Gold World News Flash

Check This Information Out Before Investing in Any Senior Mining Companies
von Greyerz: More QE & Higher Gold Prices Virtually Guaranteed! Here?s Why
Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?
Government Collapse Leaks and Not Getting Distracted
Penn State Pedophile Ring Accomplices Get Plush Gov't Jobs!
Reuters: Banks to Collapse
Defend the Fed
The Keys To Understanding the Collapse of the Status Quo: Credibility and Expectations
On Gold's Recent Resilience
And Then There Is Disaster C
Anniversary of the credit crunch
Olympiad Gold Medal Winners No Longer Worth their Weight in Gold
Let the Journey Begin
In the News Today
Join GATA at the New Orleans Investment Conference Oct. 24-27
More "Source" Input On Coming Precious Metals Price Explosions
Ambrose Evans-Pritchard: Excess debt must go via inflation or default
Gene Arensberg: Divergence between gold and junior shares is contrarian's delight
VB Update Notes for August - September 2012 – Seller Exhaustion
More on the Coming ?Perfect? Financial Storm from Peter Schiff
A High Frequency Attack on Gold
Weekend Update (Gold)
Return to gold is inevitable, Gold Standard Institute founder Barton says
Alasdair Macleod: Anniversary of the credit crunch
Obama Administration Drops Criminal Investigation of Goldman Sachs
Gold, Silver, Stocks and U.S. Dollar Markets Outlook
DROUGHT SILVER LINING
Soon to join the generals of the SLA: Sprott, Turk, Maloney with a new bullion vaulting service.
COMING THIS FALL: SILVER LIBERATION ARMY HAS A NEW WEAPON (part of a new $300 mn. initiative to crash banksters)

Check This Information Out Before Investing in Any Senior Mining Companies

Posted: 12 Aug 2012 11:59 PM PDT

If you are interested in comparing the stats and ratings of companies operating in each of the commodity sectors you will find this analysis of great benefit in determining which company or companies to invest in. Words: 575 The following information is presented by William Matlack of [url]www.scarsdale-equities.com*[/url]as posted* on a twice monthly basis on the kitco.com web site. [INDENT]The information is posted here by[B] Lorimer Wilson, editor of[B] [COLOR=#0000ff]www.munKNEE.com (Your Key to Making Money!) [/B]and [B]www.FinancialArticleSummariesToday.com [/B](A site for sore eyes and inquisitive minds) to make you aware of its existence. This paragraph must be included in any article re-posting to avoid copyright infringement.[/COLOR][/B] [/INDENT]Senior Producers, Larger-Cap Near-Term Production Gold Note: Currency shown is that used by the company for financial reporting. Currency does not always reflect the country/market in which the company/stock symbol trades....

von Greyerz: More QE & Higher Gold Prices Virtually Guaranteed! Here?s Why

Posted: 12 Aug 2012 11:59 PM PDT

“The U.S., with $15 trillion in debt, and roughly $1.5 trillion in tax revenues, is an enormous disaster waiting to happen. At 10% interest rates the U.S. would use 100% of its tax revenues to finance the debt….This is why money printing is guaranteed…and this time, like it has before, it will lead to a financial crash [which] will be of a worldwide magnitude." So says Egon von Greyerz in edited excerpts from an interview* with Eric King of King World News which*are*presented by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in any article re-posting to avoid copyright infringement. von Greyerz concludes his comments in the following edited excerpts: "Gold's rise has reflected some of the money printing up to now…and has risen with only slightly more than 1% of the world's assets in gold….With inflation headed...

Are The Government And The Big Banks Quietly Preparing For An Imminent Financial Collapse?

Posted: 12 Aug 2012 11:15 PM PDT

from The Economic Collapse Blog:

Something really strange appears to be happening. All over the globe, governments and big banks are acting as if they are anticipating an imminent financial collapse. Unfortunately, we are not privy to the quiet conversations that are taking place in corporate boardrooms and in the halls of power in places such as Washington D.C. and London, so all we can do is try to make sense of all the clues that are all around us. Of course it is completely possible to misinterpret these clues, but sticking our heads in the sand is not going to do any good either. Last week, it was revealed that the U.S. government has been secretly directing five of the biggest banks in America "to develop plans for staving off collapse" for the last two years. By itself, that wouldn't be that big of a deal. But when you add that piece to the dozens of other clues of imminent financial collapse, a very troubling picture begins to emerge. Over the past 12 months, hundreds of banking executives have been resigning, corporate insiders have been selling off enormous amounts of stock, and I have been personally told that a significant number of Wall Street bankers have been shopping for "prepper properties" in rural communities this summer. Meanwhile, there have been reports that the U.S. government has been stockpiling food and ammunition, and Barack Obama has been signing a whole bunch of executive orders that would potentially be implemented in the event of a major meltdown of society. So what does all of this mean? It could mean something or it could mean nothing. What we do know is that a financial collapse is coming at some point. Over the past 40 years, the total amount of all debt in the United States has grown from about 2 trillion dollars to nearly 55 trillion dollars. That is a recipe for financial armageddon, and it is inevitable that this gigantic bubble of debt is going to burst at some point.

Government Collapse Leaks and Not Getting Distracted

Posted: 12 Aug 2012 11:05 PM PDT

by JPMHater001:

Penn State Pedophile Ring Accomplices Get Plush Gov't Jobs!

Posted: 12 Aug 2012 10:58 PM PDT

from TheAlexJonesChannel :

Alex explores news that has federal investigators questioning the possibility of a child abuse sex ring following Jerry Sandusky's conviction, Paul Ryan's strong pursuit of a bailout by the Troubled Asset Relief Program (TARP), Ron Paul's video that warns that an economic collapse will only be the beginning of a road leading to martial law, and more. Alex also covers other breaking news items and takes your calls.

Graham Spanier might have been ousted from his post at the helm of Penn State over the sex-abuse scandal that engulfed the university, but it seems he's found a backup employer: the American taxpayer.

Only a disgraced public figure would consider joining the much-maligned ranks of the federal workforce as a step up, reputation-wise. We can assume there were no openings for a used-car salesman.

Spanier was faulted in an internal Penn State report after the conviction on child-molestation charges of former assistant football coach Jerry Sandusky. The report said he, head coach Joe Paterno and others helped cover up Sandusky's abuse.

His lawyer confirms to the Loop that Spanier is working on a part-time consulting basis for a "top-secret" agency on national security issues.But the gig is so hush-hush, he couldn't even tell his attorneys the name of the agency. In April — months after his ouster as president but before the release of the internal report — he told the Patriot-News of central Pennsylvania that he was working on a "special project for the U.S. government relating [to] national security."

Reuters: Banks to Collapse

Posted: 12 Aug 2012 10:00 PM PDT

from AnotherBoringWeek:

Defend the Fed

Posted: 12 Aug 2012 09:30 PM PDT

[Ed. Note: Do you wonder how many Sheeple read something like this and imagine that the Federal Reserve is a good idea? This was written by Arthur J. Rolnick, formerly senior vice president for research at the Minneapolis Federal Reserve Bank...no vested interests there.]

by Arthur J. Rolnick, Star Tribune:

Some people would rather just end it — and go back to a gold standard — but history shows that the Federal Reserve System was carefully conceived and has been effective in executing its mission.

In recent years, Ron Paul, presidential candidate and Texas congressman, has campaigned to abolish the Federal Reserve System. He has won over to that cause an enthusiastic cadre of followers. He argues that the Fed is unconstitutional and undemocratic, and that it undermines our economy. He argues that a return to a gold standard would give the United States a currency whose value was not distorted by the whims of a central bank and would lead to less inflation, less financial instability and more real growth.

A harsh indictment of the Fed, indeed. But a look back at how the U.S. economy fared under a gold standard compared with how it has fared under the Fed raises doubts about Paul's analysis. History suggests that the Fed has generally been successful in carrying out its congressional mandate, and that the U.S. economy has performed better under the Fed than under a gold standard. This is not to say that the Fed always gets it right or is as transparent as it could be. But the case for abolishing the Fed is weak at best.

Read More @ Star Tribune

The Keys To Understanding the Collapse of the Status Quo: Credibility and Expectations

Posted: 12 Aug 2012 09:00 PM PDT

by Charles Hugh Smith, Of Two Minds:

When expectations are raised to impossible heights based on the promise of exponential financialization, the credibility of the Status Quo is doomed.

Data is important, but not all trends can be quantified. Longtime readers know that I value data and often use charts to explain the forces of transition/collapse. But there are profound dynamics that are not easily quantified, instances in which quantification may obscure our understanding.

Credibility and expectations are two such dynamics. Both credibility and expectations are very real forces, despite their status as inner states immune to direct measurement.

Beneath the surface of financial statistics, the real bedrock of any political and financial Status Quo is its credibility in the minds of its subjects. Once the people lose faith in the system, it will collapse under its own weight, a process I described in When Belief in the System Fades (March 12, 2008).

The corollary to this structural need for highly motivated, dedicated people to work the gears is that if their belief in the machine fades, then the machine grinds to a halt.

Read More @ OfTwoMinds.com

On Gold's Recent Resilience

Posted: 12 Aug 2012 08:33 PM PDT

Some might be surprised by the title's positivity, but while the barbarous relic has meandered in an ever-compressing (triangle pattern) series of waves in the last few months, it has rather notably outperformed relative to global risk aversion, CFTC positioning, and central bank balance sheet dynamics - especially in the last few weeks. Whether the yellow metal's zero-yield is now 'technically' attractive to safe-haven flows relative to the NIRPs of Germany and Switzerland - or in fundamental anticipation of the next bout of central bank largesse, Citi's global macro strategy group remain bullish of the precious metal and the charts below suggest they are not alone.

$1650 seems like the key 'technical' line in the sand for another leg up as the small (and large) triangles come into play...

but Gold's resilience in the face of...

1. a 'slowing' or contracting global central bank balance sheet...

2. volatility in Citi's risk-aversion index (GRAMI)...

3. and a notable 'apparent' derisking based on CFTC Futures & Options Net Positioning...

It seems there is either a degree of buying in precious metals that is anticipating an increase in risk-aversion OR it is anticipating central bank largesse. What is critically clear is that gold's gyrations and uncertainty relative all of these three indicators since the end of LTRO2 has fallen suggesting its diversification and 'hedge-ability' for both risk-on (liquidity-driven exuberance) and risk-off (safe-haven sourcing in a NIRP world) is increasingly appealing.

One thing is sure - the view that precious metals are a put on political stupidity remains front-and-center - as fundamentals take a back-seat to the monetary addiction of the world's advanced economies (and perhaps tonight's negative nominal GDP print for Japan - leaving the nation in deflation 50% of the quarters of the last 5 years - is priming for more print-and-be-damned excess - though China's reverse-repo test should be a concern for all those 'hoping' for stimulus extravaganza)

Charts: Citi

And Then There Is Disaster C

Posted: 12 Aug 2012 08:30 PM PDT

by John Mauldin, Gold Seek:

They say that breaking up is hard to do.
Now I know, I know that it's true
Don't say that this is the end.
Instead of breaking up
I wish that we were making up again.
– Neil Sedaka, 1962

I have contended for some time that Europe is faced with two choices: Disaster A, which is the break-up of the eurozone, or Disaster B, which is the creation of a fiscal union, which keeps the euro more or less intact. Over the last few months I have come to realize that there is indeed a third option, which now looks increasingly possible. This is rather sad, as the third option is just an even worse Disaster C. Each choice carries with it its own unique set of problems, but the outcome of any of the choices will be that the people of Europe face a serious recession, if not a depression. This will impact global growth for more than a short time and, depending on the choice, could plunge the world into a crisis as bad as or worse than the recent credit crisis. In today's letter we look at all three choices, meanwhile musing on how we arrived at the bottom of such a deep hole, shovels flailing.

Read More @ GoldSeek.com

Anniversary of the credit crunch

Posted: 12 Aug 2012 08:00 PM PDT

by GoldMoney News Desk, Gold Money:

We are coming up to the fifth anniversary of the financial crisis, at least for the UK's banking system, because it was five years ago that anxious depositors were queuing up to withdraw their money from Northern Rock, leading to its inevitable rescue by the tax-payer. Anniversaries are often a time for reflection. The Northern Rock failure marked the popping of the UK's residential property bubble. The signs of excessive valuation were all there, particularly speculation in the buy-to-let market, wide-spread public participation in a "sure thing", and Northern Rock offering loans with a loan-to-value of 120%. The same extremes of sentiment were visible in the US where there was a lending frenzy on the false assumption that a diverse portfolio of mortgages was somehow risk-free.

Bubbles everywhere went pop. It was completely unexpected by academic economists, a point made deliciously by the Queen, who when opening the New Academic Building at the London School of Economics was moved to ask why no one saw the crisis coming. They had no answer. The same academics reassured us the crisis was a just a temporary blip, and normal economic growth would shortly resume. Yet, here we are five years later, still awaiting the recovery while sinking deeper into the mire; and Her Majesty might still be reflecting on this fact.

Read More @ GoldMoney.com

Olympiad Gold Medal Winners No Longer Worth their Weight in Gold

Posted: 12 Aug 2012 06:40 PM PDT

Charleston Voice

Let the Journey Begin

Posted: 12 Aug 2012 05:43 PM PDT

A positive daily TDI time frame posture is now in place for the XAU, Gold and Silver. The next step is a possible migration to a positive weekly time frame. To some, it still appears we are at the cliff's edge and understandably so. Will the ledge hold? Recently, gold, silver and the XAU markets have witnessed narrow price range trading, low volatility and lack of thrust and volume. This is due primarily to the stronger weekly and monthly TDI time frame and cycle forces pressing down on the daily time frame and limiting its progress as described here. [CENTER]Volatility to Increase[/CENTER] Those narrow trading conditions are about to change with extraordinary volatility, intensity and power. During the next two weeks, large price ranges, price changes and thrust (both up and down) will become more evident in these markets. The reason for these conditions is the collision of time frame forces leading to a potentially positive weekly trend change, a vital step in the bottomi...

In the News Today

Posted: 12 Aug 2012 05:18 PM PDT

Jim Sinclair's Commentary:

The system is broken. The system is guaranteed to the hilt. The result of making good on these guarantees would be the maximum prediction for the gold price amongst sane commentators and the lowest level possible for the dollar. A Federal guarantee to infinity would demand QE to Infinity in order

Continue reading In the News Today

Join GATA at the New Orleans Investment Conference Oct. 24-27

Posted: 12 Aug 2012 03:22 PM PDT

5:25p ET Sunday, August 12, 2012

Dear Friend of GATA and Gold:

GATA will be participating again this year in what Money magazine has called "the greatest investment show on Earth" -- the New Orleans Investment Conference.

GATA Chairman Bill Murphy and your secretary/treasurer will be among the speakers, who will include GATA favorites like the Got Gold Report's Gene Arensberg, financial writer Thom Calandra, Doug Casey of Casey Research, Frank Holmes of U.S. Global Investors, Gold Newsletter editor Brien Lundin, and CNBC commentator Rick Santelli.

This year's celebrity speakers will include former vice presidential candidate Sarah Palin and Charles Krauthammer, probably the best opinion columnist in the country.

Of course dozens of resource companies will be exhibiting, and New Orleans itself may remain the biggest draw of all -- the fascinating hubbub of the port, the paddle-wheel riverboats and the old-time trolley cars, the musical playground of the French Quarter, the open-air bazaar of Jackson Square, dozens of the best restaurants in the world, Harrah's casino, and more, and all of it within easy walking distance of the conference hotel, the beautiful Hilton New Orleans Riverside.

But the New Orleans Investment Conference may also be the most serious such conference in the United States -- four days of wide-ranging presentations covering the most turbulent investment climate since the Roaring '20s and the Great Depression. It's not free like some other conferences, but its participants have found that it gives value -- and early registrants receive substantial discounts.

This year's conference will be held from Wednesday, October 24, through Saturday, October 27. To learn all about it and to register, please click on the ad for the conference at the top of the home page of GATA's Internet site:

http://www.gata.org

We hope to see many of you in New Orleans.

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

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Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment:
38% Pre-Tax IRR, $3.0 Billion NPV, and a 37-Year Mine Life

Company Press Release

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory.

The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57.

The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows:

Payback period: 3.55 years
Initial capital investment: $863 million
IRR pre-tax (100% equity): 38 percent
NPV pre-tax (8% discount): $3 billion
Mine life: 37 years
Total mill feed: 405.3 million tonnes
Mill throughput: 32,000 tonnes per day

Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics."

For the complete press release, please visit:

http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res...

Join GATA here:

Toronto Resource Investment Conference
Thursday-Friday, September 27-28, 2012
Toronto Sheraton Centre Hotel
Toronto, Ontario, Canada
http://www.cambridgehouse.com/event/toronto-resource-investment-conferen...

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006:

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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

More "Source" Input On Coming Precious Metals Price Explosions

Posted: 12 Aug 2012 03:08 PM PDT

Bill Murphy

Chairman Gold Anti-Trust Action Committee

www.LeMetropoleCafe.com

August 12 - Gold $1619.70 – Silver $28.06

More "Source" Input On Coming Precious Metals Price Explosions

Over the past month+ I have been pounding the table that based on information from three extremely informed sources the prices of gold and silver would begin their launches to much higher prices in August … a launch that would lead to all-time highs in both precious metals and well beyond.

The reason for this Mini-Midas is that I just received some new input, which supports what my original sources have been telling us for some time. It is from someone I have known for a long while and is of the same caliber as my other sources in terms of reliability. When you have traded commodities and stocks as long as I have, and get to be my age, it is fairly easy to sort that all out … and what to run with.

Here it is … short, sweet, and maybe VERY important:

August 10, 2012

The METALS

I have spoken before about my contact on the Board of Trade who trades mainly the metals and is in touch with New York minute by minute. He has been saying for several weeks that the metals would have one more big drop (1525-1550) before they really took off. Today he changed his mind. They saw heavy covering of shorts in Chicago and New York. This should show in next week's COT. They see an explosion of huge proportions and are adding four more floor traders as they see August as a record month for them. He closed by saying "We could see a 100% increase in 90 days." Tie this in with other things that we have read and heard. Golden regards
Peter

If what Peter sends us pans out anywhere close to what he has been told, this Mini-Midas is more than well worth the read. What fascinates me is that this new input confirms what my other three sources have been saying. Now we wait to see how this plays out in the three weeks of trading left ahead in August.

In addition, as you well know by now, it has come to my attention from all of my original contacts that JP Morgan has a big problem with their silver short position and that this problem will reveal itself in a public way in the near future…

***

Ambrose Evans-Pritchard: Excess debt must go via inflation or default

Posted: 12 Aug 2012 02:59 PM PDT

Five Years On, the Great Recession Is Turning into a Life Sentence

By Ambrose Evans-Pritchard
The Telegraph, London
Sunday, August 12, 2012

http://www.telegraph.co.uk/finance/comment/ambroseevans_pritchard/947101...

Five years into the Long Slump it almost seems as if we back to square one.

China is sufficiently alarmed by the flint hardness of its "soft landing" to talk up trillions of fresh stimulus. The European Central Bank is preparing to print "whatever it takes" to save Spain and Italy. Markets are pricing in an 80 percent chance of yet more printing by the US Federal Reserve in September or soon after.

There is no doubt that the three superpowers acting in concert can launch a mini-cycle of growth early next year - assuming they deliver on their rhetoric -- but the twin headwinds of debt-leveraging and excess manufacturing plant across the globe cannot easily be conjured away.

The world remains in barely contained slump. Industrial output is still below earlier peaks in Germany (-2), US (-3), Canada (-8) France (-9), Sweden (-10), Britain (-11), Belgium (-12), Japan (-15), Hungary (-15) Italy (-17), Spain (-22), and Greece (-27), according to St Louis Fed data. By that gauge this is proving more intractable than the Great Depression.

Some date the crisis to August 9 2007, the day it became clear that Europe's banks were up to their necks in US housing debt. The ECB flooded markets with E95 billion of liquidity. It seemed a lot of money then. The term "trillion" was still banned by the Telegraph style book in those innocent days. We have since learned to swing with the modern dance music from central banks.

... Dispatch continues below ...

Investors were pulling money out of America's $2.5 trillion money market industry in panic. This was the long-feared heart attack in the credit system, even if the economic malaise behind it did not become clear for another year.

The original trigger for the Great Recession has since faded into insignificance. America's house price bubble -- modest by European or Chinese standards -- has by now entirely deflated. Warren Buffett is betting on a rebound. Fannie and Freddie are making money again.

Five years on it is clear that subprime was merely the first bubble to pop, a symptom not a cause. Europe had its own parallel follies. Britons were extracting almost 5 percent of GDP each year in home equity by the end. Spain built 800,000 homes in 2007 for a market of 250,000. Iceland ran amok, so did Latvia and Hungary. The credit debacle was global. If there was an epicentre, it was Europe's E35 trillion banking nexus.

Monetarists blame the ECB and the Fed for keeping money too tight in early to mid 2008, pushing a fragile credit system over the edge. They blame "pro-cyclical" regulators for aborting recovery ever since by forcing banks to raise asset ratios too fast. They are right on both counts.

Yet the "Austrian School" is surely right as well to argue that a rise in debt ratios across the rich world from 167 percent of GDP to 314 percent in just 30 years was bound to end badly. There comes a point when extra debt draws down prosperity from the future. The future arrived in 2008.

A study by Stephen Cecchetti at the Bank for International Settlements concludes that debt turns "bad" at roughly 85 percent of GDP for public debt, 85 percent for household debt, and 90 percent corporate debt. If all three break the limit together, the system loses its shock absorbers.

"Debt is a two-edged sword. Used wisely and in moderation, it clearly improves welfare. Used imprudently and in excess, the result can be disaster," he said.

Creditors and debtors may in theory offset each other, but what actually happens in a crunch is that borrowers cut back feverishly. Creditors do not offset the effect. The whole system spins downwards. It is debt's fatal "asymmetry," long overlooked by New Keynesian orthodoxy.

It is how people behave, and how countries behave. Creditor Germany did not offset the squeeze in Club Med. Creditor China did not offset the squeeze in the US. The world contracted.

But why did the credit bubble happen in the first place? You could argue that it is merely the flip side of too much saving. The world savings rate has crept up to a modern-era high of 24 percent of GDP. That is the most important single piece of information you need to know to understand the great economic drama we are living through.

There is nowhere for this money to go. The funds flood into investment -- now a world record 49 percent of GDP in China -- or into asset bubbles.

So my candidate for chief cause is Asia's "Savings Glut," and indeed whole the structure of East-West trade under globalisation.

The emerging powers built up $10 trillion of foreign reserves -- that is, bonds -- in a decade. They flooded the global bond market. That is why spreads on 10-year Greek debt fell to a wafer-thin 26 basis points over Bunds in the bubble.

They also flooded Western markets with cheap goods, driving down goods inflation. Western central banks -- in thrall to inflation targeting -- cut short-term interest rates ever lower. They set the price of credit too low, forcing pension funds and insurers to hunt frantically for yield to match their books. The central banks compounded the effect.

Western multinationals played their part in this saga. They drove up the profit share of GDP to historic highs, playing off wage rates in the US and Europe against cheaper labour in China, Latin America, or Eastern Europe. That too concentrated wealth among those who tend to buy shares, land, and Impressionist paintings, rather than goods. The GINI coefficient of income inequality went through the roof, as it did in the late 1920s. It is a formula for asset bubbles.

The credit bubble disguised the exorbitant imbalances in trade, capital flows, and incomes. The game could continue only as long as the West in general -- and the Anglosphere and Club Med in particular -- were willing to run ruinous current account deficits, borrowing themselves into dire trouble.

As soon as the debtors hit the brakes and slashed spending, the underlying reality was exposed. There is too much saving and too little consumption in the world to keep growth, and people in jobs. It is the 1930s disease. On this the Keynesians are right.

None of this would have been any different if banks had been saints. The forces at work are tidal in power.

So this is where we are in the summer of 2012. The imbalances are slowly correcting. Wage inflation has eroded Asia's competitiveness. China's current account surplus has dropped from 10 percent of GDP in 2007 to around 2.5 percent this year.

Yet Europe refused to adjust. Germany is still running a surplus of 5.2 percent, down from 7.4 percent in 2007. The North has refused to offset the demand squeeze in Club Med. Indeed, Germany legislated its own internal squeeze through a balanced budget law and imposed this curse on the rest of Euroland. The effect is to trap Euroland in chronic slump, at least until the victims rebel and take matters into their own hands.

As for our debt mountain, we have barely begun the great purge. Michala Marcussen from Societe Generale says the healthy level is around 200 percemt of GDP for advanced economies. If so, we have 100 points to cut.

This cannot be achieved by austerity alone because economic contraction would tip us all into a Grecian vortex. Such a cure is self-defeating.

Much of the debt will have to be written off. Whether this done by inflation (1945-1952) or default (1930-1934) will be the great political battle of this decade. Pick your side. Pick your history.

* * *

Join GATA here:

Toronto Resource Investment Conference
Thursday-Friday, September 27-28, 2012
Toronto Sheraton Centre Hotel
Toronto, Ontario, Canada
http://www.cambridgehouse.com/event/toronto-resource-investment-conferen...

New Orleans Investment Conference
Wednesday-Saturday, October 24-27, 2012
Hilton New Orleans Riverside Hotel
New Orleans, Louisiana
http://www.neworleansconference.com/

* * *

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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Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment:
38% Pre-Tax IRR, $3.0 Billion NPV, and a 37-Year Mine Life

Company Press Release

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory.

The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57.

The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows:

Payback period: 3.55 years
Initial capital investment: $863 million
IRR pre-tax (100% equity): 38 percent
NPV pre-tax (8% discount): $3 billion
Mine life: 37 years
Total mill feed: 405.3 million tonnes
Mill throughput: 32,000 tonnes per day

Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics."

For the complete press release, please visit:

http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res...

Gene Arensberg: Divergence between gold and junior shares is contrarian's delight

Posted: 12 Aug 2012 02:46 PM PDT

4:40p ET Sunday, August 12, 2012

Dear Friend of GATA and Gold:

At the Got Gold Report, Gene Arensberg has posted in the clear his new analysis of junior gold and silver mining stocks, which have been nearly destroyed over the last couple of years but which, Arensberg finds, are showing signs of life. The divergence between the price of gold and the price of the juniors is now so great, Arensberg says, that contrarians should be springing into action. Arensberg writes of the chart of the Canadian Venture Exchange, home of many juniors:

"The chart just above is the kind of chart that makes a contrarian salivate with great anticipation. Consider that prior to the Lehman collapse the CDNX traded at a multiple of the price of gold -- up to five times the gold price. Today it has fallen all the way to less than .75 times the price of gold. Simply amazing volatility on display in the chart above. And contrarians know that volatility works in both directions. The market first creates, or rather, is driven into huge divergences and gargantuan imbalances -- which it abhors -- and then gets busy correcting them, given enough time and patience. For many gamers it is the pace or frequency and the amplitude (size) of the giant moves that are out of phase with their own tolerances and psychology/comfort levels -- so they end up missing them completely."

Arensberg's commentary is headlined "Vulture Bargain Update Notes for August-September 2012 -- Seller Exhaustion" and it's posted at the Got Gold Report here:

http://www.gotgoldreport.com/2012/08/vb-update-notes-for-august-septembe...

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

VB Update Notes for August - September 2012 – Seller Exhaustion

Posted: 12 Aug 2012 12:35 PM PDT

HOUSTON – Now that the Canadian Venture Exchange Index or CDNX is trading where it did a decade ago, in 2002, with sub $350 gold and less than $5 silver, an enormous amount of price risk has been subtracted from the smaller junior miners and explorers – in the second longest and deepest selloff bear market since the Great Gold Bull Market began. Here's the now familiar long-term monthly chart.

Last time we pointed out that buyer's strikes in the juniors can take the idea of a bear market to wild extremes. "Welcome to "Wild Extreme-ville," we said then, adding: "And it may not yet be over if the usual seasonal influences we see in July and early August, heaped on top of a protracted buyer's strike, are in play."

Well, since that last report the sickly CDNX did attempt to cut a lower low around July 24, but did not quite make it to the June 1,153.90 nadir, as shown in the chart just below.

Gold is shown in the chart in orange (left axis) by the way. The CDNX has been confined to a tight trading range for the entire time since the last report. The good news is that it has not moved lower since then. The bad news is that it has not moved materially higher either … yet.

At this point for the CDNX the best we can say is that the trajectory lower has been put in check. It may not yet be screaming back to the upside on a rush of new positive money flow, but at the very least the bleeding from a nearly two-year gaping wound has been stopped. Looking at the chart just above for a moment, the CDNX really hasn't lost all that much new ground since its May lows and many of the issuers we track marked their lows then or before then.

Signs of Life

We had hoped to be surprised with a counter rally in the CDNX by early August, as we thought there might have been enough new capital trying to "early bird" the fall period that it would show up in the beaten up index. Nope; not yet in the Canadian Little Guy index at least. However, we can point hopefully to some interesting and relatively positive signs which are showing in some of the other indexes we track. Take, for example, the Big Cap Miners represented below by the AMEX Gold Bugs Index or HUI.

Whereas the CDNX did cut a lower low in June than its fearful low print in May, note that the HUI's July 24 attempt to test its May low (near 372) fetched up noticeably higher (near 385), and has since then recovered a little, back up to and through the 420s – so far.

Encouraging signals reflected in the chart above include a slightly higher low for the HUI separated by more than two months (a bona fide shot at making a double bottom base) and, of course, a similar story for the price of gold. (Not that gold needs to go higher for the miners to advance. Gold merely needs to dispel the notion it is going a lot lower in price.)

However, while we can point to a consolidation underway for both gold and the HUI, and while we can point to what looks a lot like a new, higher low, we would all feel a lot more confident if and when both indicators reach back up into higher chart real estate – high enough to print a noticeably higher high.

A clear breakout we do not yet have, as we write this segment, late on Friday, August 10.

The HUI is not the only encouraging indicator, of course. Looking at the CDNX's cousin, the Market Vectors Junior Gold Miners Index ETF or GDXJ – which contains a large cross section of small to midsized miners - shows us a similar image to the HUI, a somewhat better looking chart than the CDNX, with a grinding, bottom-looking consolidation, a possible double bottom and a slightly higher low.

It is also a little closer now to marking a sure-enough higher high which would give technically minded traders a shot of confirmation. The GDXJ has already broken north of a tight wedge and that is also encouraging. (A higher high would come at something near $22.20 – see the Subscriber 1-year daily chart for the wedge pattern and quite a bit more.)

Seller Exhaustion?

So while the past month has not seen the kind of reversal and meaningful surge higher that would release trader animal spirits and get gamers and investors excited again, neither have we seen very much in the way of further deterioration in the mining share indexes. If anything we are seeing the kind of pause, with apparently growing support, that we might expect to see following a historic uber-bear – with a very slightly positive bias.

We think what we may be witnessing is a case of Seller Exhaustion. If true; if just about everyone who wanted to sell or had to sell or got forced into selling has already sold given the conditions extant in late July and early August; and assuming that both gold and silver mange to prove up their important support levels (roughly $1,525-50 gold and $26 silver), then we very well could be at a very important and historic inflection point for the mining share indexes. All of them.

We very well could be in the process of marking the index equivalent of what we call "OS" or Overwhelming Support – the point at which the selling pressure can no longer move the trading to new lows. The point where there is enough buying from insiders, deep discount specialists and very large bargain hunting Vulture Speculators that the price hits a kind of concrete floor and stays there until a change in trend develops.

Like a pendulum reaching the limits of its swing in one direction, once a giant bear market has exhausted itself the stage is set for a strong cyclical move in the opposite direction.

If we have reached the seller exhaustion point (and isn't it about time for that?), then the collective market just might be about to begin discounting the conditions it assumes will be coming three months, six months and nine months hence. With the CDNX already trading at 2002 levels, would it be all that surprising if the market collectively thought that the CDNX should be higher three months, six months and nine months from now?

That is with +$1,500 gold and +$26 silver in a world where the political command and control and the high priests of central banking seem hell bent on printing more and more fiat currency in order to pay the unprecedented levels of debt and overspending already irretrievably done. (One cannot un-spend or retroactively reduce gross budget abuse.)

Frankly, we'd be very surprised if the CDNX is not substantially higher by then and we absolutely do expect to see the market discounting a much, much better environment for the junior miners just ahead, come what may. If for no other reason than a reversion to the mean, but we doubt that will be the only reason.

This has been a brutal exodus of capital out of the miners and explorers. As we said last time, "It is a sure-enough world class Negative Liquidity Event (NLE) – the kind that eats and digests even the more stalwart of Little Guy traders -- outlasting even many grizzled Vancouver veterans, but not Vulture Speculators."

Zooming back up to a higher vantage point, we can see all the CDNX devastation in the simple graph below.

The now giant falling wedge that is the CDNX is near its lower wedge extreme and poised for a test of the upper channel, we believe, and the timing is about right for that to get underway in the next few weeks (if not already underway).

The fact that gold has failed to reward gold bears with a seminal chart and support breakdown is a huge tell and argues very strongly that the CDNX has hugely oversold the pullback and consolidation for the yellow metal. Note, please, the gigantic divergence which has opened up between the price of gold and the level of the CDNX in the simple chart above.

Let's take another, longer-term look at that divergence in the chart below.

We have seen the CDNX oversell gold this much only once before, ever – during the Great 2008 Panic. In fact, the current divergence is actually larger than the one four years ago.

We can see the relationship clearly in the next chart, which compares the CDNX to gold monthly since 2002.

The chart just above is the kind of chart that makes a contrarian salivate with great anticipation. Consider that prior to the Lehman collapse the CDNX traded at a multiple of the price of gold – up to 5X the gold price. Today it has fallen all the way to less than .75X the price of gold. Simply amazing volatility on display in the chart above. And, contrarians know and believe that volatility works in both directions. The market first creates, or rather, is driven into huge divergences and gargantuan imbalances -- which it abhors -- and then gets busy correcting them given enough time and patience. For many gamers it is the pace or frequency and the amplitude (size) of the giant moves which are out of phase with their own tolerances and psychology/comfort levels – so they end up missing them completely. More about that in a future offering.

Cyclical Bear Inside a Great Gold Bull

As a side note, sometimes our descriptions of charts and events can be a little confusing, especially to newcomers. As one very exasperated Vulture recently put it, "You call this a bull market? If this is a bull market I sure don't want to see what a bear looks like."

No! Let's be crystal clear on that one point. We have been in a cyclical bear for a year and a half. That's a fact, but we believe it is in the context of an amazing, once in a lifetime major secular bull market for gold, silver AND mining shares. And since we believe that, then our attitude and game plan virtually has to be that we take advantage of these rare, but frustrating cyclical bears by building and improving upon our positions as best we can during them.

Then it is a matter of sticking with our positions with the companies we have high confidence in AS LONG AS IT TAKES. The fact is and always will be that we do not and cannot control the timing of the giant swings in market volatility. Thus, to win, we Vultures must, that's must, learn to adapt and be prepared for longer periods of time between the swings in the bull/bear pendulum than 99.5% of the market participants are willing to game. To the extent we can frame our thinking along those lines the more likely we are to maintain our confidence in our game plan and the more likely we are to build our best positions when others are running off the battlefield screaming, waving their arms in surrender.

If we thought that the bull market for gold, silver and mining shares was over and done, we certainly would not be buying down or averaging down on anything.

But when we are given fantastic cyclical bear buying ops INSIDE a huge secular bull, then we are being given the best of the best of buying ops – when the companies we game are loathed, hated and woefully under-owned. Buying ops are scarcely ever better in fact.

Lower Risk – Higher Reward

Now, please, think in these terms for a moment. Think in terms of how much risk has been removed from the junior mining space in the span of 16 months.

Consider that the collective prices of all the companies in the CDNX, for example, were more than 50% cheaper in June than they were in March of 2011. In our simple way of looking at it, that means that there is today less than half as much price risk overall and of course, a ton less risk in selected companies within that group.

Consider that the collective prices of all the companies contained in the GDXJ, as a group, were more than 56% lower in May than they were at their April, 2011 pinnacle. For Vulture Speculators that is powerful and exciting "stuff."

The very simple point of this message is that today, with The Little Guys having already been trounced, pummeled, beaten up, marauded, mistreated, bludgeoned, spit on … you get the idea … today, when the companies we track and attempt to game are so bloody cheap, we Vultures believe the risk to the downside is now very limited, but the chance for large upside advancement (measured perhaps in multiples) increases with each passing day.

But, friends and fellow Vultures, this is a game of patience, and of tenacity and of confidence. Confidence only True Vulture Speculators grow to embrace. And, that is why we have been (and are still) picking up new positions and adding to others in this environment.

Our Vulture strategy might be paying off too, as we can now point to multiple issues that have made significant advancement up off recent low bottom prints (some of which we were on the bid for). For examples, we point to Northern Tiger Resources (NTR.V) which has more than doubled its lows cut in July and Guyana Goldfields (GUY.T) which has improved more than 49% from its June panic inspired spike lows. (See the subscriber charts for both.)

For further evidence along those lines, take a peek at the chart for Mega Precious Metals (MGP.V), up 50% off its lows in July and how about the Subscriber chart for Millrock Resources (MRO.V), which has recently tested as high as 66% above its May panicky low print.

And we should not leave out the significant improvement we have already seen in others, such as Riverstone Resources (RVS.V), Timberline Resources (TLR), ATAC Resources (ATC.V), Brazilian Gold (BGC.V), Rainbow Resources (RBW.V), Comstock Metals (CSL.V), Semafo (SMF.T) and too many other issuers to name them all. This, despite the fact that the CDNX has yet to turn in any meaningful advance … not yet!

Sure, we can cut and run from the issues that reach the point of no return, with no hope and no prospects, but only because they have zero chance of returning to their former glory.

The way we play the game we are going to end up with a few of the unfortunates – it's part of the price of trading at the extreme low end of the resource totem pole during a major cyclical bear. If the past is prologue to the future, however, the multiples we gain on our other Little Guy fish we keep will more than make up for the few we end up casting overboard – on the way to resource gaming victory.

Enough about that for now. Let's pause here and move directly into the Vulture Bargain (VB) Roundup update for August - September, 2012.

***

As always, the first place to look for new commentary is directly in the charts themselves (available to Subscribers). As we have been saying frequently in these reports, moving forward the charts will become more and more the focus and these formerly too-long written reports less and less the focus.

"GGR Subscribers love SRC Road Kill, don't you know."

To continue reading, please log in or click here to subscribe to a Got Gold Report Membership

More on the Coming ?Perfect? Financial Storm from Peter Schiff

Posted: 12 Aug 2012 11:52 AM PDT

The perfect storm is the real fiscal cliff that we're going to go over. The real fiscal cliff is when we can't borrow any more money because our creditors wake up to the fact that we're no good for the debt and interest rates start to rise. So says Peter Schiff of Europacific Capital from a piece in King World News*which is made available by Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!) and www.FinancialArticleSummariesToday.com (A site for sore eyes and inquisitive minds). This paragraph must be included in any article re-posting to avoid copyright infringement. Schiff goes on to say, in part: [If and when interest rates] rise sharply we will have to choose between default and collapse, or runaway inflation. That's really the perfect storm and unfortunately we are sailing right in to it. Sam Ro ([url]www.businessinsider.com[/url]) says* in his reference to Schiff’s comments that*while “Schiff continues to sound the alarm on the risks of the go...

A High Frequency Attack on Gold

Posted: 12 Aug 2012 11:43 AM PDT

High frequency programs which now account for a significant share of trading activity have rightly fallen into disrepute in recent times. They might be useful in some cases such as avoiding market impact while placing large orders. However, unequal access to the market is questionable as are highly technical efforts which are ultimately done only to pull money out of the pockets of slower market participants.

Weekend Update (Gold)

Posted: 12 Aug 2012 11:36 AM PDT

The weekly close above $1,620 was an important bullish development near term in my opinion. What is so significant about this weekly close? If you look at the price action the prior eight days on the 30 minute chart (left hand side below) you can clearly see that an overwhelming majority of trades were placed beneath the $1,620 price level. What makes this significant is because futures have a "long" and a "short" for every contract of "Open Interest".

Return to gold is inevitable, Gold Standard Institute founder Barton says

Posted: 12 Aug 2012 10:41 AM PDT

12:36p ET Sunday, August 12, 2012

Dear Friend of GATA and Gold:

Our friend the journalist Lars Schall today interviews the founder and president of the Gold Standard Institute, Philip Barton, about his belief that a gold standard for the whole world is inevitable -- a return to gold but not to the gold standard system of old. The interview is underwritten by Matterhorn Asset Management and is posted at its Internet site, Gold Switzerland, here:

http://goldswitzerland.com/the-gold-standard-is-inevitable/

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

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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

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Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment:
38% Pre-Tax IRR, $3.0 Billion NPV, and a 37-Year Mine Life

Company Press Release

VANCOUVER, British Columbia, Canada -- Prophecy Platinum Corp. (TSX-V: NKL, OTC-QX: PNIKF, Frankfurt: P94P) reports the results of an independent NI 43-101-compliant preliminary economic assessment for its fully owned Wellgreen nickel-copper-platinum group metals project in the Yukon Territory.

The independent assessment, prepared by Tetra Tech, evaluated a base case of an open-pit mine (with a mining rate of 111,500 tonnes per day), an on-site concentrator (with a milling rate of 32,000 tonnes per day), and an initial capital cost of $863 million. The project is expected to produce (in concentrate) 1.959 billion pounds of nickel, 2.058 billion pounds of copper, and 7.119 million ounces of platinum, palladium, and gold during a mine life of 37 years with an average strip ratio of 2.57.

The financial highlights of the preliminary economic assessment, shown in U.S. dollars, are as follows:

Payback period: 3.55 years
Initial capital investment: $863 million
IRR pre-tax (100% equity): 38 percent
NPV pre-tax (8% discount): $3 billion
Mine life: 37 years
Total mill feed: 405.3 million tonnes
Mill throughput: 32,000 tonnes per day

Prophecy Chairman John Lee says: "We are pleased with the preliminary economic assessment results. The numbers indicate that Wellgreen is one of most exciting mineral projects in the Yukon. The company is drilling to upgrade and expand the resource base. The infrastructure is excellent as the project is only 1,400 meters in altitude and 14 kilometers from the paved Alaska Highway, which leads to the Haines deep seaport. Discussions are under way with support from local stakeholders regarding permitting and logistics."

For the complete press release, please visit:

http://prophecyplat.com/news_2012_june18_prophecy_platinum_announces_res...

Alasdair Macleod: Anniversary of the credit crunch

Posted: 12 Aug 2012 10:21 AM PDT

12:15p ET Sunday, August 12, 2012

Dear Friend of GATA and Gold:

Writing for GoldMoney's research bureau, the economist Alasdair Macleod notes that no Keynesian economists saw the credit crunch coming and now all of them are advocating still more credit creation to revive the world's economies. Macleod notes that gold and silver have performed well since the credit crunch began while traditional equity investments have declined. Macleod's commentary is headlined "Anniversary of the Credit Crunch" and it's posted at GoldMoney here:

http://www.goldmoney.com/gold-research/alasdair-macleod/anniversary-of-t...

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

Obama Administration Drops Criminal Investigation of Goldman Sachs

Posted: 12 Aug 2012 09:29 AM PDT

The US Justice Department announced Thursday evening it was ending a one-year criminal investigation and would not file charges against the giant Wall Street investment bank Goldman Sachs or any of its employees. In April 2011, the Senate Permanent Subcommittee on Investigations released a voluminous report on the role of major banks, federal regulators and credit rating firms in the collapse of the subprime mortgage market and ensuing financial crash of September 2008.

Gold, Silver, Stocks and U.S. Dollar Markets Outlook

Posted: 12 Aug 2012 09:24 AM PDT

This week saw consolidation in the markets as they moved within the confines of tight ranges seeking direction. The direction has not yet been confirmed, but there are some insights we may be able to see in the technical picture that will help us understand what the markets want to do. There was a sell signal in the SP500, gold and silver that was triggered on Thursday and it was the first since August 3rd, but by the time friday morning had rolled along the market reconfirmed its bullish bias by closing higher. This behavior confirms that these markets are currently in confirmed up trends and may be setting up for higher prices. Let’s take a look at the market’s behavior.

DROUGHT SILVER LINING

Posted: 12 Aug 2012 09:12 AM PDT

Leave it to the mainstream media to try and spin the positives from the worst drought since the 1930s. Food prices for produce and meat are headed much higher. Ethanol prices are soaring and will result in higher fuel prices at the pump. Poor people around the world will starve as they cannot afford to [...]

Soon to join the generals of the SLA: Sprott, Turk, Maloney with a new bullion vaulting service.

Posted: 12 Aug 2012 07:28 AM PDT

Silver (and Gold) soldiers of the SLA… We are in the home stretch of launching a new bullion vaulting service ($500,000 min.) that will – along with Sprott, Turk and Maloney – put additional pressure on the banksters – by … Continue reading →