
U.S. District Court Judge Richard L. Voorhees in Statesville sentenced von NotHaus, who is 70 years old, to three years probation on each of the three counts for which a jury found him guilty on March 19, 2011. The sentences are to run concurrently. Von NotHaus was also sentenced to six months house arrest.
Von NotHaus had faced up to 22 years in federal prison, the maximum penalty sought by federal prosecutors. On Nov. 10, Judge Voorhees rejected von NotHaus's appeal to have the conviction set aside.
Von NotHaus was convicted by a jury "of making coins resembling and similar to United States coins; of issuing, passing, selling, and possessing Liberty Dollar coins; of issuing and passing Liberty Dollar coins intended for use as current money; and of conspiracy against the United States."
Von NotHaus, the self-described "monetary architect" behind the Liberty Dollar, founded the National Organization for the Repeal of the Federal Reserve Act, or NORFED, to create and circulate the Liberty Dollar. NORFED produced its first Liberty Dollars in 1998.
Von NotHaus dissolved NORFED as an entity in December 2006 and renamed the business Liberty Services.
Liberty Dollars were typically manufactured as .999 fine silver rounds (though some were struck in copper and others in gold) and as paper certificates in denominations of $1, $5, $10 and $20. The paper Liberty Dollars were backed by silver, and the silver rounds were minted by the private Sunshine Mint in Idaho.
According to von NotHaus, Liberty Dollars were made to circulate as "private voluntary barter currency" and were never intended to be mistaken for United States legal tender. However, the federal government, acting on a complaint, saw things differently, seizing Liberty Service assets in 2007, which included millions of dollars in Liberty Dollars owned by von NotHaus's customers.
The civil forfeiture proceedings involving the seized property are ongoing.
Greek stocks in biggest fall since '80s amid fear a political crisis could endanger bailout
ATHENS, Greece (AP) - Greek shares suffered their worst hammering in nearly three decades Tuesday, on concerns the country is heading for a political crisis that could jeopardize its vital bailout program. The Athens benchmark index fell 12.8 percent, the biggest one-day drop since 1987, after the conservative-led government brought forward the date of a presidential vote that, if inconclusive, will lead to general elections. Investors fear the main left-wing opposition party, Syriza, which is leading in the polls, might win the general election. Syriza has said it will demand a substantial cut to what Greece owes in bailout loans if it is elected. Economist Megan Greene said the country's bailout creditors - the European Union and the International Monetary Fund - are not going to stand for that, and Syriza leader Alexis Tsipras would probably end up falling in line with them.
Bernard Madoff's ex-secretary gets 6 years in prison; sentencing of computer programmer next
NEW YORK (AP) - The former secretary for imprisoned financier Bernard Madoff was sentenced Tuesday to six years in prison after she apologized to victims of the multi-decade, multi-billion dollar fraud and berated herself for failing to see past her boss's influence and the riches he bestowed on her. Annette Bongiorno, 66, was sentenced in Manhattan by U.S. District Judge Laura Taylor Swain, who said she believed Bongiorno's testimony at trial that she was largely duped by Madoff into manufacturing fake trade results for his private investment business. She called her "a pampered, compliant and grossly overcompensated clerical worker who supervised other clerical workers with a ferocious enthusiasm." The judge said Bongiorno "could and should have recognized that Mr. Madoff's success seemed impossible because it was impossible."
NEW YORK (CNNMoney)
Millions of Americans are spending too much of their monthly income on housing.
Thanks to rising costs and stagnant wage growth, nearly 40 million Americans are spending more than 30% of their income on housing payments, property taxes and other home expenses, according to a survey of 10,000 U.S. households conducted by the Demand Institute, a non-profit think tank run by the Conference Board and Nielsen.
Faring most poorly are renters, 49% of which are "cost burdened" by their monthly rent payments, the report found. That's compared to 26% of homeowners
A spike in foreclosures after the housing bubble burst forced many Americans to start renting. That sent rents soaring by more than 25% since 2005, according to the Census Bureau. Since wages have been relatively stagnant its also meant that renters were spending a larger percentage of their income on housing costs each month.
Home prices have risen too, but they are still down about 18% from their mid-2006 peak. That, combined with historically low interest rates on mortgages, makes home buying a much more affordable choice in most markets right now.
Another downbeat economic report coming out of China. The world's second-largest economy saw its exports rise by 4.7% in November, which was well below expectations for a gain of 8.0%.
Imports were down 6.7% versus expectations for a rise of 3.9%. This news is also a bearish underlying factor for the raw commodity sector, as China is the world's biggest importer of raw commodities.
And in Japan, gross domestic product in the third quarter was reported at minus 1.9%, which was below expectations. Japan is now in economic recession.
European Central Bank official Ewald Nowatny said Monday the weakening of the Euro zone economy has been "massive."
The OECD (The Organisation for Economic Co-operation and Development (OECD)
The mission of the Organisation for Economic Co-operation and Development (OECD) is to promote policies that will improve the economic and social well-being of people around the world) issued a report Monday saying the already-weak economic growth in the European Union will slow further in the coming months, including the potential for the EU to fall back into recession. The OECD forecast slowdowns in the economies of the U.K. and Russia, too. The agency said economic growth in the rest of the world's major economies will remain near present levels.
The National Bank of Belgium is the latest central bank to show interest in repatriating its gold reserves.
In an interview with Belgium broadcaster VTM Nieuws Sunday, Luc Coene, governor of Belgium's central bank, confirmed that the bank is looking at how they can bring their gold reserves back into the country.
According to IMF data compiled by the World Gold Council, Belgium holds 227.4 metric tons of gold, representing 34.2% of its official foreign reserves. According to reports, most of the gold is held outside of the country with the Bank of England, the Bank of Canada and the Bank for International Settlements.
Axel Merk, president and chief investment officer of Merk Investments, said that global instability is on the rise, so is it not surprising governments and central banks want more control over their reserves.
However, he added that repatriating gold is not as simple as it sounds and in the global marketplace moving gold reserves is more than just transfer the metal from one location to the next. He said that neither central bankers or politicians know how to hand physical gold.
"It's not trivial to store gold safely - and places such as London have shown they have the experience to do so," he said. "This shouldn't stop anyone from repatriating gold, but means that there's a learning curve."
The topic of gold repatriation has heated up in recent weeks after Swiss citizens voted down a referendum, on Nov. 30, that would have seen the central bank increase its gold reserves by 20%, hold all its gold within the country and not be able to sell any of its gold reserves.
Just before the Swiss referendum, the Dutch central bank announced in mid-November that it had it repatriated 122.5 metric tons of gold, worth about $5 billion, back to Amsterdam from the U.S. On Nov. 25, France jumped on the gold bandwagon after political leader Marine Le Pen wrote an open letter to Christian Noyer, governor of the Bank of France, requesting that the country's gold holdings be repatriated back to France.
Last year Germany made headlines after it announced that the central bank would repatriate all of its gold held in Paris and about 300 metric tons of gold from New York, however, since then Germany has quietly backed away from the initiative after only transferring about 5 tons of gold from New York within the first 18 months.
Expect to see higher lease rates in the long-term as more physical gold is bought by Asian consumers, reducing the amount available in the global gold market.
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