MORNING BRIEFS

Commodities lead Asian markets higher
Metals and mining stocks led Asian-Pacific markets higher Wednesday, after the price of gold reached a record high on the spot market. Japan's Nikkei 225 rose 1.1%, South Korea's Kospi Composite ended nearly flat and Australia's S&P/ASX 200 improved 2.3%. Hong Kong's Hang Seng Index was up 2.1%. Taiwan's Taiex added 1%, New Zealand's NZX 50 slid 0.3% and markets in China were closed for a holiday. The Wall Street Journal (07 Oct.)

*and continuing its climb in early trading, but beware those bearing metal gifts. This is not a play for the faint of heart. You heard it here first: Gold will be at $300 aagain at some point in the not too distant future, mark my words.
Gold price hits historic high as dollar continues slide
Analysts expect the price of gold to climb as high as $1,100 per ounce in the next few days, after seeing the price for December delivery reach an all-time high of $1,045 on Tuesday. The previous high came in 2008 shortly after the bankruptcy of Bear Stearns, when the price reached $1,033.90. The increase comes as the U.S. dollar continues its seven-month decline. The dollar hit a 14-month low against Australia's dollar after the Australian central bank raised its key interest rate. Google/The Associated Press (06 Oct.)

*considering that banks and shadow banking have provided 60% of the debt market worldwide, this is an ominous sign for banking profits. But you would never know it by watching their stocks trade thanks to you and me and a dog named UNCLE SAM!
U.S. consumers dump credit cards, switch to debit
Americans are rapidly scaling back their use of credit cards and reaching instead for debit cards to pay for purchases. The use of revolving credit, which is mostly credit cards, fell by an annualized rate of 8.1% in July, the Federal Reserve said. Debit cards have been steadily getting more popular for years, but their use soared after the recession hit. "People are managing their money in a different way," said David Robertson, publisher of the Nilson Report, which follows the credit card industry. The Washington Post (07 Oct.)

Shaky debt-securitization market threatens recovery
The largely frozen debt-securitization market is a key factor for difficulty encountered by businesses and consumers when they try to borrow from banks. The market, sometimes called the shadow banking system, until recently provided about 60% of all credit in the U.S. The few markets still doing business are dependent on government assistance, which the Federal Reserve is preparing to withdraw. The New York Times (10/6)

*these banking ijiots have no idea what INFLATION means you know that? So between Australia and Brazil continuing to raise their rates and Canada likely to soon follow, now I know for sure that 1932 is not a remote possibility. My only saving grace is that Helicopter Ben may actually be right for a change. Who wouldda thunk it?
Inflation back on agenda for European Central Bank
With recovery beginning, the European Central Bank is preparing to return to its original mission: fighting inflation. The ECB is not making promises to keep its interest rate low. "The ECB wants to err on the side of exiting quickly," said Thomas Mayer, chief European economist at Deutsche Bank. "I have my doubts about whether they will be able to. But they want to." The New York Times (06 Oct.)