Gold World News Flash

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• Volcker Says Waning U.S. Influence Endangers Dollar
• GoldSeek.com Radio Gold Nugget: CEO Brandon Rook of Batero Gold & Chris Waltzek
• It is Just a Matter of Time Before Gold Becomes Priceless! Here’s Why
• Kazakhstan: A Positive Climate for Gold
• Bundesbank joins Fed in demanding secrecy for gold swaps
• Eurasian Minerals Drills 30.8 Meters of 3.42 g/t Gold Oxide Mineralization at the Akarca JV Project, Turkey
• Direction of Gold, USD Index and U.S./Chinese Stock Markets
• VMS Ventures – Success in Potential Elephant Country
• Gold Seeker Closing Report: Gold and Silver Gain With Stocks While Dollar Falls
• Leaving America Redux: Sovereign Man's "Next Steps" Guide To Expats-In-Waiting
• The precious metals power higher
• Adrian Day: Another QE Blast Can't Kill Commodity Boom
• The Value of Gold
• Jeff Nielson: 'Shock and awe' in precious metals
• Jeff Nielson: 'Shock and awe' in precious metals
• In The News Today
• Gold is Poised to Explode
• Jim?s Mailbox
• Fed loaned hundreds of billions to foreign banks and companies
• James Turk: The precious metals power higher
• Fed officials say U.S. must address budget issues
• It is Just a Matter of Time Before Gold Becomes Priceless! Here’s Why
• Ben Bernanke: "My Head Hurts"
• Does the COMEX Have a December Silver Delivery Problem?
• As The Euro Goes The Way Of The Dodo, Where Does That Leave The Dollar?: Gonzalo lira
• Gold Price Reached a High of $1,396.53, No Doubt Resistance From the Hordes of Sellers Clustered Around $1,400
• Bernanke’s November Scorecard
• WEDNESDAY Market Excerpts
• Musings On The Market As Brazil Clown Ruled Eligible To Sit In Congress
• Buying Silver to Break JP Morgan
• LGMR: Gold Rises vs. US Dollar, Eases from Euro Record
• Surviving Inflation
• The Fed offers no safe harbor for paper bugs
• Long Bond And Crude Charts From Trader Dan
• After Chinese PMI Data and Euro Bank Comments, All Eyes on Commodities
• The SP 500, Gold, Oil, and the Banks - What a Conundrum
• Gold Explorers Positive Climate in Kazakhstan
• Bernanke’s November Scorecard
• Remembering November: QE2 vs. Bernanke’s Expectations
• MEP Nigel Farage - “They Will Turn to Violence”
• Gold Daily and Silver Weekly Charts
• Gold is Going to Become Priceless! Heres Why
• Everybody Loves Silver !
• China and Russia Trade Agreement: More than Meets the Eye
• Do Germans care that more than 2/3rds of their gold reserves are out of their reach?
• Euro, USD, Gold and Stock Index Analysis
• China Goes for Gold: Where Will Prices Go?
• Depleting Faith in Currency to Drive Gold Bull Run
• China to beat India in gold consumption
• Stocks S&P 500, Gold, Crude Oil and the Banks Trend Trading Forecasts

Volcker Says Waning U.S. Influence Endangers Dollar Posted: 01 Dec 2010 09:43 PM PST Dec. 1 (Bloomberg) -- Former Federal Reserve Chairman Paul Volcker, who is chairman of President Barack Obama's Economic Recovery Advisory Board, said the U.S. dollar is in danger of losing its role as a global benchmark currency.

GoldSeek.com Radio Gold Nugget: CEO Brandon Rook of Batero Gold & Chris Waltzek Posted: 01 Dec 2010 07:00 PM PST GoldSeek.com Radio Gold Nugget: CEO Brandon Rook of Batero Gold & Chris Waltzek

It is Just a Matter of Time Before Gold Becomes Priceless! Here’s Why Posted: 01 Dec 2010 06:30 PM PST MunKnee

Kazakhstan: A Positive Climate for Gold Posted: 01 Dec 2010 06:06 PM PST The following is an interview Jeff Clark, co-editor of Casey's International Speculator, conducted with Dr. Sergey Kurzin, a Casey Explorers' League honoree. The Explorers' League regularly inducts serially successful mine finders with at least three economic discoveries under their belts – a true accomplishment considering that most explorers don't even have one economic find throughout their careers.

Bundesbank joins Fed in demanding secrecy for gold swaps Posted: 01 Dec 2010 06:04 PM PST Germany's Bundesbank today joined the U.S. Federal Reserve in demanding secrecy for gold swap transactions involving those central banks. The Bundesbank brushed off 13 specific questions posed by the German journalist Lars Schall, whom GATA had encouraged to pose the questions. The first of the questions was: "Does the Bundesbank have gold swap arrangements with the United States / Federal Reserve?"

Eurasian Minerals Drills 30.8 Meters of 3.42 g/t Gold Oxide Mineralization at the Akarca JV Project, Turkey Posted: 01 Dec 2010 06:03 PM PST Eurasian Minerals Inc. (the "Company" or "EMX") (TSX-V:EMX - ESMNF.PK) is pleased to announce recent Akarca project drill results, including partial results from hole AKC-36 in the Arap Tepe zone that returned an oxide intercept of 30.8 meters averaging 3.42 g/t gold.

Direction of Gold, USD Index and U.S./Chinese Stock Markets Posted: 01 Dec 2010 05:19 PM PST Lorimer Wilson

VMS Ventures – Success in Potential Elephant Country Posted: 01 Dec 2010 04:54 PM PST Richard (Rick) Mills Ahead of the Herd As a general rule, the most successful man in life is the man who has the best information Volcanogenic massive sulphide (VMS) deposits typically occur as lenses of polymetallic massive sulphide and are major sources of zinc (Zn), copper (Cu), lead (Pb), silver (Ag) and gold (Au). There are almost 350 known VMS deposits in Canada and over 800 known worldwide. Historically they account for 27% of Canada’s Cu production, 49% of its Zn, 20% of its Pb, 40% of its Ag, and 3% of its Au. VMS deposits are estimated to have supplied over 5 billion tonnes of sulphide ore. This includes at least 22% of the world’s Zn production, 6% of the world’s Cu, 9.7% of the world’s Pb, 8.7% of its Ag, and 2.2% of its Au. VMS deposits consist of a massive to semimassive stratabound sulphide lens. Most are underlain by a sulphide-silicate stockwork vein system. Individual massive sulphide lenses can be ...

Gold Seeker Closing Report: Gold and Silver Gain With Stocks While Dollar Falls Posted: 01 Dec 2010 04:00 PM PST Gold rose to as high as $1396.74 in London before it fell to see a slight loss at $1382.10 by late morning New York, but it then rallied back higher in the last couple of hours of trade and ended with a gain of 0.15%. Silver climbed to $28.824 and dropped to $28.101 before it also rallied back higher and ended with a gain of 0.61%.

Leaving America Redux: Sovereign Man's "Next Steps" Guide To Expats-In-Waiting Posted: 01 Dec 2010 01:53 PM PST The musings of Simon "Sovereign Man" Black, whose prior post about leaving America as the only intelligent way to lead a noble fight against crony capitalism and a corrupt regime, provoked a very spirited conversation, received well over 20k reads, indicating this is a very sensitive topic to many potential expats currently on the fence about abandoning this once great country. Today, exclusively on Zero Hedge, we present Black's follow up thoughts on the topic of expatriation as the noble way of winning the fight with the "mob-installed government beast", by avoiding the fight entirely. For all those who are considering pulling the cord on abandoning an increasingly oppressive regime where the concept of liberty is now whispered about with the hushed tones of increasing nostalgia, here are some suggestions on what one's next steps may be. If nothing else, this should certainly engender another possibly combustible discussion on the benefits of passive versus active patriotism. (Incidentally, Black's daily musing from various known and unknown corners around the world are extremely informative and entertaining, and we suggest everyone who wishes to get an unbiased perspective of the world to subscribe to the Sovereign Man's free newsletter - link). From Simon Black of SovereignMan.com Writing today from Sydney, New South Wales, Australia Freedom, independence, and awareness are undoubtedly in decline in the western world, particularly the US.  In the last 10-days, Homeland Security has started seizing Internet domains from 'rogue' webmasters, and TSA has begun labeling dissenters of its new security procedures as domestic extremists. It's as if the government's actions are being ripped from Atlas Shrugged and 1984... and yet the trend, at least for now, is still more government control, fake security, and reduced freedom. Earlier this week I published a controversial article about the nature of patriotism. In the article, I suggested that when you find yourself increasingly isolated from your country's declining values, it's probably time to pack up and head somewhere else. Many people found this idea to be cowardly and weak. Obviously I believe the opposite to be true. One of the most difficult things you could ever do is pack up your life, leave everything familiar, and head to a new world full of uncertainty. Just about everyone reading this had ancestors who did just that. These were not cowards, they were pioneers; they were trading tyranny for opportunity, heading to a land full of bright prospects where they could carve out a life accountable for their own successes and failures. Granted, we have it easier today than our pioneering ancestors... but leaving behind the familiarity of home is still a difficult concept for most people to commit. It's like staying in a bad marriage or dead-end job... people do it because their paralyzing fear of the unknown is often greater than the routine misery to which they've already grown accustomed. Taking action requires a catalyst, and that's what we're experiencing today-- perhaps a mother who watches a government agent fondle her child, or an entrepreneur whose assets are wrongfully frozen, or a student who realizes that social security will no longer exist when she hits retirement age, etc. One by one, people will wake up and consider their options. "Stay and fight" is just a bombastic rallying cry of the institutionalized, not a real option.  The fact is, there is no enemy, there is no fight... there is only gradual erosion of freedom and opportunity. Unable to change what we cannot control, productive people will eventually reach a breaking point and leave. The "stay and fight" crowd who remain will congratulate themselves on their patriotism, chastise the "cowards" who have left, and resolve to go down with the mob-mentality, mafia-controlled sinking ship. This is neither honorable nor courageous, and unless you see Davy Crockett staring back at you in the mirror, the "stay and fight" crowd should question their own actions first-- what are you doing to change things? Who exactly are you fighting? Here's the bottom line: your country is controlled by a very small group of people, and you're not one of them.  You cannot control the  machine, you can only control where and how to invest your time. Fortunately, there are a lot of options around the world for the open-minded. One commenter this week lamented, "Leave to where? Guatemala? Panama? What other hellhole can you name, and what do you do when you get there? Raise chickens?" as if every other country on earth is a 'hellhole' with no economic prospects for talented, creative people. Stop listening to what Sean Hannity tells you and see for yourself, the world is full of opportunity. I've traveled to around 100 countries and done business in dozens-- some of my favorites: Chile: the new America. Strong, independent, civilized economy, you'll think you're in Europe given how modern it is. Singapore: Too much to say here... you need a job? They're hiring. You need capital? They're investing. You hate taxes? So do they.  Singapore is ideal for families, and obtaining residency (and citizenship) is simple. Colombia: Forget everything you've ever heard and go see for yourself. With similar geology to Venezuela and peace at hand, the country is poised for a bonanza. Sri Lanka: Ditto, except that the Sri Lankan government is bending over backwards to provide some of the strongest investor incentives  I've ever seen. Oh yeah, it's one of the cheapest (and most beautiful) countries in the world. Malaysia: Peaceful, beautiful, cheap, and thriving, Malaysia will constantly surprise you and exceed your expectations for its modernness and opportunities. Estonia: With its flat tax structure, streamlined government, and brilliant work force, Estonia provides ample opportunity for entrepreneurs, particularly those looking for entry into Europe's harmonized customs union. I could go on-- Brazil, Indonesia, Uruguay, Tanzania, China, etc., but you get the idea. Sure, you could pick apart any country for its faults. I call these the 'yeah, buts' as in "Estonia? Yeah, but it's cold." It's not going to look like Black Friday shopping in Topeka, but the idea is freedom and opportunity, and once on the ground, you'll feel it. In case you're geographically constrained, you can still take steps to increase your freedom. Start by moving some money to an overseas bank account, and store gold in an offshore vault-- this safeguards your wealth from government bureaucrats who could otherwise freeze or confiscate your accounts on a whim. Also consider buying some land overseas, even if it's just a small piece.  This is a great way to move money, and it gives you a starting point if you ever need a place to go. Remember, these options are not exclusive to the wealthy-- anyone who is willing to reject institutional programming can find opportunity overseas or start protecting what they have at home; it takes an open mind, creativity, readiness to learn new skills, and the will to act.

The precious metals power higher Posted: 01 Dec 2010 01:41 PM PST FGMR - Free Gold Money Report December 1, 2010 – Both gold and silver demonstrated some spectacular performance yesterday, climbing 1.4% and 3.8% respectively from the previous day’s closing price. November is the eighth month that gold has risen this year to generate its 26.5% year-to-date appreciation. Silver has also risen eight months this year, and so far is up a stunning 67.5%. We can reasonably expect some more big moves higher, given how tight the market for physical metal remains. Physical metal cannot be conjured out of thin air like national currencies and paper representations of gold and silver. Mine production cannot be turned on overnight to increase the supply of newly mined metal. It takes years to build a mine. So where is the supply going to come from to meet the ever-growing demand for these two precious metal safe havens in a world wracked by sovereign debt worries, volatile currencies, banks loaded with dodgy assets and politici...

Adrian Day: Another QE Blast Can't Kill Commodity Boom Posted: 01 Dec 2010 01:30 PM PST Source: Karen Roche and Brian Sylvester of The Gold Report 12/01/2010 Even if devaluing dollars and euros result from further bouts of quantitative easing, even if American and European economies remain in the doldrums, and even if the pace of China's growth slows dramatically, we can count on the commodities boom to continue. That's the way Adrian Day Asset Management Chairman and CEO Adrian Day sees it, and he's not about to budge from that viewpoint. Read this exclusive Gold Report interview to learn why. The Gold Report: Adrian, you recently published Investing in Resources: How to Profit from the Outsized Potential and Avoid the Risks, your first book in 28 years. Why another book after all this time? Adrian Day: I think the topic is remarkably crucial and important. Everybody understands the main drivers behind the increase in resources prices, but most people, including those in the business, aren't yet fully grasping the scale of the resource shortage that I se...

The Value of Gold Posted: 01 Dec 2010 01:16 PM PST The concept of value can be a bit tricky. Value is one of those words that is tossed around all the time as if there was universal agreement on its meaning. There is not. Often in such cases I simply use a different word, just to be sure we are on the same page. Years ago Town Crier did this with value, substituting in the word "dear":TownCrier (8/24/2000; 18:08:49MT - usagold.com msg#: 35476)

Jeff Nielson: 'Shock and awe' in precious metals Posted: 01 Dec 2010 12:20 PM PST 8:19p ET Wednesday, December 1, 2010 Dear Friend of GATA and Gold and Silver: Over at Bullion Bulls Canada tonight, Jeff Nielson notes how brief the bankster smashdowns of gold and silver are becoming despite the coordinated government interventions and the strategically timed margin increases of the commodity exchanges. People are enthusiastically buying the dips, Nielson writes. He expects the exchanges to default. His commentary is headlined "'Shock and Awe' in Precious Metals" and you can find it at Bullion Bulls Canada here: http://www.bullionbullscanada.com/index.php?option=com_content&view=arti... Or try this abbreviated link: http://tinyurl.com/335tvdv CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Drills 71.17 Metres of 0.52% NiEq (0.310 % Nickel 0.466 g/t PGMs +Au and 0.223% Copper) from surface at Wellgreen Project in the Yukon Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php

Jeff Nielson: 'Shock and awe' in precious metals Posted: 01 Dec 2010 12:20 PM PST 8:19p ET Wednesday, December 1, 2010 Dear Friend of GATA and Gold and Silver: Over at Bullion Bulls Canada tonight, Jeff Nielson notes how brief the bankster smashdowns of gold and silver are becoming despite the coordinated government interventions and the strategically timed margin increases of the commodity exchanges. People are enthusiastically buying the dips, Nielson writes. He expects the exchanges to default. His commentary is headlined "'Shock and Awe' in Precious Metals" and you can find it at Bullion Bulls Canada here: http://www.bullionbullscanada.com/index.php?option=com_content&view=arti... Or try this abbreviated link: http://tinyurl.com/335tvdv CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf Support GATA by purchasing a colorful GATA T-shirt: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit:http://www.gata.org/node/16 ADVERTISEMENT Prophecy Drills 71.17 Metres of 0.52% NiEq (0.310 % Nickel 0.466 g/t PGMs +Au and 0.223% Copper) from surface at Wellgreen Project in the Yukon Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php

In The News Today Posted: 01 Dec 2010 12:12 PM PST View the original post at jsmineset.com... December 01, 2010 11:50 AM Dear CIGAs, What, me worry? Neither should you. Gold is going to and through $1650. All you are looking at is the standard operating practice of round number action as the gold price is in the process of establishing itself above $1400 with increasing volatility. Why would you worry knowing this?...

Gold is Poised to Explode Posted: 01 Dec 2010 12:12 PM PST View the original post at jsmineset.com... December 01, 2010 11:41 AM Dear CIGAs, With the gold and silver markets heating up once again, King World News interviewed legendary trader Jim Sinclair.  When asked about repeated top calls being made in the gold market Sinclair responded, "This is not what a top is made of.  I've been around long enough, I've seen many, many markets, so many I don't even want to count anymore, and this is not what tops are made out of.  Tops are made out of outrageous exuberance." Sinclair continues: "What most people look at, no what almost everyone looks at is a picture in time, something like looking at a still.  Up comes the chart, it's a picture in time.  Very few people will focus on motion, direction over time.  And you can't predict the future unless you can see things in motion.  So, to the static thinker the picture in time has to have an excuse of why the market did this or why the market did that or what tec...

Jim?s Mailbox Posted: 01 Dec 2010 12:12 PM PST View the original post at jsmineset.com... December 01, 2010 09:11 AM Fear Cannot Drive Investment Decisions CIGA Eric Fear part of our evolutionary fight or flight survival mechanism. It works to override high-order consciousness in favor of reactionary limbic responses. While conditional responses are a wonderful survival technique, they are death in the trading/investing world. They are so counterproductive that organized 'Trading Operations' use them as their primary controlling tool. Headings such as "Death of Commodities" and the "Mother of all bubbles" create fear. That fear tends to evoke reactionary selling. An initial flurry of reactionary selling triggers the non-thinking black boxes to instantaneously react. Towards the end of the operation many readers are too disillusioned to buy the dips. The latest trading operation in gold is no exception. The small correction has created so much doubt and fear it's likely that many will not return to gold or the gold shares. ...

Fed loaned hundreds of billions to foreign banks and companies Posted: 01 Dec 2010 12:07 PM PST Data Shine Light on Winners From Fed Loans By Jon Hilsenrath and Liz Rappaport The Wall Street Journal Wednesday, December 1, 2010 http://online.wsj.com/article/SB1000142405274870386500457564916024102952... The Federal Reserve, forced by Congress to release details on more than a trillion dollars' worth of loans made during the financial crisis, disclosed the breadth of its lending to U.S. businesses desperate to raise cash and the surprising degree to which it supported struggling foreign banks in the worst days of 2008 and 2009. The lending, most of which has been paid back, represents the Fed's most aggressive intervention in the economy ever, and included loans to stalwart industrial companies such as General Electric Co. and Verizon Communications Inc. Though the Fed has been credited with helping prevent many banks and firms from collapsing as credit markets stopped functioning, critics also say the Fed overreached and the latest disclosures could open new fault lines. The scale of the Fed's lending was known already. Its portfolio of loans and securities soared from less than $900 billion in 2007 to more than $2 trillion during the crisis. The specifics of who got the money hadn't been known. ... Dispatch continues below ... ADVERTISEMENT Prophecy Receives Permit To Mine at Ulaan Ovoo in Mongolia VANCOUVER, British Columbia -- Prophecy Resource Corp. (TSX-V:PCY, OTCQX: PRPCF, Frankfurt: 1P2) announces that on November 9, 2010, it received the final permit to commence mining operations at its Ulaan Ovoo coal project in Mongolia. Prophecy is one of few international mining companies to achieve such a milestone. The mine is production-ready, with a mine opening ceremony scheduled for November 20. Prophecy CEO John Lee said: "I thank the government of Mongolia for the expeditious way this permit was issued. The opening of Ulaan Ovoo is a testament to the industrious and skilled workforce in Mongolia. Prophecy directly and indirectly (through Leighton Asia) employs more than 65 competent Mongolian nationals and four expatriots. The company also reaffirms its commitment to deliver coal to the local Edernet and Darkhan power plants in Mongolia." The Ulaan Ovoo open pit mine is 10 kilometers from the Russian border and within 120km of the Nauski TransSiberian railway station, enabling transportation of coal to Russia and its eastern seaports. Thermal coal prices are trading at two-year highs at Russian seaports due to strong demand from Asian economies. For the complete press release, please visit: http://prophecyresource.com/news_2010_nov11.php Foreign banks received hundreds of billions of dollars in short-term loans from the Fed. Among the biggest loans from a Fed commercial-paper lending program was one to Swiss banking giant UBS AG, which tapped it for $37 billion in October 2008. Barclays PLC, the British bank that declined to rescue Lehman Brothers but later bought much of it from bankruptcy, tapped the Fed for roughly $10 billion in commercial-paper loans in October 2008. All the borrowings were repaid by the end of 2009, a Barclays spokesman said. A UBS representative said its borrowing was relatively modest, done to give it flexibility during the crisis and was fully repaid. The Fed's support of foreign banks was rooted in its effort to hold together the crumbling and heavily interconnected financial system. Government officials at the time were concerned the failure of another big financial firm after the collapse of Lehman Brothers would severely damage the global economy. Dexia AG, a Belgian bank, turned to the Fed for $23 billion in 2008. Commerzbank AG, a German bank, came for $13 billion for commercial-paper loans and turned to another Fed loan facility 25 times for short-term loans of as much as $7.25 billion. "It is clear foreign institutions were large users of the Fed's facilities, in part as a way to channel dollars to their European home bases," said Robert Eisenbeis, chief monetary economist at Cumberland Advisors. Also on the list was the banking arm of the Korean government, foreign auto makers, and other foreign firms that held U.S. mortgage-backed securities they couldn't sell when financial markets froze. "After years of stonewalling by the Fed, the American people are finally learning the incredible and jaw-dropping details of the Fed's multitrillion-dollar bailout of Wall Street and corporate America," said Sen. Bernie Sanders, a Vermont independent whose amendment to the Dodd-Frank financial-regulatory bill forced the disclosures. He said the lending to foreign firms was especially striking and demanded "an extensive look." Among other details to emerge: -- Goldman Sachs Group Inc. and Morgan Stanley borrowed directly from the Fed 84 and 212 times, respectively, after the collapse of Lehman Brothers in September 2008. Goldman's overnight loans peaked at $18 billion in mid-October. Morgan Stanley borrowed more, as its chief executive, John Mack, was complaining that the bank was target of speculators betting it would fail. In its most troubled days in late September 2008, Morgan and its London arm borrowed nearly $60 billion. -- GE, one of the nation's largest corporations, turned to the Fed for short-term loans, known as commercial paper, when that market dried up. GE—mainly to help its financial arm GE Capital—tapped the Fed for $2.3 billion on Oct. 27, 2008, and returned for the next four days, taking more than $12 billion in total. -- Nine of the 10 largest money-market fund companies at the time, with total assets under management of about $2.4 trillion, including BlackRock Inc., Fidelity Investments Inc. and Dreyfus Corp., turned to the Fed for cash as investors fled the funds for safer ground. The fresh details on about 21,000 transactions are likely to intensify public and political scrutiny of the Fed, including its lending to foreign entities. Fed officials and their counterparts overseas feared that what started as a crisis in U.S. subprime mortgages could turn into a global meltdown. One problem: Many of the foreign banks that got Fed money were active in U.S. debt markets -- including mortgage and municipal bonds. They depended on U.S. dollar loans to fund their holdings of U.S. debt and could have been forced to sell the bonds without funding. That, in turn, would have worsened the crisis for U.S. firms and homeowners. In addition to making hundreds of billions of dollars of loans to banks, the Fed shipped nearly $600 billion of credit directly to foreign central banks. Several hedge funds, including a few that have been blamed for helping cause the crisis, were able along the way to profit from Fed lending programs as its rescue efforts grew to a grand scale. The new data identified a few individuals who benefited indirectly from Fed programs. Among them were John Paulson, the billionaire hedge-fund manager who made a fortune betting against mortgage bonds in the lead-up to the crisis, and Michael Dell, the founder of Dell Inc. They invested in OneWest Bank, which received $34 million in low-interest financing from the Fed to invest in securities backed by consumer loans. The details of the borrowing by financial firms could factor in Fed and Treasury deliberations, now under way, about which firms could pose risks to the financial system and thus should get stepped-up scrutiny from regulators. The data show that the Fed saw an array of firms -- from money-market funds to investment banks -- as systemically important in the crisis. Recipients of the loans expressed gratitude. "The Fed's actions were timely and critical, and we commend them for providing liquidity and stabilizing the financial system during that period," Morgan Stanley said in a statement. A Goldman spokesman said the Fed was "successful" at fixing broken financial markets. Russell Wilkerson, a GE spokesman, said the Fed should be "commended for coming up with an effective program" to repair the commercial-paper markets. The Fed said in a statement that its programs fostered economic growth and financial stability, and that it followed "sound risk-management practices" in running the programs. The Fed lent through 10 programs in all. Taken together, the programs funneled $3.3 trillion of credit into the financial system at different times in the crisis. * * * Support GATA by purchasing a colorful GATA T-shirt: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, Extending the Mineralization of the Southwest Vein on the Property Company Press Release, October 27, 2010 VANCOUVER, British Columbia -- Sona Resources Corp. reports on five drillling holes in the third round of assay results from the recently completed drill program at its 100 percent-owned Elizabeth Gold Deposit Property in the Lillooet Mining District of southern British Columbia. Highlights from the diamond drilling include: -- Hole E10-66 intersected 17.4g gold/ton over 1.54 metres. -- Hole E10-67 intersected 96.4g gold/ton over 2.5 metres, including one assay interval of 383g of gold/ton over 0.5 metres. -- Hole E10-69 intersected 85.4g gold/ton over 4.03 metres, including one assay interval of 230g gold/ton over 1 metre. Four drill holes, E10-66 to E10-69, targeted the southwestern end of the Southwest Vein, and three of the holes have expanded the mineralized zone in that direction. The Southwest Vein gold mineralization has now been intersected over a strike length of 325 metres, with the deepest hole drilled less than 200 metres from surface. "The assay results from the Southwest Zone quartz vein continue to be extremely positive," says John P. Thompson, Sona's president and CEO. "We are expanding the Southwest Vein, and this high-grade gold mineralization remains wide open down dip and along strike to the southwest." For the company's full press release, please visit: http://sonaresources.com/_resources/news/SONA_NR19_2010.pdf

James Turk: The precious metals power higher Posted: 01 Dec 2010 11:48 AM PST 7:45p ET Wednesday, December 1, 2010 Dear Friend of GATA and Gold (and Silver): Reflecting on the great recent performances of gold and silver, Free Gold Money Report editor James Turk writes tonight that the precious metals increasingly are in strong hands and aren't likely to be sold for national currencies at any price but rather more likely to be spent in themselves. That is, writes Turk, the founder of GoldMoney and consultant to GATA, the metals will have become the premier currencies. Turk's commentary is headlined "The Precious Metals Power Higher" and you can find it at the FGMR Internet site here: http://www.fgmr.com/precious-metals-power-higher.html CHRIS POWELL, Secretary/Treasurer Gold Anti-Trust Action Committee Inc. ADVERTISEMENT Opportunity in the gold coin market Swiss America Trading Corp. alerts GATA supporters to an opportunistic area of the gold coin market. While the gold bullion market has been quite volatile lately and as of November 29 gold has risen only $7 per ounce over the last month, the MS64 $20 gold St. Gaudens coin has risen about 10 percent in the same time. The ratio between the price of these coins and the price of gold is rising. If you'd like to learn more about the ratio and $20 gold coins, Swiss America can e-mail you a three-year study of it as well as other information. Swiss America also can provide a limited number of free copies of "Crashing the Dollar," a book written by Swiss America's president, Craig Smith. For information about the ratio between the $20 gold pieces and the gold price and for a free copy of "Crashing The Dollar," please call Swiss America's Tim Murphy at 1-800-289-2646 X1041 or Fred Goldstein at X1033. Or e-mail them at trmurphy@swissamerica.com and figoldstein@swissamerica.com. Support GATA by purchasing a colorful GATA T-shirt: http://gata.org/tshirts Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Or a video disc of GATA's 2005 Gold Rush 21 conference in the Yukon: http://www.goldrush21.com/ * * * Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: http://www.gata.org To contribute to GATA, please visit: http://www.gata.org/node/16 ADVERTISEMENT Prophecy Drills 71.17 Metres of 0.52 percent NiEq (0.310 percent Nickel 0.466 g/t PGMs +Au and 0.223 percent copper) from surface at Wellgreen Project in the Yukon Prophecy Resource Corp. (TSX-V: PCY) reports that it has received additional assays results from its 100-percent-owned Wellgreen PGM Ni-Cu property in the Yukon, Canada. Diamond drill holes WS10-179 to WS10-182 were drilled during the summer of 2010 by Northern Platinum (which merged with Prophecy on September 23, 2010). WS10-183 was drilled by Prophecy in October 2010. Highlights from the newly received assays include 71.17 metres from surface of 0.52 percent NiEq (0.310 percent nickel, 0.466 g/t PGMs + Au, and 0.233 percent copper) and ended in mineralization. For more drill highlights, please visit: http://prophecyresource.com/news_2010_nov29.php

Fed officials say U.S. must address budget issues Posted: 01 Dec 2010 11:42 AM PST By Kristina Cooke December 1, 2010 (Reuters) – The European debt crisis should serve as a warning that the United States must address its long-term budget problems, U.S. Federal Reserve officials said on Wednesday. The president of the St. Louis Federal Reserve Bank, James Bullard, described Europe's crisis as a "wake-up call," while Dallas Fed President Richard Fisher said it provided a "timely lesson" for the United States. "You can get in so much trouble by borrowing too much," Bullard told the Fox Business Network. "We should take that lesson to heart here in the U.S." … Janet Yellen, the influential Fed vice chair, said the U.S. budget situation presents "very difficult challenges" as the U.S. population ages and a greater share of Americans tap Social Security, Medicare and Medicaid benefits. "If current policy settings are maintained, the budget will be on an unsustainable path," she said. [source] ALSO… Obama commission says US debt is greatest threat to security by Richard Blackden Thursday 02 December 2010 (Telegraph.uk) — America's growing budget deficit is the greatest threat to the country's prosperity and security, President Obama's Debt Commission warned, as it recommended sweeping cuts in government spending and an overhaul of the tax system. "Our challenge is clear and inescapable: America cannot be great if we go broke," the report, titled 'The Moment of Truth', said. … The 59-page report also claims that more than $1 trillion a year is wastefully spent because of a tax system that is "fundamentally unfair, far too complex, and long overdue for sweeping reform." Besides arguing that the country's very wealthiest should pay more, the commission calls for corporation tax to be no lower than 23pc but no higher than 29pc. … America's worst financial crisis since the Great Depression helped swell the deficit, and the report's release came on the same day the Federal Reserve was forced to disclose who received the more than $3 trillion (£1.9 trillion) in emergency financial aid it supplied between December 2007 and July 2010. The US central bank was stipulated to disclose the banks and companies that tapped six of its emergency loan programmes established because of the passing of the Dodd-Frank Act, the financial reform bill that was signed into law last summer. In total, the information discloses more than 21,000 transactions between the Fed and a host of banks and companies. Senator Bernie Sanders, an independent from Vermont, sponsored the amendment on the Dodd-Frank Act that has forced the disclosure and has been pushing for greater transparency from the central bank. Mr Sanders has said it was "incomprehensible" that the general public did not know who the Fed lent to during the crisis. [source] RS view: Regarding that concluding sentiment… if the 'lender of last resort' task falls under heated political jeopardy, particularly insofar as much of this 'last resort' lending was necessarily done abroad as a direct consequence of the dollar's status as the international reserve currency, then you have yet another element that will hasten the demise of the dollar's remaining status. In the not-too-distant future look for all bilateral trade invoicing and financing to be denominated in the domestic currencies of the counterparty countries involved in the deal. Future bailouts, therefore, will be handled merely as local affairs. And as for the appropriate array of assets to hold among their reserves, gold will be the one prevailing international choice.

It is Just a Matter of Time Before Gold Becomes Priceless! Here’s Why Posted: 01 Dec 2010 11:34 AM PST If we continue down the same economic path that we have been following for the last four decades - and there is no indication that we won't even if we wanted to, or could, at this point - it is mathematically inevitable that gold and silver will approach infinity in U.S. dollar terms at some point in the future. Yes, approach infinity!

Ben Bernanke: "My Head Hurts" Posted: 01 Dec 2010 11:28 AM PST This article originally appeared in The Daily Capitalist. I would like to feel sorry for Ben Bernanke because of his bumbling and confusion about what to do about the economy, but I can't. Every time he turns around he does the wrong thing. Today the Wall Street Journal is reporting that he wants the federal government to engage in more fiscal stimulus because he believes that his quantitative easing will be insufficient to revive the economy. The Journal report borders on the bizarre. Apparently the Fed is slipping the message out in speeches here and there. They border on cognitive dissonance: Fed Vice Chairman Janet Yellen, in a speech on Wednesday, amplified Mr. Bernanke's call. "We need, and I believe there is scope for, an approach to fiscal policy that puts in place a well-timed and credible plan to bring deficits down to sustainable levels over the medium and long terms while also addressing the economy's short-term needs." She didn't elaborate on the latter. Let me translate into plain English what she is saying: We will continue to print money (i.e., quantitative easing) which will devalue the dollar and create inflation which will fool folks into thinking that the economy is expanding when it really isn't so they will spend, spend, spend, and at the same time we want you guys to spend, spend, spend, run up the deficit and we'll worry about it later. As we Keynesians know, in the long run we'll all be dead, so let's just be expedient and take care of now. Screw the grand kids. P.S. We hope this works because we don't have a clue. P.P.S. I like power. Who wouldn't? Cognitive dissonance is when one brain holds two opposing ideas and believes both.

Does the COMEX Have a December Silver Delivery Problem? Posted: 01 Dec 2010 11:24 AM PST "CFTC to unveil position limit plan Dec 16th... Reuters story in 'The Wrap'. 4,260,000 Silver eagles sell in November... 32,890,500 year-to-date. Mounting calls for 'nuclear response' to save European monetary union. John Hathaway speaks... and much, much more. " Yesterday in Gold and Silver Except for a brief dip to its low of the day [around $1,363 spot] during the Hong Kong lunch hour, gold moved mostly higher in early Tuesday morning trading... with an interim top at the London a.m. gold fix at 10:30 a.m. local time... 5:30 a.m. Eastern. From that point, the gold price slid a little into the Comex open. The moment that trading began in New York, the gold price rocketed $14 higher to $1,386 spot during the following fifteen minutes. And, except for a brief excursion to its high of the day [$1,391.00 spot] around 12:15 a.m. Eastern, gold basically traded sideways for the rest of the New York session. Silver traded mostly between $27.00 and $27.25 spo...

As The Euro Goes The Way Of The Dodo, Where Does That Leave The Dollar?: Gonzalo lira Posted: 01 Dec 2010 11:18 AM PST The Eurozone is heading for a crash—anyone saying otherwise is either stoned, works in Brussels, or hasn't checked the European bond market action lately: All hell is breaking loose there.

Gold Price Reached a High of $1,396.53, No Doubt Resistance From the Hordes of Sellers Clustered Around $1,400 Posted: 01 Dec 2010 11:06 AM PST Gold Price Close Today : 1387.30 Change : 2.30 or 0.2% Silver Price Close Today : 28.388 Change : 0.203 cents or 0.7% Gold Silver Ratio Today : 48.87 Change : -0.270 or -0.6% Silver Gold Ratio Today : 0.02046 Change : 0.000113 or 0.6% Platinum Price Close Today : 1684.60 Change : 26.20 or 1.6% Palladium Price Close Today : 732.25 Change : 41.25 or 6.0% S&P 500 : 1,206.07 Change : 25.52 or 2.2% Dow In GOLD$ : $167.72 Change : $ 3.47 or 2.1% Dow in GOLD oz : 8.113 Change : 0.168 or 2.1% Dow in SILVER oz : 396.50 Change : 8.77 or 2.3% Dow Industrial : 11,255.78 Change : 249.76 or 2.3% US Dollar Index : 80.67 Change : -0.526 or -0.6% The GOLD PRICE rose $2.30 by Comex settlement to $1,387.30, but this doesn't feel quite right. During the day it reached as high as $1,396.53, and as low as $1,381.45, but 'twas really a fairly quiet day in the US. No doubt part of gold's sloth arises in the horde of sellers clustered around the $1,400 round number. Yet gold must not back off further than $1,380, and today's chart lacks direction. Feels flabby, as if it has finished a move and is ready to rest. The SILVER PRICE had a fairly flat day as well. High came at 28.795, low at 2808c, so silver must hold on above 2808c, preferably 2820c. Comes settled up 20.3c at 2838.8c. Daily chart looks like a kid climbing out on a tree limb. The further he slides out there, the greater the likelihood he will fall. Silver will assuage my nervousness by crashing through 2900c. By the way, yesterday gold hit a new all time high in the Euro and (I believe) in the Yen as well. Oh, y'all will have to break your heads a long time and with much cracking to come to a conclusion like what I saw on the news wire, namely, that stocks were up because the Euro crisis is close to a fix. I'd be glad for any of you to explain to me how that will raise the price of stocks in the US of A, but don't even bother. Quick as you get an explanation out, stock investors and media commentators will be racing after some new will o'the wisp. None of 'em have the sense Heaven gave a screwdriver. Today on the joyful news ringing out of Euroland the US dollar index sank like a bassboat in a hurricane. 52.6 basis points went overboard while the buck sank to 80.669, down 0.68%. Euro rose 1.31c, up 1.01% while the yen rose 0.8%. Ya, ya, ya. The tilting table turns and twists, but does it mean anything? Well, the dollar (surprise, surprise) bounced off its 200 day moving average at 81.75, and reacted. All the news notwithstanding, we rather expected that. Dollar uptrend remains intact, and will remain intact as long as it holds above 79.50. Don't count the dollar dead yet. STOCKS had a banner day. The Dow packed in 249.76 points to close at 11,255.78. It has returned to the 11,250 resistance that has foiled it in the past. S&P500 picked up 25.52 points to close at 1,206.07. This is a sucker's game; stay away from stocks, unless you are a perennial winner at shell games. On this day in 1835 Hans Christian Andersen published his first book of fairy tales. It was entitled, "Dow 36,000, or Why the Stock Market Must Rise Forever." Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2010, The Moneychanger. May not be republished in any form, including electronically, without our express permission. To avoid confusion, please remember that the comments above have a very short time horizon. Always invest with the primary trend. Gold's primary trend is up, targeting at least $3,130.00; silver's primary is up targeting 16:1 gold/silver ratio or $195.66; stocks' primary trend is down, targeting Dow under 2,900 and worth only one ounce of gold; US$ or US$-denominated assets, primary trend down; real estate in a bubble, primary trend way down. Whenever I write "Stay out of stocks" readers inevitably ask, "Do you mean precious metals mining stocks, too?" No, I don't.

Bernanke’s November Scorecard Posted: 01 Dec 2010 10:42 AM PST The 5 min. Forecast December 01, 2010 01:56 PM by Addison Wiggin - December 1, 2010 [LIST] [*] A QE2 report card… Are markets responding the way Bernanke wants them to? [*] Three data points drive a Dec. 1 rally… and three reasons they’re overblown [*] Truce attempted in War on Small Business, and why it failed [*] Revenue-starved city starts handing out $191 jaywalking tickets [*] Readers take issue with Alan Knuckman’s gold outlook, pile on a fellow reader who objects to frolicking panda and grizzly [/LIST] The books are closed on November. Alas, there’s little joy in the broad stock market. After we got “the best September since 1939”… and “the best October since 2003”… all we have this morning is “a November that wasn’t as bad as 2008.” Gee, swell. Of course, there’s more significance to the monthly figure than just the comedown f...

WEDNESDAY Market Excerpts Posted: 01 Dec 2010 10:23 AM PST Gold pares gains as risk-appetite returns The COMEX February gold futures contract closed up $2.20 Wednesday at $1388.30, trading between $1383.00 and $1398.30 December 1, p.m. excerpts: (from TheStreet) Gold prices set their sights on $1,400 for the second time this year and reached new highs in euros as European sovereign debt fears heated up. The early morning rally fizzled out mid-day and prices ended relatively flat though as the Dow Jones Industrial Average popped more than 250 points. The jump in risk appetite also boosted the euro and hurt the dollar. The U.S. dollar index was losing 0.77% to $80.66 while the euro stemmed losses and was rising 1.16% to $1.31 vs. the dollar…more (from Marketwatch) Gold futures rose as the dollar declined, but gains were modest as the metal's safe-haven appeal was tarnished by positive macroeconomic data. In the U.S., third-quarter productivity growth was revised up, private employment rose, and expansion of factory activity only cooled a bit. The U.K.'s manufacturing surged to a 16-year high, and Euro-zone manufacturing data also showed strong expansion, as the Markit manufacturing purchasing managers index for the 16-nation zone rose to its highest in four months…more (from AP) Stocks rose in Asia after reports signaled that the Chinese economy is growing. A Chinese state index of manufacturing activity rose to 55.2 in November from 54.7 in October, with any number above 50 indicating economic expansion. European stocks also got a boost after European Central Bank President Jean-Claude Trichet suggested that the bank could buy bonds issued by struggling countries within the European Union. That, along with a better-than-expected bond auction by Portugal, pushed the euro higher…more (from Dow Jones) As the "currency of last resort," gold is benefitting from worries about the euro at a time when faith in the U.S. dollar is also shaky, said Sterling Smith, market analyst at Country Hedging. Although talk of more European Central Bank peripheral bond buying shored up the euro on Wednesday, worries continue about fiscal stresses in euro-zone countries such as Spain, Portugal and Ireland over the longer term. If that bond buying comes to fruition, it "will boost gold as a general alternative currency," Smith said…more (from Bloomberg) Gold futures for February delivery rose 0.2% on the Comex. Europe's debt woes boosted demand for a haven, with investors shunning Europe's highest-rated bonds after bailouts for Greece and Ireland failed to ease concern that the debt crisis will spread. The cost of insuring Portuguese, Spanish and Italian bonds rose to records. Gold may average $1,500 next year and $1,600 in 2012, Anne-Laure Tremblay, analyst at BNP Paribas SA, said in a report…more (from Reuters) Euro-priced gold retreated after earlier hitting a peak of €1,070.11 an ounce, an all-time high, while gold in sterling also pared gains after touching a record £895.49 an ounce. "Gold is like a see-saw on a hot air balloon," commented Mitsubishi Corp analyst Matthew Turner. "Sometimes the euro end is rising relative to the dollar end, at other times the dollar end is rising relative to the euro end, but if you look around you realize that most of the time both ends are rising in absolute terms."…more see full news, 24-hr newswire…

Musings On The Market As Brazil Clown Ruled Eligible To Sit In Congress Posted: 01 Dec 2010 10:19 AM PST From Nic Lenoir S&P futures started the day vertical and did not really look back: the reason? Talks of announcement of further bond purchases by the ECB on Thursday. Now that is excellent news. The only central bank that was somewhat trying not to completely dilute its currency into oblivion in order to bail out its overleveraged government, banks, and anything else worth more than $500mm, is throwing the towel completely. On the back of that one must concede data was slightly better than expected, but headlines attributing the market strength to China's PMI are simply stunning by their candor: 55.3 versus 54.8 the previous month when the survey pointed to 55.4? Talk about a blow out. Typically the margin of error on those surveys is greater than the uptick from last month, and if I were cynical I would say the margin of error on Chinese data releases is close to the number itself. The numbers are made to match the growth target. I guess the only surprise is that Gold was not stronger. In terms of fundamentals this is just about as supportive of precious metals as could be, and it stopped the rise of the USD! I was surprised by the weakness in FIxed Income as well. Yesterday's price action in the late afternoon was a bit of a warning sign but still, it was quite a move. Let us hope that tomorrow's ECB announcement and Friday's NFP will not disappoint. In any case, today was the perfect opportunity for GS to come with a revised much more bullish forecast for the economy. The nature of the arguments advanced seemed a bit suspect: basically foreign demand and public demand will more than make up the lack of private demand. That is excellent news but it may somehow miss out on the fact most governments in Europe are going to keep cutting drastically public spending, there are certainly new members in Congress trying make the country lean that way as well, and the brilliant Albert Edwards' chart on Chinese leading indicators is not exactly positive. Unfortunately now growth forecasts are becoming as volatile as the markets: it's the tail wagging the dog. The Fed must be proud in succeeding in having the S&P dictating the economy instead of following it. Personally I do not think the fundamentals have changed one bit. Certainly the private sector has surprised in November to the upside as people trampled their way to Black Friday bargains, but from there to extrapolate +3.7% growth in 2012 is more than an exageration. Probably more a good opportunity to short squeeze those who sold equities realizing Greece was only the tip of the European iceberg, with the help of $8Bn more in cash provided by the Fed. With my view being solidly anchored in the camp of slower rather than accelerating growth, I do not expect a reflationary sell-off is sustainable in Fixed Income for now. A solvency crisis could make bonds tank, but growth will not be strong enough to achieve that for quite a bit more time. I like focusing on the ERU2 future. The chart attached shows that as long as we remain above 98.00 there is no reason to panic. If that level is broken surely a much large sell-off is at works, but until then I keep a preference for constructive price action in Germany and US Fixed Income, with I must admit slightly less conviction than Monday morning. Finally I thought that to share my increasing despair in today's society and the path the world is engaged on, I attached a link with an uncanny story of how Brazil is celebrating their newfound wealth accumulated thanks for the Federal Reserve and at the expense of the American taxpayer by electing a clown in Congress. I used to think that calling our politicians clowns was a figure of speech, but apparently it is no longer the case. At least we can applaud Brazil for having the guts to things so literally. Good luck trading, Nic Lenoir Brazil Clown Ruled Eligible to Take Seat in Congress (Update1) 2010-12-01 18:16:58.819 GMT By Andre Soliani Dec. 1 (Bloomberg) -- Brazilian clown Francisco Everardo Oliveira Silva, who goes by the stage name of Tiririca, can read and write enough Portuguese to take his seat in congress, the Sao Paulo electoral court said. Tiririca, whose 1.35 million votes led all candidates in the Oct. 3 congressional elections, was accused by a prosecutor of forging a document to prove he could read and write. Brazilian law bans illiterate people from public office. “A rudimentary reading and writing knowledge is enough,” the electoral court said in a statement posted on its website today. Tiririca has “a minimal understanding of the content of the text, in spite of his difficulties in writing.” Tiririca won the lower house seat for the state of Sao Paulo after appearing as a clown in campaign ads and using the punch line “It can’t get any worse.” He will be among elected deputies who will be confirmed on Dec. 17, the electoral court said, citing the decision by Aloisio Sergio Rezende Silveira. Lawmakers take office Feb. 1. The public prosecutor can appeal the decision, a press officer at the court, who can’t be identified because of internal policy, said.

Buying Silver to Break JP Morgan Posted: 01 Dec 2010 10:09 AM PST For just over a week, activists have been spreading an online call to silver investors: buy physical silver and help bring down JP Morgan. Though the title "activist investor" is often reserved for billionaires with more proxy votes in a company than they know what to do with, this new age surge in investing activism should be appreciated, even if it is a little misdirected. The call started from Max Keiser, who in the sake of neutrality, has been to gold and silver what Jim Cramer is to CNBC and the stock markets. Of course, all the talking and sky-high price targets aside, there are few people who can get masses of people excited about an investment. Since Max Kesier first went on his anti-JP Morgan rant on a series of online and offline radio shows and blog posts, videos on YouTube about the event have attracted nearly one million views. Certainly, people are listening. Why JP Morgan? There were actually two JP Morgans. The first was the man and invest...

LGMR: Gold Rises vs. US Dollar, Eases from Euro Record Posted: 01 Dec 2010 10:03 AM PST London Gold Market Report from Adrian Ash BullionVault 08:25 ET, Weds 1 Dec. Gold Rises vs. US Dollar, Eases from Euro Record, as "Complications" Threaten Both Currencies THE PRICE OF GOLD touched a near 3-week high for Dollar investors above $1396 per ounce early in London on Wednesday, slipping back from record highs in Euros and Sterling as the US currency dipped on the forex market. European stock markets rallied hard – and major government bond prices eased back – while commodities also rose following a raft of stronger-than-expected manufacturing data worldwide. Silver prices extended yesterday's 3.5% jump, hitting new 3-week highs above $28.50 per ounce. "There was substantial ECB [bond] buying yesterday, but spreads still ended wider...and this certainly doesn't help," said one trader to the FT after European Central Bank chief Jean-Claude Trichet told politicians that decisions over the Eurozone's bond support program are "on going". Ten-year Irish bonds rose ...

Surviving Inflation Posted: 01 Dec 2010 10:00 AM PST Normally, I am usually wailing about how We're Freaking Doomed (WFD) because the treacherous Federal Reserve has spent so many years creating so much money that we got inflation, as you would expect, and the inflation was in stocks, inflation in bonds, inflation in houses, creation of a gigantic pile of derivatives that are estimated to total in the quadrillions of dollars, inflation of the financial services industry, and cancerous growth of a huge, suffocating system of socialist governments, which is not to mention a half-century of inflation in the prices of consumer goods, averaging (according to "official government statistics") at an annual inflation of 4.4%!! I deliberately used the double exclamation point to convey the horror of 4.4% inflation, which means (in practical terms) that prices double every 16 years! If you are nonchalantly thinking to yourself, "I don't care that prices will double in 16 years because I probably won't live that long since I am an overweight drug addict, a serious alcoholic with a bad dietary regimen, and who gets no exercise at all." In that case, perhaps you would be interested to know that in eight years, prices will be 41% higher, which amounts to prices being higher by almost half again than they are now! Prices higher by a half! If you are a really bad example of a short, wasted life, perhaps thinking that even eight years is pushing the actuarial boundaries of your mortality, then I am sure that you think you will live another four years. Everybody thinks they will live another four years! And in four years, at a measly 4.4% inflation, prices will be 19% higher! And you can take it from me, if I can get my message through that drug and alcoholic haze of yours, that it will be much, much worse than that. In fact, inflation will be whole magnitudes worse because Ben Bernanke, in the worst monetary policy mistake in the history of the Federal Reserve, is actually trying to create inflation in prices! Yow! This new policy goal of deliberately creating price inflation – which is entirely new in the history of economics, which is primarily engaged in PREVENTING inflation – is very convenient for the Federal Reserve because it is now stunningly embarking in more quantitative easing (QE2), which, in practical terms, means the Federal Reserve will create another whopping $600 billion of new money – in the next six months! – into the economy by buying government bonds so that the government can outrageously deficit-spend this Huge Freaking Chunk Of Money (HFCOM)! So, obviously horrified by this, I normally do not suggest that the general stock market could go up, but it could now actually have a "buy rating" because of all of this! The reason is that the horrid little creep Ben Bernanke is sold on the new idea that there is a "wealth effect" created when people have assets that are going up in price, which means that they feel wealthier, they will spend more money, and then – presto! – everything will be peachy again and we will have prosperity from now on! Whee! My embarrassingly sophomoric sarcasm aside, a corrupt, intellectually-impoverished Federal Reserve has been given the green light to create preposterous amounts of money and use it to buy anything it wants, as both a way of financing government deficit-spending and, perhaps on a quest for "wealth effect" by pumping up asset prices. And it will obviously succeed! If the Fed prints up enough trillions in new money and uses it to buy half of the shares of the whole US stock market, what do you think will happen to prices of stocks? Hahaha! Me, too! And who's to stop them? I can't, either! And then astronomical share prices will start becoming more and more justified as the inflation in all other prices, the result of the gigantic, unbelievable inflations in the money supply, start rising quickly, too. Of course, this is all hypothetical, and the only thing that we know for sure – for sure! – is that gold and silver will rise in price as a result of the inflation in all prices caused by all this new money entering into the economy, as that is what has happened Every Other Freaking Time (EOFT) in the last 4,500 years when any dirtbag government got the bright idea to borrow the country into bankruptcy, and then create a lot of money out of paper to pay the bills to temporarily forestall bankruptcy, all the time having to pay higher and higher interest rates to go farther and farther into debt. And it is this apparent awesome economic certitude of a 100% sure-fire guarantee of the rise of gold and silver that makes me shout in self-satisfied glee and merriment, as in, "Whee! This investing stuff is easy!" The Mogambo Guru for The Daily Reckoning Surviving Inflation originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."

The Fed offers no safe harbor for paper bugs Posted: 01 Dec 2010 10:00 AM PST Jeffrey Lewis is a paper bug. Read this link and hear Lewis making the case for why the US dollar can be relied upon to hold its value and bail out JP Morgan when the time comes for JPM to cover their gargantuan, uncollateralized, precarious silver-shorts – now in the crosshairs of silver vigilantes globally [...]

Long Bond And Crude Charts From Trader Dan Posted: 01 Dec 2010 09:39 AM PST Dear CIGAs, The US long bond market has been rocked back and forth by opposing forces but since breaking down through an important layer of chart support three weeks ago, they have tried, but have been unable to climb back above that level near 129^15. Today's breach of additional downside chart support opens up the potential for a move towards the 121 region. This chart action confirms what Monty and Tony have stated in today's investment letter where they commented that it would not be long because of the focus on the inflationary implications associated with the Fed's QE and now the same policy being implemented by the ECB. "Money printing" is going to result in the inevitable currency induced inflationary pressures which are already being seen in the food sector and soon to be seen in the energy sector. Bonds are reacting to this unprecedented wave of liquidity creation by ignoring the short term benefits that accrue to Treasuries when the Fed purchases them when engaging it one of its round of QE and are instead looking past that to the inflationary aspects of this policy. Please review the Gold/Bond ratio chart that was posted last evening where you will observe how gold is already anticipating this wave of inflationary pressures and in particular how it is becoming the "go to" asset of choice for many seeking shelter from the depredations of the Western Central Banks as they move in to practice their craft of debauching their respective currencies. Jim has already remarked about the character of the price action in the gold market as it pauses near a round number ($1400) to collect itself for the next leg higher. It could very well be that a weekly close in crude oil above 90 will be the catalyst that kicks gold above $1400 and keeps it there. Remember, each step higher in a bull market consists of a push to a new high, followed by a period of consolidation and then a push past that previous high that STAYS ABOVE THAT LEVEL as it consolidates once again. Food has already moved higher; energy is the only thing that has not really taken off to the upside. Keep in mind that those nations who sell crude oil are going to be carefully monitoring the price action of the currencies in which they are getting paid. They will not continue to indefinitely accept deteriorating paper currencies in exchange for a limited resource but will move to push price higher by curtailing production levels if in their judgment that is the best way to keep from getting the short end of the bargain. Bernanke is more than likely going to get his wish but at what cost for the rest of us? Click either chart to enlarge in PDF format with commentary from Trader Dan Norcini

After Chinese PMI Data and Euro Bank Comments, All Eyes on Commodities Posted: 01 Dec 2010 09:19 AM PST Proactive Investor submits: Commodity markets are trading on a firmer footing today, boosted by a stronger euro following comments by European Central Bank President Jean Claude Trichet, which signalled the ECB's determination to solve the current debt crisis. The complex also gained a boost from stronger-than-expected Chinese Purchasing Manager Index (PMI) data overnight, which hit a seven-month high at 55.2. With this, WTI Nymex crude is up over a dollar in electronic trade today, seeing additional support as the cold weather spell in the Northern Hemisphere continues to bolster demand across the energy complex. Crude was also helped following a slightly bullish inventory report from the American Petroleum Institute, which showed a surprise 1.1 million barrels (mbls) decline in crude stocks for the reporting week. This came from a 2mbls fall in crude imports, and despite a 1.7 point reduction in refinery utilization, which fell to 81.9%. The data showed gasoline stocks rising by 1.1mbls, coming in line with expectations, but middle distillate rising just 0.2mbls - a smaller than expected increase. Attention now turns to the more extensive benchmark numbers from the U.S. Department of Energy. Expectations are that the data should show a 2.5mbls decline in crude stocks, a 1.5mbls increase in gasoline inventories and a 1mbls increase in middle distillates. Complete Story »

The SP 500, Gold, Oil, and the Banks - What a Conundrum Posted: 01 Dec 2010 09:13 AM PST Sellers were in control most of the trading session on Tuesday, however an overnight buying surge pushed the SP 500 back up to overhead resistance as the directional battle raged on between the bulls and the bears. Read More...

Gold Explorers Positive Climate in Kazakhstan Posted: 01 Dec 2010 09:11 AM PST Jeff Clark, Casey’s International Speculator, interviews Dr. Sergey Kurzin The following is an interview Jeff Clark, co-editor of Casey's International Speculator, conducted with Dr. Sergey Kurzin, a Casey Explorers' League honoree. The Explorers' League regularly inducts serially successful mine finders with at least three economic discoveries under their belts - a true accomplishment considering that most explorers don't even have one economic find throughout their careers.

Bernanke’s November Scorecard Posted: 01 Dec 2010 08:56 AM PST by Addison Wiggin - December 1, 2010 A QE2 report card… Are markets responding the way Bernanke wants them to? Three data points drive a Dec. 1 rally… and three reasons they’re overblown Truce attempted in War on Small Business, and why it failed Revenue-starved city starts handing out $191 jaywalking tickets Readers take issue with Alan Knuckman’s gold outlook, pile on a fellow reader who objects to frolicking panda and grizzly The books are closed on November. Alas, there’s little joy in the broad stock market. After we got “the best September since 1939”… and “the best October since 2003”… all we have this morning is “a November that wasn’t as bad as 2008.” Gee, swell. Of course, there’s more significance to the monthly figure than just the comedown from the hype earlier this fall. That's because November was the first month of “QE2” -- the Federal Reserve’s plan to buy $600 billion in Treasuries over the next eight months. What happened? It was supposed to goose the stock market. Fed chief Ben Bernanke said so. “This approach eased financial conditions in the past and, so far, looks to be effective again,” he wrote in the Washington Post on Nov. 4, the day after the decision was announced. “Stock prices rose and long-term interest rates fell when investors began to anticipate the most recent action.” But in a classic case of “buy the rumor, sell the news,” here’s what happened to the Dow in November… Nice pop, but didn’t last. Oh, and since Ben brought up long-term interest rates, here’s a chart of the 30-year Treasury bond… But we don’t mean to interrupt Ben while he’s on a roll: “Easier financial conditions will promote economic growth,” he continued. “For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance.” Lower mortgage rates? Hmmm, don’t see that here… “Lower corporate bond rates will encourage investment,” Bernanke persists. Here’s a chart of LQD, a large corporate bond ETF… The one thing Bernanke didn’t address in his op-ed was the gold price. But you already know how he feels about that -- if it goes up, that’s the market voting no-confidence on his policies. Granted, it’s only been a month. But so far, nothing appears to be going in the direction Bernanke wants it to. We wouldn’t be surprised if this continued into the first few months of 2011. But Ben probably would. And so it goes. Of course, just as we finish up our report card on November, stocks go bonkers as we begin December. The Dow is up nearly 2% this morning and the S&P 500 has pushed back above 1200. Let’s see why… The payroll firm ADP says private employers added 93,000 jobs in November. Even better, the October numbers were revised upward to 82,000. Never mind this still isn’t enough to keep pace with the overall growth of the labor force The November ISM Manufacturing Index came in at 56.6 -- not as perky as the previous month’s 56.9, but still well above 50, which is the dividing line between expansion and contraction. Never mind that manufacturers face rising commodity prices, which is bound to squeeze their margins come the new year China’s version of the same index rose last month. By the Street’s logic, this signals confidence that American consumers will continue to buy Chinese goods. Never mind this it’s also probably spooking the monetary mandarins in Beijing. If they decide to tighten, that’ll knock the wind out of the China growth story, at least for a while. If the bipolar ups and downs of the Street have you frustrated this year, that’s because the Street plays by different rules than you do. Their high-frequency trading computers account for a good 50% of all trading volume now. They can front-run your bids. So if you enter a limit order at your favorite online brokerage for a $50 stock, and it’s currently trading at $49.50… the computers will snap up the shares at $49.50 and sell them to you for $50. You can keep playing those games, which you’re bound to lose… or you can sidestep all of it and play a market the computers can’t. That’s a key idea behind our newest service, launched just last week. The system it employs can generate gains anywhere from 216% to 1,294%. For a limited time, charter memberships are available at a handsomely discounted rate. Gold is holding its own; the spot price is $1,387 as we write. Silver has traded above $28 for most of the last 24 hours, currently at $28.46. The U.S. Mint sold a record 4.26 million Silver Eagles in November. That eclipses the previous record of December 1986, the first full month Silver Eagles were available for sale. Already, the annual total has set a record of 32.9 million… with a whole month of 2010 left to go. Gold Eagle sales, in contrast, lagged. Total sales of all sizes came to 122,500 ounces… which is below the 2010 monthly average of 143,100 ounces. [Ed. Note: If your taste in precious metals runs more to the collectible side, our friends at First Federal still have a limited quantity of 2003 China tenth-ounce Guanyin 50 Yuan Gold Proofs available. Learn more about these extraordinary coins here.] Small businesses remain under the 1099 gun today: The Senate has blocked repeal of one of the most onerous provisions of the healthcare “reform” bill. That is, starting in 2012, every business must issue an IRS Form 1099 to every vendor from whom it buys more than $600 in goods or services every year. We’ll spare you the ugly legislative play-by-play. If you were to query your average senator on what happened yesterday, the answer would go something like this: “Yes, we all agree this imposes a crippling paperwork burden on small business. But darn it, we just can’t agree on how to make up the $19 billion in revenue this requirement would generate.” Funny how “pay-as-you-go” requirements are thrown out the window any time some “pressing” spending priority pops up… but when it comes to greasing the machine that creates new jobs, everybody’s a model of fiscal rectitude. Oh well, the gods of timing are getting a good laugh: Addison is in Tampa today shooting a few final interviews for his documentary on entrepreneurship… and how governments often get in the way of it. From our Sign of the Times department comes word that Los Angeles is now fining jaywalkers in the downtown area $191 a pop. Of course, the official line is that it’s about safety, not revenue. The fact L.A. has also jacked up a parking ticket from $40 to $50 and tickets for minor moving violations have doubled? Pure coincidence. Look for more of this where you live. State and local tax revenues have recovered from last year’s levels, but they remain below 2008 levels. “I disagree with Alan Knuckman,” a reader writes, “and his feeling that newspaper ads for scrap gold buyers indicate gold is topping out. When people are still selling their gold, we have a ways to go. “I believe that when banks and department stores run full-page ads to hire salespersons to sell gold bars and coins -- then we are nearing the top! “My gut feeling is that right now 90% of Americans don’t know where or how to buy gold bullion. In a county of 400,000, we only have three tiny coin shops! We have Starbucks and burger joints on every corner.” “I would be more worried about the price of gold,” adds another, “if the ad were looking for people to sell gold to the public.” The 5: When Alan says there’s “room for caution,” realize that’s a short-term trading call. He sees the potential for a “correction,” as he put it, acknowledging precious metals “may very well continue much higher.” We spotted a similar contrarian indicator a few weeks ago when Mr. T became a pitchman for an outfit encouraging people to sell their scrap gold. If it’s a 1980-style top you’re looking for, you’re probably right: No one will bother advertising to buy scrap gold… because no one will want to part with it at any price. “Simple solution,” a reader proposes for airport security. “Have dogs trained to sniff out explosives; much cheaper, no radiation and no sexual assault.” “Only problem is they will need to be paid a premium as they will have higher IQs than current cadre of TSA gropers.” “You are WAY behind the times,” writes a reader in reply to our offhand suggestion that the military will avert a draft by offering student loan forgiveness to unemployed twenty-somethings. “My son-in-law served six years in the Army from 2000 to 2006 and got his college loans paid off 25% each of the first four years.” The 5: Thanks for bringing that to our attention. Another reader sent us a link that informs us the Army and Navy each pay up to $65,000 of “qualifying” student loans. (The Air Force limit appears to be $10,000. Pikers.) Makes you wonder why more unemployed grads aren’t taking advantage. Or perhaps Washington is waiting to get tangled up in yet another warzone before playing up this angle in its recruitment drives. “Keep up what you are writing about, and quit letting stupid remarks by readers get even a response,” writes a Reserve member who (we think) is responding to the reader outraged over the picture of interspecies intimacy we used on Monday to illustrate China and Russia abandoning the dollar. “I am an 82-year-old CPA. There are very few investment letters that are telling the truth about the debacle we have allowed the politicians to cause and keep compounding. “Please just keep telling the truth about the idiots who are supposedly running things.... dumb bastards.” “Piss on the crybabies,” writes another. “I think you are doing an outstanding job.” The 5: We appreciate your support. We’ll keep working to earn it. Cheers, Dave Gonigam The 5 Min. Forecast P.S.: Shares of JC Penney are rallying today -- handing a nice quick gain to the newest members of Options Hotline. Steve Sarnoff’s Thanksgiving-week recommendation is already up 57% in just nine days. His next recommendation comes on Sunday. Here’s how you can get in. P.P.S.: Addison’s travel whirlwind takes him to Washington, D.C., tomorrow, where he’ll talk with Rep. Ron Paul and the other 11 Congress members who belong to the Liberty Caucus. No doubt it’ll be a more lively affair than the doleful deliberations of President Obama’s deficit commission taking place elsewhere on Capitol Hill. Trust us, if anything genuinely newsworthy comes out of it, we’ll let you know.

Remembering November: QE2 vs. Bernanke’s Expectations Posted: 01 Dec 2010 08:50 AM PST The books are closed on November. Alas, there's little joy in the broad stock market. After we got "the best September since 1939"…and "the best October since 2003"…all we have this morning is "a November that wasn't as bad as 2008." Gee, swell. Of course, there's more significance to the monthly figure than just the comedown from the hype earlier this fall. That's because November was the first month of the second round of quantitative easing or "QE2" – the Federal Reserve's plan to buy $600 billion in Treasuries over the next eight months. What happened? It was supposed to goose the stock market. Fed chief Ben Bernanke said so. "This approach eased financial conditions in the past and, so far, looks to be effective again," he wrote in The Washington Post on Nov. 4, the day after the decision was announced. "Stock prices rose and long-term interest rates fell when investors began to anticipate the most recent action." But in a classic case of "buy the rumor, sell the news," here's what happened to the Dow in November… Nice pop, but didn't last. Oh, and since Ben brought up long-term interest rates, here's a chart of the 30-year Treasury bond… But we don't mean to interrupt Ben while he's on a roll: "Easier financial conditions will promote economic growth," he continued. "For example, lower mortgage rates will make housing more affordable and allow more homeowners to refinance." Lower mortgage rates? Hmmm, don't see that here… "Lower corporate bond rates will encourage investment," Bernanke persists. Here's a chart of LQD, a large corporate bond ETF… The one thing Bernanke didn't address in his op-ed was the gold price. But you already know how he feels about that – if it goes up, that's the market voting no-confidence on his policies. Granted, it's only been a month. But so far, nothing appears to be going in the direction Bernanke wants it to. We wouldn't be surprised if this continued into the first few months of 2011. But Ben probably would. And so it goes. Dave Gonigam for The Daily Reckoning Remembering November: QE2 vs. Bernanke's Expectations originally appeared in the Daily Reckoning. The Daily Reckoning, offers a uniquely refreshing, perspective on the global economy, investing, gold, stocks and today's markets. Its been called "the most entertaining read of the day."

MEP Nigel Farage - “They Will Turn to Violence” Posted: 01 Dec 2010 08:45 AM PST The speech that Nigel Farage delivered to the European Parliament has become a viral sensation. Today King World News interviewed Nigel to discuss his incredible speech and and expand on his thoughts regarding the movement that is gaining momentum in Europe towards greater freedom. When asked about the worried expressions on the faces of his opponents Nigel responded, "And so up until now what we have seen on their faces are smug grins, arrogance and a belief that they are the masters and they are in charge.  What we saw last week in the European Parliament in Strasbourg...was fear, real fear because their great uniting project which was of course the euro is beginning to collapse.  They are fearful because when it comes to ignoring democracy, for the moment they've got the power.  But what they can't do is ignore international markets, so we are dealing with some very, very frightened people." This posting includes an audio/video/photo media file: Download Now

Gold Daily and Silver Weekly Charts Posted: 01 Dec 2010 08:44 AM PST This posting includes an audio/video/photo media file: Download Now

Gold is Going to Become Priceless! Heres Why Posted: 01 Dec 2010 08:04 AM PST Jerry Western writes: If we continue down the same economic path that we have been following for the last four decades - and there is no indication that we won't even if we wanted to, or could, at this point - it is mathematically inevitable that gold and silver will approach infinity in U.S. dollar terms at some point in the future.  Yes, approach infinity!

Everybody Loves Silver ! Posted: 01 Dec 2010 08:02 AM PST Road to Roota

China and Russia Trade Agreement: More than Meets the Eye Posted: 01 Dec 2010 07:58 AM PST Direct trade between China and Russia may be less than $50 billion annually, but it's not the numbers that matter. Under the new agreement, China and Russia have decided that they will use their own local currencies to settle bilateral trade. Previously, both countries used the United States dollar as an intermediary for settling delivery payments.

Do Germans care that more than 2/3rds of their gold reserves are out of their reach? Posted: 01 Dec 2010 07:48 AM PST Some Justified Questions for the German Bundesbank MK: Americans who are told that most of Germany’s gold is held at the NY Fed shrug their shoulders and ask, ‘so what.?’ Is this also true in Germany? As we read in these communiques from the Bundesbank, they confirm what we reported on a couple of years [...]

Euro, USD, Gold and Stock Index Analysis Posted: 01 Dec 2010 07:46 AM PST The Good Days: From the get go, today seemed like a good day. A day, when most things fall in place almost perfectly and should I emphasis without much effort. Same could be said about the investment world. Regardless of the media’s hype about EU debt crisis or the Wiki Leaks which surely aren’t investment world’s secret “cables”, even the global markets are breathing a sigh of relief and optimism as even the BEARs amongst us know, a Bull market is just more fun!

China Goes for Gold: Where Will Prices Go? Posted: 01 Dec 2010 07:35 AM PST Jim Trippon submits: Is China driving gold prices up or down? Just last week, commentators everywhere on the planet were unanimous. Chinese anti-inflation measures were driving prices down – so said many major news sources including Bloomberg. Complete Story »

Depleting Faith in Currency to Drive Gold Bull Run Posted: 01 Dec 2010 07:34 AM PST There is a good reason why the U.S. government prints the phrase "In God We Trust" on the currency. You have to have faith that the pieces of papers you carry in your wallet have value and that you can exchange goods and services for ... Read More...

China to beat India in gold consumption Posted: 01 Dec 2010 07:29 AM PST LONDON (Commodity Online): Till now India used to be the numero uno as far as gold demand is concerned. However, the pattern is now changing. … India began liberalizing Indian gold prices and retail sales in 1990, after imposing strict controls in 1968. … Beijing started liberalizing its domestic gold market a decade ago, first with the end of jewellery price controls in 2002, and then with the launch of Shanghai's bullion-trading exchange in 2005. … Chinese consumers are already making a big impact on global gold prices. Chinese savers have bought almost half as much gold since the global financial crisis began in mid-2007 as all investors living in the developed West. Private Chinese consumers bought as much gold in the last two-and-a-half-years as the People's Bank of China owns in total. Both Indian and Chinese households are also switching to more efficient forms of gold investment too, continuing to accumulate jewelry but choosing coins and gold bars for a growing chunk of their holdings. [source]

Stocks S&P 500, Gold, Crude Oil and the Banks Trend Trading Forecasts Posted: 01 Dec 2010 07:28 AM PST Sellers were in control most of the trading session on Tuesday, however an overnight buying surge pushed the S&P 500 back up to overhead resistance as the directional battle raged on between the bulls and the bears. For over a week we have had relatively choppy trading as the S&P 500 has remained in a tight range between the 20 and 50 period moving averages. By the open Wednesday, the U.S. financial markets demonstrated their resiliency yet again. It is critical to note that we received our first and second official tests of the 50 period moving average on the S&P 500 daily chart.

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