Gold World News Flash |
- There may be too little to gold to restore the gold standard
- The “Bond King”: Buy Gold, Not Bonds
- Super Mario’s Big Bluff
- Silver Blasts Through $34 on Monday Asian Open
- Guest Post: Europe, A Sterile Landscape...
- Central bankers and politicians are running out of ideas
- Silver Update 9/9/12 Inflation Adjusted Silver
- Guest Post: Matthew Stein Asks "How Prepared Are You?"
- Markets Changing Character?
- COLLAPSE in the EU Continues: If Draghi & Obama Aren't Stopped, We'll See HYPERINFLATION
- Debt Be Not Proud
- Australian Dollar Decison Pending
- Biderman – Obama and Bernanke Bankrupting America
- The Price of Gold Has Broken Out
- Gerald Celente - Gold, Silver & A Major October Surprise
- The Competition Amongst Gold Writers
- Secret Panic
- Alasdair Macleod: Only markets can fix economies but markets have been destroyed
- Running out of ideas
- Got Gold Report's charts show gold winning the 'race to debase'
- "Bull Pennant" forms as the "Triangle" target gets nailed in Gold
| There may be too little to gold to restore the gold standard Posted: 10 Sep 2012 12:15 AM PDT The debate around a return to a gold standard is being revisited after the US Republican Party called for a commission to look at such a system. 
This posting includes an audio/video/photo media file: Download Now | ||
| The “Bond King”: Buy Gold, Not Bonds Posted: 09 Sep 2012 11:35 PM PDT The "Bond King" - Pimco boss Bill Gross - says:
Gross doesn't believe that gold is a crowded trade at this point. Has Mr. Gross been reading Zero Hedge? Here's background for newbies to Zero Hedge.
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| Posted: 09 Sep 2012 10:19 PM PDT
Swing by www.gainspainscapital.com for more market commentary, investment strategies, and several FREE reports devoted to help you navigate the coming economic and capital market changes safely. The financial world has entered a new state of mania with the announcement by the ECB that it will engage in “unlimited” bond buying to maintain lower interest rates for trouble EU sovereigns.
As you no doubt know, our firm’s forecast was that the ECB would not engage in any large-scale bond purchasing programs. We maintain this view today regardless of the ECB’s announcement.
The reason?
The ECB stated very clearly that new bond purchases would only be made under strict conditions. Those conditions involve:
If this list sounds rather familiar, it’s the exact formula the ECB has used on Greece with absolutely abysmal results. And now the ECB is going to apply this failed approach to the EU as a whole?
Let’s cut through the BS here. The use of the word “conditions” completely negates the word “unlimited.” Saying that you’ll buying “unlimited” bonds as long as EU sovereigns meet certain “conditions” actually means nothing. Greece has received over €200 billion in bailouts under “conditions.” How did that work out?
So the ECB is not actually announcing a massive new bond-buying program. Instead it’s just announced that it’s willing to provide more money as long as EU nations hand over their fiscal sovereignty and implement austerity measures.
This is nothing new. In fact, this has been the exact same program that the ECB’s had in place ever since the EU Crisis began in 2010. The fact that it has changed the wording around a bit changes nothing from a fundamental standpoint. Indeed, the program the ECB “announced” is, if anything, the last thing Spain or Italy actually wants.
Spain already has an economy that is bordering on a Greece-like disaster. And this is before implementing any real austerity measures of note. So the likelihood that Spain will actually go for any of the ECB’s “conditions” is remote. Indeed, Spanish politicians have shown that they want their funding “unconditional.”
Spanish PM Rajoy challenges the European central bank and Germany
Spain will consider seeking extra aid from Europe on top of a 100 billion Euro rescue of its financial sector but does not see any need for new conditions, Prime Minister Mariano Rajoy said in an interview published in European newspapers.
That one paragraph says it all: give me more money with no conditions.
This is coming from a man who demands €100 billion in bailout funds, threatens to blow up the EU, and then goes to watch a soccer match once he’s got the money.
This attitude as it appears to be endemic for Spanish politicians:
Catalonia asks for €5bn bailout from Spain
Spain's north-eastern region of Catalonia, which represents around a fifth of the country's economic output, will tap a state liquidity facility for just over €5bn, a spokeswoman for the region's economy head has said.
We will not accept political conditions for the aid," she added. Of Spain's 17 regions, Valencia and Murcia have also said they would need recourse to the fund.
Again, give “me more money with no conditions.”
In closing, the new ECB program will ultimately prove to be Mario Draghi’s big bluff. By presenting an old, failed program as something “new” and “unlimited” in scope, the ECB has actually shown that it’s essentially out of firepower.
Indeed, consider the following…
The ECB says it will buy EU sovereign bonds if EU nations apply for bailouts from the EFSF. Spain and Italy (the very countries that need bailouts) are meant to supply 30% of the EFSF’s funding.
So this new program involves Spain and Italy bailing themselves out, while simultaneously implementing austerity measures so the ECB will buy their sovereign bonds?!?!
Oh, and by the way, the EFSF only has €65 billion in funding left. That will definitely be enough to bailout Spain and Italy, seeing as Greece has received over €200 billion in bailouts is still imploding.
On that note, we’ve recently published a report showing investors how to prepare for this. It’s called What Europe’s Collapse Means For You and it explains exactly how the coming Crisis will unfold as well as which investment (both direct and backdoor) you can make to profit from it.
This report is 100% FREE. You can pick up a copy today at: http://www.gainspainscapital.com
Good Investing!
Graham Summers
PS. We also feature numerous other reports ALL devoted to helping you protect yourself, your portfolio, and your loved ones from the Second Round of the Great Crisis. Whether it’s a US Debt Default, runaway inflation, or even food shortages and bank holidays, our reports cover how to get through these situations safely and profitably.
And ALL of this is available for FREE under the OUR FREE REPORTS tab at: http://www.gainspainscapital.com
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| Silver Blasts Through $34 on Monday Asian Open Posted: 09 Sep 2012 10:18 PM PDT from Silver Doctors:
The psychologically important $35 and $1750 are acting like a magnet pulling silver and gold upwards, and it appears both critical levels will be at least tested early in the week. Should Bernanke make unlimited QE official on Thursday as is widely expected, $35 silver and $1750 gold will be history, as the metals will EXPLODE higher. If Bernanke were to disappoint, expect the cartel to drop the hammer, with silver likely testing $32, and gold retesting $1650. For now, the rally continues.
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| Guest Post: Europe, A Sterile Landscape... Posted: 09 Sep 2012 10:10 PM PDT Submitted by Clive Hale of A View From The Bridge blog, A place incapable of supporting life as we know it – a good description of where ECB monetary policy is leading us. Currency debasement is almost certainly where we are headed because of Dr. Aghi's assertion that the euro is irreversible, not despite it. He bravely assumes that in making such a statement he is creating an aura of consensus and strength. In its current form the euro is a busted flush and is being held together solely by political intransigence and ECB connivance. From the very beginning the rules of engagement were ignored because without political and fiscal centralisation they weren't going to work anyway.
But did this stop most of the eurozone countries – and the Southern "Methadone" Zone in particular – from getting on board the gravy train and going on one hell of a trip courtesy of German style interest rates. It would have been rude not to! And no worries about the lack of a long term structure to keep this thing on the rails; we can deal with that later. Well later is now and guess what? They all want to stay on the train but can no longer afford the fare; ignoring the fact that they never could in the first place.
One of the many problems the eurozone faces, along with the US, UK, Japan et al, is how to service their massive debt burden. They can't, but insist on reapplying the band aid to create the illusion of progress. As Einstein put it, "insanity is doing the same thing over and over again and expecting different results." We now have OMT to ponder upon – Outright Monetary Transactions. My reaction thus far has been "OMG!" Typical of an ill conceived contrivance, the press release on the "technical" features of OMT comprises 17 short sentences; one of which says, "the liquidity created through Outright Monetary Transactions will be fully sterilised," but doesn't say how – that would just be too technical!
Money "printing" involves a central bank buying "assets", usually sovereign debt, and crediting the seller with money that it has created electronically. The theory being that this money is used to encourage spending by way of loans to consumers and corporates, but which has the potential outcome of higher inflation. It should also drive short term rates down if, like with the OMT operation, the ECB is buying at the short end of the curve – the complete reverse of the Fed's Operation Twist by the way. The announcement of OMT has had the desired effect on rates, especially Spanish and Italian, where the cost of new issuance was creating the debt servicing issue mentioned earlier. However with more than a nod to the Bundesbank, the ECB has declared that it will sterilise the purchases so that there will be no inflationary effect. They can do this either by selling other assets, for example long dated issues or attract deposits at the ECB both of which remove the newly created money from circulation. The first option is unlikely as they really don't want to drive longer term rates upwards, so they are left with the second or they could instead sell some of their gold reserves, but that would be akin to selling the family "silver". They wouldn't do that would they? Well they might! Thinking that politicians and central bankers would be so crass is another example of one of life's "heroic" assumptions. The Chinese would have it off them in a trice and how would that help the cause?
Currently, such is the lack of trust in the interbank market that attracting money into ECB deposits is not a short term problem, but by such sterilisation the benefit of loan growth on spending is lost. So this is just another short term breathing space to allow the PIIGS to refinance their maturing debt at less penal rates, but does absolutely nothing to solve the longer term problems of creating growth in economies stifled by ECB "conditionality"; a very sterile landscape indeed. But cheer up! QE3 will be along any day now to help the banks remain solvent for a while longer. Can exits stage right after another good kicking…
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| Central bankers and politicians are running out of ideas Posted: 09 Sep 2012 10:00 PM PDT from Gold Money:
My father, who at one time was an education minister in the Kenyan government, used to tell a story of a long-forgotten crisis when the leaders in the educational establishment could only turn to him and ask: "minister, what shall we do?" The point of the story is that these were all highly qualified senior academics, while my father had left school at 16 with no qualifications at all. It amused him. We have perhaps in the last week seen three instances of the same thing: expert committee men exhausted of ideas, despite their towering intellects. I refer to Ben Bernanke's Jackson Hole statement which said nothing; David Cameron's statement at Prime Minister's Questions, when he was reduced to that old stand-by "cure" for economic stagnation (building more houses); and then on Thursday we had Mario Draghi resorting to buying time by talking borrowing costs for Spain and Italy down on the conditional promise of some bond buying. None of them had anything new to offer. The Federal Open Market Committee, the senior civil servants in Whitehall, and the Governing Council of the European Central Bank are all intellectually at sea. They have deluded themselves with Keynesian fallacies, believing animal spirits must be revived. "Animal spirits" is code for not understanding the fundamental purpose of free markets. Instead, governments and central banks blame market irrationality and seek to manage them to promote economic growth. They then wonder why it all goes wrong.
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| Silver Update 9/9/12 Inflation Adjusted Silver Posted: 09 Sep 2012 08:59 PM PDT | ||
| Guest Post: Matthew Stein Asks "How Prepared Are You?" Posted: 09 Sep 2012 08:44 PM PDT Submitted by Adam Taggart of Peak Prosperity, During the height of the 'Goldilocks economy' of the mid-1990s, Mat Stein wrote When Technology Fails: A Manual for Self-Reliance, Sustainability, and Surviving the Long Emergency [9], a master compendium of do-it-yourself preparation skills. Fast-forward to today's Great Recession, drought-stricken, $100+ oil, post-Katrina, post-Fukushima world -- many are realizing the prudence of taking basic precautionary steps to reduce their vulnerability to whatever the future may bring. Whether you're concerned about the fallout from a breakdown of today's weakened global economy, or simply want to be better able to deal with the aftermath of a natural disaster if you live in an earthquake/hurricane/flood/wildfire/tornado-prone part of the world, the personal resiliency measures Mat recommends make sense for almost everyone to consider. In this interview, Mat begins with his universal advice for developing basic preparedness -- a 72-hour kit covering the basics needs for living, an emergency plan for your family, lining up local and out-of-town contacts, etc. -- and discusses specifics on what gear to procure and steps to take in unexpected emergencies. For more protracted periods without access to central services, many more situations are covered in his books [10] and at his website [11]. It's important to note that Mat isn't a doomer bent on fanning fears of a zombie apocalypse (though those concerned about social collapse will find much utility in his work). Like Chris, he believes that our current fossil fuel-driven, hyper-consumptive, and over-leveraged way of life is not sustainable. So before the unsustainable, by definition, stops - it's best to invest now in developing the skills and habits that will serve us in this new future; one sure to place a higher premium on self-reliance. On the Rule of Threes
On the Approach to Developing Resilience
Click the play button below to listen to Chris' interview with Mat Stein (59m:45s): Click here to read the full transcript
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| Posted: 09 Sep 2012 08:29 PM PDT From Monty Pelerin: The following table provides last week’s returns on a variety of assets: *Close Gain/Loss On Week Gold$1736.50 +$36.20 +2.64% Silver$33.65 +$1.01 +6.00% XAU179.28 +3.17% +5.53% HUI483.38 +2.77% +5.45% GDM1391.77 +2.65% +5.16% JSE Gold2372.63 +50.99 +7.00% USD80.18 -0.91 -1.27% Euro128.10 +1.78 +1.80% Yen127.79 +0.99 +0.02% Oil$96.42 +$0.89 -0.05% 10-Year1.661% -0.012 +6.34% Bond148.53125 -0.09375 -1.31% Dow13306.64 +0.11% +1.65% Nasdaq3136.42 +0.02% +2.26% S&P1437.92 +0.40% +2.23% H/T: Goldseek Most investors enjoyed last week’s ride, although bond holders and those long the dollar were exceptions. The dollar decline was offset by the appreciation in the Euro, a condition that is unlikely to persist for long given the condition of the European countries. To the extent that one can make sense out of these numbers, I suppose most would use the liquidity promises in Europe and the anticipated soon-to-be Be...
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| COLLAPSE in the EU Continues: If Draghi & Obama Aren't Stopped, We'll See HYPERINFLATION Posted: 09 Sep 2012 07:51 PM PDT
This is a MUST LISTEN Interview: Harley Schlanger calls in from Austria where he is attending high level meetings on behalf of LarouchePAC. In this portion of the interview I explain exactly WHY we invite Harley on to share his views – then we move on to the suicidal policies of the EU and Mario Draghi, which Harley calls extremely "hyper-inflationary". Harley also warns that Greece is very close to a DEFAULT which will trigger a dominoe-like collapse. In Part 2, Harley explains that if Mario Draghi isn't "dethroned" AND if Obama is re-elected, we are doomed. If these madmen are not stopped, they will destroy the EU and the United States with hyperinflation of the currencies. Harley also calls for the immediate ARREST of Tim Geithner for his crimes and role in the LIBOR fraud.
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| Posted: 09 Sep 2012 07:30 PM PDT by John Mauldin, Gold Seek:
Should the Fed Give Us QE3? There seems to be a clear consensus (from the dozen or so items I have read) that the Fed will now give us QE3 at its meeting next week. I do not doubt that more QE is in the works, but I sincerely hope they wait until after the election. To my mind, another round of QE will not produce all that much, though it may possibly make the stock market happy. It will not stimulate spending or increase the need for more loans or make it easier to buy a house. Rates are already low, and there is excess liquidity in the system. While I acknowledge that the propensity of a central banker is to do something (God forbid that a recovery should happen while they did nothing, so they couldn't take credit for it!), it is unseemly to do so right before a presidential election. There is nothing in this employment report that is any different from what we knew months ago.
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| Australian Dollar Decison Pending Posted: 09 Sep 2012 04:56 PM PDT When a global macro trend is working you pick the best trends to monitor it. The Aussie dollar has been leading the charge for the global risk on trade, can it stay off the rocks. Read More...
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| Biderman – Obama and Bernanke Bankrupting America Posted: 09 Sep 2012 04:01 PM PDT Trim Tabs founder, CEO and market advisor Charles Biderman points out the sickeningly simple math behind the giant deficits and debt being racked up by the Obama administration, as enabled by a willing Federal Reserve under Chairman Ben S. Bernanke. Mr. Biderman points out that the U.S. is borrowing more money than it can ever repay, "even if the economy zooms from here." He sees the United States of America heading "towards bankruptcy, but no one, not even the republicans are talking about the real numbers!" He then lays out the real numbers in simple, easy to understand and grasp fashion. As Grant Williams might say, "hmmm."
Source: Trim Tabs via YouTube
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| The Price of Gold Has Broken Out Posted: 09 Sep 2012 02:53 PM PDT Mr. Market is in the business of inflicting pain. What appears obvious as to what will happen, is never a surety. Betting the bank on a sure thing, is a perfect formula for allowing Mr. Market to inflict great pain on you. Read More...
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| Gerald Celente - Gold, Silver & A Major October Surprise Posted: 09 Sep 2012 02:18 PM PDT  Today top trends forecaster Gerald Celente told King World News, "They (central planners) are going to destroy the money, and they are going to do everything to try to keep the gold and silver markets down." Celente warned about a major "October surprise." He cautioned, "Anything could happen at any time. There are a lot of wild cards, and in a wild card environment like this, I want gold and I want silver ... on Friday, I just bought (gold) again."Celente is the founder of Trends Research, and the man many consider to be the top trends forecaster in the world. Here is what Celente had to say: "What's shaking out is that the European Central Bank, in their arcane language, has basically said, 'We are going to buy up all of the worthless sovereign debt that Italy, Spain, Ireland, Portugal, and any other country in the eurozone that gets in trouble, we will continue to buy up that worthless debt.' Now where are you going to get the money?"
This posting includes an audio/video/photo media file: Download Now | ||
| The Competition Amongst Gold Writers Posted: 09 Sep 2012 01:24 PM PDT My Dear Extended Family, Direct Registration System: One of the weaknesses of the "gold writer" community is that they seem to be always in competition with one and another for some assumed popularity. Early in 2000 I complained to Harry Schultz that the opinions of bullish gold commentators who knew gold was headed much Continue reading The Competition Amongst Gold Writers
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| Posted: 09 Sep 2012 01:16 PM PDT Regular readers know that going back more than a year now, I have been outlining two, potential (and nearly opposite) scenarios going forward. I indicated that either our economies would plummet into a high-inflation/hyperinflation price-spiral (due to excessive money-printing); or they would simply disintegrate, as the Western financial crime syndicate manufactured another crash in order to prevent the previously mentioned price-spiral. The latter scenario was precisely what occurred in 2008. However, in a commentary from one year ago titled Why 2011 Is Not 2008, I documented to readers how the "solutions" foisted upon us by the Banking Cabal during this first crisis had dramatically and irreparably damaged all Western economies. The only exception to this mass-suicide was Iceland, which threw the Bankers out – and subsequently saved their economy. Because all Western economies are much more crippled than they were just four, short years ago; I've indicated my suspicion that the Bank Oligarchs didn't "have the stomach" for another manufactured crash. This is due to the fact that nothing in our economies is more fragile than the bankers' own multi-trillion dollar paper Ponzi-schemes. Creating another "crash" event would detonate so many gigantic losses on Big Bank balance sheets that no amount of money-printing could avert their total destruction. Put another way, it would require so many $trillions of new money-printing just to "stop the bleeding" with these fraud-factories that the result would be instant hyperinflation – as all the People simply and finally rejected these infinite stacks of the bankers' worthless paper. We now see increasing evidence that this suspicion is being confirmed. While the media again reports that our economies have plunged into another mega-crisis; this time it is doing so (relatively) quietly. In 2008, the Western propaganda machine was just one, gigantic Chicken Little. Instead of "the sky is falling," we were warned (in the most shrill, hyperbolic terms) that we were facing nothing less than the total collapse of our financial systems and our entire economies…unless we listened closely to the bankers, and did exactly what they told us to do. To emphasize their point, the Banking Cabal deliberately "crashed" the global economy – the inevitable result when this banking oligopoly colluded to simultaneously cut-off all capital to an entirely debt-based economic system. Deprive some strung-out heroin junkie of his "fix", and you guarantee a severe (if not fatal) withdrawal reaction. Deprive a global economy filled with debt-junkies of any more debt and you guarantee similar, severe "economic withdrawal" – an immediate economic crash. The Big Lie which the bankers tried to pass-off on us was that History's most-insane gamblers and reckless lenders were (suddenly) "afraid" to lend anyone money. However (as usual) the banksters' own actions proved they were lying. Even after U.S. Big Banks had literally been guaranteed infinite, free funding (i.e. unlimited quantities of 0% loans); they still refused to do what they had promised – and lend into the broader economy. For any banker-apologists who would still dare to suggest that the Big Banks don't collude; the bankers have already proven you wrong. In confessing to market-rigging with respect to $500 trillion in LIBOR-based transactions; this is by definition a crime of collusion – since the LIBOR rate itself is set collectively, by these same Big Banks. In 2012, we see the bankers and the Corporate Media again colluding. However, while in 2008 this tag-team unfailingly acted to amplify panic; today our don't-worry-be-happy media optimists simply say to us again and again "problem solved." By my unofficial count, the propaganda machine has announced a "solution" to the (made-in-the-USA) "Euro debt crisis" on approximately a hundred separate occasions. That's a very impressive performance by Europe's bankers and Traitor Politicians – given that this "crisis" is a mere three years old.
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| Alasdair Macleod: Only markets can fix economies but markets have been destroyed Posted: 09 Sep 2012 09:21 AM PDT 11:15a ET Sunday, September 9, 2012 Dear Friend of GATA and Gold: Central bankers and the supposedly great intellects of the financial world can't figure out how to revive national economies and are out of ideas, GoldMoney Research Director Alasdair Macleod writes. It's because, he adds, they have destroyed markets and don't realize that only markets can fix things. Macleod's commentary is headlined "Central Bankers and Politicians Are Running Out of Ideas" and it's posted at GoldMoney's Internet site here: http://www.goldmoney.com/gold-research/alasdair-macleod/central-bankers-... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. Join GATA here: Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment: 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 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...
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| Posted: 09 Sep 2012 09:06 AM PDT The following article has been posted at GoldMoney, here. Central bankers and politicians are running out of ideas2012-SEP-09
 We have perhaps in the last week seen three instances of the same thing: expert committee men exhausted of ideas, despite their towering intellects. I refer to Ben Bernanke’s Jackson Hole statement which said nothing; David Cameron’s statement at Prime Minister’s Questions, when he was reduced to that old stand-by “cure” for economic stagnation (building more houses); and then on Thursday we had Mario Draghi resorting to buying time by talking borrowing costs for Spain and Italy down on the conditional promise of some bond buying. None of them had anything new to offer. The Federal Open Market Committee, the senior civil servants in Whitehall, and the Governing Council of the European Central Bank are all intellectually at sea. They have deluded themselves with Keynesian fallacies, believing animal spirits must be revived. “Animal spirits” is code for not understanding the fundamental purpose of free markets. Instead, governments and central banks blame market irrationality and seek to manage them to promote economic growth. They then wonder why it all goes wrong. Here is the true situation: unrealistic asset valuations, the result of zero interest rates, have strangled progress. Note progress, not growth: this is deliberate. The result is that markets no longer work effectively, so it is impossible for the economy to advance. Governments and central banks cannot face up to this reality, because over-valued assets are collateral for record levels of debt that have accumulated over the last 50 years, the result of government-sanctioned expansion of bank credit. The authorities misdiagnose economic problems because they believe in economic statistics that are wholly fallacious. The most important of these is gross domestic product, and I was heartened to see Toby Baxendale of the Cobden Centre make this very point. I go further in denouncing GDP: it is no more than a money-total that can be pumped up by government intervention and bears no relationship with economic progress. If GDP had been invented earlier, no doubt Rudolf Havenstein – President of the Reichsbank in 1920-23 – would have claimed spectacular economic growth, purely based on money-printing running ahead of price inflation. We know how that ended. This is statistical growth for you, not economic progress. Think about it, because this is precisely what central bankers do today, and they pass it off as responsible economic policy. Markets need to clear over-priced stock, assets and unsustainable debt. Getting there by inflating the problem away, which is essentially what central banks are doing, only destroys the savings necessary for genuine economic progress. It is a confused policy of making us wealthy by destroying wealth. It seems extraordinary that this simple fact has escaped the combined mental capacity of all those highly qualified committeemen and civil servants. Alasdair Macleod Head of research, GoldMoney Mob: 07790 419403 Twitter @MacleodFinance 
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| Got Gold Report's charts show gold winning the 'race to debase' Posted: 09 Sep 2012 09:02 AM PDT 11a ET Sunday, September 9, 2012 Dear Friend of GATA and Gold: Gene Arensberg's latest edition of the "Got Gold Report" is posted in the clear and with several good charts it documents the Western central bank "race to debase" currencies and gold's upward breakout from a consolidation. Arensberg's commentary is headlined "Euro Close to All-Time Low Purchasing Power Relative to Gold" and it's posted at the Got Gold Report Internet site here: http://www.gotgoldreport.com/2012/09/got-gold-report-euro-close-to-all-t... CHRIS POWELL, Secretary/Treasurer ADVERTISEMENT Fred Goldstein and Tim Murphy open All Pro Gold Longtime GATA supporters Fred Goldstein and Tim Murphy have brought their many years of experience in the precious metals and numismatic coins to All Pro Gold as metals brokers who specialize in the delivery of gold and silver bullion bars and coins as well as numismatic gold and silver coins. Fred and Tim follow these markets closely and are assisted by a team of consultants in monitoring market trends. All Pro Gold offers GATA supporters competitive pricing on all bullion products and welcomes inquiries. Tim can be reached at 602-299-2585 and Tim@allprogold.com, Fred at 602-799-8378 and Fred@allprogold.com. Ask about their ratio strategy and the relationship of generic $20 dollar gold pieces to 1-ounce gold bullion coins. Visit their Internet site at http://www.allprogold.com/. Join GATA here: Toronto Resource Investment Conference New Orleans Investment Conference * * * Support GATA by purchasing DVDs of our London conference in August 2011 or our Dawson City conference in August 2006: http://www.goldrush21.com/order.html Or by purchasing a colorful GATA T-shirt: Or a colorful poster of GATA's full-page ad in The Wall Street Journal on January 31, 2009: http://gata.org/node/wallstreetjournal Help keep GATA going GATA is a civil rights and educational organization based in the United States and tax-exempt under the U.S. Internal Revenue Code. Its e-mail dispatches are free, and you can subscribe at: To contribute to GATA, please visit: ADVERTISEMENT Prophecy Platinum Announces Wellgreen Preliminary Economic Assessment: 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 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...
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| "Bull Pennant" forms as the "Triangle" target gets nailed in Gold Posted: 09 Sep 2012 08:56 AM PDT Gold finishes the week with a "high and tight" continuation pattern going into next week known as a "Bull Pennant", see one hour chart left hand side below. The chart work has been text book in gold for quite some time with the most recent being the breakout to the upside from a multipoint channel on the same one hour chart. What made the breakout from the channel so significant is that it took place above the prior "Major" trendline resistance of the "Descending Triangle" on the daily chart. Prior trendline resistance can act as support, see right hand side below.
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Gold and silver have extended last weeks big gains on tonight's Globex/ Asian open, with silver blasting .25 higher, through $34 to $
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