Gold World News Flash |
- International Forecaster January 2012 (#2) - Gold, Silver, Economy + More
- Empire Club Outlook 2012: Why Rising Debt Will Lead to $10,000 Gold
- The Weekend Vigilante 7.Jan.2012
- 90% of Dutch Gold Reserve Is Held Abroad
- UBS' Releases Most Dire Prediction To Date: Greece To Experience “Coercive” Restructuring With CDS Triggering Around March
- Financial Repression
- Is Ron Paul 2012's Black Swan?
- Why Rising Debt Will Lead to $10,000 Gold: Nick Barisheff
- UBS' Releases Most Dire Prediction To Date: Greece To Experience "Coercive" Restructuring With CDS Triggering Around March
- The Dollar Vigilante: “The State is just a large criminal organization” [SGTreport Exclusive]
- 2012 Will Mark the End of the Euro
- Tanzanian police foil $30m ‘Great Plane Robbery' gold heist at AngloGold Ashanti mine
- Guest Post: Inflation: An Expansion of Counterfeit Credit
- Financial Advisors? Financial Advisory #4 ? Preparing for 2012
- David Morgan & Max Keiser on Gold & Silver Market Manipulation
- What Worked In 2011... And What Didn't
- Only these two countries air weekly, global, satellite TV shows presented by pro-gold, anti-dollar Max Keiser seen by millions
- Dutch central bank admits 90% of its gold is abroad
- Exclusive Interview – Doug Casey: “Its Getting Late in the Day to Diversify Politically, Capital Controls Are Coming”
- WHY YOU BUY PHYSICAL GOLD & SILVER
- This Past Week in Gold
- Iran and Russia drop dollar for their own currencies in bilateral trade
- From Anonymous…
- Gold, Silver, Wall Street's Best Bet for Crisis-Beating Returns
- Why Rising Debt Will Lead to $10,000 Gold
- Cheap Gold Stocks
| International Forecaster January 2012 (#2) - Gold, Silver, Economy + More Posted: 08 Jan 2012 03:53 AM PST Irrespective of the trillions of dollars thrown at the US economy since 2006 there is no evidence that long-term solvency or recovery has been achieved. The debt that has been added and created means we'll see higher inflation and perhaps hyperinflation. Comments by administration officials last week that if necessary the dollar will be crushed, are hardly comforting. Remember, just a week before Fed Chairman Bernanke said to Congressmen that the Fed was not going to lend Europe money to bail their members out and one week later we have a $1 trillion swap, loan program to bail Europe out.
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| Empire Club Outlook 2012: Why Rising Debt Will Lead to $10,000 Gold Posted: 07 Jan 2012 06:13 PM PST ...
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| The Weekend Vigilante 7.Jan.2012 Posted: 07 Jan 2012 04:37 PM PST from DollarVigilante.com:
According to the Mayans, this year will entail a transformative or cataclysmic event. But, we don't pay too much credence to this. After all, if the Mayans were so great at predicting the future there'd still be Mayans. But you don't have to be Mayan to know that, almost without doubt, there will be a major transformative change in the world in the coming years. Whether it happens on December 21st of this year or not, is almost irrelevant. The western monetary system and the welfare/warfare democratic nation-state period will collapse. The numbers are already baked in the cake. It's just a matter of preparing and finding ways to profit from the collapse and securing your financial and personal effects to survive through the Great Transition to come. Read More @ DollarVigilante.com
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| 90% of Dutch Gold Reserve Is Held Abroad Posted: 07 Jan 2012 04:29 PM PST Klaas Knot, the new president of the Dutch central bank, De Nederlandsche Bank (DNB), seems to be taking calls for transparency to a new level. by Jaco Schipper, MarketUpdate.nl:
Based on the footage shown on Thursday and additional images found at the central bank's Internet site, we had already calculated that there are some 4,500 gold bars located in the bank's vault. Our calculation showed that there are at least 56 tons of gold stored in Amsterdam, possibly more, we speculated, in the form of gold coins. We proved to be not far off, as Friday night the definitive answer was given by Knot himself.
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| Posted: 07 Jan 2012 04:20 PM PST from ZeroHedge:
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| Posted: 07 Jan 2012 04:17 PM PST by Alasdair Macleod, GoldMoney.com:
Financial repression includes directed lending to governments by captive funds such as pension and insurance funds, artificial caps on interest rates, restrictions on capital flows and a generally tighter connection between government and banks. Some or all of these devices have been used in the past to reduce the level of government debt to GDP, particularly in the two decades after the Second World War. Many countries reduced the level of their outstanding debt by a significant amount over a 10 to 20 year timeframe through these techniques, assisted by moderate levels of inflation. Two of the alternatives to financial repression listed in the paper are clearly unpalatable: default, and "a burst of high inflation". Two further alternatives are either impractical or politically unattractive: economic growth, which is slipping away further into the future, and austerity plans involving years of unpopular policies with the risk of a deflationary depression. For these reasons, financial repression seems the default option to Reinhart and Sbrancia.
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| Is Ron Paul 2012's Black Swan? Posted: 07 Jan 2012 03:08 PM PST Courtesy of Bill Buckler of The Privateer The Great Non Debate For five years, the writing on the wall has been crystal clear. As 2007 began, the US Foreclosure Market Report for 2006 showed that foreclosures for the year had reached 1.2 million, an increase of 42 percent over the 2005 figure. In early February 2007, in the midst of a growing rash of bankruptcies among small US sub-prime mortgage issuers, New Century Financial announced that it was "recalculating" its "profits for the previous three quarters. New Century was one of the three biggest mortgage brokers in the US. In two days, its stock price dropped 40 percent. Six months later, President Bush was calling the now obvious collapse in the US real estate market a "blip" on the US economy. Two months after that, the stock market peaked. A year after that, in September/October 2008, the global economy froze solid and was only thawed by the biggest explosion of money creation in history. Now, here we are at the start of 2012. Nothing has changed. No positive steps have been made. The symptoms have been disguised under an avalanche of palliatives but the disease continues to eat away at the substance of the system on which it feeds. The major effort of government and "mainstream" analysts everywhere has been to avoid, deflect and actively silence any nascent discussion of the root of the problem. The root of the problem is perfectly illustrated in the fact that since August 1971, the funded debt of the US government has risen from $US 400 Billion to $US 15,236 Billion. The severity of the problem is illustrated by the fact that with Mr Obama having yet to complete his third full year as President, he has presided over $US 4,600 Billion (or almost one-third) of that increase. The root of the problem is the abandonment of money - the final legal connection between Gold and the US Dollar was ended in August 1971. The severity of the problem is the grotesque expansion of what has taken its place. None of this has been or is being discussed because the establishment in the US and everywhere else does not want it discussed. A REAL "black swan event" - an event that deviates by 180 degrees from what is "normally expected" - would be a political debate over root causes and basic principles. The great merit of Ron Paul - and the great service he is giving to his own and every other nation - is the fact that he is doing everything he can to raise the debate to that level. That makes Dr Paul a unique politician, a man who tells people what most of them DON'T want to hear or understand. Or at least they don't think they want to understand it. Dr Paul's great and merited attractiveness to a growing number of admirers has a very simple source. He is that rarest of creatures - a FREE man. He is beholden to nobody. He has developed his ideas and his convictions over a long and fruitful life of independent thinking. He does not compromise. He homes in on the fundamental issue and principle of any political issue and serves it up without salt or other "seasoning". He says what he means and he means what he says. He is the living embodiment of the "dream" that most Americans have long since given up on as they saw it slip further and further beyond their grasp. He is the only prominent person who is doing everything he can to turn the non-debate which masquerades as the "mainstream" in the US and global political economy into something of substance. That, far more than the presidency, is his goal.
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| Why Rising Debt Will Lead to $10,000 Gold: Nick Barisheff Posted: 07 Jan 2012 01:54 PM PST "One has to wonder if JPMorgan and the other big traders are ever going to get out of this silver corner that they appear to have painted themselves into." [COLOR=#7f4028] Yesterday in Gold and Silver The gold price wandered around in a ten dollar price range right up until the London open...and then traded just about flat right until the 8:30 a.m. Eastern time job numbers were announced. From that point, gold's brief rally was capped at precisely 9:00 a.m...and the subsequent sell-off ended at precisely 9:30 a.m. Eastern. The smallish rally that began after that, wasn'...
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| Posted: 07 Jan 2012 10:47 AM PST UBS, which has been issuing ever gloomier forecasts over the past few months, with the sole intent of getting someone to bail out the European financial system, which despite the current stay of execution is increasingly more brittle (because solvency crises only get worse with time, never better), has just come out with its magnum opus. In a report released overnight, the firm's Global Rates Team has just jumped the shark, with a prediction that things in Europe are literally about to implode: "we anticipate that the crisis will deteriorate further than the stressed levels of late November. We do not believe that Greek PSI will take place in a "voluntary" fashion but instead expect coercive restructuring of Greek debt either before or soon after the March redemption, triggering CDS contracts. Greece is not likely to decide to leave the euro area in 2012, though the risks of that happening have certainly increased." And as we well know from previous UBS reports, a departure of a country from the Eurozone would lead to a mass splurge in purchases of guns, spam and gold. So is this merely a last ditch call for a bailout from someone, anyone: either Fed or ECB will do? Most likely. Because if while the general market continues to ignore Europe, and European banks are out there literally screaming the end is nigh, then the truth is surely somewhere inbetween. Especially, if as Reuters reports, Greece is just the beginning. "One of Portugal's most prominent business leaders has moved his family holding company to Holland partly because of uncertainty over whether the country will remain in the euro, Alexandre Soares dos Santos said in a newspaper interview on Saturday. Soares dos Santos, who is chairman of the board of Jeronimo Martins, caused a stir in Portugal this week when it emerged that his family holding company that controls the country's second largest retailer had moved to Holland...."I also don't know if Portugal will stay in the euro. And if it leaves, it will be to the escudo," Soares dos Santos told Expresso, referring to the escudo currency used by Portugal before it adopted the euro. "I have a right to defend my property."" So while everyone continues to expect the best, those who really matter are planning for the worst. From Reuters:
And back to UBS, which may be on to something:
Our only question: what happens if no commitment is made and/or the only one with the ability to bail out Europe, and the world, remains the Fed?
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| Posted: 07 Jan 2012 10:33 AM PST SGT talks to Jeff Berwick of DollarVigilante.com about gold, silver, liberty, anarchy, the fascist State and the need for a second passport. Thanks for listening & for sharing.
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| 2012 Will Mark the End of the Euro Posted: 07 Jan 2012 10:27 AM PST
The Euro-zone in its current form is in its final chapter. Anyone who argues otherwise is not paying attention.
Consider the Greek situation. Greece's debt problems first made mainstream media headline news at the beginning of 2009. The IMF/ EU/ ECB/ and Federal Reserve have been working on this situation for two years now. And they've yet to solve anything: after two bailouts, significant debt write-downs, and numerous austerity measures, Greece remains bankrupt.
Now, if the Powers That Be cannot solve Greece's problems… what makes anyone think that they can address larger, more dangerous issues such as Italy or France, etc?
Consider that the world's central banks staged a coordinated intervention in November… and Italy's ten year is back yielding more than 7% less than two months later. Again, a coordinated intervention by the world's central banks bought less than two months' time for Italy.
And now we find the debt contagion spreading to France:
French Debt Costs Rise at Bond Sale as AAA Decision Looms
France sold 7.96 billion euros ($10.2 billion) of debt, with 10-year borrowing costs rising in the country's first bond auction of the year as credit-rating companies threaten to cut the nation's AAA grade.
The government sold 4.02 billion euros of the bonds maturing in October 2021 at an average yield of 3.29 percent, from 3.18 percent on Dec. 1. The euro fell to its weakest level against the dollar in 15 months, and the extra yield investors demand to hold French 10-year bonds instead of benchmark German bunds widened to the most in about six weeks.
"There's still the threat of a downgrade hanging over France and until we get that situation cleared up you can't signal the all-clear," said Eric Wand, a fixed-income strategist at Lloyds Bank Corporate Markets in London.
France has the biggest debt burden of the six top-rated euro nations, at 85 percent of gross domestic product. Its 10- year yield spread to German debt widened to a 21-year high of 204 basis points on Nov. 17 amid concern Europe will struggle to contain the region's debt crisis. Today, it reached 151 basis points, or 1.51 percentage points, the most since Nov. 25. It was at 149 basis points at 5:39 p.m. Paris time compared with a premium of 47 basis points for AAA rated Finland and 39 basis points for the Netherlands.
The significance of this cannot be overstated. European nations need to roll over hundreds of billions if not trillions of Euros' worth of debt in 2012. And this is at a time when even more solvent members such as France and Germany are staging weak and failed auctions.
Previously, EU sovereign nations would rely on European banks for these debt needs. However, European banks have their own debt issuance problems to deal with. To wit, before the end of 2012…
§ French banks need to roll over 30% of their TOTAL debt. § Spanish banks and Italian banks need to rollover more than 33% of their TOTAL debt. § German banks need to roll over nearly 40% of their TOTAL debt. § Irish banks need to roll over almost HALF (50%) of their TOTAL debt.
Thus, the question becomes: WHO is going to buy all this debt? China's increasingly focusing on domestic issues. Japan is on the verge of its own solvency Crisis. And the US is running terrible Debt to GDP and Deficit to GDP ratios as well.
Again… who's going to put up the funds to roll over this debt? The only player that could possibly do that would be the ECB. But Germany won't stand for that level of debt monetization. And the Fed can't monetize everything in today's political climate
Thus, the fact remains: the EU in its current form will be broken up sometime in 2012. The Powers That Be are rapidly losing control over there. And once the stuff really hits the fan, it's going to make 2008 look like a joke.
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| Tanzanian police foil $30m ‘Great Plane Robbery' gold heist at AngloGold Ashanti mine Posted: 07 Jan 2012 08:24 AM PST Tanzanian police foil $30m 'Great Plane Robbery' gold heist
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| Guest Post: Inflation: An Expansion of Counterfeit Credit Posted: 07 Jan 2012 08:15 AM PST Submitted by Keith Weiner Inflation: An Expansion of Counterfeit Credit The Keynesians and Monetarists have fooled people with a clever sleight of hand. They have convinced people to look at prices (especially consumer prices) to understand what's happening in the monetary system. Anyone who has ever been at a magic act performance is familiar with how sleight of hand often works. With a huge flourish of the cape, often accompanied by a loud sound, the right hand attracts all eyes in the audience. The left hand of the illusionist then quickly and subtly takes a rabbit out of a hat, or a dove out of someone's pocket. Watching a performer is just harmless entertainment, and everyone knows that it's just a series of clever tricks. In contrast, the monetary illusions created by central banks, and the evil acts they conceal, can cause serious pain and suffering. This is a topic that needs more exposure. The commonly accepted definition of inflation is "an increase in consumer prices", and deflation is "a decrease in consumer prices." A corollary is a myth that stubbornly persists: "today, a fine suit costs the same in gold terms as it did in 1911, about one ounce." Why should that be? Surely it takes less land today to raise enough sheep to produce the wool for a suit, due to improvements in agricultural efficiency. I assume that sheep farmers have been breeding sheep to maximize wool production too. And doesn't it take less labor to shear a sheep, not to mention card the wool, clean it, bleach it, spin it into yarn, weave the yarn into fabric, and cut and stitch the fabric into a suit? Consumer prices are affected by a myriad of factors. Increasing efficiency in production is a force for lower prices. Changing consumer demand is another force. In 1911, any man who had any money wore a suit. Today, fewer and fewer professions require one to be dressed in a suit, and so the suit has transitioned from being a mainstream product to more of a specialty market. This would tend to be a force for higher prices. I don't know if a decent suit cost $20 (i.e. one ounce of gold) in 1911. Today, one can certainly get a decent suit for far less than $1600 (i.e. one ounce), and one could pay 3 or 4 ounces too for a high-end suit. My point is that consumer prices are a red herring. Increased production efficiency tends to push prices down, and monetary debasement tends to push prices up. If those forces balance in any given year, the monetary authorities claim that there is no inflation. This is a lie. Inflation is not rising consumer prices. One can't understand much about the monetary system from inside this box. I offer a different definition. Inflation is an expansion of counterfeit credit. Most Austrian School economists realize that inflation is a monetary phenomenon. But simply plotting the money supply is not sufficient. In a gold standard, does gold mining create inflation? How about private lending? Bank lending? What about Real Bills of Exchange? As I will show, these processes do not create inflation under a gold standard. Thus I contend the focus should be on counterfeit credit. By definition and by nature, gold production is never counterfeit. Gold is gold, it is divisible and every piece is equivalent to any other piece of the same weight. Gold mining is arbitrage: when the cost of mining an ounce of gold is less than one ounce of gold, miners will act to profit from this opportunity. This is how the market signals that it needs more money. Gold, of course, has non-declining marginal utility, which is what makes it money in the first place, so incremental changes in its supply cause no harm to anyone. Similarly, if Joe works hard, saves his money, and gives a loan of 100 ounces to John, this is an expansion of credit. But it is not counterfeit or illegitimate or inflation by any useable definition of the term. By extension, it does not matter whether there are market makers or other intermediaries in between the saver and the borrower. This is because such middlemen have no power to expand credit beyond what the source—the saver—willingly provides. And thus bank lending is not inflation. Below, I will discuss various kinds of credit in light of my definition of inflation. In all legitimate credit, at least two factors distinguish it from counterfeit credit. First, someone has produced more than he has consumed. Second, this producer knowingly and willingly extends credit. He understands exactly when, and on what terms, with what risks he will be paid in full. He realizes that in the meantime he does not have the use of his money. Let's look at the case of fractional reserve banking. I have written on this topic before. To summarize: if a bank takes in a deposit and lends for a longer duration than the deposit, that is duration mismatch. This is fraud and the source of banking system instability and crashes. If a bank lends deposits only for the same or shorter duration, then the bank is perfectly stable and perfectly honest with its depositors. Such banks can expand credit by lending, (though they cannot expand money, i.e. gold), but it is real credit. It is not counterfeit. Legitimate lending begins with someone who has worked to save money. That person goes to a bank, and based on the bank's offer of different interest rates for different durations, chooses how long he is willing to lock up his money. He lends to the bank under a contract of that duration. The bank then lends it out for that same duration (or less). The saver knows he must do without his money for the duration. And the borrower has the use of the money. The borrower typically spends it on a capital purchase of some sort. The seller of that good receives the money free and clear. The seller is not aware of, nor concerned with, the duration of the original saver's deposit. He may deposit the money on demand, or on a time deposit of whatever duration. There is no counterfeiting here; this process is perfectly honest and fair to all parties. This is not inflation! Now let's look at Real Bills of Exchange, a controversial topic among members of the Austrian School. In brief, here is how Real Bills worked under the gold standard of the 19th century. A business buys merchandise from its supplier and agrees to pay on Net 90 terms. If this merchandise is in urgent consumer demand, then the signed invoice, or Bill of Exchange, can circulate as a kind of money. It is accepted by most people, at a discount from the face value based on the time to maturity and the prevailing discount rate. This is a kind of credit that is not debt. The Real Bill and its market act as a clearing mechanism. The end consumer will buy the final goods with his gold coin. In the meantime, every business in the entire supply chain does not necessarily have the cash gold to pay at time of delivery. This problem of having gold to pay at time of delivery would become worse as business and technology improved to allow additional specialization and thus extend the supply chain with additional value-added businesses. And it would become worse as certain goods went into high demand seasonally (e.g. at Christmas). The Real Bill does not come about via saving and lending. It is commercial credit that is extended based on expectations of the consumer's purchases. It is credit that arises from consumption, and it is self-liquidating. It is another kind of legitimate credit. For more discussion of Real Bills, see the series of pieces by Professor Antal Fekete (starting with Lecture 4). Now let's look at counterfeit credit. By the criteria I offered above, it is counterfeit because there is no one who has produced more than he has consumed, or he does not knowingly or willing forego the use of his savings to extend credit. First, is the example where no one has produced a surplus. A good example of this is when the Federal Reserve creates currency to buy a Treasury bond. On their books, they create a liability for the currency issued and an asset for the corresponding bond purchase. Fed monetization of bonds is counterfeit credit, by its very nature. Every time the Fed expands its balance sheet, it is inflation. It is no exaggeration to say that the very purpose of the Fed is to create inflation. When real capital becomes more scarce, and thus its owners become more reluctant to lend it (especially at low interest rates), the Fed's official role is to be the "lender of last resort". Their goal is to continue to expand credit against the ever-increasing market forces that demand credit contraction. And of course, all counterfeit credit would go to default, unless the creditor has strong collateral or another lever to force the debtor to repay. Thus the Fed must act to continue to extend and pretend. Counterfeit credit must never end up where it's "pay or else". It must be "rolled". Debtors must be able to borrow anew to repay the old debts—forever. The job of the Fed is to make this possible (for as long as possible). Next, let's look at duration mismatch in the financial system. It begins in the same way as the previous example of non-counterfeit credit—with a saver who has produced more than he has consumed. So far, so good. He deposits money in a bank, and this is where the counterfeiting occurs. Perhaps he deposits money on demand and the bank lends it out. Or perhaps he deposits money in a 1-year time account and the bank lends it for 5 years. Both cases are the same. The saver is not knowingly foregoing the use of his money, nor lending it out on such terms and length. This, in a nutshell, is the common complaint that is erroneously levied against all fractionally reserved banks. The saver thinks he has his money, but yet there is another party who actually has it. The saver holds a paper credit instrument, which is redeemable on demand. The bank relies on the fact that on most days, they will not face too many withdrawal demands. However, it is a mathematical certainty that eventually the bank will default in the face a large crowd all trying to withdraw their money at once. And other banks will be in a similar position. And the collapsing banking system causes a plunge into a depression. There are also instances where the saver is not willingly extending credit. The worker who foregoes 16% of his wage to Social Security definitely knows that he is not getting the use of his money. He is extending credit, by force—i.e. unwillingly. The government promises him that in exchange, they will pay him a monthly stipend after he reaches the age of retirement, plus most of his medical expenses. Anyone who does the math will see that this is a bad deal. The amount the government promises to pay is less than one would expect for lending money for so long, especially considering that the money is forfeit when you die. But it's worse than it first seems, because the amount of the monthly stipend, the age of retirement, and the amount they pay towards medical expenses are unknown and unknowable in advance, when the person is working. They are subject to a political process. Politics can shift suddenly with each new election. Social Security is counterfeit credit. With legitimate credit, there is a risk of not being repaid. However, one has a rational expectation of being repaid, and typically one is repaid. On the contrary, counterfeit credit is mathematically certain not to be repaid in the ordinary course. This is because the borrower is without the intent or means of ever repaying the loan. Then it is a matter of time before it defaults, or in some circumstances forces the borrower to repay under duress. Above, I offered two factors distinguishing legitimate credit: 1. The creditor has produced more than he has consumed 2. He knowingly and willingly extends credit Now, let's complete this definition with the third factor: 3. The borrower has the means and the intent to repay Every instance of counterfeit credit also fails on the third factor. If the borrower had both the means and the intent to repay, he could obtain legitimate credit in the market. A corollary to this is that the dealers in counterfeit credit, by nature and design, must work constantly to extend it, postpone it, "roll" it, and generally maintain the confidence game. Counterfeit credit cannot be liquidated the way legitimate credit can be: by paying it back normally. Sooner, or later, it inevitably becomes a crisis that either hurts the creditor by default or the debtor by threatening or seizing his collateral. I repeat my definition of inflation and add my definition of deflation: Inflation is an expansion of counterfeit credit. Deflation is a forcible contraction of counterfeit credit. Inflation is only possible by the initiation of the use of physical force or fraud by the government, the central bank, and the privileged banks they enfranchise. Deflation is only possible from, and is indeed the inevitable outcome of, inflation. Whenever credit is extended with no means or ability to repay, that credit is certain to eventually become a crisis that threatens to harm the creditor. That the creditor may have collateral or other means to force the debtor to take the pain and hold the creditor harmless does not change the nature of deflation. Here's to hoping that in 2012, the discussion of a more sound monetary and banking system begins in earnest.
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| Financial Advisors? Financial Advisory #4 ? Preparing for 2012 Posted: 07 Jan 2012 07:21 AM PST If you are tired of spending hours each week searching for articles that are extremely informative, relatively brief and very well-written, then go no further than munKNEE.com. Here is a sampling of articles posted on the site this past week related to what is happening in the economy and the gold market and what the future holds for its price. Words: 1049 Lorimer Wilson, editor of www.munKNEE.com [B](Your Key to Making Money!)[/B] searches for the latest articles of substance to be found on the internet each day and then presents them in an edited and abridged fashion to provide the reader with a fast and easy read. Also of major merit is the "Related Articles" section under each article that provides titles, introductory paragraphs and hyperlinks to other articles to provide as much additional insight into the topic of interest as you have time for without having to search elsewhere. Who in the world is currently reading this article along with you? Click here Below are introductor...
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| David Morgan & Max Keiser on Gold & Silver Market Manipulation Posted: 07 Jan 2012 06:44 AM PST Silver guru David Morgan who predicted recently... [[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]] 
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| What Worked In 2011... And What Didn't Posted: 07 Jan 2012 06:30 AM PST Back in mid-May just after the market had topped for the year, in a post titled "The Great QE Unwind Compression Trade(s)" we told readers to "focus purely on Utilities and Consumer Staples as the long led in a compression trade, while shorting Industrials and Consumer Discretionary, leaving Financials alone (John Paulson's projections of Bank of America hitting $30/share by the end of 2011 notwithstanding)." Granted Financials were by far the worst performing trade of the year although with the possibility of a Fed bailout around every corner, it was imprudent to be short the sector (rather going long various unique opportunities such as MBIA proved to be a 100% return in months if not weeks). Instead, we referred to precious metals, namely gold, as a natural hedge against any potential Fed (and global central planner) stupidity. So how did anyone who followed our 2011 advice do? Well - the above three suggestions represented three of the five best performing sectors in the year (with the shorts not offsetting any gains). As can be seen below. Which we merely bring up to those who, counterfactualy, desire to brand this site as some fringe lunatic goldbug asylum. Which we are not saying it isn't: we urge most people to stay out of stocks entirely: the possibility of another flash crash is always present. For those for whom capital preservation is of paramount importance, precious metals are the way to go. But we realize there are those for whom career risk means being involved in stocks, and we realize that they represent a substantial portion of our readership. Which is why we try to be of use to everyone who comes here.
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| Posted: 07 Jan 2012 05:27 AM PST Iran and Russia drop dollar for their own currencies in bilateral trade TEHRAN — Iran and Russia have replaced the U.S. dollar with their own currencies in their trade ties, a senior Iranian diplomat announced on Saturday. Speaking to FNA, … Continue reading
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| Dutch central bank admits 90% of its gold is abroad Posted: 07 Jan 2012 05:24 AM PST 1:25p ET Saturday, January 7, 2012 Dear Friend of GATA and Gold: Our friend the Dutch financial writer Jaco Schipper reports today that the president of the Netherlands central bank acknowledged this week on Dutch television that 90 percent of the nation's gold reserves is kept outside the country to facilitate sales. Dutch TV, Schipper adds, also interviewed geopolitical analyst James G. Rickards, author of the new book "Currency Wars," who spoke at GATA's London conference last August, and GATA's longtime supporter Willem Middelkoop, a fund manager and financial writer, who argued for repatriating the Dutch gold to protect it against expropriation by the U.S. government. So GATA's issues are gaining prominence in Europe. Schipper's commentary is headlined "90% of Dutch Gold Reserve Is Held Abroad," carries a link to video of the Dutch TV program "Nieuwsuur," where the Dutch gold reserve was discussed, and is posted at Schipper's Internet site, Market Update, here: http://www.marketupdate.nl/nieuws/valutacrisis/90-of-dutch-gold-reserve-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Drills 384.9 Meters Grading 0.623 g/t PGM+Au, Company Press Release VANCOUVER, British Columbia -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) has announced the final drill results from 2011 drilling at the company's fully owned Wellgreen platinum group metals, nickel, and copper project in the Yukon Territory. Borehole WS11-192 intercepted 384.9 meters of 0.45 percent nickel equivalent starting from 9.45 meters depth. Included in this greater interval of continuous mineralization is a platinum group metals-rich zone with a combined platinum-palladium-gold grade of 1.358 grams per ton over 19.23 meters (nickel equivalent 0.74%). The final drilling results for 2011 have shown the Wellgreen Central-East and Central-West deposits to be one contiguous body, whereby there is good potential to broaden significantly the Central-West resource base, which currently contributes only about a quarter of the current 43-101 compliant resource at Wellgreen. Overall the drilling program met with good success in expanding the resource to the east and south. The long drill intercepts suggest the deposit remains very much open in those directions. For the complete drilling results and the full company statement, please visit: http://prophecyplat.com/news_2011_dec08_prophecy_platinum_wellgreen_dril... Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... 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 Discovers Potential High-Grade Gold Mineralization From a Company Press Release VANCOUVER, British Columbia -- With its latest surface diamond drilling program at its 100-percent-owned, formerly producing Blackdome gold mine in southern British Columbia, Sona Resources Corp. has discovered a potentially high-grade gold-mineralized area, with one hole intersecting 13.6 grams of gold in 1.5 meters of core drilling. "We intersected a promising new mineralized zone, and we feel optimistic about the assay results," says Sona's president and CEO, John P. Thompson. "We have undertaken an aggressive exploration program that has tested a number of target zones. Our discovery of this new gold-bearing structure is significant, and it represents a positive development for the company." Sona aims to bring its permitted Blackdome mill back into production over the next year and a half, at a rate of 200 tonnes per day, with feed from the formerly producing Blackdome mine and the nearby Elizabeth gold deposit property. A positive preliminary economic assessment by Micon International Ltd., based on a gold price of $950 per ounce over eight years, has estimated a cash cost of $208 per tonne milled, or $686 per gold ounce recovered. For the company's complete press release, please visit: http://www.sonaresources.com/_resources/news/SONA_NR18_2011-opt.pdf
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| Posted: 07 Jan 2012 05:00 AM PST
The two items we spoke about during the interview were the newly passed NDAA Bill in the United States and the similarly written Argentinian Defense Bill, passed Dec. 27th, 2011. Starting out Doug said that, "All over the world now governments are becoming more authoritarian and more repressive. I hate to use the analogy of a swinging pendulum…but starting in the early 80′s, all the world's states starting liberalizing…The whole world in many ways became more free…Now with this crisis, it seems to be going back in the opposite direction where it's becoming more When asked about the need for defense agencies to manage recent U.S. consumer social unrest and revolts of U.S. welfare program recipients, Doug said, In looking to the future of the U.S., Doug commented, "I don't see any prospect of improvement at all until the current structure really collapses, and that wont be pleasant. It's going to be very much like after the French Revolution. It was an excellent thing that they got rid of Louis XVI, that was great. But then he was replaced by The Terror, Robespierre, the Jacobins, and the Directorate. It became much, much worse than it was under Louis XVI, and then, they were replaced by Napoleon, which was a military dictatorship. So it wasn't until Napoleon was gone that France once again became a free country. I think that's going to happen in the U.S., and I think it's going to follow that path." When asked about the prospect of U.S. capital controls Doug replied, "We already have de facto capital controls in the U.S. It's quite inconvenient, sometimes impossible, for an American to open a financial account outside the U.S. Nobody wants American business…because its more trouble than it's worth. So this is already making it very hard for With regard to what may be next to control capital flight, Doug commented, "The next thing is going to be wire transfers…because we all know that only unpatriotic people would want to shift capital out of the homeland, and of course it's only rich people that can do that and it's time to eat the rich anyway. We're getting very late in the day if you want to diversify politically. Its definitely coming[capital controls]." This was another outstanding "must-listen" interview with one of the world's leading global investors. To listen to the interview, left click the following link and/or right click and "save target as" or "save link as" to your desktop: Interview MP3′s are for individual listening only and NOT for reproduction or redistribution. They are the sole property of BullMarketThinking.com. Interview also available through our YouTube Channel To learn more about Doug Casey and La Estancia De Cafayate visit: Casey Research and La Estancia de Cafayate Enjoy the interview? Please support the site by joining our Free Mailing List and sharing this URL page link with friends, family, and your favorite chat forum. Thanks,
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| WHY YOU BUY PHYSICAL GOLD & SILVER Posted: 07 Jan 2012 04:09 AM PST
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| Posted: 07 Jan 2012 03:26 AM PST Summary: Long term - on major buy signal. Short term - on buy signals. Gold cycle has bottomed and we have new buy signals. A pullback will establish trendline support and set ups for us to take some positions. Read More...
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| Iran and Russia drop dollar for their own currencies in bilateral trade Posted: 07 Jan 2012 03:26 AM PST Iran, Russia Replace Dollar with National Currencies in Trade Exchanges From Fars News Agency, Tehran http://english.farsnews.com/newstext.php?nn=9007275648 TEHRAN -- Iran and Russia have replaced the U.S. dollar with their own currencies in their trade ties, a senior Iranian diplomat announced on Saturday. Speaking to FNA, Tehran's ambassador to Moscow, Seyed Reza Sajjadi said that the proposal for replacing the dollar with the ruble and rial was raised by Russian President Dmitry Medvedev in a meeting with his Iranian counterpart, Mahmoud Ahmadinejad, in Astana on the sidelines of the Shanghai Cooperation Organization meeting. "Since then we have acted on this basis and a part of our interactions is done in ruble now," Sajjadi stated, adding that many Iranian traders are using the ruble for their trade deals. ... Dispatch continues below ... ADVERTISEMENT Be Part of a Chance to Discover 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 showings as well as former mines at the property's northern and southern boundaries. -- 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. "There is a similar interest in the Russian side," the envoy stated, adding that Moscow is against unilateral sanctions on Iran outside the U.N. Security Council, specially the recent sanctions against Iran's Central Bank. Imposing sanctins on Iran's central bank "is unacceptable," Sajjadi said. "The Russians have clearly announced that they will not accept these sanctions and Iran's nuclear issue is resolvable just through negotiations." Iranian President Mahmoud Ahmadinejad hit back at the United States after it introduced new sanctions against Iran's central bank. President Ahmadinejad told an annual meeting of senior central bank officials that Iran's central bank would respond with "force" to the new U.S. sanctions intended to pressure Tehran to abandon its nuclear program. He said the bank was strong enough to defeat "enemy plans." The sanctions -- which cut off from the U.S. financial system foreign firms that do business with the central bank -- are part of a defense bill signed by President Barack Obama this month. The extra U.S. sanctions aim to squeeze Iran's oil sales, most of which are processed by the central bank, although many people even in the West believe that the move would prove futile. During the last two years Iran has been replacing the dollar with other currencies in its world trade. Iran has replaced the dollar in its oil trade with India, China, and Japan. Late in November the Reserve Bank of India issued the needed permission to the Central Bank of Iran to open rupee accounts with two Indian banks, UCO and IDBI, as a long-lasting solution to the two countries' payment problems. Both accounts were opened in the respective banks' Mumbai branches. A top official of city-based UCO Bank said that while payments for his country's oil imports would initially be in rupees, it would be then converted into a separate currency, which was yet to be decided by the apex bank. Join GATA here: Vancouver Resource Investment Conference http://cambridgehouse.com/conference-details/vancouver-resource-investme... California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing a silver commemorative coin: 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 The United States Once Again Can Establish Lewis E. Lehrman, chairman of the Lehrman Institute, sponsor of The Gold Standard Now project, has released a plan to restore economic growth through a stable dollar. The plan, titled "The True Gold Standard: A Monetary Reform Plan Without Official Reserve Currencies," responds to the recurrent economic crises of the last century and outlines a detailed proposal for America's leadership on "how we get from here to there." That is, how we get from the present unstable paper dollar to a stable dollar as good as gold. James Grant, author and editor of Grant's Interest Rate Observer, says of the Lehrman plan: "If you have ever wondered how the world can get from here to there -- from the chaos of depreciating paper to a convertible currency worthy of our children and our grandchildren -- wonder no more. The answer, brilliantly expounded, is between these covers. America has long needed a modern Alexander Hamilton. In Lewis E. Lehrman the country has finally found him." To learn 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: 07 Jan 2012 12:14 AM PST Hi guys, yesterday the Dutch public television aired an item about the whereabouts of the Dutch gold, as a follow up of the questions asked by the Dutch socialist party, you reported about earlier. The central bank's president Klaas Knot … Continue reading
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| Gold, Silver, Wall Street's Best Bet for Crisis-Beating Returns Posted: 07 Jan 2012 12:12 AM PST So how did the top US mutual funds stack up vs. the gold price since 2007...? PAST PERFORMANCE is no guide to the future. But if you don't study history, just what will you track instead?
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| Why Rising Debt Will Lead to $10,000 Gold Posted: 06 Jan 2012 11:55 PM PST Good afternoon, it's a pleasure to speak about gold at this Outlook for 2012. Today, I'd like to focus on one important idea: the direct relationship between the rising price of gold and the rising levels of government debt that result in currency debasement. Since we measure investment performance in currencies a clear understanding of the outlook for currencies is critical.
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| Posted: 06 Jan 2012 11:30 PM PST Gold had a tough December, falling 10.5% to grind along near its worst levels since July. This sparked hyper-bearish sentiment and end-of-gold’s-secular-bull talk. Naturally gold stocks fared even worse in this rampant gold pessimism, with the flagship HUI gold-stock index plunging 14.7%. But this selling was radically overdone, as compared to gold’s absolute levels gold stocks remain incredibly cheap.
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This phrase has suddenly started appearing in economic research, and will probably do so more frequently in the coming months. Its origin is a 
Yesterday I had the great treat of speaking again with Casey Research Chairman, Doug Casey. It was a thoughtful and intellectually energizing conversation as they always seem to be.
Americans to get money out of the country. Now…forget about trying to take 10k or more [out of the country], where they have customs guys standing in jetways…and maybe going through your baggage. Now even gold coins—they're watching out for people that are taking too many gold coins out."| 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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