Gold and silver didn’t do a lot in early Far East trading on Tuesday. The price for both metals bottomed very early in London…and from there a solid rally in both metals ensued…which ended shortly after the Comex opened for business…and that was it for the day.

The usual NY gold commentator had the following yesterday…”News reports indicate that Turkey imported 15 tonnes of gold in November. Considering that the Turkish currency has slumped by some 30% in the last couple of months, this is actually quite remarkable. Probably it reflects the volume of Turkish imports subsequently re-exported to countries to the south…Today’s ECB (European Central Bank) weekly statement of condition reports that ‘gold and gold receivables’ dropped E115 Mm, which ‘reflected’ gold sales by two captive CBs. At 5.7 tonnes, this is somewhat higher than of late (last week’s quantum was 2.83 tonnes), but is still small even compared to

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One of the biggest fears today is that the US is entering a Japanese-like slump that could last a decade. But Justice Litle says we have learned the lessons from that crisis. This time, the government fears doing too little, but gives little thought about the risks of doing too much. And this is why we should be more scared of one day ending up like Zimbabwe…

This from Taipan Publishing Group:

The world is clearly afraid that “Great Depression 2.0” could be at hand. Downturns come and go, but the global economy as a whole hasn’t contracted since the 1930s. Some think it could happen again next year.

We hear less about it in the news, but there is another fear that keeps investors up at night – the off chance that America turns into Japan.

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Currencies trade in a tight range…  China…  Commodity prices to blame…  “Safe” Treasuries? And Now… Today’s Pfennig! Good day… And a Wonderful Wednesday to you! Well… I went “shopping” yesterday evening… At least I can say I did my bit to keep the economy afloat! HA! Thanks to all who sent along notes to me yesterday with kind words. I truly appreciate the kind words, you are all too kind! The automakers made their pleas to Congress yesterday, and they claim they are in deep dookie! GM says they need $4 Billion right now! And… The original $25 Billion figure has grown to $35 to $40 Billion…

The currencies were lifeless yesterday, with only

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NBER: U.S. in Recession Since Dec. 2007; Fed Reserve Could Buy T-Bills; JP Morgan Sees 0% Interest Rates; Pilgrim’s Pride Files for Bankruptcy Protection; Consumer Credit Crunch in the Making; Crude Slides on Recession Outlook; J&J to Buy Mentor

It’s official: The United States has been in a recession since December 2007, the National Bureau of Economic Research said yesterday (Monday). Already 12 months into it, this recession is longer than eight of the 10 recessions the U.S. has experienced since World War II, CNNMoney reported. Should it continue past the June 2009, it will be the longest. U.S. Federal Reserve Chairman Ben Bernanke said the central bank could buy long-term Treasury securities to help revive the economy. “This approach might influence the yields ...

When it comes to the financial markets, September was a startling and unsettling month that Americans may never forget. We have witnessed the collapse and/or government rescue of financial services giants that are household names. The financial fears of the public and the resulting stock and bond market volatility have prompted the Federal Reserve and the U.S. Treasury to resort to bailouts and backstops on a historic scale.

What does it all mean for the future of our financial system? While cringing at the potential expense, some experts seem to agree with government officials that intervention is most likely necessary, and that the costs of these measures outweigh the potential risk of doing nothing in the midst of a crisis of confidence.

Here’s a look at what may have prompted this situation, what has transpired recently in the financial sector, and how the government has acted to stem the negative effects of

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How many economic-advice-giving organizations does it take to run a White House?

MarketWatch reports:

President-elect Barack Obama tapped former Federal Reserve Chairman Paul Volcker to run a new White House advisory board tasked with offering independent advice about how to stage an economic recovery. Obama named the 81-year-old Volcker to head the President's Economic Recovery Advisory Board....

The board is modeled on the Foreign Intelligence Advisory Board that gave President Dwight Eisenhower independent opinions on intelligence issues. Austan Goolsbee, another key Obama adviser, will serve as the economic board's staff director and chief economist.

Volcker can be single-handedly credited with ending the great inflation of the 1970s, and has been critical of the unorthodox steps that Fed Chair Ben Bernanke has taken to address our current challenges. Although I share some of Volcker's concerns, it is not clear to me what specifically Volcker would propose to do instead.

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Unless you’re a turkey, Thanksgiving is usually a happy holiday. But Bill Bonner says the crumbling economy leaves all of us fearing the axe this year. The global credit crisis has taken us into unchartered territory. And government bailouts will only draw out the inevitable correction.

This from The Daily Reckoning:

“Until today or tomorrow, the typical turkey enjoyed a fairly decent life…” commented our friend Nassim Taleb, in Zurich yesterday.

Yesterday [Wednesday], the stock market was quiet. The Dow ended up 36 points. Oil held at $50. Gold too…it stayed right where it was, at $820 an ounce.

But the slaughterhouses and gold mints worked overtime.

“You can understand how fraudulent most economic analysis is,” Nassim explained, “just by looking the life of the turkey. The animal is fed for 1000 days…and then it is killed. So, if you plotted out the turkey’s life on a chart, it would look

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The Fed’s plan to bailout indebted consumers and mortgage holders may sound impressive on paper (remember when $800 billion sounded like a lot of money), but it may just be “spitting in the wind.”

- So says economist Michael Darda, chief economist at MKM Partners LP in Greenwich, who is quoted on Bloomberg this morning. According to Darda, “Banks won’t be throwing a lot of loans out there when they fear - rationally - those loans may not be paid back.”

- We’re reminded of the plight of the the unfortunate French ducks who have their livers forcefully fattened to produce foie gras (literally “fatty liver”). The Fed is determined to force feed debt down the throats of already indebted Americans so that said already indebted Americans can go out and spend said debt.

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Deflation is every central banker’s worst nightmare, says Justice Litle. That’s why the Fed is pumping huge sums of money into the financial system. But if none of that money moves around the economy, it won’t make much difference. And so more dollars will be printed. Justice says this strategy means either a return to inflation or an all-out collapse of the dollar-based monetary system. Either way, gold will skyrocket.

This from Taipan Daily:

Today I want to talk about the concept of monetary velocity. (I know, I know… monetary what? You’ll see the importance by the time we’re done.)

Let’s start with some background. In Wednesday’s Taipan Daily we noted that short-term interest rates have fallen to multi-year lows. The flip side of falling interest rates is rising bond prices. When bond prices rise, interest rates fall and vice versa.

This means investors

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Trading Theme returns…  Automakers’ bailout vote today…  Not using all your arrows…  Housing Starts go back to 1959! And Now… Today’s Pfennig!

OK… Whew! What an awful day yesterday for the currencies… In the morning, they ere in rally mode with the euro gaining ground to well within the 1.27 handle. But then the Trading Theme set in, and those gains were wiped out. The Trading Theme was set off by the awful Housing data, which reminded everyone of the deep, dark , dangerous days ahead… I bought some euros, and watched them rise, and went off to do something else… When I returned, they had fallen… UGH! The Japanese yen, however, rallied, as is the case with the Trading Theme… Risk trades get unwound, which benefits dollars, and yen. I’ve explained all this before, so I won’t get into it again, but there’s someone that has gone into the problems

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