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Sunday, February 19, 2012

Gold World News Flash

Gold World News Flash

Worldwide Media Declares $6 Trillion in Seized Bonds “FAKE”, But Can't Explain Those Federal Reserve “Treaty of Versailles” Chests and Boxes

Posted: 18 Feb 2012 01:36 PM PST

by SGT:

As with the May 6, 2010 Flash Crash, and the $134 Billion in "counterfeit" US Bearer Bonds seized from two Japanese individuals who were attempting to smuggle them into Switzerland from Italy, this $6 Trillion in "fake" Bonds story would be forced down the memory hole as well, were it not for the alternative media.

Zero Hedge is of course asking the exact right questions. Tyler Durden writes:

"While we reserve judgment on the authenticity of the bonds, what we wonder is whether the boxes were also fake. Because while we can understand why someone would counterfeit the Treasury paper itself, what we don't get is why someone would go the extra effort to also create a "fake" compartment in which to store it. In this case a compartment that is property of the "CHICAGO FEDERAL RESERVE SYSTEM." Perhaps Fed uberdove and Chicago Fed President Charles Evans will be kind enough to explain why Versailles Treaty Chicago Fed crates are floating around in Europe (and filled with $6 trillion in supposedly fake bearer bonds)?"

But rest easy, just forget about it. According to the AP in the attached video, "U.S. officials confirm the Bonds were counterfeit." U.S. officials? WHO exactly is "confirming" they are "fake"? Professional counterfeiters Timothy Geithner? Ben Bernanke?

Are these Bonds tied directly to Hirohito's gold and the plan to start the Bank of International Settlements, as David Wilcock has suggested?

As always, there is likely much more here than meets the eye – and much more than will be reported on by the main stream press-titute media. The world is on the brink of financial Armageddon, and as James Rickards has said WW3 will be a monetary affair. I contend that in this case, whether these Bonds are "fake", or authentic, we have all just witnessed the seizure of the monetary equivalent of a nuclear WMD.

Colorado Looking at Gold, Silver Currency

Posted: 18 Feb 2012 01:07 PM PST

from HeraldExtra.com:

Worried that the U.S. dollar may not be good as gold, some Colorado lawmakers are pushing a bill to legalize gold and silver coins as usable currency.

The bill would not lead to folks carrying gold nuggets in their purses and would have little practical effect.

Rather the policy proposal from a small group of conservative lawmakers reflects anxieties about the nation's financial stability, the domestic consequences of the European debt crisis and chronic deficit spending in Washington.

"There are lots of concerns about the U.S. monetary system," said the bill's sponsor, Republican Sen. Kent Lambert of Colorado Springs. "Individuals and states ought to be increasing their gold reserves. There's no way to maintain the value of anything if countries start a race to the bottom by inflating their currency to get out of debt."

Republican presidential candidate Ron Paul is among those who believe the nation should return to the gold standard, in which paper currency is guaranteed by precious metal.

Read More @ HeraldExtra.com

Germany, Greece Quietly Prepare For "Plan D"

Posted: 18 Feb 2012 10:29 AM PST

For several weeks now we have been warning that while the conventional wisdom is that Europe will never let Greece slide into default, Germany has been quietly preparing for just that. This culminated on Friday when the schism between Merkel, who is of the persuasion that Greece should remain in the Eurozone, and her Finmin, Wolfgang "Dr. Strangle Schauble" Schauble, who isn't, made Goldman Sachs itself observe that there is: "Growing dissent between Chancellor Merkel and finance minister Schäuble regarding Greece." We now learn, courtesy of the Telegraph's Bruno Waterfield, that Germany is far deeper in Greece insolvency preparations than conventional wisdom thought possible (if not Zero Hedge, where we have been actively warning for over two weeks that Germany is perfectly eager and ready to roll the dice on a Greek default). Yet it is not only Germany that is getting ready for the inevitable. So is Greece.

From the Telegraph: "The German finance ministry is actively pushing for Greece to declare itself bankrupt and to agree a "haircut" on the bulk of its debts held by banks, a move that would be classed as a default by financial markets.Eurozone finance ministers meet on Monday to approve the next tranche of loans from the EU and the International Monetary Fund, designed to stave off national bankruptcy while the new Greek government puts the country's finances in order. But the severe austerity measures being demanded have caused such fury in Greece, and the cuts required are so deep, that Wolfgang Schäuble, the German finance minister, does not believe that any government would be able to implement them." Funny - it is as if Schauble almost knows that any self-respecting country would tell Germany to go to hell. Then again, this is Greece, whose puppet government is one which only answers to banker demands. And we hardly have to remind readers that of every dollar in bailout cash, Greece only sees 19 cents of it. Then again this is Greece, which is full of sound and fury for a day or two, then is happy to pick up the bar of vaseline for the next 6 months until the cycle repeats anew.

More:

"The idea instead is that the Greek government should officially declare itself bankrupt and begin negotiating an even bigger cut with its creditors. For Schäuble, it is more a question of when, not if."

 

The German finance minister's comments are certain to plunge the authorities in Athens into even deeper gloom. On Saturday they tried to sound optimistic, with a cabinet meeting to thrash out the final details of an austerity package.

 

The cuts, including a reduction in the minimum wage, mass redundancies within the public sector, and a slashing of the health and defence budgets, sparked rage on the streets of Athens last week, with buildings set on fire amid angry protests.

 

But the country's politicians are resolutely trying to sound upbeat. "The Greek people have done everything they can and we are determined to make good on our commitments," said Christos Papoutsis, public order minister.

Adding insult to injury...

With Greek morale at rock bottom, the national mood darkened yet further after armed thieves looted a museum on Friday in Olympia, birthplace of the Olympic Games, and stole bronze and pottery artefacts - just weeks after the country's National Gallery was burgled.

 

One Greek newspaper suggested the state could no longer properly look after the nation's immense cultural heritage. "The Greek state has gone bankrupt, let's face it," the conservative daily Kathimerini said in an editorial.

 

"If the state cannot guard the country's great cultural heritage for financial or other reasons it must find other ways to do it."

 

Mr Schäuble's pessimism will not be welcomed in Athens. The hugely influential German politician's doubts have been growing for several weeks, and prompted angry exchanges when Greece accused Germany of trying to drive it out of the euro.

 

His scepticism is not yet fully shared by Angela Merkel, who is said still to be determined to prevent Greece's financial collapse. "She thinks Greece going bust could cause a shock wave that buries other countries - with Spain and Italy among them. It could break apart the entire monetary union," said an official.

 

But it has support from Austria and Finland - holding the prospect that a eurozone meeting tomorrow will fail to agree the next set of EU-IMF payments for Greece.

And lest it be assumed that only Germany is preparing for the inevitable, here is the FT on Greece's own preparation for "Plan D":

On Friday afternoon, Constantine Michalos, president of the Athens chamber of commerce, sat in his office – around the corner from where protesters were hurling chunks of marble at riot police – and contemplated what was once unthinkable: that Greece would default on its debt and then be forced into a messy exit from the euro.

 

"All hell would break loose," Mr Michalos said, sketching a society that would quickly run short of fuel, food, medicine and necessities. "You would have social upheaval."

 

This week, that assumption was questioned as never before. Some officials in the Netherlands, Germany and Finland – three of the eurozone's four remaining triple A governments – now argue that the blowback from a Greek default might not be so debilitating, after all.

 

"I am not advocating a Greek default, hard or soft – but I'm not excluding the possibility of it if the Greeks don't get their acts together," Alexander Stubb, Finland's Europe minister, told the Financial Times.

 

"Europe is prepared. A hell of a lot better prepared than it was on May 9 2010 – and a hell of a lot better prepared than it was last year, so I think we've taken the necessary measures."

And while anyone who is vaguely familiar with rapo banking understands that Greek bonds have been repoed in an infinitely long rehypo chain starting with purchases in the open market, and ending with the ECB, in the process leaving tens of Prime Brokers open for loss exposure, and thus a Greek default would lead to massive impairments, there are those who still think that a Greek default is manageable. It isn't.

Platon Monokroussos, research head at Eurobank EFG, believes a Greek default might even cascade into a full-blown EU exit, because government would probably try to impose capital controls, close borders and take measures that violated EU law.

 

Greece's mainstream politicians appear aware of this. Lucas Papademos, the prime minister, warned MPs that the country faced "catastrophe" if it did not approve a sweeping austerity package tied to the loan.

Many in Greece realize this. But ever more dont care any more and just want out.

There is a minority – particularly on the far left – that wants out. Their chief argument, endorsed by some well-known foreign economists, is that a devalued drachma would lower wages and instantly make Greece more competitive.

 

They tend to point to Argentina, which broke its peg with the dollar more than a decade ago, defaulted on its foreign debt and has since fared far better than many expected.

 

Yet that comparison overlooks the fact that the Greek economy – unlike Argentina's – boasts a small production base and few exporters. Most of its companies rely on imports, which would rocket in cost. Sceptical, too, are ordinary citizens. "We are not Argentina," Mr Stournaras said. "We are not even self-sufficient in agriculture."

Perhaps there is a reason that whatever happens on Monday will be when the US market is closed - the last thing needed is for the US momentum accentuating HFT algos, who are all that is left of the market, to take whatever trend develops, and run away with it. Or perhaps that is precisely why Europe decided to go ahead with a decision precisely on a day when the US market is closed.

Our personal sentiment is that nothing has changed: the only question on Tuesday will be when the next "drop dead" summit/meeting/shindig will be. And at what point will Greece's fate again not be sealed. Because if Reuters is correct in suggesting that someone, somewhere thinks that that the Greek exchange offer can be consummated in 3 calendar days, or one work day as the 10th and 11th are Saturday and Sunday, then the farce is already long over.

The Best of the Bozeman Police Reports

Posted: 18 Feb 2012 10:12 AM PST

Culled from the Police Reports page of the Bozeman Daily Chronicle come the best of the Bozeman police reports from the last week along with some items from the Sheriff's Office. Note that a new book featuring the very best of these police reports is now available from the Chronicle for only $10 – just click on the banner below to find out how to order.

Another week of odd reports that again makes you scratch your head about what compels some people to call the police. I guess after all the wildlife reports over the summer and the heightened bear activity in the fall in advance of their long winter's sleep, this is just a slow time of the year. Nonetheless, below please find another collection of stories that are mildly interesting, modestly amusing, and, in some cases, a little disturbing.

  • A 29-year-old Bozeman man was arrested for drunken driving after sideswiping a vehicle on West Aspen Street and getting into an argument with the vehicle's owner.
  • A woman stretching near the mall around 10:45 a.m. said a man came up to her and said, "That looks good," and stretched next to her. Then he and another man followed her in a car. One of the men was wearing red plaid pajama pants and the other had a beer and was wearing blue sweatpants. They were gone when police arrived.
  • A woman called to report that she may have hit another vehicle on West Main Street near Willson Avenue around 11:45 a.m. and wanted police to know in case the other driver called to report the incident.
  • A driver called to tell police his Jeep died on South 11th Avenue around 9 p.m. and that he locked himself out of it. It was not a traffic hazard and he will get it moved after getting another set of keys.

  • A woman reported that when she asked a man calling for her husband around 6:30 p.m. what he was calling about, he "became agitated and swore at her."
  • A suspicious truck with a mattress in the back on Portnell Road turned out to be a person "looking at the stars" around 9 p.m.
  • A caller reported receiving a text message about a juvenile party that was going to happen Friday night. The message was meant for someone else, and the caller wanted deputies to know about the plan.
  • A very thin calico cat wearing a purple collar with a jingle bell but no tags was found on South Seventh Avenue around 1:30 a.m. The feline was taken to the animal shelter.
  • A woman asked police if they could help get her cat out of her neighbor's garage on South Yellowstone Avenue around 2 a.m. It had gotten trapped and the garage was locked.
  • A woman wanted "to talk with an officer about a subject who owes her money and is giving her the runaround."
  • Police separated two people at 6:30 p.m. who were arguing loudly "about the house not being cleaned."
  • A North 17th Avenue woman's ex-boyfriend was in her house calling her names and threatening to kill her dog.
  • In an ongoing feud, a man on Silver Maple Drive called police after receiving threatening texts from a neighbor. The caller admitted he had been threatening his neighbor as well.
  • Members of the University of Idaho hockey team damaged the roof of the Seventh Avenue hotel they were staying at.
  • Saint Bernard puppies were seen in the median and on the side of the interstate at 12:45 p.m.
  • Not wanting to go to school, a 9-year-old locked himself inside a running vehicle in the school parking lot around 10 a.m. after his aunt got out.
  • A loud house party with 100 to 200 people was shut down by deputies on Mountain Splendor Drive just before midnight. The resident of the home received two citations.
  • Bridger Bowl ski patrollers and Gallatin County Search and Rescue team members found a girl who had gotten lost out of bounds.
  • A woman said a pet cobra bit her hand in her apartment on Beall Street around 5:30 a.m. She said she was alone and "the snake was watching her everywhere she moves." The snake, which turned out to be a boa constrictor, was still on the couch and police helped wrangle it back into captivity.
  • A caller reported seeing a person who "looks under 12" driving a Dodge Durango on North 11th Avenue near Main Street around 4:30 p.m. The caller said the driver "could barely see over the dash."

Losing Graciously

Posted: 18 Feb 2012 10:03 AM PST

There's a very well-known publisher of market commentary which - like me - has been largely bearish over the past two and a half years. What is irksome to me is that, in the face of a market which has done little but push higher all this time, they keep pointing to a chart showing that in "real dollars" (in their view, gold) the market has indeed been crashing.

Ummm, that's stupid. Gold is an asset, but it isn't used as money in our society. Do you buy groceries with it? Pay your mortgage with it? Pay school tuition with it? I didn't think so.

I could make ANY prediction about ANY market and be correct if you allowed me to choose some kind of "currency" as a benchmark. Over any span of time, you can find something which has gone either up or down in value to support your claim, if that's what you're allowed to use as your divisor.

Let's try this. I've been bearish on the market, as you know. Let's say that the shares of Apple, Inc. are the most meaningful form of "real money." How have I done? Looking at the chart below, I'd say I've been spot-on.

0218-spxaapl

I realize there's a difference between Apple and gold, but not much. 99.9% of our transactions are done within the borders of the United States, using U.S. currency, so the nominal value of the stock market, measured in dollars, is the most accurate judge of how predictions have panned out. I've been, by and large, bearish. I've been wrong. I'm not going to completely lame-out on you and divide the stock market by the value of gold, for God's sake.

0218-spxgld

I lean bearish. It's my personality. To some, I looked like a genius in 2008 and early 2009. I wasn't. To some, I look like an idiot for my bearishness recently. I'm not. I'm neither an idiot nor a genius. I'm a very good chartist, and I've offered plenty of great trading ideas (and plenty of not-so-great ones), and my bearishness has been wrong for longer than I care to remember.

But at least I am man enough to say that without gimmicks. Sheesh.

Jim Sinclair: Tell A Lie Big Enough, Loud Enough And Long Enough And The Sheeple Will Believe

Posted: 18 Feb 2012 09:05 AM PST

Have you considered the States of the US Dollar Union have financial problems equal to and in many cases in excess of the States of the European Union?


China to overtake India as biggest Gold consumer

Posted: 18 Feb 2012 07:49 AM PST

China will this year topple India as the world's...

[[ This is a content summary only. Visit my website http://goldbasics.blogspot.com for full Content ]]


This posting includes an audio/video/photo media file: Download Now

Tell A Lie Big Enough, Loud Enough And Long Enough And The Sheeple Will Believe

Posted: 18 Feb 2012 07:45 AM PST

Dear CIGAs,

Have you considered the States of the US Dollar Union have financial problems equal to and in many cases in excess of the States of the European Union?

Have you considered that as bumbling as it has been that Europe has admitted their problem?

As ineffective as those euro initiatives might be,

Continue reading Tell A Lie Big Enough, Loud Enough And Long Enough And The Sheeple Will Believe

Jim Rickards interviewed by Chris Martenson

Posted: 18 Feb 2012 06:07 AM PST

2:05p ET Saturday, February 18, 2012

Dear Friend of GATA and Gold:

Financial writer Chris Martenson this week did an excellent and comprehensive interview with geopolitical analyst James G. Rickards, who spoke at GATA's Gold Rush 2011 conference in London last August. It's headlined "James Rickards: Paper, Gold, or Chaos" and excerpts and the full audio are posted at Martenson's Internet site here:

http://www.chrismartenson.com/blog/james-rickards-paper-gold-or-chaos/71...

CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.


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Prophecy Coal (TSX: PCY) Wins Positive Feasibility Study
for the 600-MW Chandgana Power Plant in Mongolia

Company Press Release
January 17, 2012

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:

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:

http://gata.org/tshirts

Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009:

http://gata.org/node/wallstreetjournal

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:

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To contribute to GATA, please visit:

http://www.gata.org/node/16


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Sona Discovers Potential High-Grade Gold Mineralization
at Blackdome in British Columbia -- 13.6g over 1.5 Meters

From a Company Press Release
November 22, 2011

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

Guest Post: When Debt Is More Important Than People, The System Is Evil

Posted: 18 Feb 2012 06:02 AM PST

Submitted by Charles Hugh Smith from Of Two Minds

When Debt Is More Important Than People, The System Is Evil

The Empire of Debt has only one end-point: a death spiral. It is evil and must be dismantled.

Ethics has no place in the Empire of Debt. The financialized Status Quo is careful to limit the language used to describe the situation in Greece to the subtexts of "obligations" and "avoiding chaos."

The reality being masked is that debt is now more important than people. The suffering of the people of Greece is presented as a footnote to the financial play being staged; when the suffering is noted, it is presented with a peculiar set of unspoken subtexts:

1. Looky-loo detachment of the "gosh, look at that wrecked car, are there any bodies?" sort. People slow down to look at car crashes, and they revel in videos of riots with the same detached fascination with mayhem that doesn't involve them. Tsk tsk, how awful, etc.

2. They're reaping what they sowed, "they made their bed, now they have to sleep in it," i.e. the suffering of Greek non-Elites is the richly deserved consequences of their government overborrowing.

This begs further investigation. In the normal course of affairs in corrupt kleptocracies, various Elites siphon off most of the swag and the commoners get just enough shreds to buy their complicity. In other words, it may well be that the entire populace of Greece benefitted handsomely from the massive State borrowing, but it also may well be that the private-sector Greeks received little of the swag. In this case, they don't "deserve" to be forced into debt-serfdom by their Euroland overlords.

The ethics of debt, at least in the officially sanctioned media, boils down to: nobody made them borrow all those euros, and so their suffering is just desserts.

What's lost in this subtext is the responsibility of the lender. Yes, nobody forced Greece to borrow 200 billion euros (or whatever the true total may be), but then nobody forced the lenders to extend the credit in the first place.

Consider an individual who is a visibly poor credit risk. He would like to borrow money to blow on consumption and then stiff the lender, but since he cannot create credit, he has to live within his means.

Now a lender comes along who can create credit out of thin air (via fractional reserve banking) and offers this poor credit risk $100,000 in collateral-free debt at low rates of interest. Who is responsible for the creation and extension of credit? The borrower or the lender? Answer: the lender.

In other words, if the lender is foolish enough to extend huge quantities of credit to a poor credit risk, then it's the lender who should suffer the losses when the borrower defaults.

This is the basis of bankruptcy laws--or used to be the basis. When an over-extended borrower defaults, the debt is cleared, the lender takes the loss/writedown, and the borrower loses whatever collateral was pledged. He is left with the basics to carry on: his auto, clothing, his job, and so on. His credit rating is impaired, and it is now his responsibility to earn back a credible credit rating.

The debt is discharged and the borrower must live within his means without relying on credit. But he is also free of the burdens of servicing the debt.

If the lender is forced into insolvency due to the losses, then so be it: lenders that cannot differentiate between good and bad credit risks should go under and disappear: that's what happens in a competitive, transparent capitalist economy. Fools who create credit and extend it to poor credit risks must be eliminated from the system as quickly as possible lest they destroy more capital in the future.

The potential for loss and actually bearing the consequences from irresponsible extensions of credit was unacceptable to the banking cartel, so they rewrote the laws. Now student loans in America cannot be discharged in bankruptcy court; they are permanent and must be carried and serviced until death. This is the acme of debt-serfdom.

The global banking cartel has declared Greece's debts to be permanent and its people debt-serfs. More precisely, some privately held debt will be written down, but certainly not all of it, and the debt owed to the European Central Bank cannot be written down a single euro: Greece must pay the interest on the full debt, whatever the costs to its people.

We might ask why the fully-financialized Status Quo of financial and political Elites so carefully insures no shadow of ethics passes over the Greek debt crisis: If they did, it would become obvious that when debt becomes more important than people, the system is evil and should be dismantled.

Yes, evil, as in evil empire: the Empire of Debt that now dominates the global economy is intrinsically evil and cannot be salvaged; the only way to rid the planet of its parasitic, pervasive evil is to dismantle it, all of it, everywhere.

Europe is a good place to start. The only way to dismantle the evil Empire of Debt is to stop obeying its commands: Greece should not pay a single euro on any of its debts, starting with debt owed to the Evil Empire of Debt's favorite tool, the Troika of the EU (European Union), the ECB and the IMF.

We are constantly told default and exit from the debtors' prison of the euro would lead to chaos. Unfortunately for the Evil Empire of Debt and its Eurozone army of lackeys, toadies and apparatchiks, this claim is demonstrably false. Thanks to Pater Tenebrarum of the always excellent Acting Man financial blog, we have access to a 53-page report from Variant Perception that completely dismantles the fear-mongering claims of Apocalypse for the Greeks should their government default on its debts.

A Primer on the Euro Breakup: Default, Exit and Devaluation as the Optimal Solution. The only way forward is default and exit from the debtors' prison of the euro.

Once the debt has been renounced, Greece will have to live within its means, i.e. the goods and services produced by their economy. I think a critically important point has been lost in all the fear-mongering: the value of the goods and services produced by an economy remain the same whether they are valued in euros, gold, dollars, bat guano or any other open-market measure of value.

What will impoverish Greece is paying interest on the mountain of debt. If we value total Greek output of goods and services at 100 quatloos, and this economic activity generates a surplus of 10 quatloos, the Greek people can decide to consume that 10 quatloos, invest it or some mix of the two.

If they have to pay 10 quatloos in interest, then there is no capital left to invest in productive assets. As the existing productive assets degrade, wear out and become obsolete, then the goods and services produced will decline, along with the surplus generated. This sets up a positive feedback loop, i.e. a death spiral: as production of value declines, so too does the surplus available to invest in productive assets.

This is why the only way forward is default and exit from the debtors' prison of the euro. The only way forward is to value people more than debt, and to dismantle the evil Empire of Debt.

James Rickards: Paper, Gold or Chaos?

Posted: 18 Feb 2012 04:54 AM PST

Whether it ends in hyperinflation, return to some form of gold standard, or in chaos - history is telling us we can have confidence it will end painfully.


Harvey Organ's Daily Gold & Silver Report

Posted: 18 Feb 2012 04:18 AM PST

Greece updates/Iran/High amounts of physical silver standing in February/


Gold's Wild Ride Leaves Explorer Stocks Ready to Grow

Posted: 17 Feb 2012 11:47 PM PST

Lesser resource companies have been slowly starving to death since the capital faucet was turned off in 2008. What's left? Some exciting, early-stage companies with management teams industrious enough to make it through with promising projects on the horizon. In this exclusive interview with The Gold Report, Tom MacNeill, CEO of 49 North Resources Inc., a Saskatchewan-focused resource investment company, discusses some names his firm is excited about, including some primed to debut on the public markets soon.


Record High Gold Prices Fail to Curb Global Demand

Posted: 17 Feb 2012 11:06 PM PST

Despite a volatile year for gold prices in 2011, demand for the precious metal still remained strong. According to the latest World Gold Council’s annual report, gold demand totaled 4,067.1 tonnes, a slight increase from the prior year. Record low interest rates, inflation expectations and investment demand continued to drive the gold bull market.


Gold GLD ETF Breaks Crash Trendline

Posted: 17 Feb 2012 11:02 PM PST

GLD broke its Broadening Wedge trendline and appears ready to launch into an approximate 20% decline from the trendline.  While the next support is intermediate-term trend support at 162.68, there are no other supports between it and the daily cycle bottom (not shown) currently at 131.55. 


We have been told that there is no way out of the debt burden that has been imposed on Irish citizens as a result of the collapse of the banks. But that, after all, may be no more than propaganda.

Posted: 17 Feb 2012 09:25 PM PST

Lessons From Iceland


Best of the Web Archives

Posted: 17 Feb 2012 11:16 AM PST


Jim Rickards Interview – Chris Martenson

The Anti-Freedom Movement States Its (Worst) Case? – Daily Bell

Nigel Farage Interview – King World News

The Cancer of Debt and Deficits – John Mauldin

A New Bull Market? – Doug Noland, PrudentBear

Jim Sinclair Interview – King World News

Bad Week For Freedom – Burning Platform

Why Does The Market Keep Rising? – Gordon T. Long, GoldSeek

The First Dominoes: Greece, Reality, and Cascading Default – OfTwoMinds.com

Why Going 'Back To Normal' Is No Longer An Option for the US Economy – Sara Robinson

Face the Music – John Mauldin

Ben Davies Interview – King World News

Stephen Leeb Interview – King World News

Mark Steyn Says America Is on Its Way to Armageddon – The Preparation Station

Ten Things That Every American Should Know About The Fed – ETF Daily News

Why Our Currency Will Fail – Chris Martenson

Occupy Movements of Mutual Knowledge – Automatic Earth

Headlong On The Path To Ruin And Destruction – Alan M. Newman

The Fed is Engineering Obama's Re-Election Campaign – Gary Dorsch, Global Money Trends

The Confidence Fairy, Pixie Dust and a Sleeping Dragon – Daniel Alpert

How Euro Brinkmanship Is Beginning to Succeed – Jacob Funk Kirkegaard

Ron Paul's Worldview Forged in Early Family Life – David Halbfinger, New York Times

An Adult Approach – GATA

Illusion of Recovery – Feelings Versus Facts – Burning Platform

What If We're Beyond Mere Policy Tweaks? – Charles Hugh Smith

Why Junior Mining Stocks Represent Best Value – Brent Cook

Mercenary Geologist Mickey Fulp–January’s Bull Stampedes into February–02-17-2012

Posted: 17 Feb 2012 10:28 AM PST

We sat down with Mickey Fulp and while there's not a lot to be happy about, many markets have been going up since the first of the year. And as the old Wall Street Maxim says, So goes January, So goes the Year. And you have to take your profits while you can get them. But of course you always need to have a core holding of gold and silver. The rest is extra money that you've hopefully been able to grow during the course of a very tough couple of years. There's absolutely no indication that anything has fundamentally improved of that any of the long standing, intractable problems have been solved, but Wall Street doesn't seem very concerned about these issues. But you should be, because one day they'll wake but it will be too late.

Copper's been heading down a bit since January, seems the Chinese have been hoarding it. And perhaps the most surprising developments, the US approved two new nuclear power plants to be built in Georgia and the Germans are restarting several shut-in nukes. While nuclear power's rebirth in the West has been greatly exaggerated, perhaps reality is now catching up. Uranium stocks haven't had much of a move recently, but that could be changing.

All-in-all financial markets never surprise us with their unpredictability, and 2012 is proving no different.

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