Here's my summary of the key news overnight in 90 seconds at 9 am, including news the US Federal Reserve's Open Markets Committee (FOMC) has released its latest monetary policy decision for the world's biggest economy.
The Fed is sticking with its plan to buy US$40 billion worth of bonds every month until it can signficantly reduce unemployment, regardless of whether the US economy is recovering. It also maintained its pledge to keep its official interest rate near zero until mid 2014.
The FOMC said the US economy was growing modestly, but unemployment remained elevated. However, Fed Chairman Ben Bernanke may not be around to see through his policy of a third unlimited round of monetary policy easing known as Quantitative Easing 3 (QE III) and 'ZIRP' (Zero Interest Rate Policy) until mid 2015. See more here at Bloomberg.
His current term expires in early 2014 and Republican Presidential candidate Mitt Romney has said he will not reappoint Bernanke if he wins the Presidency. Bernanke has also told friends, according to the New York Times, he will not put himself forward for reappointment, regardless of who wins the November 6 election.
Meanwhile, the US government is suing Bank of America for US$1 billion, alleging the bank shuffled on defective mortgages to the government controlled Fannie Mae and Freddie Mac between 2007 and 2009 in a programme described as 'The Hustle'. See more here at Reuters.
Elsewhere, US stocks were firmer in early trade after Chinese factory output (as measured by HSBC's PMI index) contracted by less than some expected. However US stocks weakened around 0.3% in the last hour of trade as investors sifted through the FOMC's comments about only moderate growth. See more here at Bloomberg.
Gold prices fell again overnight to a 6 week low after the European Central Bank said its own 'Big Bazooka' bond buying plan would not create inflation. The ECB even warned of deflationary pressures, which would not help the gold price. Gold briefly dipped below US$1,700/oz. See more here at Bloomberg.
The New Zealand dollar was marginally firmer around 81.6 USc in morning trade.
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11 Comments
Only in Ostralia : The Federal government has slipped a doozey past the country's investors , enacting legislation several months ago , enabling them to steal all the money in individuals compulsory super funds if those funds have been inactive for several years , and have less than $A 2000 in them .....a few financial scribes have rattled their sabres over the issue , but it hasn't gained nearly enough traction with the public ....
.... this is just the thin-edge-of-the-wedge ...... if the government gets away with this , expect more thievery to come ......
KiwiSavers , this should stand as a warning to you : Governments consider the superannuation money to be their's , not yours ..... you don't have your hands on it , do you !
( before you rip my face off again , Nic .... this is a " loonie left " government here in Oz , them wot are supposed to care about the workers , the poor , and the battlers on Struggle Street ...... the " rabid right " are strongly opposed to this grand larceny )
You putting the frighteners on GBH? You are MOST definitely wrong on that one GBH. The "money" is not confiscated into the consolidated fund, it is transferred to the management of the ATO to get it out of the hands of the ticket clippers. The ATO does not charge management fees. It is for the benefit of casual, seasonal and contract workers who may have 5 or 6 employers in any one year. Each employer has a default provider, and the mug worker ends up with many or multiple super funds with nominal balances, each fund charging management fees. After two years all the money is gone in fees. As in disappeared. If you have 5 seperate funds, the fees can exceed the total paid in.
Initially they planned to appropriate compulsory superannuation accounts of $A 200 or less , which've been inactive for 12 months or more ..... then they raised the bar to accounts containing $A 2000 or less .....
.... which the treasurer estimated would deliver $A 675 million ( yes , two thirds of a billion ! ) into the government's coffers !
Will they ever make a movie about this heist : " The Australian Job . "
Brilliant piece on our energy future.
http://aspousa.org/2012/09/the-switch-energy-project-highlights-the-sca…
The SFO is onto another affinity fraud:
The Serious Fraud Office (SFO) laid Crimes Act charges against Michelle Roberta Innes (58) today in the Auckland District Court.
Ms Innes is facing in total, 10 counts of theft, theft by a person in a special relationship, and theft by person required to account, which carry a maximum term of seven years imprisonment.
The charges relate to Ms Innes’ use of over a million dollars entrusted to her by her sister.
The SFO allege that during the period 2001 to 2008 Ms Innes spent her sister’s funds for her own purposes as well as using a Pauanui property owned by her sister as security for mortgages for her own benefit.
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