Gold World News Flash |
- Tick By Tick Research Email - The Bonus Dilemma
- Vietnam Has Written The Book On Gold; The West Should Read It
- Silver For The People – Explained – Office Series 16
- Warren Buffett Makes a Desperate Attack on Gold Investment
- Whither Gold
- Why Are Record Numbers Of Young Adults Jobless And Living At Home With Mom And Dad?
- Doomsday Report: THREE MILLION PREPPERS IN AMERICA Are Getting Ready For The End of the World As We Know It
- Chris Moore interviews Warren Pollock – KDKA – CBS Radio
- The Real Reason For War Drums? Iran Presses Ahead with Dollar Attack
- The Terminal Beginning Of The Western Financial World
- Last month the papers were full of reports stating Iran had agreed to sell their oil to India in exchange for gold…
- George Soros’ 8 Bold Predictions From the ‘Tiger Den’
- Guest Post: Charting The Federal Reserve's Assets - 1915-2012
- “See Something Say Something” Campaign Could Allow People to Label ANY AMERICAN a Suspected “Terrorist” … Just Like in NaziTown
- Iran presses ahead with attack on dollar
- Average Gasoline Price Jumps To Highest In 5 Months
- Got Gold Report – Focus on CDNX
- Jim's Mailbox
- Gold needn't fear rising rates, Macleod says; and Calandra on a Russian play
- Casey Research: Permanent Gold Backwardation
- TF Metals Report: A Warning Flag For Silver
- Jim Sinclair: The Terminal Beginning Of The Western Financial World
- Pento - Looming Debt Market Collapse to Destroy the Dollar
- Silver Update 2/11/12 Socialism Fails
- Sudan central bank raises dollar supply after gold sale
- What's crazier than creationism and gold? It's in your wallet
| Tick By Tick Research Email - The Bonus Dilemma Posted: 12 Feb 2012 06:32 PM PST The Bonus Dilemma Dear All As we just crown off the first month of our final twelve according to the Mayans, one of the most important events in Finance is upon us. Q4 GDP? Q4 Results? Christmas Sales Figures? No, No and No. I am, of course, referring to the season where individuals from all walks of finance are found in bars across the world either drowning their sorrows or reaping the rewards for another well remunerated year. Bonuses, are by their definition, an extra reward for achieving what can be considered "above the norm" financial results; despite the practices of many of the leading banks throughout 2007-2008. But..But..We had to retain the best talent I hear echoing around the room. A rhetoric that the ordinary Anglo-European finds very hard to stomach. "Out of Control" UK Prime Minister David Cameron on Bank Bonuses The media and public bashing of the bonus culture that surrounds the financial sector and its quantitive nature is nothing new. However, given the events that have unfolded over the last five years, individuals all over the planet have a right to vent there frustration. Whether you blame lackadaisical policies by Governments, extreme risk taking by financial institutions, personal greed or general naivety for the housing crash - the effects have impacted us all in some form or another. A quick rewind of the tapes would quickly remind us of all the soon-to-be pensioners that piled their nest egg into property in the hope of crystallising a long term rental yield or capital gain only to find, in some circumstances, over fifty percent of their net asset value being destroyed during the crash. A very bitter pill to swallow. One, that is made exponentially worse by news that many of the Wall Street and City of London elite are taking home seven figures for their efforts this year. Last week saw this frustration come to a head when the CEO of The Royal Bank of Scotland (A Zombie Bank), Simon Hester, decided to refuse his $1.6m bonus in light of increasing public scrutiny. The bank, owned 82% by the British taxpayer, has been left limping around the financial realm following what can only be described as some of the worst acquisitions and business organisation that has been seen in British finance since the Barrings escapade of the 90's. So fierce was the public outrage about RBS, since the start of the year, that the former RBS CEO, Fred Goodwin, was stripped of his knighthood by the British realm. More interesting is why he was knighted in first place but that is a discussion for another day. Anyway, back to bonuses. "I was going to live on my salary or go down swinging" Gene Tierney Despite the resentment towards the bonus culture that is smeared across the Finance industry, the bonus system is significantly better for unemployment, shareholders and the state of the finance industry more generally than the pay scheme that has developed over the last three years. Before I explain why, I must note that the singular biggest floor of bonuses within Financial Institutions - especially banks - as strongly advocated by David Einhorn, is that combining performance related pay and leveraged investment in high risk financial products is almost certain to create financial bubbles. However, the current alternative pay structure that is being run within these institutions could very well be their downfall. "It's not your salary that makes you rich, it's your spending habits" Charles A Jaffe The year is 2005, the S&P 500 has just returned 9% in 2004 and winning has become norm. The risk off episode following the Internet bubble has finally cleared from technology, and global risk is most definitely on. Seeing as this time is different, we have been advising our clients to diversify into the Emerging Markets not only to spread risk but also to take advantage of the fabulous opportunities that exist in these "booming" economies. Real estate continues to provide impressive gains and using synthetic derivatives, investors can now diversify their Mortgage Backed Securities risk by purchasing tranches of a revolutionary product called Collateralised Debt Obligations. You get the picture. During this period, the bulk of remuneration was made through discretionary pay that tended to reflect the impressive returns that both individual and institutions were making - albeit with very high leverage. Traders taking home $1m would expect to have around a 3:1 discretionary to salary based ratio for payment so that as long as profit was being made, the bonuses would continue to grow. What has transpired is that as the media, government and public have scrutinised the sector during the fallout from the property boom, this ratio has changed. To "retain the best talent", these institutions have increased non-discretionary pay to astronomical and unheard of levels, whilst reducing the discretionary element of financial reward. A friend of mine recently revealed that the salary for a Managing Director - at one of the US Zombie banks - was doubled to encourage staff to stay and prepare them for lower discretionary pay. However, the lasting net effect of this across a global business is a huge increase in the fixed cost base from salary expense. "As long as they are incremental or success-based, incentives work" Dwain Celistan, DHR International The effect of this was not properly experienced until the second half of last year when banking revenues failed to meet expected growth assumptions and the banks looked to shred their fixed cost bases to keep shareholders happy. Add in the catalyst of Europe and the implementation of Operation Twist (for its negative carry), and the banks proverbially wet themselves and fired just about everyone in sight. So far, the global fallout has been around the 100 000 mark from leading institutions (depending on your source) and I would hypothesise that a multiple of this number have lost their jobs from subsidiary industries that are supported by the financial marketplace. Both the direct and indirect effects of this in terms of unemployment, spending and subsidiary industry performance within the economy should not be underestimated. In general, an individuals spending of bonus income in comparison to salary income will be far more irrational and spontaneous which actually forms an essential part of economic consumption. The sheer scale of this issue, until now, has been truly understated; and as the financial climate continues its volatile cycle due to fiscal incompetence, trying to explain this to the public seems to become somewhat of an impossible task. As we will no doubt see, the fallout from government profligacy will see the financial sector become a political scapegoat for a largely anticipated downturn. Still hate bonuses? Think again. "The Euro has made Europe Stronger" Angela Merkel Onto the articles. The first link is to, the now infamous, Things That Make You Go Hmm.. from my friend Grant Williams. In this edition, Grant takes a look at the idea of Inflation targeting and the idiosyncrasies that exist within its rhetoric. Second, is a fascinating graph from Barclays Capital (via Zerohedge) which highlights both the size of Apple as a firm and the distortion that it creates in the tech market. Third, we have a interesting piece from SK Options Trading that looks at the idea of have a Short Intraday Long Overnight Gold fund that is likely to add fuel to the already raging belief regarding manipulation of the precious metals space. And finally, Bill Gross revisits the topic of Zero Bound Interest Rates. Enjoy. 1) Things That Make You Go Hmmm.... - Grant Williams (Click #0000ff;">HERE) 2) S&P 500 Tech Earnings Outlook With and Without Apple - Barclays Capital (Click #0000ff;">HERE) 3) Revisiting Our Proposal for an Overnight Gold Fund - SK Options Trading (Click #0000ff;">HERE) 4) Life - and Death Proposition - Bill Gross (Pimco) (Click #0000ff;">HERE) Best Regards George Adcock
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| Vietnam Has Written The Book On Gold; The West Should Read It Posted: 12 Feb 2012 04:32 PM PST by Chris Powell, GATA: Dear Friend of GATA and Gold: The Agence France-Presse story from Hanoi appended here demonstrates a few things not plainly understood by the financial news media and even economists in the West: 1) Gold is money, and sometimes much better money than governments offer. 2) Because of that, governments seek to control gold and its price. 3) A negative real rate of interest — what in the West is starting to be called "financial repression" — pushes people out of government currencies and into gold. 4) The gold price is much higher when people take delivery of the gold they purchase and don't have access to or participate in sophisticated gold derivative markets, such as the derivative markets in the West.
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| Silver For The People – Explained – Office Series 16 Posted: 12 Feb 2012 04:27 PM PST |
| Warren Buffett Makes a Desperate Attack on Gold Investment Posted: 12 Feb 2012 04:24 PM PST by Peter Cooper, Arabian Money via GoldSeek.com:
In an article in Forbes magazine the Sage of Omaha warned: 'Bubbles blown large enough inevitably pop, and then the old proverb is confirmed once again: "What the wise man does in the beginning, the fool does in the end".' The ultimate bubble This echoes George Soros's warning a while ago that 'gold is the ultimate bubble' (click here). It is something of a truism that all markets are cyclical with ups and downs. It is also a truism that investors make their money by backing markets on the way up.
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| Posted: 12 Feb 2012 04:12 PM PST from ZeroHedge:
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| Why Are Record Numbers Of Young Adults Jobless And Living At Home With Mom And Dad? Posted: 12 Feb 2012 04:09 PM PST from The Economic Collapse Blog:
Read More @ TheEconomicCollapseBlog.com
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| Posted: 12 Feb 2012 04:02 PM PST [Ed. Note: But if you think about it... that isn't even 1% of the population.] by Mac Slavo, SHTFPlan.com:
In the autumn of 2008, as Presidential hopefuls sparred over whether we had entered a recession or not and well before the onset of the most serious global crisis since the 1930′s, trend forecaster Gerald Celente advised his Trends Journal subscribers to prepare for the worst and plan for the best. "It will be," warned Celente, "like nothing we've ever seen in our lifetime." The aware and prepared … those understanding just how out of control society would become, and those who had acquired the skills for survival would stand the best chance of navigating the chaos safely. But Americans were not prepared. Not by a long shot Very few had the foresight to predict that the economic system and social fabric of our nation would be threatened with upheaval and disarray. But some, whether through independent education or through intuition, deduced that there was a real possibility of a system shock so significant that life as we know it could be on the verge of a major paradigm shift – perhaps even a complete collapse of our economy and resource infrastructure.
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| Chris Moore interviews Warren Pollock – KDKA – CBS Radio Posted: 12 Feb 2012 03:21 PM PST from WEPollock: Chris Moore of 1020 KDA Pittsburg have a wide ranging discussion on current economic events and trends. We talk about the breakdown of the rule of law and the monetary structure. The six pillars of the economy are six trajectories including money, law, technology, transportation, human capital, and the physical world. The Corporate system is based on incorrect accounting and the selective application of the rule of law. In an honest economy we have utility banking. We are in an oil based technology economy yet we don't account for oil correctly; we discount military projection or replacement cost. The securitization of oil is part of global empire with oil being a factor in the US dollar as the reserve currency.
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| The Real Reason For War Drums? Iran Presses Ahead with Dollar Attack Posted: 12 Feb 2012 02:53 PM PST Last week, the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad's vision of economic war with the west. by Garry White, Telegraph.co.uk:
"Recall that Saddam [Hussein] announced Iraq would no longer accept dollars for oil purchases in November 2000 and the US-Anglo invasion occurred in March 2003," the Times continued. "Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the 'crisis' has not come to a head long before now." Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen or even the yuan or rupee. India is already in talks with Iran over how it can pay for its oil in rupees.
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| The Terminal Beginning Of The Western Financial World Posted: 12 Feb 2012 02:44 PM PST by Jim Sinclair, JSMineset.com:
The real terminal beginning of the Western Financial world was this week. Kicking the can down the road is limited by the practical viability of the US dollar and US Treasury Securities market. QE will go to infinity because there simply is no other tool that can create the amounts of liquidity required instantly by the destruction of the Western world financial system. This destruction was delivered to us via those that have securitized everything. When you add to this that no default will be declared a default by the International Swaps and Derivative Association you have a guarantee that QE will go to infinity at the cost of the US currency market first and the US bond market second. I put this epic event in the year 2015. I give the US dollar no longer than June of 2012 before the cracks in its armor are visible to all. The deal that set this in place happened in December when the Fed was confirmed as the lender of last resort to the entire Western financial world when it granted in excess of $500 billion in US dollar swaps to the European Central Bank. The ECB then in turn lent those funds to its member banks to buy European debt in order to paint the auctions of the European debt as viable.
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| Posted: 12 Feb 2012 12:21 PM PST Abandoning the dollar for gold
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| George Soros’ 8 Bold Predictions From the ‘Tiger Den’ Posted: 12 Feb 2012 11:54 AM PST The wealthy investors who make up the peer-to-peer learning group TIGER 21 like to invite heavy hitters, such as Mohammed El-Erian, Carl Icahn and Jim Rogers, to their Headliner Lunches. In December, George Soros joined that illustrious roster, according to a statement from the group released Wednesday. In an interview with Robert Johnson, executive director of the Institute for New Economic Thinking, Soros discussed the economy and issues affecting investments and world markets, and reacted to some members' predictions for the year ahead. Soros said the current economic environment "is about as serious and difficult an environment as I have experienced in my career." The current financial crisis is a direct outgrowth of the financial crisis of 2008, he said. "In 2008, when Lehman went bankrupt, the financial system did collapse. The week between Lehman filing and the announcement of TARP were memorable days where one market after another ceased to function." Now the viability of sovereign debt is in question, he said. In Europe, flaws in the euro's construction are being exposed. However, he pointed out, the euro crisis is not a currency crisis, but rather a banking crisis. Soros emphasized that the current crisis is more severe and more lasting than the crisis in 2008. At that time, the institutions that were needed to control the situation existed, whereas in Europe today, there is a central bank but no treasury. Continue (5 pages)
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| Guest Post: Charting The Federal Reserve's Assets - 1915-2012 Posted: 12 Feb 2012 11:41 AM PST Submitted by Thomas Gresham of Gersham's Law, Here we present a history of the Fed in charts. As you'll surely glean from the below — the Fed has degenerated from a by and large passive institution (dealing only in high-quality self-liquidating commercial paper and gold) to an active pursuant of junk, an enabler of wars, a 'benevolent' combatant of the depressions of its own creation, a central planner of employment & prices and of course a forgiving friend to inconvenient market follies. The Fed's Assets from 1915 to 2012:
1915 to 1925
1925 to 1935
1935 to 1945
1945 to 1955
1955 to 1965
1965 to 1975
1975 to 1985
1985 to 1995
1995 to 2005
2005 to 2012
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| Posted: 12 Feb 2012 11:29 AM PST LIST OF ACTIONS OR BELIEFS WHICH MAY GET YOU LABELED A TERRORIST GROWS DAILY
Every American could – literally – be labeled a suspected terrorist under current governmental criteria. Specifically, the following actions may get a U.S. citizen labeled as a suspected terrorist today:
Holding the following beliefs may also be considered grounds for suspected terrorism:
SEE SOMETHING, ACT LIKE A SNITCH IN NAZI GERMANY, STASI EAST GERMANY OR IRAQ
I initially thought that Paul Joseph Watson was overreacting when he claimed that a Homeland Security video paints the following activities as signs of potential terrorism:
But Watson makes a brilliant point about Homeland Security's "See Something Say Something" campaign, and how accusations of terrorism actually spread:
At the height of its influence around one in seven of the East German population was an informant for the Stasi. As in Nazi Germany, the creation of an informant system was wholly centered around identifying political dissidents and those with grievances against the state, and had little or nothing to do with genuine security concerns. [Indeed, the American government has been using anti-terror laws to crush dissent and to help the too big to fail businesses compete against smaller businesses (and see this. And the Department of Homeland Security has been distracted by activities which have very little to do with terrorism.)] This is the kind of society the Department of Homeland Security is, whether deliberately or inadvertently, recreating in 21st century America. Gellately's website notes:
The same dynamic played out in Iraq. People turned their neighbors in to the American military pretending they were Al Qaeda, based on petty jealousies or just wanting to get a reward. Specifically, neutral observers say that most of the Iraqis tortured in Iraq were innocent farmers, villagers, or those against whom neighbors held a grudge. Iraqis received a cash reward from the U.S. military for turning people in as "suspected terrorists". See this movie. The number two man at the State Department under Colin Powell (Colonel Lawrence Wilkerson), the commander of the Abu Ghraib prison in Iraq and official U.S. military records all confirm that virtually all of the people turned in and subsequently tortured were innocent.
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| Iran presses ahead with attack on dollar Posted: 12 Feb 2012 10:21 AM PST By Garry White http://www.telegraph.co.uk/finance/commodities/9077600/Iran-presses-ahea... Last week the Tehran Times noted that the Iranian oil bourse will start trading oil in currencies other than the dollar from March 20. This long-planned move is part of President Mahmoud Ahmadinejad's vision of economic war with the West. "The dispute over Iran's nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the 'reserve currency' status of the dollar," the newspaper, which calls itself the voice of the Islamic Revolution, said. "Recall that Saddam [Hussein] announced that Iraq would no longer accept dollars for oil purchases in November 2000 and the US-Anglo invasion occurred in March 2003," the Times continued. "Similarly, Iran opened its oil bourse in 2008, so it is a credit to Iranian negotiating ability that the 'crisis' has not come to a head long before now." Iran has the third-largest oil reserves in the world and pricing oil in currencies other than dollars is a provocative move aimed at Washington. If Iran switches to the non-dollar terms for its oil payments, there could be a new oil price that would be denominated in euro, yen, or even the yuan or rupee. ... 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. India is already in talks with Iran over how it can pay for its oil in rupees. Even more surprisingly, reports have suggested that India is even considering paying for its oil in gold bullion. However, it is more likely that the country will pay in rupees, a currency that is not freely convertible. Last week Indian state-owned group Hindustan Petroleum said that Indian businesses could not pay for Iranian crude imports in rupees unless the federal finance ministry exempted such payments from crippling withholding tax. This issue remains unresolved. India and Iran have agreed -- but not yet started -- to settle 45 percent of payments for Iranian oil in rupees. Iran will then use the currency to buy imports from India. India pays for its oil in dollars, routed through a bank in Turkey after a previous mechanism was shut down in 2010. The Indian government has been resisting calls to stop importing oil from the pariah state. "There have been problems with regard to Iran's nuclear programme," Manmohan Singh, India's prime minister, said on Friday. "We sincerely believe that this issue can be and should be resolved by giving maximum scope to diplomacy." All of this means that the EU ban on Iranian oil imports, which comes into force on July 1, could hit Europe harder than it does Iran. The country currently supplies 500,000 barrels of oil per day to the EU and there is a potential oil price spike in the offing should Iran pre-emptively stop the flow of oil to Europe, which it has threatened to do. This could be disastrous to businesses that are already finding the economic climate tough. "While Iran may be able to find markets for much of its oil output in Asia, the alternative sources of supply to Europe are still unclear," Caroline Bain, a commodities analyst at the Economist Intelligence Unit, said. "Until the supply outlook stabilises, the oil price is expected to continue to reflect this uncertainty rather than the likelihood of lower growth in global oil consumption in 2012." The worries are already sending ripples of concern around the world. "While we have been listing the Iranian situation as a source of upside risk for a decade, there are some new factors that can make for a far more dangerous outcome, as the current drift of policy on both sides is creating the risk of a significant escalation," Sudakshina Unnikrishnan, an analyst at Barclays Capital, said. "Iran may close the Strait of Hormuz, causing an anticipated 50 percent rise in crude oil prices, resulting in widespread economic havoc," the Tehran Times columnist noted. So the EU ban could be counter productive, as it keeps the oil price high. However, as long as President Ahmadinejad's economic war doesn't escalate into an actual war, we may manage to avoid a crippling oil spike. Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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 Discusses Royalty Mining Growth Strategy Golden Phoenix Minerals Inc. has discussed its royalty mining growth strategy on the Fox Business Network program "21st Century Business" with host Jackie Bales. Golden Phoenix's director of corporate communications, Robert Ian, told how the company narrows its focus to project generation and future royalty streams. He explained why Golden Phoenix believes it's better to own joint-venture interests in several producing mines instead of full exposure to just one project. "21st Century Business" has been airing for 15 years. Previous hosts have included Gen. Alexander Haig, Gen.l Norman Schwarzkopf, and Secretary of Defense Caspar Weinberger. Golden Phoenix appeared as paid programming on this broadcast. To view the program with Golden Phoenix, please visit Golden Phoenix's Internet site here: http://goldenphoenix.us/fox-business-network/
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| Average Gasoline Price Jumps To Highest In 5 Months Posted: 12 Feb 2012 09:21 AM PST Stocks are not the only thing enjoying the ECB's $800 billion balance sheet expansion (and just announced additional Bank of England Quantiative Easing) over the past 6 months. Lately a new and unwelcome visitor has also figured out the Euroean Central Bank's sneaky motives. No, not Germany, they still are hopelessly confused and still believe the ECB is not "printing" money. Nor gold. It did long ago, just as Roubini was calling for an imminent crash following the 200 DMA breach - it is headed over $2000 in short order. No, this time it is that last entrant to any reliqufication party, who just happens to be the guaranteed party-pooper: gasoline. As the weekly Lundberg survey shows, in the week ended February 10, gas rose by 11.57 cents to $3.5101, the highest since September. The latest price is also 12% higher compared to a year earlier. What is troubling is that as the attached chart shows, the trend of gradual gas price declines has now firmly ended, having touched a low of $3.20, and has been replaced by a steady climb over the past 2 months. In other words, the US consumer's retail spending has been far weaker than expected in November and December, and soon to be discovered in January, primarily due to gas purchases, which have already plunged as discussed recently, once again taking up a substantial portion of the discretionary spending basket (on credit at that). And what is worse, is that as the LTRO #2 is about to add another several hundred billion to the ECB's balance sheet, which will ineivtably be followed by more Fed printing, the Gasoline trendline has only one way to go. Expect the recent highs of $4.00/gallon to be taken out shortly, and to lead to yet another GDP roll over once again. Alas, none of this will be a consolation to European readers, who a few days ago just saw gas hit all time highs.
Finally, we don't have to remind our regulars, that as David Rosenberg has been warning, the biggest "benefit" to the economy in H2 2011 was the consistently declining gas price. Now that that is over, and prices are once again increasing, one can kiss that particular one-time stimulus to the economy goodbye. Unless of course that long overdue transitory deflationary collapse takes place promptly. Here is Reuters with more:
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| Got Gold Report – Focus on CDNX Posted: 12 Feb 2012 08:49 AM PST Also in this issue: Timberline Resources (TLR) update notes begin on Page 19. HOUSTON -- It may seem that we are spending an inordinate amount of time on the small resource companies (SRCs), but they make up an important part of the resources we dedicate to our speculations and this could be a very important time for the companies involved in that space. This special GGR expands on an idea we touched on in the last report about a week ago – that we might be at the beginning of a new positive liquidity environment (PLE) for small resource companies. For the smaller, more risky issues to gain ground or excel as a group; the one ingredient that must be present for there to be a rising tide capable of moving all boats higher is confidence in the markets in general and the resource sector in particular. One of the ways we measure investor/speculator confidence for the smaller, more speculative resource companies which we refer to as "The Little Guys," is how they trade relative to their larger, better capitalized cousins like the ones in the AMEX Gold Bugs Index or HUI. The Little Guys are represented in the chart below by the S&P TSX Venture Exchange Index or CDNX. The chart tells us that since the Lehman collapse in the summer of 2008, risk aversion and lack of confidence has been dominant. Note, however, that from the November 2011 low of this ratio near 2.57 (almost as low as the 2008 panic lows), it appears that The Little Guys have definitely been regaining a little ground on the Big Miners on a relative basis. We believe that simply means that a little more confidence is coming in again. This ratio chart is an excellent tool to alert us when sentiment is getting better or the opposite. Right now the ratio says things are getting better, a little. Zooming in to just the last 6 months for the ratio, and looking at it in hourly terms, we see a picture that looks like this. Rising means that more confidence is coming in and vice versa. Because when confidence is deteriorating people tend to chunk out anything deemed risky first. But once the crisis of confidence eases the inherent volatility in the smaller issues takes over. If we accept the notion that it takes at least some return of confidence in markets for The Little Guys to outperform the Big Miners, then that is what we have been seeing since December. The index has a long, very long way to go yet, though, to recover a more normal relationship to the larger miners. That is a seed of opportunity for speculating Vultures. To continue reading, please log in or click here to subscribe to a Got Gold Report Membership.
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| Posted: 12 Feb 2012 07:59 AM PST Gold Wave & Money Flows Analysis Support Sinclair's Assessment CIGA Eric The US dollar may have until June of 2012 before it replaces the euro as the currency of deep concern. Gold can continue for a period of time being played by the hedge funds but its next test is not at $1500 but Continue reading Jim's Mailbox
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| Gold needn't fear rising rates, Macleod says; and Calandra on a Russian play Posted: 12 Feb 2012 06:21 AM PST 11:18a PT Sunday, February 12, 2012 Dear Friend of GATA and Gold: Economist and former banker Alasdair Macleod's new essay at GoldMoney, "Katastrophenhausse," anticipates from monetary debasement the "crack-up boom" the economist Ludwig von Mises warned against, and he adds that if interest rates finally are allowed to rise again, they "will only bankrupt insolvent governments and other borrowers, and the interest costs would end up being covered by the creation of yet more fiat money." Macleod concludes that "the important point for owners of gold and silver is that rising interest rates should drive prices higher, and not suppress them as commentators might expect." His commentary is posted at GoldMoney here: http://www.goldmoney.com/gold-research/alasdair-macleod/katastrophenhaus... Meanwhile financial writer Thom Calandra, who is speaking at Cambridge Conference's California Investment Conference this weekend along with GATA's delegation, writes today at the Cambridge House blog about a big and hugely speculative mining prospect in the wilderness of the Russian Far East. Calandra's commentary is headlined "Eastern Russia's Kekura Unfolds" and it's posted at the Cambridge House blog here: http://blog.cambridgehouse.com/2012/02/11/eastern-russias-kekura-unfolds... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study Company Press Release VANCOUVER, British Columbia, Canada -- Prophecy Coal Corp. (TSX: PCY, OTCQX: PRPCF, Frankfurt: 1P2) has received a positive feasibility study for the company's 600-megawatt Chandgana Mine-Mouth Power Project in central Mongolia. The report was independently prepared by Ralf Thomsen, project manager at Steag, a German firm specializing in the planning, financing, construction, and operation of highly efficient thermal power plants for fossil fuels. The study covers technical specifications, deployment, and financial analysis of a 4x150-mw thermal power plant to be built adjacent to Prophecy's Chandgana Tal coal deposit, which contains 140 million tonnes of measured coal. Last year the power plant received a construction license and the coal deposit received a mining license. Engineering, procurement, and construction management selection and project financing discussion have begun and are expected to be concluded this year. Construction is planned to start in April 2013, with the first 150-mw unit being commissioned in October 2015 and subsequent units to start in April 2016, October 2016, and April 2017. With proper maintenance the project will have 30 years of commercial operation. For the complete statement from the company, including maps and charts, please visit: http://www.prophecycoal.com/news_2011_jan17_prophecy_receives_power_plan... Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 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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| Casey Research: Permanent Gold Backwardation Posted: 12 Feb 2012 06:01 AM PST Permanent gold backwardation leading to the withdrawal of the gold bid on the dollar is the inevitable result of the debt collapse.
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| TF Metals Report: A Warning Flag For Silver Posted: 12 Feb 2012 05:54 AM PST As you know, I'm very excited about the prospects for the fiat-conversion price of silver this year. It's going to a big year, perhaps even historic.
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| Jim Sinclair: The Terminal Beginning Of The Western Financial World Posted: 12 Feb 2012 05:25 AM PST QE will go to infinity at the cost of the US currency market first & the US bond market second. I put this epic event in the year 2015. I give the US dollar no longer than June of 2012...
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| Pento - Looming Debt Market Collapse to Destroy the Dollar Posted: 12 Feb 2012 05:08 AM PST For most Americans the destruction of our dollar & our debt will be very pernicious. Owning precious metals will help preserve your wealth...
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| Silver Update 2/11/12 Socialism Fails Posted: 12 Feb 2012 04:53 AM PST
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| Sudan central bank raises dollar supply after gold sale Posted: 12 Feb 2012 04:02 AM PST By Khalid Abdelaziz and Ulf Laessing http://af.reuters.com/article/sudanNews/idAFL5E8DC3H720120212 KHARTOUM, Sudan -- Sudan's central bank is increasing dollar supplies to local banks to stop a slide of the Sudanese pound after it generated more than $300 million from gold sales, a central bank official said on Sunday. The African country is undergoing a severe economic crisis after losing three-quarters of its oil production when South Sudan became independent in July under a 2005 peace deal. Oil is the lifeline of both economies. Sudan has avoided an Arab spring like Egypt or Tunisia but the economic crisis has sparked small protests against high food price inflation. ... Dispatch continues below ... ADVERTISEMENT Free Month Subscription to Market Force Analysis for GATA Supporters Market Force Analysis is a unique, patent-pending approach to commodity market analysis. An algorithm has been developed to extract supply and demand weightings from futures market data. The difference between supply and demand is the market imbalance that is called "market force," so named because it is what drives price. It brings clarity to past market action and predicts market trends. Because it is derived from accurate futures market data it is not subject to the errors inherent in macro-level estimates of supply and demand. Learn more here: https://marketforceanalysis.com/About_MFA.html Market Force Analysis focuses on short-term (15 days) and medium-term price predictions to help both short-term traders and long-term investors understand market moves and benefit from the generated prediction of prices. To read subscriber comments that show how much the service is appreciated, visit: https://marketforceanalysis.com/Testimonials.html The MFA service has been pioneered by market analyst and Gold Anti-Trust Action board member and researcher Adrian Douglas. The Market Force Analysis premium service provides: -- A bi-weekly report. -- Access to the MFA hot list of junior mining stocks derived from analysis of more than 800 mining stocks. The MFA hot list consistently outperforms well-known mining share indices like the HUI, GDX, and GDXJ. -- E-mail alerts about actionable trades. -- E-mail updates with important information. To obtain your 1-month free trial subscription to the Market Force Analysis letter, e-mail info@marketforceanalysis.com and put "MFA Free Trial" in the subject field. The pound hit a historic low on the black market last week after losing more than 70 percent of its value since July as the loss of oil has cut off the main source of dollars. "The central bank has sold 6.5 tonnes of gold since January, which has generated more than $300 million," central bank spokesman Hazem Abdul-Qadir told Reuters. "Therefore we are increasing dollar supplies to banks and foreign exchange offices." He gave no figures but said dollar supplies would top the $35 million banks currently get per week from the central bank. He said Sudan had managed to get some foreign aid but declined to elaborate. Sudanese media have said that Qatar will grant a substantial loan but nothing has been confirmed so far. Sudan is locked in a row with South Sudan over oil payments as the landlocked new nation needs to export its crude through northern facilities. Both sides have failed to agree on a transit fee. South Sudan shut down its entire output last month after Sudan seized southern oil as compensation for what it calls unpaid fees. Sudan hopes rising gold exports will replace oil revenues but experts are sceptical since much of the gold comes from small-scale miners whose output is hard to verify. Join GATA here: California Investment Conference http://cambridgehouse.com/conference-details/california-investment-confe... Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html 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 Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit:
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| What's crazier than creationism and gold? It's in your wallet Posted: 12 Feb 2012 03:30 AM PST If all these gold standards are indeed crazy ideas, what can be said of the current international monetary system, in which only one country issues the world reserve currency, a boom-bust cycle is injected into most economies, the world is expropriated through the reserve currency-issuing country's chronic trade deficits, big and parasitic financial institutions are enriched and rescued by governments at the expense of the working class, and more and more government intervention is required to prevent markets from manifesting themselves and restoring some democracy and transparency to the planet?
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The prophetic words of Antal Fekete in his now infamous 'essay' on Gold are as relevant now (perhaps more so) as they were when he first wrote them 15 years ago – especially as the Euro-zone migrates from lossening fiat-money to quasi-money (greek pharma bonds for instance). While summarizing this must-read discussion of mainstream economic orthodoxy's mis-teachings is impractical, his initial introduction sets the stage for what is to come: "The year 1971 was a milestone in the history of money and credit. Previously, in the world's most developed countries, money (and hence credit) was tied to a positive value: the value of a well-defined quantity of a good of well-defined quality. In 1971 this tie was cut. Ever since, money has been tied not to positive but to negative values — the value of debt instruments." After a brief, clarifying history of money, Fekete goes on to discuss the misnomers of currency depreciation, gold as wealth, the failings of kicking the can, quantitative easing, and finally in the misunderstanding of interest rates themselves – seeing them as nothing more than merely bribe-money, trying to persuade reluctant holders of irredeemable promises to hang on a while longer. Paradoxically, gold's importance is growing while its dispersal from official hoards and the mines continues apace. Dispersed gold represents latent power, far greater in scope than its nominal market value, as sound credit can be built only upon a gold base.
In the United States today, unemployment among those age 18 to age 34 is at epidemic levels and the number of young adults that are now living at home with Mom and Dad is at an all-time high. So why are so many of our young adults jobless? Why are record numbers of them unable or unwilling to move out on their own? Well, there are quite a few factors at work. Number one, our education system has completely and totally failed them. As I have written about previously, our education system 
"The dispute over Iran's nuclear programme is nothing more than a convenient excuse for the US to use threats to protect the 'reserve currency' status of the dollar," the newspaper, which calls itself the voice of the Islamic Revolution, said.
My Dear Extended Family,
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