Facebook shares fell more than 13 percent, falling below its $38 price of itsinitial public offering, in the social network’s second day of trading as a public company.

Meanwhile, the NASDAQ exchange continued to defend itself regarding the IPO’s delay on Friday.

The company’s shares [FB  34.03    -4.2018  (-10.99%)   ] last traded down more than 13 percent. The stock had previously closed 0.6 percent higher on Friday.

Investors and technology industry watchers are closely tracking the Menlo Park, Calif., company’s shares. The world’s largest social network was one of the most anticipated initial public stock offerings ever, and now serves as a bellwether for other social media companies.

Facebook’s market debut Friday suffered some hiccups, with trading on the Nasdaq delayed for a half hour and issues with traders’ orders. The stock closed Friday just 23 cents above where it priced Thursday night, when many investors had hoped for a big first-day pop.

Facebook shares fell below the offer price Monday before the market’s open. It was unclear at that time whether underwriters such as Morgan Stanley [MS 13.25    -0.10  (-0.75%)   ] would step in to help stabilize the stock.

*Written by L.B. Frank.

Wow, was I in for a surprise last night. I had the pleasure of attending a US Congressional Candidate Forum for District 19 last night. I’m not going to say what state I live in, nor the names of the people running for office. I will make up names for them that better exude their personality or my impression of them. The following are my thoughts on the questions and their answers.

There were 8 candidates on stage last night. We had a Mitt Romney Wannabe, a Lawyer Kid, a Guy They Say doesn’t have a Chance, a Bean Counter from Washington, a Mitt Romney Wannabe #2, a Duck Phillips, a Formerly Libertarian Leaning Radio Show Host, and a Democrat. 7 of the 8 people on stage are running in the Republican Primary for US Congressional Seat 19 in our district, the last guy is the only Democrat running for the seat.

They were asked a series of questions off of the GOOOH questionnaire, and a series of questions from the audience. I submitted three questions, and none were asked. Boo. They were asked the questions, and then they had to hold up a red or green sign whether they were for or against the topic.

The first question was “Would you support any legislation that would alter the promise made to those 55 and up when it comes to their Social Security benefits?”.  All but one said “No”. That is “No” to privatizing, “No” to voluntary disassociation, “No” to raising the cap, “No” to lowering benefits. The Formerly  Libertarian Leaning Radio Show Host was the only one that said we have a $16 trillion dollar debt, and was the only one that would say that we had to look at everything on the table. I can respect that. I submitted a question to be asked, that wasn’t, “Is Social Security a Ponzi scheme?” The way that Social Security is run right now, it’s relying on the forced confiscation of wealth earned by tax payers in the form of FICA withholdings on their paychecks. The Congressional Budget Office estimates that Social Security will run out of money and be in perpetual RED in as little as 2016. The last time I looked at the calendar, it’s 2012. So, in an effort to garner the votes and campaign donations from the nearly 300 people in attendance, they said “No, I would rather let the Social Security bankrupt our country instead of tell you the truth”.

The second question was “Would you support any legislation that would alter, remove, abolish the Tax Code as it stand now and replace it with a flat tax or the FairTax?” All Greens on stage. The Lawyer Kid said basically that he supports a flat tax and the FairTax is dangerous. The FairTax is a 194 page legislation, but takes an over 400 page book to explain. That is not even remotely true. The FairTax legislation is 133 pages as written today, the book written by Neal Boortz and Congressman John Linder is  188 pages, that includes the Table of Contents and the Index in the back. He said it was dangerous because we don’t know what it will do, but it is wholly acceptable to support a flat tax, even thought that only adds to the complexity of the 3 million word, 76,000 page Tax Code we currently have today. He was saying that it is wholly acceptable to only tax producers in our economy. He was saying that is wholly acceptable to continue to have the world’s highest corporate tax rate. He was saying that it is wholly acceptable to keep the IRS to track you down and put you in a cage if you make a mistake on your tax forms and point a gun at you and force you to pay your taxes in weekly withholdings, whether you can afford it or not. He completely misunderstood and misrepresented the FairTax, where there are no corporate taxes, where you don’t have to file taxes, where you keep 100 percent of your income and investments. Only The Guy They Say Doesn’t Have a Chance said that the FairTax returns the tax system to the original constitutional restrictions and treats everyone equally, removes loop holes and lobbyists. The rest of them basically said, “Yeah, pander, pander, pander.” No solutions, nothing. If we want to get serious in this country about the economy, about jobs, about the future, we have to look at a solution that is simple and makes sense that also takes power out of the hands of government and returns it to the people. The FairTax is that solution. If only these people on stage would stand behind it, they promise “To fight for you!” Bull, show me by supporting legislation that will get the government out of my finances, out of my pay check and won’t throw me in jail if I don’t understand something with 76,000 pages and 3,000,000 words.

Later the question was asked, “Would you support any efforts to use legislation to decriminalize marijuana?” Now, I’m going to be as honest as I can, even though I’m writing on the Internet where nothing is true yet everything is believable. I have never smoked marijuana. I have never put any drugs into my body other than alcohol, caffeine, and medications. It’s not something that appeals to me. But, I am a warrior for freedom. I am a defender of liberty. And when I heard this question last night, I thought “Finally! A question that actually has value!” Nope. These so-called liberty-loving Republican candidates said “NOPE”. The Repubs all raised the red flag of the War on Drugs. The Lawyer Kid said “It’s a gateway drug, it’s dangerous, I don’t want kids smoking it and also there is this thing in the Constitution called the Commerce Clause, so yeah, I don’t think it’s a good idea.” The rest of them parroted his sentiments. Even though I know at least one of them on that stage has smoked before. “Commerce Clause??” Really? If the user grows the plant themselves, in their own garden, on their own property, and uses it in their own home, while consenting to administering the smoke of some sort of vegetation into his or her own body and THAT is enough justifiable reason for the imperial federal government to reach into your home and yank you out and put you into a cage?

“Article I, Section 8, Clause 3: [The Congress shall have Power] To regulate Commerce with foreign Nations, and among the several States, and with the Indian tribes”

Where does it say that they have the authority to do so? These people, these men, these human beings, are appealing to us, the audience, the voters, more human beings, for  the authority and permission to hire men with guns to tell us how we are allowed to live. Don’t ever forget that. These holier than thou, righteous men want the power to tell you what you must do, what you are not allowed to do in your own home.

“IV Amendment of the Constitution: The right of the people to be secure in their persons, houses, papers, and effects, against unreasonable searches and seizures, shall not be violated.”

I’m sorry, but that is just wrong. And the worst part, the audience applauded them. Freedom dies every time the audience applauds unjust laws. They got us into $16 Trillion in debt, the “War on Drugs” has cost us a trillion dollars. After 40 years of this, even U.S. drug czar Gil Kerlikowske concedes the strategy hasn’t worked. “In the grand scheme, it has not been successful, forty years later, the concern about drugs and drug problems is, if anything, magnified, intensified.” We have already tried the whole prohibition thing, it doesn’t work. Violent cartels are making hundreds of millions, we are paying hundreds of millions to imprison hundreds of thousands for victimless crimes, we paying billions in a “war effort” that doesn’t make sense. If someone has a drug problem, they can be treated just like someone with an alcohol problem. If they are caught driving while intoxicated, treat them the same as with alcohol. The whole supply/demand paradigm works with drugs too, the demand is still there today, after forty years, but supplies are scarcer due to the black market effect and it raises the cost. If you increase the risk, you increase the cost. As the costs go up, but demand stays the same, the risk taking to get the money to purchase the product goes up, thus crime, violent crime. That is what should be punished and that is what would go down. Market forces would reduce the prices of the goods; reduce the crimes inherent in procuring the goods, tax dollars won’t go to waste in incarcerations. debt goes down.

If the thought that if it is dangerous and therefore should be outlawed is true, the candidates should have proposed to outlaw cotton candy, hamburgers and alcohol, among everything else in life. Too much of anything is bad for the body, the best way to reduce its use is through education and not more guns and more political power.

This Lawyer Kid and the rest of them are just pandering to the masses, while trying to sound strong, and in effect, trample on the Constitution, our Rights, they are treating us adults as children. We have brains, we can think, we don’t need a government to make decisions for us, and these people are trying to get the power to do so.

They asked a bunch more questions, like about ending the Federal Reserve, they all send “No”. “We need market stability” and crap like that. As if the market was worse prior to the Fed, fiat currency and so forth.

I walked away with more disgust in my stomach than anything else. They were cheered; it was like those in the audience didn’t even listen to them. “Yay! Take more of my rights away!” Remember the old saying “One man’s trash is another man’s treasure”? It’s the same thing with rights, just because you don’t use all of your rights, there might be someone else that does. Just because you don’t value some of your rights, doesn’t mean that there is another person’s freedoms being trampled on, and if their freedoms are being trampled on, so are yours.

This primary season and this November, please remember to vote on principles. Vote on what your heart tells you. Read the Constitution and vote down the line on what the Constitution authorizes and nothing else. These people last night, if elected, will get to vote on hundreds of issues over their time in office. They are promising you that they will vote on principles when they get there. You do the same. The way I see it, if they get to vote 100 times in Congress, and you only get to vote for them once, you have to make a decision that is 100 times more principled than theirs’. If everyone does the same, we might actually be able to vote a better class of people into Washington and have a better, freer future of us and our children. As for the Republican Party, I wished they learned from their mistakes from the past instead of repeating it like they did last night.

The tiny town of Lakota, N.D., is quickly becoming a key testing ground for the legality of the use of unmanned drones by law enforcement after one of its residents became the first American citizen to be arrested with the help of a Predator surveillance drone.

The bizarre case started when six cows wandered onto Rodney Brossart’s 3,000 acre farm. Brossart, an alleged anti-government “sovereignist,” believed he should have been able to keep the cows, so he and two family members chased police off his land with high powered rifles.

After a 16-hour standoff, the Grand Forks police department SWAT team, armed with a search warrant, used an agreement they’ve had with Homeland Security for about three years, and called in an unmanned aerial vehicle to pinpoint Brossart’s location on the ranch. The SWAT team stormed in and arrested Brossart on charges of terrorizing a sheriff, theft, criminal mischief, and other charges, according to documents.

Brossart says he “had no clue” they used a drone during the standoff until months after his arrest.

CONTINUED at US News.

AT&T has confirmed that the Nokia Lumia 900 Windows Phone will be available on April 8th. For $99. No, there is not a number missing.

For a shit-hot LTE smartphone running the objectively beautiful Windows Phone OS, $100 with a two-year contract is an absolute steal.

We first got our hands on the Lumia 900 a few months ago, and we loved it. The big question remained when we would actually see it in the US and what it would cost us. At $100, it’s a ridiculous bargain considering just over a month ago, Nokia started offering the Lumia 800—which isn’t LTE—as a crazy $800 bundle. If you held out for the Lumia 900, your patience has been rewarded. [CNET]

Source: Gizmodo.

U.S. consumers may be able to ignore continued warnings about economic and political instability by avoiding the news and burying their heads in the sand when water cooler conversations pop up, but what they will not be able to ignore is paying $40 more every time they pump gas into their minivans.

According to oil industry insider and former Shell CEO John Hoffmeister, that’s exactly what we can expect this year.

In an interview with CNBC, Hoffmeister warned that the price of oil will continue to rise amid increasing global demand from emerging economies, tensions in the middle east, and a weakening dollar, causing the price of gas to jump to $5 per gallon before the end of this year:

Via The Daily Crux and Economic Policy Journal:

Get ready to pay $5 a gallon for gasoline this year.

ohn Hofmeister, founder of Citizens for Affordable Energy and the former CEO of Shell Oil’s U.S. operations, warned that there is a “better than 50 percent chance” the price of gas will spike on continued heavy demand in emerging markets and weak public policy at home.

He also sees West Texas crude prices touching “the midteens to $120 a barrel some time this year.”

“What’s really unprecedented is developing countries, particularly China and India, have this insatiable need for more oil and that has not been taken into account when we think of public policy in this country,” he said.

“So while we may be producing a bit more oil in this country, and while demand is down a bit, on a global basis I’m afraid we face a continuing onslaught of prices creeping ever higher,” he said. “I hope I’m wrong on this. I’d love to be wrong on this.”

Source: MSNBC

Some of you may recall what happened the last time gas jumped to all-time highs averaging $4 across the country in the summer of 2008:

CONTINUED at SHTF Plan.

A combination of several factors, including a declining dollar and the Federal Reserve’s announcement that it would keep interest rates at virtually zero until late 2014, helped to send gold and silver prices soaring to multi-week highs. Analysts expect the upward trend to continue as paper currencies founder and gloomy news continues to dominate the economic headlines.

The spot price for gold was around $1,725 by 2 p.m. Eastern time after jumping more than $60 since the day before, up almost 30 percent from a year ago and more than 7.5 percent over the last 30 days. It smashed through $1,700 on Wednesday for the first in six weeks.

“At the moment everything points to even higher prices, given the strong risk appetite, the better mood among market players, the strong equity markets and the weak dollar,” Commerzbank analyst Daniel Briesemann told Reuters.

Analysts said the single most important factor behind gold’s strong rally was the Federal Reserve. On Wednesday, the privately owned central bank promised to keep short-term interest rates at rock bottom until late 2014, extending the date from its previous pledge to keep rates down until mid-2013.

Also bullish for gold — and bearish for the U.S. dollar, of course — was Fed boss Ben “helicopter” Bernanke’s veiled threat to unleash more so-called “Quantitative Easing,” known in simpler terms as creating new “money” out of thin air and pumping it into the economy by purchasing bonds. The dollar immediately took a hit against other major currencies.

“The framework makes very clear that we need to be thinking about ways to provide further stimulus if we don’t get improvement in the pace of recovery and a normalization of inflation,” Bernanke said during a quarterly news conference after the Fed’s report was released. Analysts and central bank critics, already concerned about massive monetary “easing” in recent years, lambasted the idea that more money would solve the economic problems plaguing America.

“If the Federal Reserve thought the economy was improving, it wouldn’t need this artificial prop to keep sustaining it,” said Euro Pacific Capital head Peter Schiff, noting that wild money printing was helping to drive the nation and its economy off a cliff. “The President and the Federal Reserve are now conspiring to create a much bigger crisis.”

The Fed claimed it would be targeting a 2-percent rate of annual inflation for 2012. However, few analysts take the government’s “Consumer Price Index” (CPI) measure of inflation seriously — especially as Core CPI, one of the most frequently cited figures, omits price increases in key sectors like food and energy.

According to Schiff, the government’s claim based on CPI that inflation for 2011 was 3 percent is completely bogus. It was actually much higher, he said, noting that officials were using phony measures like the CPI to mask the true rate of inflation. And it is likely to be even higher in 2012 before eventually morphing into a full-blown currency and debt crisis in the coming years.

“The reason they have to keep [interest rates] so low is to artificially support a phony economy,” Schiff explained. “This economy is a disaster waiting to happen — the only thing standing between us and economic Armageddon is zero-percent interest rates.”

But it can’t go on forever, and the longer rates are kept so low, the worse the looming crisis will be. For now, Schiff, whose business trades gold and silver, said investors should protect their assets by purchasing precious metals “before the price goes any higher.”

An analysis by Bloomberg published on Wednesday showed that gold — which has increased every year for more than a decade — provided the best return on investment over the last five years when adjusted for volatility. And heavy-hitting financial firms cited in the report including Goldman Sachs and Morgan Stanley are forecasting that gold prices will keep rising to around $2,000 in 2012 or 2013.

“People are still very under-invested in gold, and so there is a huge scope of that increasing,” explained UniCredit analyst Jochen Hitzfeld, the most accurate precious-metals forecaster tracked by Bloomberg over the past two years. Other experts noted that gold is widely and accurately perceived as a safe-haven in times of economic turmoil.

While gold prices have been extraordinarily volatile — spot prices hit $1,923 in September before crashing to $1,523 by the end of 2011 — the longer-term rally has so far been relatively consistent over the past decade. Just 10 years ago, gold was worth less than $300 per ounce.

Silver, which has also seen drastic price fluctuations, was less than $5 per ounce 10 years ago. In 2011, it surged to an all-time high of around $50 before dropping back down to about $33.35 today. The U.S. dollar, meanwhile, has not been doing so well — even when measured against other depreciating paper currencies.

Even billionaire investor George Soros, whose well-publicized sale of some 99 percent of his gold holdings during the first quarter of 2011 spooked precious-metals investors, has jumped back into the market. According to Securities and Exchange Commission (SEC) filings cited by Bloomberg, the hedge-fund manager had increased his stake in SPDR Gold Trust, an exchange-traded fund tracking gold prices, to almost 50,000 shares as of September 30.

Central banks around the world were also buying up multi-ton quantities of gold bullion, according to data cited in news reports. And the trend shows no signs of slowing down.

In other bullish news for the precious metal, unconfirmed reports indicate India has started purchasing oil from Iran using gold rather than U.S. dollars. China could follow, too, according to news reports.

“It shows the exodus from the dollar is gaining speed,” noted precious-metals and currency trader Simit Patel on the investment analysis site Seeking Alpha. “With the major economies of the world facing $7.6 trillion in bond payments due this year, I think the tipping point for a shift out of dollars and into a new monetary system backed by gold is not as far off as it may seem.”

With the steep drop in prices during the last few months of 2011, some analysts and traders were reluctant to get back in the precious-metals market before the appearance of a solid bottom had solidified. But the big banks and respected analysts are forecasting that as long as the fundamentals — out-of-control money printing, sovereign-debt crises, wild government spending, and more — remain the same, gold and silver prices could see massive gains in 2012.

Source: New American.

Gold’s London AM fix this morning was USD 1,675.00, GBP 1,076.55, and EUR 1,294.94 per ounce.

Friday’s AM fix was USD 1,646.00, GBP 1,064.68, and EUR 1,274.29 per ounce.

Cross Currency Table – Bloomberg

Gold has risen in all currencies today and bullion up nearly 1 % to $1,675/oz. Gold rose 1.7% last week has risen more than 6% so far this year.

Gold jumped to its highest in more than a month as result of the uncertainty over of the Greek debt outcome and the growing geopolitical tensions with Iran and the US and Nato countries.

The Iranian geopolitical tension is supporting gold as Britain, America and France have delivered a clear message to Iran, sending six warships led by a 100,000 ton aircraft carrier through the highly sensitive Strait of Hormuz.

Reuters report that the EU has agreed to freeze the assets of the Iranian central bank and ban all trade in gold and other precious metals with the Iranian Central Bank and other public bodies in Iran.

According to IMF data, at the last official count (in 1996), Iran had reserves of just over 168 tonnes of gold. The FT reported in March 2011 that Iran has bought large amounts of bullion on the international market to diversify away from the dollar, citing a senior Bank of England official.

Currency wars continue and are deepening.

Many Asian markets are closed for the Lunar New Year holiday which has led to lower volumes.

Of note was there was an unusual burst of gold futures buying on the TOCOM in Japan, which has helped the cash market to breach resistance at $1,666 an ounce.

Investors are also waiting for euro zone finance ministers to decide the terms of a Greek debt restructuring later today.  This would be the second bailout package for Greece.

The risk of contagion in Eurozone debt and wider markets is leading to continued safe haven demand for gold.

Reuters Global Gold Forum

Silver surged 8% last week and is up nearly 20% so far in 2012 – thereby outperforming the other precious metals and nearly all assets.

Silver cut through resistance at $31 like knife through butter on Friday. Next resistance is $33 then and $35 and then the big $50.

Increasing speculation that the Fed will soon embark on another round of quantitative easing or QE3 is also supporting the precious metals and confirmation of QE3 could see gold reach $1,700/oz in short order.

Source: Prison Planet.

Written by Murray N. Rothbard.

The Austrian theory of money virtually begins and ends with Ludwig von Mises’s monumentalTheory of Money and Credit, published in 1912.[1] Mises’s fundamental accomplishment was to take the theory of marginal utility, built up by Austrian economists and other marginalists as the explanation for consumer demand and market price, and apply it to the demand for and the value, or the price, of money. No longer did the theory of money need to be separated from the general economic theory of individual action and utility, of supply, demand, and price; no longer did monetary theory have to suffer isolation in a context of “velocities of circulation,” “price levels,” and “equations of exchange.”

In applying the analysis of supply and demand to money, Mises used the Wicksteedian concept: supply is the total stock of a commodity at any given time; and demand is the total market demand to gain and hold cash balances, built up out of the marginal-utility rankings of units of money on the value scales of individuals on the market. The Wicksteedian concept is particularly appropriate to money for several reasons: first, because the supply of money is either extremely durable in relation to current production, as under the gold standard, or is determined exogenously to the market by government authority; and, second and most important, because money, uniquely among commodities desired and demanded on the market, is acquired not to be consumed, but to be held for later exchange. Demand-to-hold thereby becomes the appropriate concept for analyzing the uniquely broad monetary function of being held as stock for later sale. Mises was also able to explain the demand for cash balances as the resultant of marginal utilities on value scales that are strictly ordinal for each individual. In the course of his analysis Mises built on the insight of his fellow Austrian Franz Cuhel to develop a marginal utility that was strictly ordinal, lexicographic, and purged of all traces of the error of assuming the measurability of utilities.

The relative utilities of money units as against other goods determine each person’s demand for cash balances, that is, how much of his income or wealth he will keep in cash balances as against how much he will spend. Applying the law of diminishing (ordinal) marginal utility of money and bearing in mind that money’s “use” is to be held for future exchange, Mises arrived implicitly at a falling demand curve for money in relation to the purchasing power of the currency unit. The purchasing power of the money unit, which Mises also termed the “objective exchange-value” of money, was then determined, as in the usual supply-and-demand analysis, by the intersection of the money stock and the demand for cash balance schedule. We can see this visually by putting the purchasing power of the money unit on the y-axis and the quantity of money on the x-axis of the conventional two-dimensional diagram corresponding to the price of any good and its quantity. Mises wrapped up the analysis by pointing out that the total supply of money at any given time is no more or less than the sum of the individual cash balances at that time. No money in a society remains unowned by someone and is therefore outside some individual’s cash balances.

CONTINUED at the Ludwig von Mises Institute.

Meet the Brossarts, a North Dakota family deemed so dangerous that the local sheriff needed unleashed an unmanned Predator drone to help bring them in.

The Brossart’s alleged crime? They wouldn’t give back three cows and their calves that wandered onto their 3,000-acre farm this summer.

The same aerial vehicles used by the CIA to track down and assassinate terrorists and militants in Pakistan and Afghanistan are now being deployed by cops to spy on Americans in their own backyards.

The Brossarts are the first known subjects of the high-flying new surveillance technology that the federal government has made available to some local sheriffs and police chiefs – all without Congressional approval or search warrants.

Local authorities say the Brossarts are known for being armed, anti-government separatists whose sprawling farm is used as a compound. Rodney Brossart, 55, and his wife Susan live in a house and a trailer and two RVs with seven of their eight adult children.

When the cattle wandered onto the Brossarts’ land, Sheriff Kelly Janke, who patrols a county of just 3,000 people, rounded up some sheriff’s deputies and arrested Mr Brossart for failing to report the stray livestock.

They also took away his daughter, Abby, after she allegedly hit an officer during the arrest.

When cops returned to collect the lost cattle, three of Brossart’s sons – Alex, Jacob and Thomas – confronted Sheriff Janke with rifles and shotguns and would not allow officers on the farm.

CONTINUED at the Daily Mail.

An acute butter shortage in Norway, one of the world’s richest countries, has left people worrying how to bake their Christmas goodies with store shelves emptied and prices through the roof.

The shortfall, expected to last into January, amounts to between 500 and 1,000 tonnes, said Tine, Norway’s main dairy company, while online sellers have offered 500-gramme packs for up to 350 euros ($465).

The dire shortage poses a serious challenge for Norwegians who are trying to finish their traditional Christmas baking — a task which usually requires them to make at least seven different kinds of biscuits.

The shortfall has been blamed on a rainy summer that cut into feed production and therefore dairy output, but also the ballooning popularity of a low-carbohydrate, fat-rich diet that has sent demand for butter soaring.

“Compared to 2010, demand has grown by as much as 30 percent,” Tine spokesman Lars Galtung told AFP.

Last Friday, customs officers stopped a Russian at the Norwegian-Swedish border and seized 90 kilos (198 pounds) of butter stashed in his car.

Source: Times Live.