Harvey Organ’s Daily Gold and Silver Report

Wednesday, March 30, 2011

Roller coaster ride for silver and gold/Dimon (JPMorgan CEO) slams CFTC

Good evening Ladies and Gentlemen:

There is so much happening today.  First gold and silver went on a roller coaster ride.  In Europe, the bankers knocked the price down considerably.  By the time comex started to trade, gold and silver shot up like a rocket only to be repelled again straight down.  However gold and silver investors knew the routine and they pounded the table buying massive quantities of both metals in total defiance of the crooked bankers.
In the end gold finished the wild day at $1423.80 up $7.80.  Silver finished the comex session at $37.50 up 50 cents on the day.  Silver was the stronger of the two all day.
For those of you who follow the charts, here is a summary of trading in gold today courtesy of Kitco:
The red graph is the price of gold last night followed by the lime green line today  (the time zones are on the bottom of the screen)

Ok let us see how the trading today had an effect on our open interest and deliveries.
First gold:
The total gold comex open interest fell by 3843 contracts with the raid yesterday.  The reading today, on both official sites, came in at 492,087 contracts versus the OI on Tuesday at 495,930. I believe we are getting a few bankers a little nervous as they are starting to bail.  The new front month of April which will be the major subject of interest for the next month saw its OI fall from 78,722 to 29,218.  This is basis yesterday so I will need to see tonight’s confirmed reading which will be released tomorrow at 1:30 pm.  That should give us a good idea of how many gold oz are standing for April. The March options expiry month is off the board as I described to you yesterday.  The next big front month of June saw the OI rise from 278,390 to 321,151 for a gain of 42,761 contracts. The gain in OI was, of course, due to the rollovers.  The estimated volume today was a humongous 201,384 contracts with some switches.  The banking cartel were not prepared to see gold rise today as $1430.00 gold is the line in the sand. The confirmed volume in gold yesterday with considerable switches came in at 287,093.
Now for silver:
The total silver comex OI refuses to fall.  Today, the total OI fell by only 15 contracts to 138,445.
As I have told you on many occasions, our bankers shiver every time the OI is above 135,000.  The front month of March is now off the board.  The front options expiry month of April saw its OI rise from 127 to 151.  We will have to wait until tomorrow to see how many exercised options for silver in April.  The next delivery month of May saw its OI remain relatively stable at 77,030 falling only by 331 contracts. The estimated volume was a lot tamer than gold today.  The reading today on volume came in at 64,051 contracts.  The confirmed volume yesterday was also in the same ball park at 64,051.
Here is a chart for March 30. 2011 on deliveries and inventory changes at the comex:
Withdrawals from Dealers Inventory
70,892 oz Scotia & HSBC
Withdrawals from customer Inventory
11,192 oz
Deposits to the dealer Inventory
zero oz
Deposits to the customer Inventory
5,056 oz
No of oz served (contracts ) 41
No of notices to be served  zero
Withdrawals from Dealers Inventory
Withdrawals from customer Inventory
180,459 oz
Deposits to the dealer Inventory
zero oz
Deposits to the customer Inventory
195,515 oz
No of oz served (contracts)  0
zero oz
No of oz to be served  notices zero
zero oz

Let us begin with gold.
I am totally astonished that again with first day notice tomorrow we witnessed zero gold enter the dealers vaults.  Cannot recall ever seeing this.  The dealer received no gold and withdrew no gold.
The customer however was busy. Two customers received gold as follows:
1. customer no 1:  35,069 oz
2. customer no 2:  160,446 oz  (added to JPMorgan vault)
Two customers withdrew gold:
1. customer No 1:  20,013.
2. customer No. 2  160,446 oz  (removed from HSBC)
Please note that customer No 2 removed his gold from HSBC and put the gold into JPMorgan’s vault. This may turn out to be a little ominous!
Now JPMorgan has this exact quantity of gold in its registered warehouse and it is all customer gold.
There was an adjustment of 39,460 oz of gold whereby a dealer repaid a customer back for some prior committment or the customer decided not to sell his gold and the gold was returned to the proper category.
You can bet it is the former.
As I mentioned to you yesterday, the 4 deliveries on Tuesday completed all obligations.  The total number of notices equates to 1239 notices or 123,900 oz of gold ie. 3.85 tonnes.
And now for silver:
Today the vaults were a lot quieter. What is most strange is that no silver has silver has been deposited to the dealer despite that massive delivery yesterday.  Where on earth are they getting their silver to settle upon our longs?
The customer today received a tiny 5056 oz of silver.  This went into the HSBC vaults.
The dealer today had two sets of withdrawals of silver:
a) 50,388 oz from the Scotia Mocatta vault
b) 20,504 oz from the HSBC vault.
total withdrawal from dealer:  70,892 oz
The customer had the following withdrawals of silver:
a) 9246 oz
b) 1,946 oz
total withdrawal from the customer;  11,192 oz
JPMorgan had no withdrawals and no additions of silver to its vaults.
There were no adjustments.
Yesterday I left you with 40 notices that were to be served upon.
As it turned out, there were 41 notices sent down for servicing for a total of 205,000 oz
Thus the total number of notices for the month turned out to be 1749 for a grand total of 8,745,000 oz.
Something must have bothered Jamie Dimon today with respect to the CFTC’s proposal to monitor the OTC market:  (courtesy Reuters) and special thanks to Mark Winters for providing me with this news report:

JPMorgan’s Dimon slams CFTC on swaps crackdown

Mar-30-11 4:33pm
From:  reuters.com
WASHINGTON (Reuters) – Jamie Dimon, chief executive of Wall Street giant JPMorgan Chase, lashed out on Wednesday at efforts by U.S. regulators to police the $600 trillion swaps market, in which his bank is a big player.
New regulations being implemented by the U.S. Commodity Futures Trading Commission, mandated under 2010’s Dodd-Frank Wall Street reforms, “would damage America,” Dimon said at a U.S. Chamber of Commerce event on capital markets.

He was upbeat about the economy, however. “Corporate America is in very good shape. It’s well-financed, it’s well-funded,” he said. “The consumer is spending … housing is better than it was

Let us head to our ETF’s and see how they behaved today. 

First, let’s see what happened to our “non-physical” inventories.

First the GLD: March 30.2011:

Total Gold in Trust

Tonnes: 1,211.84
Value US$:

Total Gold in Trust:

March 29.2011
Tonnes: 1,211.84
Value US$:

Total Gold in Trust:

March 28:2011
Tonnes: 1,211.84
Value US$:
We have lost zero oz of “inventory” the past 3 days.

How about SLV?

Today:  March 30.2011:

Ounces of Silver in Trust 358,143,807.200
Tonnes of Silver in Trust 11,139.52

March 29.2011

Ounces of Silver in Trust 358,143,807.200
Tonnes of Silver in Trust 11,139.52
Zero oz of silver is leaving the SLV “inventory” 

And now for our physical ETF’s:

The Sprott silver fund:  PSLV:

the premium to NAV remain rose to 19.92% .  The premiums on pure silver funds are on fire!!
The Sprott gold fund PHYS:
the premium to NAV  fell to 3.57%

The Central Fund of Canada which is equal parts gold and silver:

saw its premium fell to 5.3% in both USA  and Canadian funds.


Finally, the Central Fund of Canada completed a deal to purchase both gold and silver.  Their NAV was above 9% which facilitated the deal.  No doubt a mining company bypassed the comex in dealing with the central fund of Canada.  Here is this report: (courtesy Benzinga Staff)

Central Fund Increases Equity Offering to Approximately U.S.$360 Million

By Benzinga Staff
March 30, 2011 11:57 AM
Posted inNews
Central Fund of Canada Limited (NYSE: CEF) announces that a syndicate of underwriters led by CIBC have exercised their right to purchase an additional 1,800,000 Class A Shares at a price of U.S.$22.30 per Class A Share, for additional gross proceeds of approximately U.S.$40,000,000 to Central Fund.
The Underwriters agreed earlier this morning to purchase 14,350,000 Class A Shares for gross proceeds of approximately U.S.$320,005,000.
Benzinga’s Options & Vol Edge gained over 198% in January

Read more: http://www.benzinga.com/news/11/03/963594/central-fund-increases-equity-offering-to-approximately-u-s-360-million#ixzz1I7ZNyFXl

The silver metal got a big boost from this story from Bolivia where the miners went on strike at the big San Cristobal mine.  The mine is owned by Japan’s Sumitomo and is the world’s 3rd largest producer of silver:

Strike halts Bolivia silver mine, exports-union
* San Cristobal is Bolivia’s top silver mine
* Union decides to continue indefinite strike

LA PAZ, March 30 (Reuters) – A week-old strike at Bolivia’s San Cristobal mine has totally paralyzed production and exports of silver, zinc and lead, a union leader said on Wednesday.
San Cristobal is the world’s third-largest producer of silver and the sixth-largest producer of zinc, according to Japan’s Sumitomo Corp <8053.T>, which owns the mine.
“There is neither production nor exports, because there’s a blockade as part of the strike. Nothing is entering or leaving the mine,” union leader Cesar Lugo told Reuters by telephone. Lugo said workers decided at a meeting to continue their indefinite strike, rejecting a request by mine managers that they call off the protest before formal talks begin.
He said he had been told the mine had a “significant quantity” of mineral concentrates stored on site, but that “nothing is leaving for Chile (export ports) because of the strike.”
Mine managers said on Tuesday that talks had not yet started to discuss the union’s demands for improved working conditions and the firing of several officials.
San Cristobal produced some 620,000 kilograms of fine silver in 2009, official data shows, and its output accounts for about half of the country’s total mining exports.
Labor disputes are common in mineral-rich Bolivia, a significant global exporter of zinc, silver, tin and lead.
A strike last year brought several mines to a halt for almost three weeks, including San Cristobal and Coeur D’Alene’s San Bartolome, the world’s largest pure silver mine.

Finally here is a Max Keiser interview on his campaign of crashing JPMorgan:
The interview is with Lars Schall.  You will enjoy it.


Let us now see how things are shaping up on the international front.
First of all, Japan: from the very reliable BBC news: 

Japan to scrap stricken nuclear reactors

Click to play
Tepco chairman: “We want to apologise from the bottom of our hearts”
Japan is to decommission four stricken reactors at the quake-hit Fukushima nuclear plant, the operator says.
Tokyo Electric Power (Tepco) made the announcement three weeks after failing to bring reactors 1 – 4 under control. Locals would be consulted on reactors 5 and 6, which were shut down safely.
Harmful levels of radioactivity have been detected in the area.
More than 11,000 people are known to have been killed by the devastating 11 March earthquake and tsunami.
Emperor Akihito visited a centre for earthquake and tsunami victims in the Tokyo area on Wednesday.

Rolling blackouts

The emperor’s visit “gives me strength” said one of the evacuees.
Continue reading the main story 

“Start Quote

Amid all the destruction, it is a safe haven”

Kathy MuellerInternational Federation of Red Cross

Japanese experts are considering whether to cover the reactor buildings at the Fukushima Daiichi plant with a special material, to stop the spread of radioactive substances, Chief Cabinet Secretary Yukio Edano says.
On Wednesday, the government ordered nuclear power plant operators to start implementing new safety measures immediately.
The steps – to be completed by the end of April – include preparing back-up power in case of loss of power supply.
Fire trucks will be on standby to intervene and ensure cooling systems for both reactors and pools of used fuel are maintained.
Minister of Economy, Trade and Industry Banri Kaieda said this did not mean that nuclear plant operations should be halted.
Tepco’s president Masataka Shimizu has been admitted to hospital, suffering from high blood pressure and dizziness.
Hours later, Tepco chairman Tsunehisa Katsumata spoke to reporters for the first time.
Continue reading the main story 


Mark WorthingtonBBC News, Tokyo
The highest radiation level yet in the seawater off Fukushima is the strongest indication so far that highly radioactive water is leaking into the sea.
The reading comes as workers at the plant continue the difficult balancing act between pumping in water to keep the reactors cool, and draining pools of radioactive leakage.
Japan’s Nuclear Safety Agency said the radiation level does not pose an immediate threat to fishery products.
But it’s likely this latest discovery will increase concern both for the safety of Japanese seafood and its reputation abroad.
He admitted that the company had not been able to cool the reactors, and pledged maximum efforts to stabilise them. And he added that reactors 1-4 would eventually have to be shut down for good.
Mr Katsumata said his company was preparing to compensate those suffering damage caused by radiation leaks.
The chairman also apologised for the inconvenience caused by the rolling blackouts imposed to cope with power shortages.
The earthquake and tsunami damaged the nuclear plant’s power supply, leading to a failure of the cooling systems.
Since then engineers have been using seawater to cool down the core of the reactors, but the operation has failed to stop radioactive leaks.
Japan’s Prime Minister Naoto Kan has said the country is on “maximum alert”.
Tepco has been accused of a lack of transparency and failing to provide information promptly.

Seawater radiation

Seawater near the Fukushima Daiichi nuclear plant has reached a much higher level of radiation than previously reported.
The new readings near reactor No 1 – 300m (984ft) from the shore – showed radioactive iodine at 3,355 times the legal limit, said Japan’s nuclear safety agency.
Japan’s emperor made a rare public appearance at an evacuation centre in the Tokyo area
Earlier samples had put the iodine level in the sea at 1,850 times the legal limit.
Much lower – but still elevated levels – of the same radioactive element have been found in seawater as far as 16km (10 miles) to the south.
Tepco and the safety agency say the exact source of the leak is unknown.
“Iodine 131 has a half-life of eight days, and even considering its concentration in marine life, it will have deteriorated considerably by the time it reaches people,” Hidehiko Nishiyama, deputy director-general of Japan’s nuclear safety agency told a news conference.
Radioactive materials are measured by scientists in half-lives, or the time it takes to halve the radiation through natural decay.
Continue reading the main story 

Fukushima update (30 March)

  • Reactor 1: Damage to the core from cooling problems. Building holed by gas explosion. Highly radioactive water detected in reactor
  • Reactor 2: Damage to the core from cooling problems. Building holed by gas blast; containment damage suspected. Highly radioactive water detected in reactor and adjoining tunnel
  • Reactor 3: Damage to the core from cooling problems. Building holed by gas blast; containment damage possible. Spent fuel pond partly refilled with water after running low. Highly radioactive water detected in reactor
  • Reactor 4: Reactor shut down prior to quake. Fires and explosion in spent fuel pond; water level partly restored
  • Reactors 5 & 6: Reactors shut down. Temperature of spent fuel pools now lowered after rising high
Iodine 131 was blamed for the high incidence of thyroid cancer among children exposed to fallout from the Chernobyl nuclear disaster in 1986.
Workers at the Fukushima plant are trying to prevent radioactive water from seeping into the sea.
Highly radioactive liquid has been found inside and outside several reactor buildings.
Small amounts of plutonium have also been detected in soil at the plant – the latest indication that one of the reactors suffered a partial meltdown.
But, like the discovery of plutonium, the high levels of radiation found inside and outside reactor buildings are likely to have come from melted fuel rods.
Theories for the leak centre on two possibilities – steam is flowing from the core into the reactor housing and escaping through cracks, or the contaminated material is leaking from the damaged walls of the water-filled pressure control pool beneath the No 2 reactor.
The plutonium – used in the fuel mix in the No 3 reactor – is not at levels that threaten human health, officials said.

And this just came in:

Japan Considers Extending Evacuation Radius After IAEA Finds Excessive Radiation 40 km Away From Fukushima

Submitted by Tyler Durden on 03/30/2011 15:56 -0400

The IAEA which is quickly outstaying its Japanese welcome by disclosing actual facts about the radioactive fallout around the power plant, has just announced that it has found excessive radioactivity in a village 40 km from Fukushima. While the news will not be a surprise to anyone watching the grand lie unfold over the past three weeks, it may hopefully force the Japanese government to finally relent and extend the evacuation perimeter from the existing 20 km, thereby actually preventing the needless loss of life in the long run. From Reuters: “Radiation measured at a village 40 km from Japan’s crippled nuclear plant exceeded a criterion for evacuation, the U.N. nuclear watchdog said on Wednesday, the latest sign of widening consequences from the crisis. Criticized for weak leadership during Japan’s worst crisis since World War Two, Prime Minister Naoto Kan has said he is considering enlarging the evacuation area to force 130,000 people to move, in addition to 70,000 already displaced.”The first assessment indicates that one of the IAEA operational criteria for evacuation is exceeded in Iitate village,” Denis Flory, a deputy director general of the International Atomic Energy Agency (IAEA), said.  “We have advised (Japan) to carefully assess the situation and they have indicated that it is already under assessment,” he told a news conference.” Hopefully our Japanese readers who have been following our coverage of this tragedy, which many have at times called “hysteric” even if always based on facts, have already evacuated long ago. Ultimately, it is one thing for the government to lie with just the Russell 2000’s closing level being at stake. It is something totally different when people’s mutagenic skills and/or life expectancy is at stake. When this is all said and done, Kan will likely be forced into exile for his tragic botching of an operationg whose only downside to disclosing the truth would have been a few hundred points in the Nikkei/S&P. Well, those losses will still come eventually, but at least thousands of lives would not have been put needlessly at risk in the meantime.

And finally this from Japan: 

Japan Prepares To “Bury The Problem” Following News Of Uncontrolled Reactor 1 Chain Reactions

Submitted by Tyler Durden on 03/30/2011 18:19 -0400 

And once again our prediction about Fukushima (namely the inevitable entombment of the entire facility in thousands of tons of concrete) is about to be realized. Bloomberg reportsthat Japan will consider pouring concrete into its crippled Fukushima atomic plant to reduce radiation and contain the worst nuclear disaster in 25 years. The reason for the admission of total defeat is the gradual comprehension that the worst case scenario has come to pass: “The risk to workers might be greater than previously thought because melted fuel in the No. 1 reactor building may be causing isolated, uncontrolled nuclear chain reactions, Denis Flory, nuclear safety director for the International Atomic Energy Agency, said at a press conference in Vienna.” Not one to cover up the worst case outcome for a week, TEPCO only did so… for five days: “Radioactive chlorine found March 25 in the Unit 1 turbine building suggests chain reactions continued after the reactor shut down, physicist Ferenc Dalnoki-Veress of the James Martin Center for Nonproliferation Studies in Monterey, California, wrote in a March 28 paper.” It’s good thought”  Radioactive chlorine has a half-life of 37 minutes, according to the report.” It appears Japan is willing to give up, and write off a several hundred square kilometer area, as nobody in their right mind will ever agree to move in next to a territory that, contrary to lies, er, promises, will not seep radioactivity in the soil and in the water. This is an unprecedented admission of defeat by the Japanese which unfortunately may be the only solution, which will certainly have major implications for the Japanese economy.
The now much expected spin on this last ditch effort:
Tokyo Electric mixed boron, an element that absorbs neutrons and hinders nuclear fission, with emergency cooling water to prevent accidental chain reactions, Kathryn Higley, head of nuclear engineering and radiation health physics at Oregon State University in Corvallis, said in an e-mail. 

Dismantling the plant and decontaminating the site may take 30 years and cost Tokyo Electric more than 1 trillion yen ($12 billion), engineers and analysts said. The government hasn’t ruled out pouring concrete over the whole facility as one way to shut it down, Edano said at a press conference.

Dumping concrete on the plant would serve a second purpose: it would trap contaminated water, said Tony Roulstone, an atomic engineer who directs the University of Cambridge’s masters program in nuclear energy.

How anyone could think the outcome would be anything but following a brief look at the latest overflight of Fukushima is beyond us.
As for what happens after a concrete tomb, which increases the surrounding pressure by orders of magnitude, is put over what now appears is still a live fusion reaction, well, we won’t make any predictions. Suffice to say if historical precedent if how TEPCO has handled this situation to date is any indication, expect the sarcophagus to crack, and a 100 km “No Live Zone” radius to be extended around Fukushima in perpetuity.
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Looks like the Toyko Electric and Power Company is toast:

Bank Of Lynch Estimates TEPCO Losses Up To ¥10 Trillion, Believes Firm Is TBTF For Bond Impairments

Submitted by Tyler Durden on 03/30/2011 15:43 -0400

After losing almost 80% of their investment in 3 weeks, here come more bad news for TEPCO shareholders. According to Yusuke Ueda analyst for Bank of Lynch TEPCO shareholders may be wiped out by clean-up costs and liabilities. “The amount of compensation demanded of TEPCO will also vary considerably depending on how long it takes to resolve the nuclear reactor crisis. Below we set out our assessment of the nuclear power damage under the scenarios we envisage and of TEPCO’s credit enhancements in each scenario. We think TEPCO will face compensation claim demands of less than ¥1tn if the nuclear reactor accident can be resolved swiftly (roughly within two months). If the problems take a longer time to resolve (up to about six months or so), we estimate that compensation claims could amount to ¥2.4-3tn.The total could potentially reach ¥10tn under a worst-case scenario (about two years needed to resolve the nuclear power plant accident). Shareholders are very likely to be held liable, through capital reductions of a certain amount, so as to clarify responsibility for damage compensation, but given the principle of maintaining stable supplies of electric power, a scheme involving a default on the company’s bonds is very unlikely to be adopted.” Which means when the Nikkei opens up tonight look for another demonstration of Xeno’s paradox where the stock continues selling off but never reaching zero.

Over in Libya, we got this today:

Libyan Foreign Minister Quits Government, Seeks Asylum In UK

Submitted by Tyler Durden on 03/30/2011 16:34 -0400

Libyan foreign minister Moussa Koussa arrived in Britain on Wednesday to seek refuge after quitting the government in protest against leader Muammar Gaddafi’s forces attacks on civilians, a friend told Reuters. “He has defected from the regime,” said Noman Benotman, a friend and senior analyst at Britain’s Quilliam think tank. “He wasn’t happy at all. He doesn’t support the government attacks on civilians,” he said. “He’s seeking refuge in Britain and hopes he will be treated well,” Benotman said.


Back on USA soil, Jamie Dimon proudly professed that many Munis will not survive:

Jamie Dimon “I Wouldn’t Panic About What I’m About To Say…”

Submitted by Tyler Durden on 03/30/2011 14:41 -0400

Reports Bloomberg: “JPMorgan Chase & Co. (JPM) Chief Executive Officer Jamie Dimon said some municipalities will need to renegotiate their debt and that hundreds of them may “not make it.” “I wouldn’t panic about what I’m about to say,” he said today at a U.S. Chamber of Commerce event in Washington. “You’re going to see some municipalities not make it. I don’t think it’s going to shatter America, I just think it’s a part of the credit cycle.” Precisely: and it is precisely the part that JP Morgan comes in and offers sale leaseback offers to said munis, and other ingenious financial solutions that see munis selling their assets to the bank which after the Fed, has the biggest balance sheet, and can thus offer to engage in some even more creative asset-liability mismatch. Also explains why unlike Meredith, Jamie will not only not be asked to come in and testify to congress over his abrasive observations of an insolvent American reality, but will be lauded as a hero as he will provide funding to buy insolvent municipalities a year or two of time, which upon expiration will see Jamie end up with even more assets formerly belong to taxpayers, but by then everyone in the current District of Corruption cadre will be long gone with their part of the spoils. And so the “credit cycle” turns.
My goodness, we are seeing some harsh words being fired against the Fed by their own  central bankers.
Today, it was the Kansas City Fed  governor Hoenig who fired this:  (courtesy of zero hedge) 

Hoenig Says Lower And Middle Classes Pay “Dear Price” For Fed Mistakes, Accuses Fed Of Commodity Price Inflation

Submitted by Tyler Durden on 03/30/2011 13:50 -0400

Hoenig is back, and a few months before his retirement, has released what appears a valedictory exercise in venomous truthiness: “Today, my view has not changed. The FOMC should gradually allow its $3 trillion balance sheet to shrink toward its pre-crisis level of $1 trillion. It should move the U.S. federal funds rate off of zero and toward 1 percent within a fairly short period of time. Then, after evaluating the effects of those actions, it should be prepared to move the funds rate further toward a level that could be reasonably judged as closer to normal and sustainable.” At long last, someone admits the obvious: “While some of the increase may reflect global supply and demand conditions, at least some of the increase is driven by highly accommodative monetary policies in the United States and other economies.” For those terrified by the ravages of deflation: “I tracked the average growth of money and the price levels in the United States from the 19th century to the present (Chart 3). It should surprise no one that there is a striking parallel between the long-run growth of money and the growth in the price-level index. From the end of World War II alone, the price index has increased by a factor of ten. With such a track record, it is hard to accept that deflation should be the world’s dominant concern.” And lastly, for those who refuse to see Bernanke’s policies as genocidal (metaphorically speaking but quite literally in MENA) to the lower (and increasingly) middle classes: “Central bankers must look to the long run. If current policy remains in place, we almost certainly will stimulate the growth of asset values and inflation. This may temporarily increase GDP and employment, but in the long run, we risk instability, damaging inflation and lost jobs, which is a dear price for middle and lower income citizens to pay.
I would like to leave you with this zero hedge release where the federal debt level has no exceeded the 14.294 trillion dollar mark with the new 29 billion dollars of bond auction today.  (which by the way went badly):  Here is this zero hedge release: 


Treasury Sells $29 Billion In Bonds, Bringing Total Settled US Debt To 14.311 Trillion, More Than The Debt Ceiling

Submitted by Tyler Durden on 03/30/2011 13:25 -0400

First, the irrelevant news: Today’s $29 billion 7 Year auction just closed at a yield of 2.895%, the highest since April 2010, just the time when QE1 was ending and everyone was certain there would be no follow through monetization. The Bid To Cover was 2.79, weaker compared to recent auctions, and 2 bps wider of the When Issued, implying the auction was not all that hot. Directs took down 8.76%, in line with the last year average, Indirects accounts for 49.41%, or the lowest foreign take down since November 2010, while PDs bought 41.83% of the auction. Altogether a weak auction. And now the relevant news: the most recently disclosed total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week’s auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit – break out the Champagne! Now bear with us for a second: the most recently disclosued total debt was 14,211,567,662,931.23 as of March 28. This excludes the settlement of all of this week’s auctions which amount to $35 + $35 + $29 billion (including today) or $99 billion. Adding the two amounts to $14,310,567,662,931.23. As a reminder the debt ceiling is $14,294,000,000,000.00. In other words, the total US debt just passed the debt limit – break out the Champagne!


I would like to point out that the end of the month sees around a rise in the federal debt due to the printing out of all of the pension cheques.  We have have exceeded the debt limit.  Should be an interesting  two weeks.

I think that I have exhausted all of the stories today.  I hope you have a wonderful evening and I will speak with you tomorrow.

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