Signs of the Times

Both silver and gold are having a rough day. Gold is 811 and silver 10.52 with both on down ticks. Our trading mining stocks are >> DROOY 5.11; HMY 9.17, and VGZ 1.31. VGZ is really holding up quite well. Both DROOY and HMY are in a nice buying range in my estimation. The DJI is down 266+ to 8183.34. Not a great day for any markets. Below are a number of interesting reports from around the world. Check them out for the latest economic news.

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Spain to lose favorable rating according to the London Telegraph:

S&P threatens to strip Spain of top AAA rating

Standard & Poor's has threatened to strip Spain of its coveted AAA rating as country's budget deficit explodes, offering the clearest warning to date that even wealthy states are running out of room to borrow.

By Ambrose Evans-Pritchard
Last Updated: 7:31AM GMT 13 Jan 2009

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Standard & Poor's has threatened to strip Spain of its coveted AAA rating as country's budget deficit explodes

The move caused fury in Madrid and revived fears in the currency and bond markets about the underlying health of Europe's monetary union.

Spanish officials are irked that S&P has placed Spain's debt on "Credit Watch Negative", a notch lower than the "outlook" alert issued on Irish bonds last week. It is the first time that a AAA country has suffered such a harsh verdict since the start of the global financial crisis. Read the article HERE.

Also from the Telegraph:

Shipping rates hit zero as trade sinks

Freight rates for containers shipped from Asia to Europe have fallen to zero for the first time since records began, underscoring the dramatic collapse in trade since the world economy buckled in October.

By Ambrose Evans-Pritchard, International Business Editor
Last Updated: 3:39PM GMT 14 Jan 2009

The cost of shipping goods from Asia to Europe has tumbled

"They have already hit zero," said Charles de Trenck, a broker at Transport Trackers in Hong Kong. "We have seen trade activity fall off a cliff. Asia-Europe is an unmit­igated disaster."

Shipping journal Lloyd's List said brokers in Singapore are now waiving fees for containers travelling from South China, charging only for the minimal "bunker" costs. Container fees from North Asia have dropped $200, taking them below operating cost. Read the article HERE.

From Reuters today:

Retail sales dive as holiday spending slumps

Wed Jan 14, 2009 2:03pm EST

WASHINGTON (Reuters) - Sales at retailers dropped a steep 2.7 percent in December, government data showed on Wednesday, as a deteriorating economy forced consumers to cut back on spending during the key holiday period. Read the article HERE.



More from Reuters on banks:

Investors rattled by Deutsche Bank and HSBC

Wed Jan 14, 2009 8:55am ESTBy John O'Donnell

FRANKFURT (Reuters) - A profit warning from Deutsche Bank AG and a prediction HSBC Holdings Plc may need fresh capital shook confidence in two European banks previously credited with dodging the worst of the crisis. Read the article HERE.

From BBC News on Gaza War today:

'More than 1,000 killed in Gaza'

Palestinian deaths in the Gaza Strip have passed 1,000, medical sources in Gaza say, as Egypt continues efforts to broker a ceasefire.

Palestinian hospitals have been overwhelmed by the number of injured. Nearly a third of the dead are reported to be children and nearly 5,000 people have been injured.

UN Secretary General Ban Ki-moon said he wanted to find a durable and sustainable ceasefire between Israel and Palestinian fighters. Read the article HERE.

From Bloomberg on stock markets:

U.S. Stocks Drop on Retail Sales Slump; Citigroup, Macy’s Fall

By Eric Martin

Jan. 14 (Bloomberg) --U.S. stocks slid to a six-week low, following declines in European markets, after a government report showed retail sales decreased at more than twice the rate forecast by economists last month.

General Electric Co., Macy’s Inc. and American Express Co. tumbled at least 4 percent after the Commerce Department said purchases fell by 2.7 percent in December as job losses and dwindling access to credit forced consumers to reduce spending. Citigroup Inc. tumbled as much as 24 percent as Chief Executive Officer Vikram Pandit works to unravel the financial-services empire following four straight quarters of losses.Read the articles HERE.

Bloomberg on a new stimulus package & tax cuts:

Economic Stimulus Package May Reach $850 Billion

By Brian Faler

Jan. 14 (Bloomberg) -- A U.S. economic stimulus package being negotiated in Congress may grow to as much as $850 billion, while the share devoted to tax cuts might shrink, lawmakers said.

Senator Charles Schumer, a New York Democrat, told reporters today the price of the plan may rise to $800 billion to $850 billion. President-elect Barack Obama and lawmakers have been discussing a package of about $775 billion.Read the article HERE.

Look to the Lord daily for care, peace, and joy as one of His. He does care for His people.

Best to each, Doug