Gold World News Flash |
- Rickards - Currency Wars, Gold & Inflation Worse than 1970s
- Second MF Global Unveiled As Canadian Regulator Accuses Barret Capital Of Commingling Client Funds
- Morgan Stanley To Cap Cash Bonus At $125,000 (With Footnotes)
- Silver Update 1/15/12 Don Harrold, Super Troll
- The Gold Price Lost $16.90 Today Closing at $1,630.40
- The Myth of U.S. De-Leveraging
- Ack! They Are Actually Going To Let Greece Default!
- Crap, Sovereign Debt Downgrades Matter?
- Iranian currency and economy collapsing under tighter U.S. trade sanctions
- Martin Luther King Day
- Robert Ian Tells It Like It Is – Time to Conquer Change – 01-16-2012
- Gold Spike Lower Makes Turn Difficult to Trust
- Caballero, Giavazzi: Parity May Be Euro’s Last Chance
- Exclusive Interview – Jim Willie: “China Has Stated A U.S. Attack On Iran Will Result In A Chinese Military Response”
- The bubble is in national currencies, Turk tells King World News
- Gold and Silver next stop, THE MOON - Charles Goyette
- A Shocking €1 Trillion LTRO On Deck? CLSA Explains Why Massive Quanto-Easing By The ECB May Be Coming Next Month
- Cracks in the Facade
- Alf Field: Will Derivative Losses Be Black Swan Event Propelling Gold to $4,500?
- Alf Field: Correction in Gold is OVER and on Way to $4,500+!
- When Will Silver Make a New High?
- The War Against Us
- Gold Market Update
- Batero Receives Confirmation from Ingeominas That 100% of the Property is Now Covered by Concession Agreements Allowing Long-Term Future Exploitation of Project
- Gold & Silver Market Morning
- Gold Gains Alongside Dollar, "Clear Winner" from S&P Downgrades is Germany as "Only Bond Haven Left in Eurozone"
- Turk - 2012 to See Much Deeper Banking & Currency Collapse
- Gold Nears €1,300/oz - Euro Lower After EU Downgrades and Greece Jitters
| Rickards - Currency Wars, Gold & Inflation Worse than 1970s Posted: 16 Jan 2012 04:37 PM PST  With investors globally beginning to ask who will print next and how much, Jim Rickards put together the following piece exclusively for King World News. One of the reasons Rickards has gained worldwide recognition is because of his ability to forecast, ahead of time, key moves by both the Fed and central planners. Jim Rickards' clients include private investment funds and banks, government directorates around the globe in national security and defense and he has worked directly with the Fed and US Treasury. Jim is also a KWN resident expert and author of the extraordinary book, "Currency Wars: The Making of the Next Global Crisis."
This posting includes an audio/video/photo media file: Download Now |
| Second MF Global Unveiled As Canadian Regulator Accuses Barret Capital Of Commingling Client Funds Posted: 16 Jan 2012 04:32 PM PST When we learned of the MF Global client theft scandal, in the aftermath of its sudden bankruptcy filing, the one thing we predicted would happen (in addition to Jon Corzine never going to prison) was that many more brokers, banks and broadly financial intermediaries would be discovered having dipped in client accounts, or otherwise "commingled" capital in direct violation of the first rule of banking. Sure enough, a little over two months since, the second notable company to have been alleged to have abused client capital for own purposes has emerged. And it comes to us courtesy of sleep Canada whose "banks are all fine." As the Winnipeg Free Press reports, "One of Canada's investment regulators has accused Barret Capital Management, a firm specialized in futures and options on metals and other exchange-traded commodities, of using client money for its own purposes. The Investment Industry Regulatory Organization of Canada warned Monday that Barret clients are at risk due to the firm's "ongoing misappropriation of their money to fund losing trades and ongoing misinformation about the value and holdings in their accounts." IIROC has set a hearing for Tuesday morning to suspend Barret's membership in the organization and stop Barret from dealing with the public. In requesting the expedited hearing, the regulator alleged Barret made "significant misrepresentations to clients including through manipulating account values, misrepresenting account values and holdings by way of false account statements or otherwise providing false information to clients and by manipulating on and off book payments to clients." Where the story gets even more interesting is when one takes a look at just what it is that the company engages in, and how it fits into the scenario analysis conducted in the MF Global aftermath. From the company's blog, which has all about 5 entries:
And the website's About Us section:
And finally, per the President's message, the fallout may next impact carrying broker Laurentian Bank:
What all this means is that as expected MF Global may have been the first, but certainly will not be the last, to use client capital to prop up its books. And while Barret is not Goldman, it is merely the next company which could no longer perpetuate the lie. Of course, the bigger one is, the harder it is to be caught. Once caught, however, the ripple effects spread fast and furious. In Barret's case, this latest incursion in fiduciary duty will simply make paper investors even more skeptical of keeping precious metal "investments" in a paper intermediary, something we warned about when we discussed the fallout from MF Global on HSBC gold claims. Because those too are just the beginning. Finally, while still unclear what the premise behind the regulatory allegation is, readers will recall our final warning that as in MF Global's case, the fundamental weakest link in the system, was the rehypothecation of assets to make funding appear sufficient and credible, when in reality it is nothing but hot air. Specifically, we said: "Canadian banks, which as it also turns out, defended themselves against Zero Hedge allegations they may well be the next shoes to drop, as being strong and vibrant, yet which have all the same if not far greater risk factors as MF Global." This was merely the first. We expect many more, Canadian, and otherwise banks, to follow suit, in a world in which broker funding is virtually nonexistent at this moment.
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| Morgan Stanley To Cap Cash Bonus At $125,000 (With Footnotes) Posted: 16 Jan 2012 03:01 PM PST That after last year's abysmal performance on Wall Street, best summarized by the following quarterly JPMorgan Investment Banking revenue and earnings chart, bonuses season would be painful should not surprise anyone. But hardly anyone expected it to be quite this bad. The WSJ reports that Morgan Stanley, likely first of many, will cap cash bonuses at $125,000 and "will defer the portion of any bonus past $125,000 until December 2012 and December 2013" with bigger 'sacrifices' to be suffered by the executive committee which, being held accountable for the collapse in its stock price, will defer their entire bonuses for 2011. Morgan Stanley is likely just the beginning: "As banks report fourth-quarter results this month and make bonus decisions for 2011, total compensation is likely to be the lowest since 2008." This means that once Goldmanites get their numbers later this week, we will likely see a mass exodus for hedge funds which remain the only oasis of cash payouts on Wall Street. Alas, unlike the Bank Holding Companies, a series of bad decisions will result in hedge fund closure, as the TBTF culture will never penetrate the stratified air of Greenwich, CT. And with bonuses capped at about $80K after taxes, or barely enough to cover the running tab at the local Genlteman's venue, the biggest loser will be the state and city of New York, both of which are about to see their tax revenues plummet. And since banker pay is responsible for a substantial portion of Federal tax revenue, look for Federal tax withholding data in the first few months of 2012 to get very ugly, making America even more responsible on debt issuance, and likely implying the yet to be re-expanded by $1.2 trillion debt ceiling will be breached just before the Obama election making it into the biggest talking point of the election cycle. But back to the sad fate of banker bonuses and tiny violins:
As for the footnotes:
Which brings us to another topic: namely the qualitative aspect of weekly initial claims (as opposed to just quantitative). Because while firings this year may have peaked at levels modestly lower than last year, it is the foregone paychecks which this year have soared compared to last year. Furthermore, with banks about to enter 6-12 months of global deleveraging as Basel III is knocking ever louder, the probability that many of the laid off bankers find a parallel job in the space is shrinking by the day. Which is precisely why we are very curious to see what TrimTabs tax withholding data indicates about the quality of terminations and lost jobs, because with the surge in banker layoffs and far lower bonuses, it is very likely that US tax revenues are about to fall off a cliff.
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| Silver Update 1/15/12 Don Harrold, Super Troll Posted: 16 Jan 2012 02:47 PM PST
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| The Gold Price Lost $16.90 Today Closing at $1,630.40 Posted: 16 Jan 2012 02:44 PM PST Gold Price Close Today : 1,630.40 Change : -16.90 or -1.0% Silver Price Close Today : 2949.00 Change : -60.00 cents or -2.0% Platinum Price Close Today : 1,486.80 Change : -12.20 or -0.8% Palladium Price Close Today : 634.50 Change : -6.20 or -1.0% Gold Silver Ratio Today : 55.29 Change : 0.54 or 1.01% Dow Industrial : 12,422.06 Change : -48.96 or -0.4% US Dollar Index : 81.45 Change : 80.62 or 99.0% Franklin Sanders has not published any commentary today, if he posts commentary later in the day it will be posted here. Argentum et aurum comparenda sunt -- -- Gold and silver must be bought. - Franklin Sanders, The Moneychanger The-MoneyChanger.com © 2012, 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 bubble has burst, primary trend down. WARNING AND DISCLAIMER. 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 short term trading outlook. I write them for long-term investors in physical metals. Take them as entertainment, but not as a timing service for futures. NOR do I recommend investing in gold or silver Exchange Trade Funds (ETFs). Those are NOT physical metal and I fear one day one or another may go up in smoke. Unless you can breathe smoke, stay away. Call me paranoid, but the surviving rabbit is wary of traps. NOR do I recommend trading futures options or other leveraged paper gold and silver products. These are not for the inexperienced. NOR do I recommend buying gold and silver on margin or with debt. What DO I recommend? Physical gold and silver coins and bars in your own hands. One final warning: NEVER insert a 747 Jumbo Jet up your nose. 
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| The Myth of U.S. De-Leveraging Posted: 16 Jan 2012 01:58 PM PST by Jeff Nielson, Bullion Bulls Canada:
I've already dealt with the first half of this myth in greater detail previously – especially in a recent commentary. Simply, the only "saving" that is being done by Americans in any significant amount is by the fat-cats at the top, who have been handing themselves the fattest pay-raises in the history of humanity over the past decade – faster than the fat-cats can possibly spend it. This is extremely unfortunate. Given that millions of Americans had/have permanently lost their jobs, while everyone else in the bottom-80% have seen their wages plummeting lower; the massive pay-raises the fat-cats have been handing themselves represent the only new (potential) consumer dollars being generated in this economy. Thus news that the fat-cats were hoarding their money at an increased rate was 100% negative for the U.S. economy. Read More @ BullionBullsCanada.com
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| Ack! They Are Actually Going To Let Greece Default! Posted: 16 Jan 2012 01:49 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Crap, Sovereign Debt Downgrades Matter? Posted: 16 Jan 2012 01:46 PM PST Wolf Richter www.testosteronepit.com After they were downgraded in early August, US government bonds gained upward momentum and yields fell below 2% for the 10-year T-note. Japan, which has danced the downgrade tango for years, is now contemplating the next step, this one from AA- to A+, yet 10-year Japanese Government Bonds are yielding below 1%. Downgrades of sovereign bonds of developed countries make good headlines, but their impact on bond markets has been nil. With one exception: the Eurozone. In the US, there is beautiful clarity: fiscal policies in Congress are such that 36% of every dollar spent has to be borrowed. What these gargantuan deficits—and the resulting mountain of debt—will do to the future of the country doesn't matter, at least not to the lawmakers. What matters to them is that the Treasury is able to issue and roll over trillions of dollars of debt every year, a feat that is possible only because the Fed can "print" unlimited amounts of money to buy bonds to prop up their values and force down even long-term yields. Quantitative easing, as it's benignly called, is a mega-force that easily overcomes—due to its "unlimited" quality—any market forces, including the impact of serial credit downgrades. The shining example of iron-fisted control by central banks and government institutions is Japan. It expanded its public debt from 66% of GDP in 1989 to a mind-boggling 230% in 2011. Its long-term debt got whacked by every credit ratings agency time and again. A+ is waiting in the wings. This year, the government will borrow 56% of every yen it spends. For more on its Christmas Eve budget massacre, and on the collapse of two pillars that have so far supported these deficits, read.... The Endgame: Japan Makes Another Move. And yet, JGBs continue to do extremely well. Incomprehensible in a free market. But there is no free market for JGBs. Japan Inc.'s unique institutional setup and cohesive psychology have made it possible to fund 95% of its debt internally. Unruly foreigners only hold 5%. Eurozone countries lack this dictatorial control over credit markets. At the insistence of Germany, the European Central Bank was given a mandate to maintain the value of the currency, a novel concept for most countries in the Eurozone. By treaty, the ECB couldn't monetize the deficits of member states. Instead, the countries would be exposed to the brutal discipline of the credit markets, which would enforce, the thinking went, proper fiscal policies. And it sort of worked, for a while. Now credit downgrades have been hailing down on Eurozone countries, even on those with relatively solid fiscal policies, like Austria, or countries like France, whose deficits and debt levels are lower than those of the US. For some countries, like Italy, funding deficits or rolling over maturing debt at yields they can afford is getting difficult. And Greece is already excluded from the credit markets (though fiscally it's in better shape than Japan). But the mere possibility that funding isn't assured through a central bank makes risk-averse investors leery of the bonds; and risk-seeking investors would demand yields that these countries cannot afford. All because the ECB is governed by laws that were designed to keep it out of the great con game that central banks play everywhere else—though obviously, it has found ways to maneuver around these laws. Germany and some other countries could agree to allow the ECB to open the spigot all the way and do what the Bank of Japan and the Fed have been doing: buy bonds in massive amounts and include the words "unlimited" and "all member states" in its communications about future debt purchases. It would inspire instant confidence even in the crappiest Greek bonds, and their yields might drop to near zero. But Germans who were promised a strong euro in return for giving up their sacred Mark would rebel. And so, the ECB will likely toe some imaginary line that keeps member states exposed to the discipline of the markets, and to the impact of credit downgrades. But in most countries, politicians will not be able to make the hard decisions that survival (and success) in such an environment would require. Hence, a crisis that won't go away. Meanwhile, austerity is taking its toll on Greece. Suicides jumped by 22.5%. Unemployment rose to 18.2%. Pharmacies are having difficulties obtaining medications. More cuts are coming. If there is no agreement with bondholders, the bailout Troika will walk and Greece will default in March. But now, even the Troika is in disarray. Read.... Greece: Disagreement Everywhere.
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| Iranian currency and economy collapsing under tighter U.S. trade sanctions Posted: 16 Jan 2012 01:44 PM PST The currency market is the most powerful mechanism of imperialism. Occupying a country militarily is nothing compared to controlling its currency market. If you control a currency market, you can get everybody to work for you as your slave. ... If we can determine the value of the dollar, we can value our currency so much above what would be a market value of their currencies, we can buy their production much less expensively. -- GATA Secretary/Treasurer Chris Powell on "Brad Meltzer's 'Decoded': Fort Knox," the History Channel, October 5, 2011: http://www.youtube.com/watch?v=iZeUju82BS0&feature=results_main&laynext... * * * Iran Cracks Down on Dollar Trades Police Sent to Monitor Black Market as By Bill Spindle, Benoit Faucon, and Farnaz Fassihi http://online.wsj.com/article/SB1000142405297020373530457716464006440871... Iranian authorities sent police into the streets of the capital Monday to crack down on informal currency trading and support the rial, signaling Iranians' heightened insecurity over their dwindling buying power and Tehran's increasingly hard-handed efforts to stave off economic panic. The move follows last week's steep Iranian Central Bank interest-rate increase, a bid to try to stem the growing demand for U.S. dollars in the country as the economy lurches amid fears over a new round of sanctions promised by the U.S. and Europe. Iran's rial currency has declined 40% to 55% against the dollar on the black market since December. Iranian inflation, meanwhile, now exceeds 20% a month, according to the Central Bank. While the rial has been falling for almost a year, the latest drop appeared to be triggered by a recent U.S. announcement that it would penalize companies that do business with Iran's Central Bank, and a proposed plan to ban Iranian oil purchases in the European Union later this year. The rial was changing hands at 16,000 to 17,000 in recent days, down from 11,000 to 12,000 in December. The rial's sudden decline has unnerved Iranians, from merchants and traders to everyday citizens looking to protect their savings against inflation. "The economic situation in Iran is a disaster. Trade is at a minimum, and everyone is in a state of panic," said Abdullah, a 47-year-old merchant in Tehran's grand bazaar. He imports and exports semiprecious stones and silver, and says this month he is making less than $100 a day on average for a store that costs $400 in rent and expenses. "We are all slowly going bankrupt." ... Dispatch continues below ... 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Since the rial started plummeting in December, Iranians say many people have rushed to turn their capital into dollars or gold. Many middle-class Iranians are selling properties and withdrawing money from saving accounts that promised a 17 percent interest rate. Iranian newspapers dedicated much of their front pages to the news of the currency rates and the government crackdown on black-market dealers. By midday Monday, the official news agency IRNA reported that money-exchange shops weren't buying or selling dollars and didn't list a price on their board. Black-market handlers continued to deal in the back alleys of downtown Tehran, according to IRNA. The U.S. and European governments see the Iranian currency's fall as a significant victory in their efforts to use stepped-up sanctions to hobble the Iranian regime -- which they accuse, to Tehran's protest, of pursuing nuclear weapons. Iran's clerical regime sees defending the currency as an important act of defiance. U.S. officials acknowledged that the growing sanctions campaign is going to further inhibit Iran's ability to conduct trade while feeding inflation and draining Tehran's foreign-exchange reserves. They said their policies aren't aimed at hurting the Iranian people, but they say they hope internal discontent will pressure Iran's government to make concessions on its nuclear program. Several Iranians said the international moves angered them, arguing that the people, not their government, would pay the price, particularly for sanctions on Iranian oil. They said sanctions on Cuba, North Korea, and Saddam Hussein's Iraq didn't lead to a government collapse, but to a populace that is poor and dependent on state welfare. The U.S. move to punish companies that deal with the Central Bank -- signed by President Barack Obama in December but set to take effect later this year -- threatens Iran's ability to sell oil because nearly all of Iran's oil sales are cleared through the bank. Meanwhile, the EU ban, also intended to take effect later this year, would cut off Iran at least partly from some of its biggest customers. The U.S. and European actions set off threats by Iran to close the Strait of Hormuz, through which about one-fifth of the world's traded oil passes. Iran also staged military exercises in the strait. The rising tensions came as Iran's economy was already struggling with a rising inflation rate and slow growth. Many Iranian business and industrial leaders have long asked for a weaker currency, which would help boost exports and provide some relief to domestic companies competing with ever cheaper imports from Asia. But the sudden drop in the rial's value over the past two weeks, combined with U.S. pressure on any companies doing business with Iran, has played havoc with importers. "Not only is it difficult to find a way to pay, but even if a payment method can be found, Iranians simply cannot afford to pay when the time comes," said Nigel Kushner, chief executive of Whale Rock Legal Ltd., in London, who advises companies on sanctions. In Dubai, through which much of Iran's trade is channeled, merchants say Iranian traders have all but disappeared in recent weeks. "We lost about one-third of our business," said Nabil Ahmed, who sells appliances and air conditioners. "From Iran it's completely stopped." Despite the drop in the black-market exchange rate, the government has held the official exchange rate unchanged at about 14,000 rials per dollar. That has added to the economic turmoil, by allowing companies and individuals connected to the government to buy dollars at the official rate and profit by selling in the informal markets. "If I'm competing with a government entity, I don't have a chance," said Siamak Namazi, an Iran analyst and consultant based in Dubai. "It's not a level playing field anymore." Some Iranian industrialists, particularly those who export their goods, said they stand to benefit from the rising price of foreign currencies. They say industries that don't rely on imported raw materials -- including glass, carpet, and food businesses -- will fare well, but others will have to add to the final price to compensate for pricier raw materials from abroad. In the northeastern city of Mashad, a businesswoman named Farideh, who owns a carpet-weaving factory, said she has had to lay off several workers and cut production in the past two months as the market has fluctuated and inflation increased. Personally, the 44-year-old mother of five children says her purchasing power has dropped 30 percent in just two months. "I am living day to day. I don't know if we will be able to keep our business or pay our rent in a few months," she says. "Other people less fortunate than me are worried about feeding their children." Last week, the Central Bank told banks to sharply increase interest rates on bank deposits to 21% from as little as 14%, to encourage Iranians to keep their money in rials and suppress the black-market rate. Still, with inflation informally running as much as 19%, the demand for dollars has continued. On Sunday, the government announced the ban on informal trading. On Monday, Deputy Central Bank Gov. Ebrahim Darvishi announced that authorities would shut down the black market and enforce the official rate at authorized foreign-exchange houses. "Do not take it to the market," Mr. Darvish said on state radio, referring to foreign currency such as the U.S. dollar, according to the Associated Press. "Any investment in the field of foreign currency and the dollar is forbidden." 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 Golden Phoenix Receives Inferred Gold Resource Estimate Company Press Release Golden Phoenix Minerals Inc. (OTC: GPXM) reports that on behalf of Golden Phoenix Panama S.A., the joint venture entity that owns and operates the Santa Rosa gold mine in Panama, it has received from SRK Consulting (U.S.) an initial resource estimate for Mina Santa Rosa. The Santa Rosa project is a volcanic-hosted epithermal gold-silver deposit previously operated as an open pit-heap leach operation. Production ceased in 1999 in part because of low gold prices. SRK Consulting reports an in-situ inferred resource at the former Santa Rosa and ADLM pits totaling 23.1 million metric tonnes at 0.90 grams/tonne gold, for a contained 669,000 ounces of gold at a 0.30 g/t gold cutoff. The resource also contains an average grade of 2.87 g/t silver for a contained 2.1 million ounces of silver. John Bolanos, Golden Phoenix's vice president of exploration, remarks: "In addition to SRK's inferred resource estimate of 669,000 contained ounces of For the company's full statement, including a table detailing the resources at Santa Rose, please visit: http://goldenphoenix.us/press-release/golden-phoenix-receives-initial-ni...
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| Posted: 16 Jan 2012 01:24 PM PST by Andrew Hoffman, MilesFranklin.com:
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| Robert Ian Tells It Like It Is – Time to Conquer Change – 01-16-2012 Posted: 16 Jan 2012 11:54 AM PST from The Financial Survival Network:
While there may be many things that you cannot do to avoid the economic tsunami, no one is helpless in preparing for it. The key is to act now, don't wait for the inevitable to occur. These disruptions have occurred in the past and they will happen again, no matter how enlightened mankind may believe itself to be. The key to conquering and managing change is to anticipate and figure out how you can profit from it. It's really that simple. Click Here to Listen to the Interview
This posting includes an audio/video/photo media file: Download Now |
| Gold Spike Lower Makes Turn Difficult to Trust Posted: 16 Jan 2012 10:23 AM PST courtesy of DailyFX.com January 16, 2012 09:34 AM Daily Bars Prepared by Jamie Saettele, CMT “Gold has entered a zone that may be difficult for bulls to penetrate. The zone is defined by the 12/21 high and 200 day average on the low end and 11/21 low and September-November trendline at 1672/90 on the high end.” I wrote last week that “today’s turn may be the beginning of the next bear move but these up moves tend to continue on empty. A drop under 1630 would be enough to signal the beginning of the larger decline. Until then, be wary of a bear trap.” Gold dropped below 1630 on Friday, albeit in a spike. Violation of a level in a spike is difficult to trust so the bear trap potential remains. Bottom Line – short against 1675, target new lows...
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| Caballero, Giavazzi: Parity May Be Euro’s Last Chance Posted: 16 Jan 2012 09:55 AM PST The euro has dropped about 13 percent against the dollar since the sovereign-debt crisis hit Italy seven months ago. To a large extent, the decline reflects the increased likelihood of an Italian default, which would destroy the single currency. Yet depreciation may be the only remaining hope for the euro's survival, as long as it is carried out through swift and coherent policy support. Since last summer, Italy has implemented the largest fiscal consolidation of the past 15 years, entailing an increase in the primary budget surplus of more than 6 percent of gross domestic product over three years. But because such a large fiscal contraction will happen mostly through higher taxes, investors rightly worry that the country is about to enter a deep recession. If that were to happen, the consolidation would fail. A weaker euro could help avoid that outcome and make fiscal consolidation a success. For the euro area as a whole, a currency depreciation wouldn't have a large direct impact, since most trade is within the area. However, that isn't the case with Italy: 55 percent of Italian exports are to countries outside the euro area, particularly Switzerland, the U.S., Russia and emerging economies. A 15 percent depreciation of the euro — bringing it close to parity with the dollar — would give a big boost to Italian exports, which would compensate for the contraction of domestic demand. Restoring GrowthIn 1992, when Italy suspended its participation in the European Exchange Rate Mechanism, the country implemented a similar fiscal contraction. This was accompanied by a 20 percent devaluation of the lira, limiting the damage to the economy. In the following three years, growth averaged 1.4 percent per year. Of course, Italy has much more to do to make its economy competitive and to reduce its debt burden. But any reforms — labor-and-product market liberalizations, a working judiciary, a better bureaucracy — would take a long time to show their effects, even if adopted immediately. That would be too late to avoid a recession that has already started and that in all likelihood will be much more severe than official predictions. This isn't the first time that concerns about a possible sovereign insolvency inside the euro area have weakened the single currency. A similar event occurred at the peak of the Greek crisis: In just a few months (November 2009 to May 2010), the euro fell about 22 percent against the dollar. As we noted at the time, a weaker euro was needed to complement Greece's fiscal consolidation to avoid a deep recession. This would have been beneficial because, as is the case with Italy, more than 50 percent of Greece's exports are sold outside the euro area. Yet the pressure on the euro eased because markets rapidly concluded that Greece wasn't big enough to bring down the monetary union. They understood that if the euro were to regain lost value, Greece might collapse, but the euro would survive. In less than a year, the euro regained all it had lost. The same calculus doesn't apply to Italy. Markets understand that a failure of fiscal consolidation by the government in Rome is likely to mean the end of the euro. It's less clear that they understand that a weak currency will make the consolidation a success, and save the euro. A swift depreciation would have the added benefit for investors of increasing the expected return of euro debt, making it easier to roll over the large stock of borrowing that will soon come due: about 200 billion euros ($253 billion) of European bank bonds in the first quarter of the year, in addition to the large rollovers of sovereign obligations. Market PushMarkets have ways to push policy makers, though they don't always do so in the least disruptive manner. They are even less effective when they panic, as they are doing now. It is up to policy makers to help markets understand that an orderly decline in the euro's value would be in everyone's interest. That means European leaders should encourage the depreciation of the euro instead of trying to prevent it. During the second half of 2010 and though July 2011, the euro appreciated 25 percent against the dollar. The increase was largely due to the European Central Bank's decision to raise interest rates twice. The ECB today should make clear that a weak euro is the condition for its survival. It should cut interest rates to zero and pledge to keep them there for quite a while. This must be done, not as a replacement for the drastic fiscal adjustments that must occur in Italy and other countries, but to make sure those measures are effective. (Ricardo Caballero is professor of economics at the Massachusetts Institute of Technology and an adviser to QFR Capital Management LP in New York. Francesco Giavazzi is a professor of economics at Bocconi University in Milan and a visiting professor at MIT. The opinions expressed are their own.) Source: Bloomberg
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| Posted: 16 Jan 2012 09:34 AM PST
According to Jim, U.S. sanctions against Iran aren't so single-faceted anymore. Other countries are beginning to defy U.S. sanctions in order to protect their own national security interests. Jim comments were, "What's happening behind the scenes is that nations are coming to the stage with Iran, side by side, and saying, 'We're going to continue doing trade. We want Iranian oil. We want other Iranian products, and we will continue doing trade'…There are some pretty ugly things going on against that country[U.S. sanctions], and there are some pretty ugly things going on inside that country." Regarding Commenting further, Jim said, "In about 2008-09, it seemed like SCO went dark. But it didn't stop…I believe that Russia and China made a decision to keep the SCO movement going but keep quiet about it. What they started to do was develop the non-dollar mechanisms for trade settlement. You started to see China announce with Brazil that they were going to do trade with the Real and the Yuan–no more U.S. dollars. Then you started seeing other facilities opening up like China and Russia announcing their trading will no longer be in the dollar." What this all means in economic terms according to Jim is that, "They're working to develop the arteries of a financial system that is not dollar-centric." This was another sobering interview with Jim Willie, and given the heightening geopolitical tensions worldwide, his comments cannot be taken lightly. To listen to the interview, left click the following link and/or right click and "save target as" or "save link as" to to your desktop: Interview also posted to our YouTube Channel To learn more about Jim and the Hat Trick Letter, visit: GoldenJackass.com 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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| The bubble is in national currencies, Turk tells King World News Posted: 16 Jan 2012 09:18 AM PST 5:15p ET Monday, January 16, 2012 Dear Friend of GATA and Gold (and Silver): GoldMoney founder and GATA consultant James Turk today tells King World News that the bubble of the moment is in national currencies, that gold already has seen its lows for the year, and that gold mining shares are as low relative to the gold price as they were during the Lehman-induced market plunge three years ago. An excerpt from the interview is posted at the King World News blog here: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/1/16_Tu... CHRIS POWELL, Secretary/Treasurer 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 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 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...
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| Gold and Silver next stop, THE MOON - Charles Goyette Posted: 16 Jan 2012 09:05 AM PST Investing in Gold, Silver, Agriculture, &... [[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]] 
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| Posted: 16 Jan 2012 08:26 AM PST It is a pure coincidence that following the previous report of stern condemnation of traditional ECB QE in the form of Large Scale Asset Purchases (LSAP) by the Bundesbank, we should follow it up with the latest analysis by Chris Wood of CLSA's famous Greed and Loathing newsletter, in which the noted skeptic does an about face on his existing short European financial trade and covers such exposure, while observing the much-discussed major shift in ECB liquidity provisioning as the catalyst. As he says, "the main reason to do [cover the Euro short fin trade] is the potential for a benign interlude provided by the ECB's increasingly aggressive liquidity support for the European banking system." And while his trade reco may or may not be right (if we were betting people we would put our money on the latter), what is interesting is the basis for the material change in exposure which to Wood is explained simply by the dramatic shift in the ECB approach toward monetary generosity, courtesy of the arrival of ex-Goldmanite Mario Draghi. The basis is the first noted here massive surge in the European balance sheet (Figure 2) which while not engaging in prima facie monetization, has done so via indirect channels, in the form of an LTRO, which is basically a 1%, 3-year loan, but more importantly, a balance sheet expansion which while having failed to increase the velocity of money in any way (with all of the LTRO and then some now having been redeposited back at the ECB as reporter earlier), has at least fooled the market for the time being that any sub 3 Year debt is "safe" as seen by Figure 1. And since it has worked once, in the eyes of central planners it should work again, until it fails. Which it naturally will, just like the first LTRO iteration from 2008. But first, it will be expanded to a very ludicrous level, which will lead to the one outcome that Germany wants more than any other - send the euro plunging (remember - the primary correlation of 2012 is the ratio of ECB to FED assets), at least until the Fed steps right back into the currency devaluation fray, which it likely will as soon as March. So just how large will the next LTRO be? "Market talk is focusing on an even bigger amount to be borrowed at the next 3-year longer-term refinancing operation (LTRO) due on 29 February. GREED & fear has heard guesstimates of up to €1tn!" That's right - it is possible that in its quanto monetary diarrhea (but at least it's not printing, so the Bundesbank will be delighted), the ECB is about to increase its balance sheet from €2.7 trillion to € €3.7 trillion, or a €1.7 trillion ($2.2 trillion) expansion in 8 months! And gold is where again? Chris Wood explains:
The result is an exploding balance sheet controlled, of course, by an ex-Goldmanite, which can only be halted by Germany, but why when the EUR is crashing, keeping the German export economy vibrant.
Conclusions?
More importantly to fans of sound currency, the bottom line is that between the ECB (assuming it does proceed with a €1 trillion LTRO), and the Fed (assuming it does go ahead and launch a $600 billion minimum (and as much as $1 trillion) QE3 as every bank expects by June), the global balance sheet will have increased by nearly $3 trillion since July, even as gold has actually declined in price. And if anyone needs the final clue as to what is going on, an increase in the US debt ceiling to $16.4 trillion which is expected to pass imminently, would mean that by simple correlation a fair value for the yellow metal would be just under $2000 per ounce.
So going back to the first paragraph: "And gold is where again?"
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| Posted: 16 Jan 2012 08:25 AM PST Cracks in the Facade(Excerpts from Stock World Weekly) The S&P downgraded nine eurozone countries on Friday, announcing the following actions: the lowering of long-term ratings on Cyprus, Italy, Portugal and Spain by two notches, and the lowering of long-term ratings on Austria, France, Malta, Slovakia and Slovenia by one notch. It affirmed the long-term ratings on Belgium, Estonia, Finland, Germany, Ireland, Luxembourg and the Netherlands. According to S&P, Friday's ratings actions were "primarily driven by our assessment that the policy initiatives that have been taken by European policymakers in recent weeks may be insufficient to fully address ongoing systemic stresses in the eurozone... S&P also released a FAQ explaining its action, including this gem: "We believe that a reform process based on a pillar of fiscal austerity alone risks becoming self-defeating, as domestic demand falls in line with consumers' rising concerns about job security and disposable incomes, eroding national tax revenues." Reading the S&P FAQ, Bruce Krasting surmised, "you have to conclude that the conditions that would force a return of the legacy currencies will happen, and they will happen in the next twelve months." This emphasis on austerity is already producing predictable results. For example, in Spain, unemployment increased by a full two percent in a single quarter (Q4 Spanish Unemployment Soars By Most Since Lehman, Hits "Astronomical" 23.3%) There was certainly no shortage of gloomy news, ranging from the disappointing Initial Jobless Claims numbers, the weak Retail Sales numbers, and the stark assessment of the current state of the eurozone by Standard & Poor's. Chinese stocks were down last week as hopes for additional stimulus from the Chinese Central bank faded. China's small and medium-sized manufacturing vendors are struggling with falling demand and rising prices for both materials and labor. Tension continued building in the Middle East. The U.S. is significantly increasing its presence in the region as CVN Carl Vinson carrier group joined the CVN Stennis in the Arabian Sea, just off the Straits of Hormuz. Everything changed on Thursday, when news came out that an embargo on Iranian oil by the European Union is likely to be delayed by six months while member nations secure alternative sources for their energy needs. This news rocked the oil markets, with oil dropping over two Dollar in less than two hours. Summing up the action and commenting on the situation in the U.S. Treasury market, Lee Adler, wrote, "The Treasury rally got some help this week from a surge in Federal Withholding Tax collections that is helping to keep new supply down. Whereas new supply had been exceeding TBAC estimates for the past couple of months, it has come back in line with estimates, and could be reduced even further in the weeks ahead if the sudden growth of withholding taxes persists. "In addition to reduced supply, a renewal of the European panic with Friday's S&P sovereign downgrades has Treasury yields again melting down, in spite of the fact that foreign central banks continue to sell their holdings. Another way of looking at it is that this buying panic is allowing FCBs to liquidate without destabilizing the market, which otherwise probably would have happened. The string of FCB selling has now reached 6 consecutive weeks which is unprecedented and suggests a structural change as central banks need to deploy funds at home. That problem for the US can be swept under the rug as long as Europe's problems are bigger and the resulting capital flight boosts the Treasury market." (European Panic Sweeps 700 Pound Gorilla Under The Rug) Looking ahead, Lee opined, "The market may have given bears a glimmer of light on Friday, but so far, that's all it is, a glimmer, mostly in the form of an increase in short term sell signals in the screening data. There were no material changes in any of the broad market indicators or price projections, although they have come down a little since Tuesday and Wednesday. I would say that what happens in Europe on Monday could point the way for the US when it reopens on Tuesday, but all too often we've seen the US reverse European action that takes place when the US is closed. A down day in the US on Tuesday could begin to trigger intermediate sell signals." (Bears Get A Glimmer of An Opening) During a meeting between Li Yang, vice-director of the Chinese Academy of Social Sciences, and Treasury Secretary Timothy Geithner, Geithner responded to a question regarding the next round of quantitative easing by saying, "[the Fed doesn't] have tools or ammunition left." But when asked if the recent activity involving currency swaps and liquidity injections by six central banks is a form of QE3, Geithner admitted, "You could say that." (China Advisor: Geithner Said No Tools Left For QE3) (See also: A Thinly Veiled Bail) The European Central Bank (ECB) has been pursuing its own program of providing liquidity to the markets, to debatable effect, as described by Peter Tchir of TF Market Advisors. Commenting on Monday's (Jan. 9) press conference by Merkozy, Peter wrote, "It appears that the ECB skipped QE and went straight to QGG (Quantitative Gift Giving). They aren't buying too much sovereign debt, but they are willing to lend to banks using any collateral they can scrape up. They are fully encouraging banks to issue bonds to themselves, get a government guarantee, and post it at the ECB for some fresh money. I think that while many investors have been staring at the SMP (Secondary Market Programme) and whining that full QE isn't being applied, the ECB has gone beyond that with other programs... Between SMP and all these weird collateralized lending programs, the ECB has been pumping money into the system, and a big portion of their purchases, and lending, is against assets that are highly likely to default! Quantitative Easing implies some ability to get paid back or to stop easing by selling assets back to the market. Quantitative Gift Giving is simply throwing money at assets that will never be repaid." (Remember When The Dynamic Duo Was Batman And Robin) Update: Zero Hedge reported (on Monday) that S&P is saying that a Greek default may be imminent: "Time for the dominos to fall where they may: head of sovereign ratings at S&P Kraemer spoke on Bloomberg TV... "And the punchline:
"The only thing he did not add is that the default will be Coercive. What happens next is anyone's guess, but whatever it is it is certainly priced in. Also, let's not forget that the inability of the market to react to any news ever again is most certainly priced in." In other news on Monday, Zero Hedge also reported that S&P Downgrades EFSF From AAA To AA+, May Cut More If Sovereign Downgrades Continue: "And so the latest inevitable outcome of the French downgrade from AAA has arrived, after the S&P just downgraded the EFSF, that pillar of European stability, from AAA to AA+. S&P adds: "if we were to conclude that sufficient offsetting credit enhancements are, in our opinion, not likely to be forthcoming, we would likely change the outlook to negative to mirror the negative outlooks of France and Austria. Under those circumstances we would expect to lower the ratings on the EFSF if we lowered the long-term sovereign credit ratings on the EFSF's 'AAA' or 'AA+' rated members to below 'AA+'." In other words, as everyone but Europe apparently knew, the EFSF is only as strong as the rating of its weakest member. And now the rhetoric on how AAA is not really necessary for the EFSF, begins, to be followed by AA, next A, then BBB and finally how as long as the EFSF is not D-rated all is well." The prevailing bearishness makes it easy to ignore some bullish signs, such as this week's Beige Book showing demand for commercial real estate picking up in multiple cities, including New York, Dallas, San Francisco, Atlanta and Chicago. It also showed a slight uptick in commercial and industrial lending in Dallas and San Francisco, and broad-based improvements in loan quality. Moreover, as Zero Hedge noted above, the market does not seem to be reacting to the bad news flow out of Europe, it seems to be functioning under the decoupling theory, also called the "head in the sand" theory. John F. Carlucci at dshort.com sees a bullish signal in the $OEXA200R (Percentage of S&P 100 stocks above their 200 DMA - chart below.) According to John, "OEXA200R remained encouragingly above 65% all week and ended at 69%. Of the three secondary indicators: RSI is above 50 and positive, MACD has not yet crossed into positive territory, and slow STO is above 50 and positive. Conclusion: The market has become tradable. However, traders must stay on their toes and keep the following commentary in mind." He then discussed his concerns and reservations regarding the eurozone.
John also noted that over the last 21 years, the S&P has not been below or so close to its 200 DMA for this long without falling into a cyclical bear market. The last two cyclical bear corrections took at least 1 1/2 years to reach bottom. If the correction beginning in July 2011 turns into another cyclical bear, projecting 1 1/2 to 2 years out would put the next S&P bottom somewhere between the end of 2012 and mid-2013. Regarding the "tentative" good news in the U.S. economy, and whether it will counter the turmoil in Europe, and elsewhere, John thinks we'll know soon enough. (Best Stock Market Indicator Ever: Weekend Update) One of the trade ideas submitted this week by Pharmboy is a buy-write on AMRN. Pharmboy wrote, "I like Amarin (AMRN, $7.17) - once a high flier (down 60% from its high) - for its Lovazza (purified fish oil) and good outcome in trials for lowering triglycerides in patients. I think starting a small, speculative position in the company is worthwhile. But I would not go gung ho. There are still risks involved. I like buying 100 shares of stock and selling one June 2012 $8 call and selling one June 2012 $6 put for $2.60 or better combined." AMRN was trading at $7.17 on Friday, and the June $8 call was at $1.75, and the $6 put was at $1.10. Click here and sign up to try the full newsletter. To learn more about the buy-write strategy go here >
Note: The material presented in this commentary is provided for informational purposes only and is based upon information that is considered to be reliable. However, neither Philstockworld, LLC (PSW) nor its affiliates warrant its completeness, accuracy or adequacy and it should not be relied upon as such. Neither PSW nor its affiliates are responsible for any errors or omissions or for results obtained from the use of this information. Past performance, including the tracking of virtual trades and portfolios for educational purposes, is not necessarily indicative of future results. Neither Phil, Optrader, Oxen Group or anyone related to PSW is a registered financial adviser and they may hold positions in the stocks mentioned, which may change at any time without notice. Do not buy or sell based on anything that is written here, the risk of loss in trading is great. This material is not intended as an offer or solicitation for the purchase or sale of any security or other financial instrument. Securities or other financial instruments mentioned in this material are not suitable for all investors. Any opinions expressed herein are given in good faith, are subject to change without notice, and are only intended at the moment of their issue as conditions quickly change. The information contained herein does not constitute advice on the tax consequences of making any particular investment decision. This material does not take into account your particular investment objectives, financial situations or needs and is not intended as a recommendation to you of any particular securities, financial instruments or strategies. Before investing, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.
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| Alf Field: Will Derivative Losses Be Black Swan Event Propelling Gold to $4,500? Posted: 16 Jan 2012 08:12 AM PST To achieve the EW target of $4,500/ozt. on the next upward move [in gold that I laid out in my article*Alf Field: Correction in Gold is OVER and on Way to $4,500+!]*will require something to trigger substantial new buying of gold. What could that event be? By definition, it will be a surprise to all market participants, a "black swan" event. That doesn't prevent us from making a guess [and] one likely area from which problems could emerge…[would be] derivatives. [Let me explain why that might well be the case.] Words: 591 So says Alf Field in edited excerpts from his original article*. [INDENT] Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unalter...
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| Alf Field: Correction in Gold is OVER and on Way to $4,500+! Posted: 16 Jan 2012 08:12 AM PST There is a strong probability that the correction in the price of gold [down to $1,523] has been completed. The up move just starting should be…the longest and strongest portion of the bull market…at least a 200% gain… [to] a price over $4,500. The largest corrections on the way to this target, of which there should be two, should be in the 12% to 14% range. [Let me explain how I came to the above conclusions.] Words: 760 So says Alf Field in edited excerpts from his original article*. [INDENT] Lorimer Wilson, editor of www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds) and www.munKNEE.com (Your Key to Making Money!) has edited ([ ]), abridged (…) and reformatted (some sub-titles and bold/italics emphases) the article below for the sake of clarity and brevity to ensure a fast and easy read. The article’s views and conclusions are unaltered and no personal comments have been included to maintain the integrity of the original a...
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| When Will Silver Make a New High? Posted: 16 Jan 2012 07:52 AM PST Synopsis: A look at past corrections in silver provides clues as to when the metal will make new highs. Dear Readers, Mining companies are starting to release Q411 production figures, soon to be followed by earnings. It will be an interesting time. Gold is still well off its recent peak, so expectations may be realistic for a change, and that would be a good thing. On the other hand, costs – particularly royalties and taxes – are rising all over the world, and mining is always a messy, difficult business, so we're expecting a mix of the good, the bad, and the downright ugly in the weeks ahead. This can create buying opportunities, so we'll be keeping a sharp eye out for good bargains put on sale for the wrong reasons. Rock & Stock StatsLastOne Month AgoOne Year AgoGold1,635.501,672.501,381.50Silver29.6431.3429.22Copper3.633.434.37Oil99.03100.1491.39Gold Producers (GDX)54.0554.0456.05Gold Junior Stocks (GDXJ)26.3726.3036.45Si...
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| Posted: 16 Jan 2012 07:35 AM PST So, 3.5 million ounces of silver production from the Lucky Friday will be held off the books of America's export balance sheet this year. Our silver consumption will continue at or above its current rate, so we'll have to import more silver, and print more paper dollars to pay for it – which just drives up the price of milk and gasoline for all of us and the 400-plus miners now on the bricks.
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| Posted: 16 Jan 2012 07:30 AM PST The current standoff in gold is approaching resolution and evidence is starting to pile up in favor of an upside breakout. We have been cautious on the PM sector for months starting with the September top which we shorted, resulting in massive profits in a matter of days, especially in silver, but there is always the danger of taking caution too far and getting caught on the wrong side of the trade.
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| Posted: 16 Jan 2012 07:15 AM PST Batero Gold Corp. (TSX-V: BAT, BELDF.PK) is pleased to report confirmation that concession agreements are now executed on 100% of the Company's property and are expected to be registered soon on the 100% owned Batero-Quinchia project in Risaralda, Colombia.
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| Posted: 16 Jan 2012 07:08 AM PST After a week in which the relief over lower cost for Spain and Italy on their bond costs led us all to believe there was a turning point in the Eurozone crisis, the downgrades of France and Austria to AA+ from AAA with the risk of further downgrades brought back the harsh reality that the Eurozone debt crisis has a long way to go still. The fall in the euro has been the immediate result and a confirmation of the break in the 'link' between the gold price and the euro. Gold is now holding or moving up in all currencies again.
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| Posted: 16 Jan 2012 07:05 AM PST U.S. DOLLAR spot gold prices climbed to hit$1647 an ounce Monday morning in London – 0.8% below last week's high – while stock and commodity markets were broadly flat as markets absorbed Friday's news of cuts to nine Eurozone sovereign credit ratings.
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| Turk - 2012 to See Much Deeper Banking & Currency Collapse Posted: 16 Jan 2012 07:00 AM PST  Today James Turk informed King World News that we are now headed into a vortex, and the Lehman event was a warm-up to a much deeper, widespread crisis and collapse which lies ahead. Here is how Turk described the warning signs and what to expect: "There are all of these warning signs out there and few people are paying attention. For example, hardly anyone cares that the US has lost its AAA rating and most dismiss it as a non-event. But even a cursory look at the US government's financial position should raise investors concerns that it will not be able to meet all of its obligations."
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| Gold Nears €1,300/oz - Euro Lower After EU Downgrades and Greece Jitters Posted: 16 Jan 2012 07:00 AM PST Gold's London AM fix this morning was USD 1,643.50, GBP 1,074.60, and EUR 1,298.90 per ounce. Friday's AM fix was USD 1,642.00, GBP 1,070.27, and EUR 1,281.71 per ounce. Spot gold is again above the 200 day moving average near $1,638/oz. Gold prices have rallied 5% so far in 2012, with the eurozone debt crisis and the growing tension between Iran and the west supporting gold's safe haven status.
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the growing importance and political clout of SCO, Jim said, "The Shanghai Cooperative Organization is really quiet fascinating. It started as kind of a humble, offbeat cultural exchange program between old soviet republics and their neighboring countries like China…The republics wanted to maintain relations, and then before you know it, they're starting to talk about security matters…and then they say 'lets start having some guests countries[join us] like India, Iran, and Venezuela.'"
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