Gold World News Flash |
- Stephen Leeb - China Gold Consumption Going Exponential
- Dan Norcini - Huge $17 Gold & $2.48 Silver Premiums in China
- GoldSeek.com Radio Gold Nugget: Dr. Burton Malkiel & Chris Waltzek
- Is The US Monetary System On The Verge Of Collapse?
- “China and India will take off of the market 1,000 tons a piece this year.”
- China and India will take most of world's gold production, Leeb says
- Bullion vaults run out of space on gold rally
- The Case for Hyperinflation in the US
- Asian Metals Market Update
- Gold Seeker Closing Report: Gold and Silver Gain About 2%
- Gold forecast to beat $2,000 in the next year
- Guest Post: Is The US Monetary System On The Verge Of Collapse?
- Goldman Fires Another Warning Shot Across Bernanke's Bow
- Goldman Fires Another Warning Shot Across Bernanke's Bow
- Potential Euro Collapse and Rapid Redistribution Of Personal Wealth
- The SP500 and the Dollar Ahead of the Fed Statement
- Will China Stop Buying U.S. Debt?
- Harvey Organ's: The Daily Gold & Silver Report
- Economic Stimulus & Outsourcing: Green Jobs, Hynix Semiconductor and Agenda 21
- Dan Norcini: Huge $17 Gold & $2.48 Silver Premiums in China
- Must-hold Gold Price Support Remains $1,765 Critical Resistance Above is $1,825
- LBMA 2011: Two Charts & An Opportunity
- Demand for real metal is beating the futures market riggers, Norcini says
- There is a great sense of denial in Europe
- Demand for real metal astonishes participants at LBMA conference in Montreal
- Gold And [Silver] Rise Ahead Of FOMC Report / Newmont Changes Dividend Payout Policy / Slovenia Government To Fall
- Getting Rich from Gold Stocks: Patience, Please
- On Eve Of Critical FOMC Decision, Republicans (Re)Send Letter To Bernanke Demanding No More QE
- America's Debt Woe is Worse Than Greece's
- In The News Today
| Stephen Leeb - China Gold Consumption Going Exponential Posted: 21 Sep 2011 01:15 PM PDT  With continued strong Chinese and Indian accumulation of physical gold, today King World News interviewed acclaimed money manager Stephen Leeb. When asked about the massive physical buying out of Asia, Leeb replied, "People want a currency they can rely on and gold really is a currency. If you are sitting there as the Chinese right now with $3.2 trillion, do you really want to have more dollars when we are likely to get the printing presses going full tilt?"
This posting includes an audio/video/photo media file: Download Now |
| Dan Norcini - Huge $17 Gold & $2.48 Silver Premiums in China Posted: 21 Sep 2011 10:25 AM PDT  With a fierce bull/bear battle developing in gold around the $1,800 level, today King World News interviewed legendary Jim Sinclair's chartist Dan Norcini. When asked about the incredible strength in the gold market under the $1,800 level, Norcini stated, "Earlier today your source out of London mentioned the Chinese were paying a $17 premium for gold and an astounding $2.48 premium for silver vs the COMEX over in Shanghai. This is absolutely incredible and you can see it in the charts. The support that is underneath this market is rock solid, that's the Asian's that are buying in the London and COMEX markets."
This posting includes an audio/video/photo media file: Download Now |
| GoldSeek.com Radio Gold Nugget: Dr. Burton Malkiel & Chris Waltzek Posted: 20 Sep 2011 07:02 PM PDT GoldSeek.com Radio Gold Nugget: Dr. Burton Malkiel & Chris Waltzek
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| Is The US Monetary System On The Verge Of Collapse? Posted: 20 Sep 2011 07:00 PM PDT Monetary Madness
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| “China and India will take off of the market 1,000 tons a piece this year.” Posted: 20 Sep 2011 06:50 PM PDT Stephen Leeb – China Gold Consumption Going Exponential Dan Norcini – Huge $17 Gold & $2.48 Silver Premiums in China
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| China and India will take most of world's gold production, Leeb says Posted: 20 Sep 2011 06:49 PM PDT 2:43p HKT Wednesday, September 21, 2011 Dear Friend of GATA and Gold (and Silver): Money manager Stephen Leeb, interviewed by King World News today, concurs with reports of voracious demand for the precious metals in China and India. Together, Leeb says, those two countries alone probably will claim most of the world's annual gold production. An excerpt from the interview has been posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/12/21_S... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Zacks Starts Coverage of Golden Phoenix with 'Outperform' Rating Friday, September 9, 2011 SPARKS, Nevada -- Golden Phoenix Minerals Inc. (OTC Bulletin Board: GPXM) announced today that Zacks Investment Research has initiated coverage of the company with a comprehensive report giving a rating of "outperform." The Zacks report provides information about the company's business model, its royalty mining growth strategy, recent acquisitions, drilling plans, and gold production. The report is available at the Golden Phoenix Internet site here: http://goldenphoenix.us/pdf/GPXM_InitiationReport.pdf Golden Phoenix Minerals Inc. is a Nevada-based mining company whose focus is royalty mining in the Americas. Golden Phoenix is committed to delivering shareholder value by identifying, acquiring, developing, and joint-venturing gold, silver, and strategic metal deposits. Golden Phoenix owns, has an interest in, or has entered agreements with respect to mineral properties in the United States, Canada, Panama, and Peru, including the company's 30 percent interest in the Mineral Ridge gold project near Silver Peak, Nevada. Please visit the Golden Phoenix Internet site here: For the company's full announcement of the coverage by Zacks, please visit: http://goldenphoenix.us/press-release/zacks-investment-research-initiate... Join GATA here: The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: 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: 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: To contribute to GATA, please visit:
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| Bullion vaults run out of space on gold rally Posted: 20 Sep 2011 06:07 PM PDT By Chanyaporn Chanjaroen, Nicholas Larkin, and Debarati Roy http://www.bloomberg.com/news/2011-09-21/bullion-vaults-running-out-of-s... Deep in the 7.4-acre Singapore FreePort next to Changi International Airport's runways is the bullion vault of Swiss Precious Metals, behind seven-metric-ton steel doors built to survive a plane crash or earthquake. The rooms are almost full after demand rose fivefold in the year since the Geneva-based company opened the facility. The firm plans an extension, and relocated Chief Executive Officer Jean-Francois Pages to Singapore last month to cope with the surge of investors willing to pay as much as 1 percent of the value of their holdings each year to keep them secure. "The European debt crisis and its impact on the solvency of European financial players are driving European customers to find refuge in tangible values like physical gold and other precious metals," Pages said. Demand "is totally compatible with the current financial and political global turmoil." ... Dispatch continues below ... ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, 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 Barclays Capital is building a new vault, The Brink's Co. and Deutsche Bank AG (DBK) may add more space, and the Perth Mint may expand for the first time since 2003, a sign they expect demand to keep increasing after the 11-year rally during which prices increased sevenfold. Investors in exchange-traded products backed by gold bought 2,198 tons of bullion since 2003, exceeding all except four countries' official stockpiles. Gold climbed to a record $1,921.15 an ounce on Sept. 6. Prices more than doubled since the end of 2007 as stock markets slumped, economies contracted and central banks and governments pumped more than $2 trillion into the global financial system. The metal rose 27 percent to $1,800.10 this year as the MSCI All-Country World Index of equities retreated 10 percent, led by financial stocks. Treasuries returned 8.5 percent, a Bank of America Corp. index shows. The U.S. Dollar Index, a gauge of the world's reserve currency against six major trading partners, slumped 13 percent in the past 15 months. Gold will exceed $2,000 this year, according to the average estimate of 16 respondents in a Bloomberg survey at the London Bullion Market Association's conference in Montreal. The metal will peak at $2,268 next year, the survey showed. Storage companies are responding. The 112-year-old Perth Mint, which refines more than 8 percent of all supply and is owned by the Western Australian state government, may add a new vault within the next year, according to Treasurer Nigel Moffatt. The mint sells everything from gold coins to 400-ounce (12.4- kilogram) bars. Brink's, the largest bullion carrier in the U.K., is considering adding more storage after opening a new London vault earlier this year. Barclays, based in London, is building a vault in the city that will open next year, the bank said in a statement last week. Deutsche Bank, based in Frankfurt, is considering expanding existing facilities and developing new ones to meet demand, Matthew Keen, a director at the bank, said earlier this month. JPMorgan Chase & Co. started a vault at the Singapore FreePort location last year and opened another in the financial district of New York. "With gold prices where they are, we encourage people to keep it in safety-deposit boxes at banks or vaults, which gives that sense of security," said Scott Carter, chief executive officer of Goldline International Inc., a Santa Monica, California-based precious-metals retailer established a half century ago. Gold bought for investment accounted for 38 percent of total demand in 2010, compared with about 4 percent a decade before, the World Gold Council estimates. Holdings in gold-backed ETPs are equal to more than nine years of U.S. mine production. The SPDR Gold Trust, the biggest bullion ETP, exceeded the market capitalization of the SPDR S&P 500 ETF Trust in August, beating what had been the industry's largest exchange-traded fund since 1993. The Brink's vault business is part of the Richmond, Virginia-based company's value-added global services unit, which accounts for about 35 percent of total revenue, according to Bradley Safalow, chief executive officer of New York-based PAA Research. The shares will rise about 55 percent to $40 in the next 12 months, he estimates. The company operates its storage business on long-term contracts that guarantee revenue, Chairman and Chief Executive Officer Michael T. Dan said in a conference call with investors in July. Brink's benefits when prices appreciate, he said. The surge in demand for bullion is a warning to some investors. George Soros called gold "the ultimate asset bubble" in 2010. Soros Fund Management LLC, founded by the 81- year-old billionaire, sold 99 percent of its stake in the SPDR Gold Trust and all shares in the iShares Gold Trust in the first quarter, a U.S. Securities and Exchange Commission filing in May showed. "We are now in the final, overheated phase of gold's protracted bull market," Chris Eibl, a partner at Zug, Switzerland-based Tiberius Asset Management AG, which has $2.8 billion in assets, wrote in a report distributed Sept. 15. Gold "is already so overbought in the wake of panic selling of bank stocks that a calming of the European financial markets could well trigger a tactical pullback by about $200 to $300." Warren Buffett, the world's most successful investor, says the metal has no utility. "They take it out of the ground in South Africa, ship it to the Federal Reserve, where they put it back in the ground," Buffett said on April 30 at Berkshire Hathaway Inc.'s annual meeting in Omaha, Nebraska. "If you were watching from Mars, you might think it's a little peculiar." All gold ever mined totaled about 168,300 tons by 2010 and would fit inside a cube measuring about 21 meters (69 feet) in length, according to the World Gold Council. Private investment in the metal reached about 31,100 tons by the end of last year, according to the council. The gold stored in vaults typically meets the LBMA's so-called good delivery standard, where bars are of at least 99.5 percent purity and include a serial number, the year of manufacture, and the refiner's assay mark. "The days where a secure vault in a basement was sufficient are long gone and in today's operating environment, the expertise required in order to manage the substantial, and expensive, quantities of bullion are far-reaching," said Orit Eyal-Fibeesh, managing director for Brink's in the U.K. Brink's, the third-biggest provider of vaults in the U.K. behind New York-based JPMorgan and HSBC Holdings Plc, is considering building another facility in London, said Eyal-Fibeesh. The company's clients include banks, trading houses, institutions, individuals, governments, and sponsors of ETPs. As gold surged 27 percent and silver 29 percent this year, so did the cost of insurance. Fees charged by Lloyd's of London members are pegged to the value, not volume, of the metals. Individuals preferring to hoard bullion under their own names in private vaults pay about 1 percent or more of the total value a year, compared with about 0.4 percent for investors in metal held through some ETPs. Insurers typically set maximum values for the metals they are willing to insure. "Many vaults are hitting the insurance limit as prices of gold have surged and even if space is available, the full replacement insurance may not be available," said Savneet Singh, the CEO of New-York based Gold Bullion International, which offers precious-metals storage to wealthy individuals, hedge funds and financial institutions. "The smaller customers are already getting squeezed." Swiss Precious Metals, whose Singapore vault will be 80 percent full by December, charges as much as 1 percent of the market value of gold and silver stored, depending on the quantity, Pages said. The charge covers storage, insurance and related documentation, he said. The company has already arranged for more space for expansion. If insurance costs rise by more than 50 percent, then the firm may ask for higher fees, according to Pages, who predicts gold may reach $2,500 by the end of the year. Swiss Precious Metals is owned by Geneva-based Palaedino Group SA and Euroasia Investment SA. Euroasia Investment is an investor in the Singapore FreePort through affiliates, according to Pages. Lloyd's of London, which offers so-called specie insurance, declined to provide information on rates or demand. Brink's declined to elaborate on storage and insurance costs. JPMorgan, which also rents space at the Singapore FreePort for its gold vault, declined to comment. Sometimes the secrecy needed at vaults backfires. Ron Paul, a Republican congressman from Texas and three-time presidential candidate who has called for a return to linking the dollar to gold, isn't sure there's any metal at the U.S. Bullion Depository at Fort Knox in Kentucky. Paul told Bloomberg Businessweek's June 20 edition that the government "is asking the American people to trust that all the gold is there, while not allowing site visits and not publishing all the data." Eric M. Thorson, the inspector general of the Treasury, said he has seen and accounted for it all. The U.S. has the world's largest gold reserves, 8,133.5 tons, according to World Gold Council data. The Kentucky vault, opened in 1937, stores more than 4,500 tons at a book value of $42.22 an ounce, according to the U.S. Mint's website. The facility admits no visitors. "Gold is simply a mirror of economic and political failure, of all the uncertainties that make people worry," said Gerry Schubert, the head of precious metals at Emirates NBD in Dubai, who has traded the metal since 1979. "If you have $50 million, what would you do with that money? You buy gold. Hedge funds, central banks, sovereign funds -- all are buying gold." Join GATA here: The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: 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: 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: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Platinum Drills 49.5 Meters Grading 1.27 g/t PGM+Au at Yukon Wellgreen Project Company Press Release Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces results from its 2011 drilling program for its first completed hole on the Wellgreen Project in the Yukon Territory, Canada. Borehole WS11-184 encountered 472.6 meters of mineralization grading 0.43% nickel equivalent from surface to the footwall contact. Within this larger swath of mineralization the hole encountered 49.5 meters of 1.27 grams per ton platinum group metals plus gold, 0.71% nickel, and 0.45% copper (or 1.11% nickel equivalent). The geology transitioned from blebby disseminated to net-textured to massive sulphide approaching the footwall contact grading 6.3% nickel, 1.7% copper, 2.7 grams per ton platinum, 1.6 grams per ton palladium, 0.17 grams per ton gold, and 3.4 grams per ton silver. The drilling zones and results are tabulated here, with more information: http://www.prophecyplat.com/news_2011_aug22_prophecy_platinum_wellgreen_...
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| The Case for Hyperinflation in the US Posted: 20 Sep 2011 06:05 PM PDT Gary North makes some good arguments. And he very well could be right. But historical evidence, common sense and the amount of current US debt makes stopping this train towards hyperinflation a lot tougher job than it looks. We aren't counting on it. Even if all we have is "mass inflation" our portfolios, heavily laden with gold and gold stocks will do very well.
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| Posted: 20 Sep 2011 06:01 PM PDT All eyes are on the Federal Reserve meeting and there are expectations that it will cut interest rates indirectly and/or start some form of quantitative easing. Technically gold and silver are in a neutral zone to bullish zone while copper is in oversold zone. The inverse correlation between gold and euro-US dollar will continue for the rest of the week. A weaker euro suggests that all is not well in eurozone and vice-versa.
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| Gold Seeker Closing Report: Gold and Silver Gain About 2% Posted: 20 Sep 2011 04:00 PM PDT Gold fell $6.20 to $1769.80 in Asia before it rose to as high as $1795.99 in London and then fell back to almost unchanged at $1776.16 by about 9:30AM EST, but it then rose to a new session high of $1811.29 by midday and ended with a gain of 1.69%. Silver fell to $39.14 in Asia before it rose to as high as $40.278 in New York and ended with a gain of 2.25%.
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| Gold forecast to beat $2,000 in the next year Posted: 20 Sep 2011 03:17 PM PDT "We expect to see $2,500 some time in the next 12 months,"
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| Guest Post: Is The US Monetary System On The Verge Of Collapse? Posted: 20 Sep 2011 03:07 PM PDT Submitted by David Galland of Casey Research Is the US Monetary System on the Verge of Collapse? Tune into CNBC or click onto any of the dozens of mainstream financial news sites, and you'll find an endless array of opinions on the latest wiggle in equity, bond and commodities markets. As often as not, you'll find those opinions nestled side by side with authoritative analysis on the outlook for the economy, complete with the author's carefully studied judgment on the best way forward. Lost in all the noise, however, is any recognition that the US monetary system – and by extension, that of much of the developed world – may very well be on the verge of collapse. Falling back on metaphor, while the world's many financial experts and economists sit around arguing about the direction of the ship of state, most are missing the point that the ship has already hit an iceberg and is taking on water fast. Yet if you were to raise your hand to ask 99% of the financial intelligentsia whether we might be on the verge of a failure of the dollar-based world monetary system, the response would be thinly veiled derision. Because, as we all know, such a thing is unimaginable! Think again. Monetary MadnessHonestly describing the current monetary system of the United States in just a few words, you could do far worse than stating that it is "money from nothing, cash ex nihilo." That's because for the last 40 years – since Nixon canceled the dollar's gold convertibility in 1971 – the global monetary system has been based on nothing more tangible than politicians' promises not to print too much. Unconstrained, the politicians used the gift of being able to create money out of nothing to launch a parade of politically popular programs, each employing fresh brigades of bureaucrats, with no regard to affordability. Such programs invariably surged during political campaigns and on downward slopes in the business cycle when politicians hearing the cries of the constituency to "do something" tossed any concern about balancing budgets out the window of expediency. After all, the power to print up the funds for debt service whenever needed makes moot any concern over deficit spending. Former VP Cheney, who fashions himself a fiscal conservative, let the mask drop when, in 2002, he stated that "Reagan proved deficits don't matter." Those words were echoed just a few weeks ago, when both former Fed Chairman Alan Greenspan and Obama economic advisor Larry Summers, in separate interviews, said almost the same, paraphrased as, "There is no chance of the US defaulting on its bonds, not when our government can borrow dollars and print new dollars to meet any future obligations." Of course, Greenspan and Summers were referring to an overt default – of just not paying – and not to a covert default engineered by inflation. Unfortunately, like virtually all of the power elite, both miss the point that the mountain of debt that has been heaped up since 1971 is fast reaching the point of collapsing like a too-big tailings pile and taking the monetary system down with it.
Importantly, the debt shown in this chart whistles past the government's unfunded liabilities, in particular for the Social Security and Medicare systems. Adding those would more than triple the US government's acknowledged obligations – to over $60 trillion. Given the role the US dollar plays as the world's de facto reserve currency – with all major commodities priced in dollars, and dollars forming the bulk of reserves held by foreign central banks – the dismal shape of the US monetary system spells trouble for the global monetary system. Making matters worse, following the lead of the United States, governments around the world long ago adopted similar fiat monetary systems. You can see the deficit contagion in this next chart. It is worth noting that the dire condition of the United States now leaves it in the same muddy wallow as Europe's desperate PIIGS.
In a recent article in The Telegraph, Ambrose Evans-Pritchard referenced a paper out of the BIS that paints the picture using appropriately stark terms. Stephen Cecchetti and his team at the Bank for International Settlements have written the definitive paper rebutting the pied pipers of ever-escalating credit. "The debt problems facing advanced economies are even worse than we thought." The basic facts are that combined debt in the rich club has risen from 165pc of GDP thirty years ago to 310pc today, led by Japan at 456pc and Portugal at 363pc. "Debt is rising to points that are above anything we have seen, except during major wars. Public debt ratios are currently on an explosive path in a number of countries. These countries will need to implement drastic policy changes. Stabilization might not be enough." Viewing the situation from another perspective, we turn to the work of Carmen Reinhart and Ken Rogoff, who studied the factors contributing to 29 past sovereign defaults. They found that default or debt restructuring occurred, on average, when external debt reached 73% of gross national product (GNP) and 239% of exports. Using the Reinhart/Rogoff findings, Casey Research Chief Economist Bud Conrad prepared the following chart showing that the US government is already far along on the path to bankruptcy.
It's hard to argue against the contention that the situation is, to be polite, precarious. Given that the obligations of the US government, as well as most of the world's other large economies, are now impossible to repay and that their reserves are just IOUs backed by nothing, the stage is set for a highly disruptive but entirely necessary do-over of the fiat monetary system. "Preposterous!" say the lords of finance and masters of all. Is it? Of course, these very same mavens completely missed the looming housing crash and the depth and duration of the subsequent crisis – a crisis that is still far from over. In other words, listen to them at your peril, because in our view it's essential in calibrating your financial affairs to understand that, if history is any guide, we are now well down the road to a collapse in the monetary system. In fact, over its relatively short history, the US monetary system has come unglued time and time again thanks to politically expedient attempts to interfere with the workings of a free market in order to reward constituents or kick the can on the economic problems of the day down the road. Thus it is our contention that while the mainstream media focus on the daily gyrations of equity markets or the futile political charade that is Washington, they overlook powerful tectonic rumblings indicating the world's prevailing monetary system is about to fracture. A Brief Timeline of US Monetary System FailuresHere's a brief history of past disruptions here in the United States. Importantly, with the US dollar now the de facto reserve currency of the world, this time around it's global. 1861 – When the Civil War begins, the dollar is convertible into gold and silver. 1862 – Congress passes the Legal Tender Act and authorizes the issuance of non-redeemable "Greenback" currency. Convertibility into gold and silver is suspended for all US currency. 1863 – National Banking Act authorizes the chartering of banks by the federal government. 1865 – A 10% tax is levied on the issuance of bank notes by state-chartered banks, effectively ending that practice. 1879 – The US Treasury resumes redeeming dollars for gold and silver. 1900 – Passage of the Gold Standard Act, adopting the gold standard by the United States and demonetizing silver.
But 33 years later, to gain the power to inflate the currency and collect the profit from doing so… 1933 – By executive order, Franklin Roosevelt prohibits the private ownership of gold. Congress passes the Gold Reserve Act, which enacts Roosevelt's executive order, abrogates all gold clauses in all contracts public or private, past or future (which cancels the convertibility of Federal Reserve notes into gold), though it confirms the convertibility of US Treasury notes held by foreigners into gold. Eleven years later, the US government takes its show on the road… 1944 – Bretton Woods system adopted with signature countries agreeing to tie the exchange rates of their currencies to the US dollar, which itself is linked to a fixed price of gold. Foreign trading partners retained the right to swap dollars for gold, imposing a de facto restraint on printing more dollars. For all intents and purposes, the US dollar becomes the world's reserve currency. But 27 years later… 1971 – Nixon abruptly closes the "gold window," unilaterally reneging on the Treasury's promise to allow foreign governments to redeem dollars for gold. Bretton Woods collapses. With no remaining tie to a tangible, the dollar is reduced to a paper token. The transition to a global fiat monetary system is complete. Until 40 years go by and the inevitable consequences of giving politicians free rein over money creation become untenable… Present day – Sovereign debt crisis. Desperate, debt-laden governments around the globe – the bulk of their reserves composed of fiat US dollars and euros at risk of going up in smoke – turn to the only thing they know, printing more money and issuing yet more debt. The global monetary system cracks and heads toward failure with no workable alternative on the horizon. Governments, corporations and investors alike are caught unprepared in the downward spiral of failing fiat currencies and are wiped out by a combination of frantic currency debasements, higher taxation, exchange controls and worse. Social unrest spreads, with the public paradoxically demanding that governments do more, not less. That's because all the world's major currencies are at risk, simultaneously, as the issuers engage in a dangerous race to the bottom. As the monetary system moves inexorably toward terminal debasement and collapse, the results will be catastrophic for the unprepared. Importantly, while the list of historical attempts to re-jigger the US monetary system have, to this point, more or less succeeded in kicking the can a bit further down the road, the sheer scale of today's government obligations has driven us into a box canyon, with no way out. As the government's debt and spending obligations are mathematically impossible to resolve, it is now a certainty that a lot of people are going to wake up one morning to the reality that they are a lot poorer than they thought. Fortunately for those now paying attention, the collapse of a monetary system doesn't happen in a flash. It is a progression, like the spiral of water down a drain. Thus, while no one can predict exactly when the downward spiral will accelerate out of control, there is still time to prepare. Dark though the lens may be, this is the lens through which we here at Casey Research view all our investments. Simply, being right or wrong about your investment decisions in the years just ahead will be insignificant if the currencies underpinning those investments shrivel to just a fraction of their current values.
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| Goldman Fires Another Warning Shot Across Bernanke's Bow Posted: 20 Sep 2011 02:53 PM PDT Following up his earlier note laying out expectations (translated as: "you better or else") for the outcome of the FOMC meeting tomorrow, Goldman's chief economist Jan Hatzius produces another 'concerning' research note tonight providing just enough evidence for a growing downside risk to the firm's 2% GDP growth estimate for 2012. We assume the failure of the market to hold onto dramatic losses (easier to justify more easing) or dramatic gains (can't disappoint a Pavlovian public waiting for the FOMC bell to ring) in the last few days prompted the 'nudge' from the policy-makers-elect. It appears weak stocks, a strengthening dollar, and the European crisis were not what the doctor ordered. From Goldman US Daily : A More Downbeat Message from Our Financial Balances Model (Hatzius/Stehn)
Financial Balances Model Now Points to Restraint for 2012
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| Goldman Fires Another Warning Shot Across Bernanke's Bow Posted: 20 Sep 2011 02:53 PM PDT
Following up his earlier note laying out expectations (translated as: "you better or else") for the outcome of the FOMC meeting tomorrow, Goldman's chief economist Jan Hatzius produces another 'concerning' research note tonight providing just enough evidence for a growing downside risk to the firm's 2% GDP growth estimate for 2012. We assume the failure of the market to hold onto dramatic losses (easier to justify more easing) or dramatic gains (can't disappoint a Pavlovian public waiting for the FOMC bell to ring) in the last few days prompted the 'nudge' from the policy-makers-elect. It appears weak stocks, a strengthening dollar, and the European crisis were not what the doctor ordered. From Goldman US Daily : A More Downbeat Message from Our Financial Balances Model (Hatzius/Stehn)
Financial Balances Model Now Points to Restraint for 2012
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| Potential Euro Collapse and Rapid Redistribution Of Personal Wealth Posted: 20 Sep 2011 02:12 PM PDT by Peter Degraaf, MarketOracle.co.uk:
At the same time there will be enormous windfall profits for some governments and for many millions of individual citizens. For many, whether they gain – or are destroyed – will be more or less happenstance. However, if we see the waves coming and are prepared, there are personal steps we can take to change whether we are likely to be one of the victims or one of the beneficiaries. Read More @ MarketOracle.co.uk
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| The SP500 and the Dollar Ahead of the Fed Statement Posted: 20 Sep 2011 02:10 PM PDT The Federal Reserve is holding a two-day meeting Tuesday and Wednesday of this week. Market participants are expecting the Federal Reserve to prop up financial markets yet again with some grand new plan. Read More...
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| Will China Stop Buying U.S. Debt? Posted: 20 Sep 2011 02:07 PM PDT by Greg Hunter's USAWatchdog.com:
A few weeks ago the Telegraph UK did a story about the sharp drop in foreign holdings of U.S. Treasuries. One of the big buyers of American debt is of course China. There are those that think China is forced to buy our debt otherwise its economy will collapse. Until the Treasury releases what is called "TIC" data (Treasury International Capital) in November, we really will not know what is going on. That is when the world will know for sure who is buying U.S. debt and who is NOT buying. Brandon Smith from Alt-Market.com thinks China is already heading for the exits when it comes to Treasuries. He makes a very good case for his point of view in the post below. Please read and enjoy. –Greg Hunter– ————————————————————- Is China Ready to Pull the Plug? By Brandon Smith Guest Writer for USAWatchdog.com There are two mainstream market assumptions that, in my mind, prevail over all others. The continuing function of the Dow, the sustained flow of capital into and out of the banking sector, and the full force spending of the federal government are ALL entirely dependent on the lifespan of these dual illusions; one, that the U.S. Dollar is a legitimate safe haven investment and will remain so indefinitely, and two, that China, like many other developing nations, will continue to prop up the strength of the dollar indefinitely because it is "in their best interest".
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| Harvey Organ's: The Daily Gold & Silver Report Posted: 20 Sep 2011 01:50 PM PDT Gold and Silver rise ahead of FOMC report/Newmont changes Dividend payout Policy/ Slovenia government to fall
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| Economic Stimulus & Outsourcing: Green Jobs, Hynix Semiconductor and Agenda 21 Posted: 20 Sep 2011 01:43 PM PDT |
| Dan Norcini: Huge $17 Gold & $2.48 Silver Premiums in China Posted: 20 Sep 2011 01:37 PM PDT from King World News:
Dan Norcini continues: Read More @ KingWorldNews.com
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| Must-hold Gold Price Support Remains $1,765 Critical Resistance Above is $1,825 Posted: 20 Sep 2011 12:54 PM PDT Gold Price Close Today : 1806.90 Change : 30.20 or 1.7% Silver Price Close Today : 40.087 Change : 0.969 or 2.5% Gold Silver Ratio Today : 45.07 Change : -0.345 or -0.8% Silver Gold Ratio Today : 0.02219 Change : 0.000168 or 0.8% Platinum Price Close Today : 1782.00 Change : 8.00 or 0.5% Palladium Price Close Today : 720.00 Change : 6.00 or 0.8% S&P 500 : 1,202.09 Change : -2.00 or -0.2% Dow In GOLD$ : $130.52 Change : $ (2.12) or -1.6% Dow in GOLD oz : 6.314 Change : -0.102 or -1.6% Dow in SILVER oz : 284.60 Change : -6.85 or -2.4% Dow Industrial : 11,408.66 Change : 7.65 or 0.1% US Dollar Index : 76.99 Change : -0.154 or -0.2% On Thursday and Friday, 22 and 23 September, I will be travelling and so will not be sending out commentaries. God willing, I will return on Monday, 26 September. What does IMF-imposed austerity look like? Here's a hint from an astute friend in Greece. I asked him if the Greek government would default, since he had several months ago written that default was a question of when, not if. He wrote: "We have already been under a 'controlled bankruptcy state' for a few months. "We are now watching the epilogue of the Greek drama, and I think it will not last much longer. Actually, it can't. Practically. " * The state has imposed ridiculous anti-constitutional taxes in order to fill fiscal holes, people simply cannot pay any more. " * Real unemployment (part-time jobs do not count) is 30% already. " * One out of two Greek families is touching the "being poor" limit. " * The prime minister declared that the government intends for every family to have at least one family member with a job. (!) " * Our economy is wrecked, we do not produce, only import. " * There are cuts everywhere, life is getting more expensive, but salaries get lower. Imagine life getting about 7-8% more expensive in a year and salaries/retirements to get cut about 20%. Add to this some outrageous "special" taxes. People simply cannot take it. "I cannot estimate how far this can go, soonest is by the end of this year, latest seems sometime within the next year." Just apply those same "austerity measures" to yourself right here. Is anybody surprised that Greeks have been pulling their money out of the banks and buying gold? Another 7-league boot fell late yesterday when Italian government debt was downgraded from A+ to A rating. Italian government blustered, but nobody was much surprised. Euro actually rose, a classic case of buy the rumor, sell the news. What frustrates me so much is that none of these measures make even baby steps toward reforming these economies. Nobody ever addresses the presuppositions underlying their failures, namely, that governments OUGHT to run economies, that prosperity can be accomplished by government spending and borrowing (government and private), that borrowing, flipping burgers, and selling each other computer programs can really replace PRODUCTION, real production, in an economy. Wealth of the world begins with the things men take out of the ground. As that processes thru the economy, it creates income for all who handle it. But what happens when production is shipped overseas? How is the lost income replaced? Our Rulers answer is, borrowing. Ask the Greeks how well that works. Mercy, ask the Americans! Nice Government Men were busy painting the tape today. All the stock indices dropped slightly, while the Dow alone gained an insignificant 7.65 points (0.07%) to close 11,408.66. S&P lost 2 (0.17%) to close 1,202.09. Dow tried all day to get through the same 11,550 resistance that stymied it on Friday, but in vain. Wasted a lot of buying power trying, though, and has traced out on a 5-day chart something that looks remarkably like a double top. Longer term chart is choppy and indecisive, but looks to be meditating another, larger drop. US dollar index fell 15.4 basis points today (0.2%) to 76.992, yet it remains above its 20 day moving average (75.51) and 50 dma (74.9) and 200 dma (76.12). That, and a stirring rise in the last 3 weeks pretty well defines a rally. The Franken-currency, the euro, rose 0.68% to 1.3699 today. Meaningless. It's falling down the wall like some alien slime monster in a Grade B movie from the 1950s, with little hope of rallying any time soon. Yen is giving the Nice Government Men fits, refusing to get with the program and fall. Closed today at 130.86c/Y100 (Y76.42 = $1). The GOLD PRICE is playing the same tricks on us it played in mid-August when it posted a downward key reversal and upside key reversal back to back. Yesterday's break should have taken it lower, but instead it gained $30.20 today (versus losing $35.80 yesterday) to close Comex at $1,806.90. The breakdown thru the uptrend line remains, but today the GOLD PRICE closed smack under it. It can clamber above that line, it will scramble for higher ground. Gold abideth still beneath its 20 dma ($1,823.20), and that wide spread between the 50 dma ($1,737.19) and the 200 dma ($1,517.89) is begging to be narrowed. Momentum, in other words, points down but gold keeps on refusing to give up and drop. Must-hold support remains $1,765. Critical resistance above is $1,825. Break either of those lines, and gold will travel much further in the direction of the break. The SILVER PRICE built on yesterday's bounce off 3900c support and reached as high as 4026. Like gold, silver contradicted yesterday's 167.1c loss by regaining 96.9c and closing Comex at 4008.7c. It weakened off in the aftermarket, however, to 3975c, not an encouraging move. Even tho the SILVER PRICE rose today, it remains BELOW its rising trend line, which of course constitutes a breakdown. It also lingers below its 20 dma (4116c) and even 50 dma (4032c). Absent a rise shooting through 4250 and then 4400c, silver will see lower prices. Having said all that, I still note that a crisis and panic is slowly sizzling in Europe while the cooks are out on the porch smoking and piddling. That panic could catch fire and burn out of control at any time, so don't get too cocksure that silver and gold will fall sharply. If that crisis fizzles instead of sizzles, they'll drop. Otherwise fear will keep buoying them up,. Must hold support for silver is 3875c. On 20 September 1873 began the Panic of 1873, which introduced a severe international economic depression that lasted until 1879. Not much to anybody's surprise, it was caused by speculation financed by the banks. It began with the demonetization of silver in the US ("The Crime of '73") and following demonetization by the new German empire. Wild optimism in Germany and Austria with the founding of the new Reich provoked more speculation, and it broke in the US with the failure of the Northern Pacific Railway that declared bankruptcy on 18 September. On 20 September that took down Jay Cooke and Co., a major New York banking establishment that today would be classed as "too big to fail." What lesson can we learn from this? That the so-called business cycle and depressions are really not anything more than a "banking cycle" where the banks pump out credit then withdraw it when the bubble bursts. Where have we heard this story before? Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2011, 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. Be advised and warned: Do NOT use these commentaries to trade futures contracts. I don't intend them for that or write them with that outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. 
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| LBMA 2011: Two Charts & An Opportunity Posted: 20 Sep 2011 12:09 PM PDT by Adrian Ash BullionVault Tuesday, 20 September 2011 Plenty of reasons to be cautious were flagged up in today's "Bubble or Not?" debate... LOTS MORE to share from the second and last day of this year's LBMA Annual Conference here in Montreal. But the red-eye for London won't wait, not with Air Canada cabin staff starting a strike at midnight. So two quick charts, both highlighted by Edel Tully, precious metals strategist at UBS, in her conference summary. First, she said she's adding this chart – hoisted from this morning's opening presentation by Albert Cheng of the World Gold Council in the China & India session – to her slide deck: It shows the yawning supply-demand gap inside China's domestic gold market. Now the world No.1 for gold mining output four years running, China cannot satisfy its own private household demand. Bigger picture, the chart makes a neat pairing with this slide, used by Franco-Nevada chairman Pierre Lassonde in Monday's keynote ...
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| Demand for real metal is beating the futures market riggers, Norcini says Posted: 20 Sep 2011 12:03 PM PDT 8a HKT Wednesday, September 21, 2011 Dear Friend of GATA and Gold (and Silver): Interviewed at King World News, futures market analyst Dan Norcini of JSMineSet.com and the Trader Dan blog (http://www.traderdannorcini.blogspot.com/) says the technical action in the futures markets confirms indications that enormous physical demand from Asia for the precious metals has put a floor under the market and is defeating the usual market manipulation by central banks and bullion banks. An excerpt from the interview has been posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2011/9/21_Da... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Platinum Drills 49.5 Meters Grading 1.27 g/t PGM+Au at Yukon Wellgreen Project Company Press Release Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) announces results from its 2011 drilling program for its first completed hole on the Wellgreen Project in the Yukon Territory, Canada. Borehole WS11-184 encountered 472.6 meters of mineralization grading 0.43% nickel equivalent from surface to the footwall contact. Within this larger swath of mineralization the hole encountered 49.5 meters of 1.27 grams per ton platinum group metals plus gold, 0.71% nickel, and 0.45% copper (or 1.11% nickel equivalent). The geology transitioned from blebby disseminated to net-textured to massive sulphide approaching the footwall contact grading 6.3% nickel, 1.7% copper, 2.7 grams per ton platinum, 1.6 grams per ton palladium, 0.17 grams per ton gold, and 3.4 grams per ton silver. The drilling zones and results are tabulated here, with more information: http://www.prophecyplat.com/news_2011_aug22_prophecy_platinum_wellgreen_... Join GATA here: The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: 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: 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: To contribute to GATA, please visit: ADVERTISEMENT Sona Drills 85.4g Gold/Ton Over 4 Metres at Elizabeth Gold Deposit, 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
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| There is a great sense of denial in Europe Posted: 20 Sep 2011 11:56 AM PDT via TVR From Bill Mitchell: "Over the last week or so I have been in Europe and talking to all sorts of people. In the streets the decay is clear and I am in a relatively rich part of Europe (Maastricht). Unsold properties are multiplying and the there are lots of shopping space vacant in the main centres. It is very apparent to me but when I ask people about this some express surprise – not having noticed it themselves. I concede that when you come here once a year you note the changes but the reality is fairly stark. If we put this anecdotal evidence together with the way in which the Euro bosses are behaving and the overall quality of the policy debate in Europe at present it is clear to me that there is a great sense of denial in Europe. Nowhere is this more apparent than in "The only way forward for the world economy is to stimulate aggregate demand. The high savings of Germans (and the Dutch for example) which then rely on the dis-saving of other nations to maintain some semblance of growth is not consistent with the way in which the Euro bosses are handling this crisis." "There is a great sense of denial here in Europe which I have picked up strongly over the last week. The dots are not being connected. Somehow analysts think that killing off Greece will help Germany maintain its export-led growth strategy." Read More @ Bill Michtell billyblog
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| Demand for real metal astonishes participants at LBMA conference in Montreal Posted: 20 Sep 2011 11:55 AM PDT Gold Forecast to Beat $2,000 in the Next Year By Jack Farchy http://www.ft.com/intl/cms/s/0/d924ca88-e3a2-11e0-8990-00144feabdc0.html... MONTREAL, Canada -- The gold market is revving up to reach new record highs in excess of $2,000 an ounce in the next year, according to the average forecast of bankers, traders and investors at the gold industry's largest annual gathering. The bullish prediction, if correct, suggests that the gold bull market remains intact, despite the price of the metal having already gained almost 30 per cent this year and 600 per cent over the past decade. The widespread optimism at the London Bullion Market Association conference in Montreal, the largest gathering of the gold industry, comes as the gold market has been transformed from a backwater dominated by jewellery demand to one of the hottest investment assets. ... Dispatch continues below ... ADVERTISEMENT Be Part of a Chance to Discover Multi-Million-Ounce Gold and Silver Deposits in Canada Northaven Resources Corp. (TSX-V:NTV) is advancing five gold and silver projects in highly prospective and politically stable British Columbia, Canada. Check out the exploration program on our Allco gold/silver project : -- A large (13,000 hectare) property, covering more than 15 square kilometers of a regional mineralized trend just 3km from a recently announced 1.2-million-ounce gold and 15-million-ounce silver deposit. -- The property hosts historic high-grade silver workings and many mineral -- A deep-penetrating airborne geophysics survey has just been completed on the entire property and neighboring deposits and its results are eagerly awaited. To learn more about the Allco property or Northaven's other gold and silver projects, please visit: http://www.northavenresources.com Or call Northaven CEO Allen Leschert at 604-696-3600. The conference, which enjoyed a record attendence in excess of 500, predicted that gold would be trading at $2,019 a troy ounce at the time of next year's meeting in November 2012. That would mark a fresh nominal record for gold, although it is still below the inflation-adjusted peak touched in 1980, which translates to more than $2,400 in today's money. The delegates at the LBMA conference have a strong record of predicting the trajectory of the gold price, although their forecasts have traditionally been overcautious. Last year, with gold trading at $1,298 an ounce, the conference predicted a price of $1,450. On Tuesday, bullion was trading at $1,805.70, down from a record peak of $1,920 in early September. The forecasts, if accurate, bode well for hedge fund managers such as John Paulson of Paulson & Co and David Einhorn of Greenlight Capital, who bought gold in the financial crisis as a means of betting that governments and central banks would fail to safeguard their economies from the market turmoil. Many hedge fund investors believe a sharp appreciation in the gold price is likely as they expect the eurozone debt crisis to deepen. Despite the optimistic price predictions, traders were wary of growing volatility in the gold market, which has experienced some of the sharpest swings on record in recent weeks. Asked whether the market was in a bubble, 39 per cent of the traditionally bullish audience replied that it was. A growing number expect the market to accelerate in the next year or two and peak above $2,500. "We expect to see $2,500 some time in the next 12 months," said Som Seif, chief executive of Claymore Investments, a Canadian asset manager. The most bullish forecast came from Pierre Lassonde, chairman of Franco-Nevada, who predicted that gold would reach parity with the Dow Jones Industrial Average index, at present trading at 11,400, within the next four to six years. "This bull market is far from over," said Mr Lassonde, whose predictions are optimistic even by the standards of market bulls. A drop below $1,600 an ounce could mark the end of the rally for the next few months, traders believe -- although many expect demand from Asian investors and central banks to prop up prices above that level. Mr Lassonde said: "I think there's going to be a strong correction at some point and it's going to set up the last phase that will take the market to numbers that few people can imagine." The bullish sentiment has been underpinned by the strength of demand for coins and small bars from retail investors from Germany to China. Steven Nathan, marketing director at the Rand Refinery in South Africa, said that sales of the popular gold krugerrand coin were at a record level: "Demand is insatiable. It's the strongest period ever right now." A comparable surge in demand was reported by other mints, refiners, and coin dealers. "I just can't see the price coming down," said one senior precious metals banker. "Physical demand is incredibly strong." Join GATA here: Toronto Resource Investment Conference http://cambridgehouse.com/conference-details/toronto-resource-investment... The Silver Summit http://cambridgehouse.com/conference-details/the-silver-summit-2011/48 New Orleans Investment Conference http://www.neworleansconference.com/ Support GATA by purchasing gold and silver commemorative coins: https://www.amsterdamgold.eu/gata/index.asp?BiD=12 Or by purchasing a colorful GATA T-shirt: 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: 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: To contribute to GATA, please visit: ADVERTISEMENT Lewis E. Lehrman on How to Solve the U.S. Debt Problem Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, advises that to reduce the $1 1/2 trillion U.S. deficit, the Republican Party must initiate an investment program. Working Americans are not saving, which enables the banks to lead the country into a cycle of debt, leverage, boom, panic, and bust. Lehrman says: Eliminating the budget deficit of a trillion and a half dollars cannot be done overnight. The proposal by U.S. Rep. Paul Ryan was very dramatic -- one Republican called it radical -- but it was not happily received. The solution, of course, is to design an American program for prosperity, because you can solve these entitlement problems with a growing economy. We need a tremendous program of investment, and investment comes from savings. When you pay savers, middle-income professionals, and working people 0 percent at the bank, you are not going to encourage them to save. Then we are left with a bank cycle of debt, leverage, boom, panic, and bust." To read more and to sign up for The Gold Standard Now's free, noncommercial, weekly report, "Prosperity through Gold," please visit: http://www.thegoldstandardnow.org/gata
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| Posted: 20 Sep 2011 11:42 AM PDT by Harvey Organ: Good evening Ladies and Gentlemen: I have two hours to spare so I will bring to you today's events. The price of gold rose by $31.20 to $1806.60 Read More @ HarveyOrgan.Blogspot.com
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| Getting Rich from Gold Stocks: Patience, Please Posted: 20 Sep 2011 11:23 AM PDT Author: Vedran Vuk Synopsis: Markets are rife with tension these days, and gold and gold stocks are no exception. For those with "get rich quick" hopes pinned to their gold stocks, Jeff Clark shares some informative and hopeful historical data. Dear Reader, In case some of you didn't make it to the airing of the American Debt Crisis event last week, it's up online. I'm really surprised at how well it turned out. I knew that it would be good but Doug Casey, David Galland, Olivier Garret, Bud Conrad, and Terry Coxon did an amazing job. Some of our regular readers should be familiar with a lot of topics in the video, but it's still entertaining. If Doug is in the video, one is pretty much guaranteed a good time. Speaking of events, we have another one lined up at La Estancia de Cafayate: Discover Cafayate, held November 1-6, 2011 in beautiful northwestern Argentina. H...
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| On Eve Of Critical FOMC Decision, Republicans (Re)Send Letter To Bernanke Demanding No More QE Posted: 20 Sep 2011 10:49 AM PDT Nine months after the very same quartet of republicans, headed by John Boehner, sent a letter to Bernanke protesting the launch of QE2, this time the GOP has waited until a mere 24 hours before the actual announcement with an identical, if preemptive, message, namely: don't print, or stated differently, "we submit that the board should resist further extraordinary intervention in the U.S. economy, particularly without a clear articulation of the goals of such a policy, direction for success, ample data proving a case for economic action and quantifiable benefits to the American people." And while the political undertone of the letter is all too obvious: i.e. prevent any additional Obama-benefiting stimulus in the economy through the only conduit Obama has left, courtesy of Fiscal stimulus being snarled for good due to the republican majority in the House, Boehner et al bring up a valid point, which is that the Fed policy now accentuates market uncertainty and promotes trade wars: precisely the topics discussed in an earlier article today. As stated by Boehner: "Our long-term growth depends on restoring confidence and certainty in our fiscal, regulatory, and trade policies -- and not on government's willingness to engage in additional stimulative measures. When asset prices increase due to anticipated Federal Reserve policy rather than economic fundamentals, it increases the potential for speculative action and erodes confidence in the economic outlook, making it more difficult to generate sustainable growth." Regardless of its actual merit, one thing is without doubt: QE3, and the Fed, just become once again critically politicized, and as such, even more market uncertainty is imminent. All that said, the theatrical optics of this action are quite glaring. Full letter:
And here is the letter sent back on November 17, 2010, after QE2 was already in process:
The Honorable Ben S. Bernanke Dear Chairman Bernanke: We firmly believe that monetary policy decisions by the U.S. Federal Reserve must be free and independent from political pressures. At the same time, the Federal Reserve should be open to receiving input and data from a wide range of sources. This combination preserves confidence in the credibility and effectiveness of decisions made by the Federal Reserve. It is with that understanding that we write to express our deep concerns over the recent announcement that the Federal Reserve will purchase additional U.S. Treasury bonds, the so-called Quantitative Easing 2 (QE2). While intended to improve the short-term growth of the U.S. economy and help maintain a stable price level, such a measure introduces significant uncertainty regarding the future strength of the dollar and could result both in hard-to-control, long-term inflation and potentially generate artificial asset bubbles that could cause further economic disruptions. The Federal Reserve's recent move has also generated increased criticism and action from other central banks and governments. We appreciate that such comments must be examined within the context of which they have been offered. However, any action taken by our nation or foreign nations that impairs U.S. trade relations at a time when we should be fighting global trade protection measures will only further harm the global economy and could delay recovery in the United States. Perhaps most damaging, we believe that QE2 is giving the impression that the Federal Reserve will keep making new and different attempts to boost the short-term prospects for the economy. Our long-term growth depends on restoring confidence and certainty in our fiscal, regulatory, and trade policies -- and not on government's willingness to engage in additional stimulative measures. When asset prices increase due to anticipated Federal Reserve policy rather than economic fundamentals, it increases the potential for speculative action and erodes confidence in the economic outlook, making it more difficult to generate sustainable growth. We hope you and the other Board Members will keep these concerns in mind as you review and discuss these issues in the coming months. Sincerely, Mitch McConnell John Boehner Jon Kyl Eric Cantor
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| America's Debt Woe is Worse Than Greece's Posted: 20 Sep 2011 10:31 AM PDT by Laurence J. Kotlikoff, CNN:
We're broke for a reason. We've spent six decades accumulating a huge official debt (U.S. Treasury bills and bonds) and vastly larger unofficial debts to pay for Social Security, Medicare, and Medicaid benefits to today's and tomorrow's 100 million-plus retirees.
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| Posted: 20 Sep 2011 10:30 AM PDT Jim Sinclair's Commentary Gold is the Tier One, Basel or not. LBMA campaigns for gold to be Tier 1 asset for banks under Basel III Posted on 20 September 2011 European central banks have become net buyers of gold for the first time in more than two decades, a significant sign that the role Continue reading In The News Today
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Specifically, the act provided for "...the dollar consisting of twenty-five and eight-tenths grains (1.67 g) of gold nine-tenths fine, as established by section thirty-five hundred and eleven of the Revised Statutes of the United States, shall be the standard unit of value, and all forms of money issued or coined by the United States shall be maintained at a parity of value with this standard..."
There is a significant chance that the Euro itself will collapse in the coming weeks or months. Although the highly likely Greek government default may act as the trigger, the collapse of the European Monetary Union (EMU) and its currency is a quite different event from a single minor member defaulting on its debts. As discussed herein, the potential rapid annihilation of what used to be a global reserve currency could lead to one of the fastest and sharpest redistributions of wealth in financial history. If catastrophe takes down Europe's economy and banking system, then we may see repeated tidal waves of business collapse and spiking unemployment spreading out from the EU, and slamming into the already weak but tightly interlinked economies of the US, Japan, Canada, Australia and others.
With a fierce bull/bear battle developing in gold around the $1,800 level, today King World News interviewed legendary Jim Sinclair's chartist Dan Norcini. When asked about the incredible strength in the gold market under the $1,800 level, Norcini stated, "Earlier today your source out of London mentioned the Chinese were paying a $17 premium for gold and an astounding $2.48 premium for silver vs the COMEX over in Shanghai. This is absolutely incredible and you can see it in the charts. The support that is underneath this market is rock solid, that's the Asian's that are buying in the London and COMEX markets."
Germany. Their growth model has failed and must change. But it will be very difficult to achieve the sort of national awareness that will render that change possible. The Eurozone was always going to fall apart as a result of its basic design flaws from its inception. But the German strategy – which they consider to be a source of national pride – actually ensured that once the basic design flaws were exposed by the collapse of aggregate demand, things would be much worse than otherwise."
Boston, Massachussetts (CNN) — Our government is utterly broke. There are signs everywhere one looks. Social Security can no longer afford to send us our annual benefit statements. The House can no longer afford its congressional pages. The Pentagon can no longer afford the pension and health care benefits of retired service members. NASA is no longer planning a manned mission to Mars.| You are subscribed to email updates from Save Your ASSets First To stop receiving these emails, you may unsubscribe now. | Email delivery powered by Google |
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