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Japan inflation dips, jobless rate steady	18:29 WA Today - Business - World
Asian Stocks Rise as Japan’s Topix Rebounds on Economic Optimism	18:28 Bloomberg - Markets
Aussie Dollar Holds 2-Day Gain on Bets Fed Stimulus to Continue	18:28 Bloomberg - Markets
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Paynes Find Gold to provide operations update	18:20 Proactive Investors - Australia
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Economy grows slightly in first quarter	18:12 The Fay Observer - Business
Japan Swings To Mild Inflation In April	18:12 Fox News - Economy
Sinking yen hasn’t changed cars Americans buy - yet	18:11 USA Today - Business
Insight - How U.S. Treasury's tax loophole mistake saves companies billions each year	18:10 The West Australian - World
Equus Mining finds copper in first three holes in Chilean project	18:10 Proactive Investors - Australia
King Tut exhibit generated $78M for Seattle economy	18:09 Puget Sound Business Journal, Washington
A Tax Surprise on Gold Profits	18:08 Business Week - BW Magazine
Correlations: India's Gold Grab	18:08 Business Week - BW Magazine
Barrick's Pascua-Lama gold project frozen for at least 1-2 years : Chile regulator	18:07 Yahoo! US - Business
30 minutes to 1 hour old www.usagold.com --LIVE NEWS--
Insight: How U.S. Treasury's tax loophole mistake saves companies billions each year	18:03 Yahoo! US - Canada
Insight: How Treasury's tax loophole mistake saves companies billions each year	18:03 Daily Press, Virginia - Business
Brazilian Gold Signs Non-Binding Letter of Intent for Acquisition of Not Less Than 50.95% of BGC	18:01 Business Wire (Press Release)
Dollar Set for Weekly Slide Before Spending Data; Yen Declines	18:01 Bloomberg - Markets - Currencies
World economy continues to slow; steel prices fall further	18:00 Steel Business Briefing
Seamless pipe prices dip again in E China, sentiment bearish	18:00 Steel Business Briefing
Bearish sentiment drags down Turkish flats market prices	18:00 Steel Business Briefing
How U.S. Treasury's tax loophole mistake saves companies billions each year	17:55 Reuters - Economy
Retail Stocks Gain, Consumer Spending Rises	17:55 Women's Wear Daily - Business
As economic headwinds gather, Big Six banks stand their ground	17:55 The Globe and Mail
Copper Delivery Fees Hit Record	17:53 The Wall Street Journal
PanTerra Gold to bank $12M from fund for Latin American acquisitions	17:50 Proactive Investors - Australia
CFIB barometer shows small business confidence dips in May	17:47 Vancouver Sun
Rise in dollar hedging costs cuts Nifty rollover	17:40 The Economic Times - Stock Markets
Italy Plans to Use Europe’s Largest Oil Fields to Boost Struggling Economy	17:38 oilprice.com
An Economy of Microserfs	17:38 The Wall Street Journal
1 to 2 hours old www.usagold.com --LIVE NEWS--
Investors look for Barrick’s ‘Plan B’ as gold prices tank	17:25 The Globe and Mail
Pioneer Resources intercepts more high grade gold at Acra Project	17:20 Proactive Investors
Gold Update - A Plague Of Experts	17:17 SeekingAlpha - Macro View
Survey: Florida's consumer confidence hits post-recession high	17:16 Sun Sentinel, Florida - Business
Average wealth for U.S. household still hasn't recovered from recession	17:16 The Oregonian
Subbarao's grim prognosis sends rupee tumbling to 10-month low	17:09 Indian Express
Watchdog 'timid' as loan sharks rampage through recession	17:07 politics.co.uk
Chilean President gives Barrick Gold its Pascua-Lama fix-it orders	17:05 The Globe and Mail
Dimon Bullish on America	17:04 NBCNews.com
Improving US Economic Picture?	17:04 NBCNews.com
Treasury Prices Well Off Lows	17:04 NBCNews.com
Stocks end modestly higher despite tepid economic data	17:04 NBCNews.com
Gold rush pulls retail data to shining high	17:00 Hong Kong Standard - Weekend
Dollar hits two-week low on US data	16:59 FT.com
Virtual currencies run into legal trouble	16:59 FT.com
U.S. Economy Advancing, But Less Than First Estimate	16:58 The Chosun Ilbo - Article List
The threat to the euro now comes from populists seeking to overturn the liberal order	16:56 FT.com - Global Economy
Gold futures soar US$20.20 to US$1,412; two-week high	16:50 Proactive Investors - Australia
Europe will balk at economic medicine	16:48 FT.com
Zuma concerned over S Africa economy	16:48 FT.com
Philippines seeks to remake its economy	16:48 FT.com

Central Banks "Pushing on a String"

by Peter A. Grant

May 30, AM
(from USAGOLD.com) --

Gold pushed definitively back above the $1400 level, establishing new two-week highs above 1412.20. The yellow metal got a boost from safe-haven interest after Japanese stocks took another sharp dive.

Movement out of Japanese shares and back into the yen, weighed on the dollar. That dollar weakness provided an additional underpinning for gold.

So months after the greatest monetary policy experiment commenced in Japan, yields are rising and the stock market has had two pretty spectacular plunges. I'm thinking this is not exactly what Abe and Kuroda had in mind.

"I want to reduce volatility as much as possible to place strong pressure on long-term yields and push them lower," BoJ chief Kuroda said earlier today before the upper house financial affairs committee. Not to worry, as long as there is sufficient paper and ink available, there is no limit to the amount of yen that can be printed and then used to buy JGBs.

That has in fact always been the excuse for Japan's lost decades, the QE just wasn't big enough. The Keynsian disciples here in the U.S. have made similar arguments; if only the Fed were more accommodative, the economy would surely be surging by now.

Former Fed chairman Paul Volker warned yesterday that the benefits of bond-buying are "limited and diminishing," suggesting that the Fed's QE program is like "pushing on a string." In Japan, the evidence is starting to mount that bigger is not necessarily better. The results of the Abenomics experiment may already be starting to disprove the hypothesis. What then?

Do the various central banks concede diminishing benefits of QE, or do they redouble their efforts? Will Abe and Kuroda suggest that a mere doubling of the monetary base was a miscalculation, it really needs to be quadrupled?

Whatever path is ultimately chosen, I'd be concerned that it will result in huge disruptions to the market. Trillions have already been committed globally in an effort to stimulate economies and to get businesses and households to not only start spending again, but to follow the lead of the central banks and leverage-up those balance sheets.

On some level, I'm pleased that many are not taking the bait. However, this has only prompted the central banks to push even harder against that 'string.' Yeah, this won't end well...

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Central Banks "Pushing on a String"