Start Hoarding Donuts: The FDA Is Banning Trans Fats

Not again!We probably should have seen it coming. After
places like New York and California instituted trans fat bans, it
was only a matter of time until it went national. The Food and Drug
Administration is going to force food manufacturers to dump
artificial trans fats. Via the
Associated Press
:

The FDA planned to announce Thursday it will require the food
industry to gradually phase out all trans fats, saying they are a
threat to people’s health. Commissioner Margaret Hamburg said the
move could prevent 20,000 heart attacks and 7,000 deaths each
year.

Hamburg said that while the amount of trans fats in the
country’s diet has declined dramatically in the last decade, they
“remain an area of significant public health concern.” The trans
fats have long been criticized by nutritionists, and New York and
other local governments have banned them.

The agency isn’t yet setting a timeline for the phase-out, but
it will collect comments for two months before officials determine
how long it will take. Different foods may have different
timelines, depending how easy it is to find a substitute.

“We want to do it in a way that doesn’t unduly disrupt markets,”
says Michael Taylor, FDA’s deputy commissioner for foods. Still, he
says, the food “industry has demonstrated that it is by and large
feasible to do.”

If they don’t want to unduly disrupt markets they could always
just opt not to. As is typical of this sort of behavior, it’s going
to have a bigger impact on your neighborhood family-run bakery than
it will on big chains like Dunkin’ Donuts. Dunkin’ popped to mind
because they’re just now breaking into the California market, and
the local media is all over it right now.
Dunkin’ Donuts
started voluntarily dumping trans fats in 2007,
which required them to reformulate more than 50 menu items. A big
chain like them can manage the transition just fine. But back when
California instituted a ban, some smaller bakeries
reported
they’d have to raise prices as the ban both increased
production costs and also reduced shelf life of their goods. Back
around that same time a piece in The Atlantic explored
the challenges of replacing trans fats and noted the challenges for
certain types of baked goods.

Dunkin’ Donuts replaced their trans fats with saturated fats
(read their nutritional guide
here
), which is another fat with a bad reputation. But in
October, a British medical journal argued that the
war on saturated fat
was misguided, and it was being blamed for
heart problems that were likely being caused by carbs and
sugar.

The FDA acknowledges that trans fat consumption has already
dropped significantly in the past decade so mandating it is
necessary why exactly? The Associated Press notes:

Though they have been removed from many items, the fats are
still found in processed foods, including in some microwave
popcorns and frozen pizzas, refrigerated doughs, cookies and
ready-to-use frostings. They are also sometimes used by restaurants
that use the fats for frying. Many larger chains have phased them
out, but smaller restaurants may still get food containing trans
fats from suppliers.

It may end up being yet another barrier to entry for smaller
restaurants and producers to compete against established
chains.

More Reason on trans fat bans and other food police behavior
here.

If that’s not enough, Hank Hill can explain it
all
for you.

from Hit & Run http://reason.com/blog/2013/11/07/start-hoarding-donuts-the-fda-is-banning
via IFTTT

Start Hoarding Donuts: The FDA Is Banning Trans Fats

Not again!We probably should have seen it coming. After
places like New York and California instituted trans fat bans, it
was only a matter of time until it went national. The Food and Drug
Administration is going to force food manufacturers to dump
artificial trans fats. Via the
Associated Press
:

The FDA planned to announce Thursday it will require the food
industry to gradually phase out all trans fats, saying they are a
threat to people’s health. Commissioner Margaret Hamburg said the
move could prevent 20,000 heart attacks and 7,000 deaths each
year.

Hamburg said that while the amount of trans fats in the
country’s diet has declined dramatically in the last decade, they
“remain an area of significant public health concern.” The trans
fats have long been criticized by nutritionists, and New York and
other local governments have banned them.

The agency isn’t yet setting a timeline for the phase-out, but
it will collect comments for two months before officials determine
how long it will take. Different foods may have different
timelines, depending how easy it is to find a substitute.

“We want to do it in a way that doesn’t unduly disrupt markets,”
says Michael Taylor, FDA’s deputy commissioner for foods. Still, he
says, the food “industry has demonstrated that it is by and large
feasible to do.”

If they don’t want to unduly disrupt markets they could always
just opt not to. As is typical of this sort of behavior, it’s going
to have a bigger impact on your neighborhood family-run bakery than
it will on big chains like Dunkin’ Donuts. Dunkin’ popped to mind
because they’re just now breaking into the California market, and
the local media is all over it right now.
Dunkin’ Donuts
started voluntarily dumping trans fats in 2007,
which required them to reformulate more than 50 menu items. A big
chain like them can manage the transition just fine. But back when
California instituted a ban, some smaller bakeries
reported
they’d have to raise prices as the ban both increased
production costs and also reduced shelf life of their goods. Back
around that same time a piece in The Atlantic explored
the challenges of replacing trans fats and noted the challenges for
certain types of baked goods.

Dunkin’ Donuts replaced their trans fats with saturated fats
(read their nutritional guide
here
), which is another fat with a bad reputation. But in
October, a British medical journal argued that the
war on saturated fat
was misguided, and it was being blamed for
heart problems that were likely being caused by carbs and
sugar.

The FDA acknowledges that trans fat consumption has already
dropped significantly in the past decade so mandating it is
necessary why exactly? The Associated Press notes:

Though they have been removed from many items, the fats are
still found in processed foods, including in some microwave
popcorns and frozen pizzas, refrigerated doughs, cookies and
ready-to-use frostings. They are also sometimes used by restaurants
that use the fats for frying. Many larger chains have phased them
out, but smaller restaurants may still get food containing trans
fats from suppliers.

It may end up being yet another barrier to entry for smaller
restaurants and producers to compete against established
chains.

More Reason on trans fat bans and other food police behavior
here.

If that’s not enough, Hank Hill can explain it
all
for you.

from Hit & Run http://reason.com/blog/2013/11/07/start-hoarding-donuts-the-fda-is-banning
via IFTTT

Gold Below EUR 1,000/oz – ECB To 0.25%, QE And Negative Deposit Rates?

Today’s AM fix was USD 1,316.00, EUR 973.45 and GBP 818.46 per ounce.
Yesterday’s AM fix was USD 1,317.00, EUR 975.05 and GBP 817.66 per ounce.

Gold climbed $6.40 or 0.49% yesterday, closing at $1,317.20/oz. Silver climbed $0.10 or 0.46% closing at $21.78. Platinum rose $13.25 or 0.9% to $1,460.99/oz, while palladium rose $13.50 or 1.8% to $751.50/oz.


Gold in Euros, 30 Day – (Bloomberg)

Today, all eyes are on the ECB rate decision. The ECB is expected to leave rates unchanged at 12:45 GMT (7:45 EDT), but may indicate that it will reduce rates soon which would be gold supportive, particularly in euro terms.

Gold in euro terms is down 23.4% year to date. It appears to be consolidating between EUR 900/oz, the low on June 28th and EUR 1,100/oz, gold’s high back in late May. A signal from the ECB that it is going to loosen monetary policies even further could be the spark that gold needs to help prices get momentum to the upside again.

There is increasing pressure on the ECB, particularly from the banking sector, to adopt the ultra loose monetary policies being pursued and experimented with by the Federal Reserve. Policies, incidentally, which have not succeeded in reviving the moribund U.S. economy.

This pressure and a lack of inflation today may lead the ECB to signal that they intend reducing interest rates from 0.5% soon. They may also consider adopting even more radical monetary policies involving  quantitative easing (QE) or the creation of euros in order to buy or monetise government debt as the U.S. is doing with their $85 billion a month bond buying programme.

An even more radical option of negative deposit rates is also being considered. There are suggestions that the ECB is considering charging banks for depositing their reserves with the ECB by imposing a negative deposit rate.

Many banks would then pass on this negative rate to depositors meaning that extremely low yielding deposit instruments could become negative and actually cost depositors money.


Gold in Euros, 3 Year – (Bloomberg)

Expectations the ECB would cut its 0.5 refinancing rate rose last week after official figures showed a fall in euro zone inflation.  Citizens in most European nations would likely question the figures as the real world experience of people in most European countries is of rising prices. 

Draghi’s news conference, when he may prepare the ground for a cut in December, is at 13:30 GMT.


World Currency Ranker, Euro in G10 and Gold, Year To Date – (Bloomberg)

If the ECB suggest that they will reduce rates to a new record low of 0.25%,  this would put pressure on the euro and lead to higher prices in gold terms.

In dollar terms, the euro remains above strong chart support at $1.3462 from a trendline drawn from lows hit in early July. Technical analysts say a break below this line could lead to further losses for the euro, which only last week traded as high as $1.38 before the weak inflation data.

The euro will come under pressure if Draghi signals the possibility of negative deposit rates.

As soon as the ECB rate decision is over, attention will move to Friday’s U.S. jobs number. A poor jobs number tomorrow, should see gold rise on safe haven buying due to concerns about the struggling U.S. economy. A weaker economy will likely lead to a continuation of ultra loose monetary policies.

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via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/YqWxOhAXP1s/story01.htm GoldCore

Twitter Opens At $45.10 (+73%); Trades Up To $48 (+84%)

+73% at the open… HFT activity is extreme

 

 

 

For now TWTR has reached $47.23…


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/NCX7IvBAoMI/story01.htm Tyler Durden

And The Latest Firm Under Investigation For Currency Manipulation Is… Goldman

With JPM having stolen the spotlight for every possible instance of fraud and market manipulation in the past year, it was easy to forget there are other prominent banks that engage in precisely the same deceptive practices as, well, everyone else. One such prominent bank is none other than everyone’s old favorite bloodthirsty mollusc, Goldman Sachs, which in a filing reported that “currencies and commodities were added to a list of financial products and related activities that are subject to investigation. The filing also added options trading and technology systems and controls to the list.” So, pretty much everything is being investigated.

Bloomberg reports that “Investigators are looking at the firm’s “trading activities and communications in connection with the establishment of benchmark rates,” Goldman Sachs said in the filing. The company “is cooperating with all such regulatory investigations and reviews.”

As noted above, Goldman is merely the latest bank to join pretty much everyone else, who is now under investigation.

At least eight banks including Citigroup Inc. (C) and JPMorgan Chase & Co. (JPM) have said they are being investigated by authorities examining the $5.3 trillion-a-day foreign-exchange market and are co-operating. Citigroup, JPMorgan and Barclays Plc (BARC) have suspended or put on leave some of their most senior currency traders amid the inquiry. No one has been accused of wrongdoing.

 

The U.S. Federal Reserve is examining legal and regulatory exemptions that have allowed banks including Goldman Sachs to trade and own raw materials such as oil, coal and metals, a person with knowledge of the matter said last month.

None of this should be surprising. What should, however, come as a big shock is that while JPM reported it has not had one trading loss either in Q3 or all of 2013 to date, Goldman just announced it lost money on a far more realistic 23% of all trading days, or 15 of 64, in the quarter.

It seems that unlike JPM, Goldman is taking the government’s fraud investigations seriously.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/VAWuuDer0JU/story01.htm Tyler Durden

Never Call the Cops Unless You Want Someone Killed: Iowa Man Reports Truck His Teen Son Took as Stolen, Police Kill Teen Son

Never, never call the cops unless you are ready for the
situation to end with someone shot to death: a bitter lesson
learned by James Comstock, whose teen son Tyler was shot to death
Monday on the campus of Iowa State University.

The
details from Des Moines Register
:

James Comstock refused to buy a pack of cigarettes for his
19-year-old son, Tyler, and now he’s planning his son’s
funeral.

“He took off with my truck. I call the police, and they kill
him,” James Comstock told The Des Moines Register on Tuesday. “It
was over a damn pack of cigarettes. I wouldn’t buy him none.

“And I lose my son for that.”

Comstock said he’s outraged police shot and killed his son
Monday morning on Iowa State University’s campus.

Police began pursuing Tyler Comstock of Boone after his father
reported the truck stolen. The truck belonged to a lawn care
company.

Ames Police Officer Adam McPherson pursued Comstock into the
heart of ISU’s campus. During the chase, Comstock rammed
McPherson’s car. The truck eventually stopped, but Comstock revved
the engine and refused orders to turn it off.

McPherson fired six shots into the truck. Comstock died from two
gunshot wounds, according to the Iowa state medical examiner’s
office.

James Comstock said his son was not carrying a weapon.

During the chase, an unidentified Ames police staffer twice
suggested that police back off their pursuit, according to dispatch
audio obtained by the Register through a third-party
service. Audio: Listen
to dispatchers and officers during the pursuit

The audio linked to above is illuminating; the police
knew from their own audio that it was a family
dispute leading to a kid grabbing dad’s truck, not a car theft
desperado on the loose.

Undoubtedly, a more sensible person would not have done what
Comstock did — assuming the officers story is true, he does say it
on police audio, claimed Comstock “backed up into my vehicle.”

A voice of reason on the police channel points out, hey, if
Comstock is being that reckless in regard to police attempts to
stop him, maybe the safest thing to do is back off. “We know the
suspect,” the voice points out. “We can probably back it off.”

Regardless, the use of lethal force on someone for cop-defiance
and traffic violations should, to put it mildly, happen less
often.

from Hit & Run http://reason.com/blog/2013/11/07/never-call-the-cops-unless-you-want-some
via IFTTT

NASDAQ, Pink Sheets Break; US Equity Markets Dump

With everyone’s attention focused on TWTR’s release and following this morning’s insta-lift from Draghi’s surprise, US equity markets are falling fast (led by Nasdaq weakness on moar momo failures) – reverting all the gains and some. While we fully expect more “self-help” declarations as the day wears on, IB has already released a statement that Pink Sheet stock market data will be unavailable until further notice… and that NASDAQ has disable direct routing for TWTR… what a mess…

 

 

 

Pink Sheets Break

 

NASDAQ Breaks


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/aO4uAjpx7wM/story01.htm Tyler Durden

Jacob Sullum on Crack Canards and Meth Myths

Growing
familiarity with marijuana has been accompanied by growing
support for legalization because people discovered through
personal experience that the government was lying to them about the
drug’s hazards. But it is easier to demonize less popular drugs
such as crack cocaine and methamphetamine, which in the public mind
are still linked, as marijuana once was, with addiction, madness,
and violence. Any attempt to question the use of force in dealing
with these drugs therefore must begin by separating reality from
horror stories, says Senior Editor Jacob Sullum, and that is where
Columbia neuropsychopharmacologist Carl Hart comes in.

View this article.

from Hit & Run http://reason.com/blog/2013/11/07/jacob-sullum-on-crack-canards-and-meth-m
via IFTTT

Goldman Cuts Q4 GDP Forecast To 1.5% From 2.0% On Q3 Inventory Buildup

What inventory boosts give in the current quarter, inventory lack of boosts take in future quarters. At least that is what Goldman’s Jan Hatzius just stated in his note summarizing not only the just released Q3 GDP, but his first Q4 tracking forecast, which he cut from 2.0% to 1.5%.

To wit:

BOTTOM LINE: GDP grew more quickly than expected in Q3, but the surprise came mainly from a larger-than-expected inventory contribution and a smaller-than-expected decline in government spending. Consumer spending and business fixed investment were less strong. Initial jobless claims declined as expected with no special distortions noted by the Labor Department. We started our Q4 GDP tracking estimate at 1.5%.


  • GDP grew at a faster-than-expected 2.8% rate in Q3 (vs. consensus +2.0%). Personal consumption expenditures?the largest component of GDP?rose a modest 1.5% (vs consensus +1.6%), with strong growth in goods consumption offset by meager growth in services consumption. Business fixed investment increased at a disappointing 1.6% rate, with a 3.7% decline in equipment investment. Offsetting slightly disappointing PCE growth and sluggish business fixed investment, inventory accumulation contributed eight-tenths to headline growth, while federal government spending posted a smaller-than-expected 1.7% decline. (Federal spending has tended to show some degree of residual seasonality in recent years, with stronger growth in Q2 and Q3, and weaker growth in Q1 and Q4.) In addition, residential investment – which reflects new construction with a lag – rose a solid 14.6%. Stripping out the contribution from inventory investment, real final sales increased at a moderate 2.0% pace.
  • In light of the composition of Q3 growth?driven by a substantial boost from inventories and a smaller-than-expected decline in government spending, we started our Q4 tracking at 1.5%, five-tenths below our prior assumption of 2.0%. Inventory investment tends to subtract from growth following quarters showing a positive contribution, while we expect the smaller-than-expected decline in Q3 government spending to result in even weaker Q4 spending than we had anticipated.

Which is great news for stocks: even more economic deterioration means even more BTFATH.


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/hWYmheG8an8/story01.htm Tyler Durden

Twitter Pricing Update: $42-46; Implied Company Value Rises To $31 Billion

It just gets better and better: TRADING RANGE: TWTR (NYSE): 42.0000-46.0000

As a reminder, at $44/share, Twitter’s valuation rises to $31 billion!


    



via Zero Hedge http://feedproxy.google.com/~r/zerohedge/feed/~3/VQvINGAMwEA/story01.htm Tyler Durden